Corporates get 70% of insurance claims as most Nigerians remain uninsured
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Chuks Udo Okonta
Corporate policyholders accounted for about 70 per cent of total insurance claims paid in Nigeria over the past five years, underscoring the continued dominance of corporate risks in the nation’s insurance landscape amid low retail penetration.
Findings from industry data reviewed by Inspenonline indicate that Nigerian insurers paid an estimated N1.85 trillion in claims between 2020 and 2024, with approximately N1.25 trillion paid to corporate organisations across major economic sectors.
A breakdown of corporate claims paid within the period shows a steady upward trend:
2020: N210 billion
2021: N235 billion
2022: N255 billion
2023: N275 billion
2024: N275 billion
The bulk of these claims arose from capital-intensive insurance classes such as Oil and Gas, Marine and Aviation, Fire and Industrial Risks, Engineering, and Group Life, where the value of insured assets and exposures remains significantly high.
Despite the dominance of corporate claims in value terms, retail insurance continues to account for higher claim frequency. Personal lines, particularly Motor Insurance, generate a larger number of claims, although individual payouts are relatively smaller when compared with corporate losses.
Market analysts note that this contrast highlights the structure of Nigeria’s insurance market, which remains premium- and claims-heavy at the corporate level, while retail business provides the industry’s most frequent interaction with the general public.
According to industry observers, retail insurance contributes between 25 and 35 per cent of total premium income, yet its high claim frequency suggests growing awareness among individuals seeking protection against everyday risks.
“The data reveals a significant protection gap. While corporates dominate claims value, retail insurance reflects where Nigerians interact most with insurers, especially through motor claims,” an industry source told Inspenonline.
Stakeholders believe the evolving claims profile is gradually shifting public discourse from long-standing skepticism about claims payment to a more mature conversation around efficiency, transparency and service delivery.
To drive retail growth, insurers are expected to strengthen focus on microinsurance products, improve claims settlement timelines, deploy digital distribution channels, and leverage verified claims data to rebuild public trust.
With Nigeria’s insurance penetration still below one per cent of GDP, operators insist that sustained public awareness, enforcement of compulsory insurance policies and simplified retail products remain critical to expanding coverage.
Industry players agree that while corporate business will continue to anchor the sector, the future growth of the Nigerian insurance market lies in deepening retail participation and closing the country’s protection gap.
