Speaking at a recent industry forum in Lagos, the company’s Managing Director and Chief Executive Officer, Mr. Segun Bankole, noted that despite Nigeria’s large population and growing business landscape, insurance penetration remains low compared to global standards. He attributed this to factors such as weak public awareness, inadequate enforcement of existing insurance laws, and limited government incentives to encourage adoption.
According to him, strategic government support in the form of policy reforms, tax incentives, and stronger regulatory enforcement could help boost investor confidence, deepen market penetration, and enhance the industry’s capacity to provide risk coverage for individuals, businesses, and public infrastructure.
“The insurance sector is a vital pillar for any thriving economy,” he said. “Beyond providing financial protection, it plays a critical role in mobilising long-term funds for national development. With the right government backing, we can unlock the industry’s full potential and ensure it becomes a major driver of economic growth.”
Mr. Segun Bankole, further urged the government to prioritise partnerships with industry stakeholders, invest in public sensitisation campaigns, and leverage technology to expand insurance access to underserved communities. He added that a well-developed insurance market would not only safeguard assets but also create jobs, attract foreign investment, and support Nigeria’s overall economic resilience.
Sovereign Trust’s call comes amid ongoing discussions among policymakers, regulators, and industry leaders on how to position the insurance industry as a major contributor to the nation’s GDP.