Insuring the Future: Leadership Beyond Premiums

Insurance is often misunderstood. To many, it remains an abstract promise—a piece of paper, a premium, a distant possibility. But in truth, insurance is the infrastructure of confidence. It is the quiet force enabling families to sleep at night, businesses to expand, and economies to weather storms. As Nigeria faces rising uncertainty—climate volatility, economic headwinds, geopolitical strain, and digital disruption—insurance must be reimagined. Not just as a product, but as a platform for national resilience, household security, and sustainable growth. This reimagination requires leadership. Not transactional leadership focused on sales targets, but transformational leadership that inspires trust, navigates complexity, and builds systems that serve the many, not the few.

Globally, countries that have deepened insurance penetration tend to grow faster and recover quicker from crises. According to Swiss Re, a 1 percent increase in insurance penetration leads to a 13 percent reduction in disaster-related economic losses. In the United States, UK, Japan, and increasingly in India and Brazil, insurance is embedded in social and economic systems. In contrast, Nigeria’s retail insurance penetration remains under 1 percent. This is not a statistic. It is a leadership gap. One that calls for bold, strategic responses at the intersection of governance, innovation, regulation, trust, and global risk.

First, governance. At the heart of every resilient insurance ecosystem is strong governance. In Nigeria, the operating environment is burdened by a historical deficit of trust and oversight. Specifically in the insurance industry, a few instances of poor claims management, unclear product structures, and weak board performance have fuelled public scepticism. Good governance is not just about compliance. It is about strategy, stewardship, and sustainability. It means boards that ask the right questions, invest in long-term capability, and put the policyholder at the centre of the business model. In South Africa, Discovery Health has built a globally respected reputation through its focus on governance-driven innovation and behavioural science. Nigerian insurance leaders must follow suit, building more governance frameworks that inspire confidence and drive inclusive performance.

Second, innovation. The future of insurance is digital. From Kenya’s M-TIBA platform, which enables micro-health insurance via mobile phones, to India’s explosion in AI-led underwriting, innovation is democratising access and improving affordability. In Nigeria, pioneers like Casava and Tangerine are creating digital-first, low-cost offerings tailored to the informal sector. But the pace is uneven. The innovation we need must go beyond digital transformation to business model renewal. Leaders must think beyond products and build platforms—ecosystems that include tech, telecoms, health providers, and government. This demands a new breed of leader: systems thinkers who can orchestrate collaboration, harness data, and manage uncertainty.

Third, regulation. For innovation to thrive, regulation must evolve from being reactive to being enabling. Encouragingly, recent developments at the National Insurance Commission reflect a fresh resolve. Under the current Commissioner’s leadership, NAICOM has launched a bold 10-year insurance transformation roadmap. This strategic document does more than outline targets—it sets a new trajectory for penetration, digital enablement, and talent development. The goal is not merely to grow premiums but to embed insurance into Nigeria’s socio-economic fabric. There has also been a visible shift in claims culture, anchored by a principled directive: “find a reason to settle claims.” This people-first ethos marks a sharp departure from bureaucratic denial and helps restore the public’s belief in insurance as a safety net. In parallel, NAICOM has elevated Nigeria’s regulatory diplomacy—engaging with the World Bank and regional regulators to scale financial inclusion and institutional resilience. These steps, while commendable, must continue with consistency and deeper engagement across the ecosystem.

Fourth, trust. Insurance cannot work without trust. Yet in Nigeria, many see it as a last resort, not a first response. Delayed claims, hidden exclusions, and in some few cases inadequate communication have eroded belief in the industry. Rebuilding trust is not a marketing task. It is a leadership task. It means radical transparency, fast claims settlement, financial literacy campaigns, and active listening to underserved communities. Rwanda offers a powerful example. Its community-based health insurance system covers more than 80 percent of its population. This did not happen through slogans. It happened through persistent engagement, grassroots involvement, and leadership that matched policy with empathy. Nigerian insurance leaders must learn from this model to rebuild the emotional contract with the public.

Fifth, geopolitical and climate risks. From floods in Lagos to inflation shocks and cyberattacks, today’s risks are complex, interconnected, and escalating. The World Economic Forum warns that climate and digital risks are now among the top five threats to businesses globally. In Mozambique, Cyclone Idai exposed the absence of anticipatory insurance solutions, costing lives and livelihoods. Indonesia, on the other hand, is experimenting with parametric insurance for farmers—a model that pays out based on weather data rather than lengthy damage assessments. Nigerian insurers must move beyond the traditional risk categories. They must embrace scenario planning, climate modelling, and ESG-aligned underwriting. This requires new skills, global perspectives, and bold investment in foresight capabilities.

So, what does this mean for leadership in the insurance industry? It means that the old playbook is no longer enough. Technical knowledge alone will not prepare leaders for the pace and complexity of change. What is needed is a mindset shift—from operational expertise to strategic foresight, from control to collaboration, from product sales to purpose-driven impact.

This is where TEXEM comes in. For over 15 years, TEXEM has supported leaders globally in building the strategic, ethical, and innovative capabilities needed to lead in turbulent times. Our executive development programmes equip leaders to think systemically, act ethically, communicate persuasively, and navigate ambiguity. We do not just inspire for today. We develop leaders for all times. We enthuse leaders to glean actionable insights from the past and foresight for the future, we equip leaders with the requisite core competence to be prepared to win during adversity and prosperity.

In our programmes, insurance executives engage with world-class faculty, real-life case studies, and cross-sector peers to co-create solutions that are both locally grounded and globally informed. Whether it is designing customer-centric digital journeys, influencing regulation through evidence-based advocacy, or embedding sustainability into governance, TEXEM provides a platform for leaders to accelerate their impact.

As Nigeria charts a path toward economic recovery and inclusive growth, the insurance sector must not remain on the sidelines. It must be at the centre. But this will not happen automatically. It will require leaders who can reframe insurance as a catalyst for development, not just a compliance obligation. Leaders who go beyond premiums and commissions to build institutions that protect, empower, and transform lives.

The future of insurance in Nigeria will not be decided in boardrooms alone. It will be shaped by how well we lead through complexity, how boldly we innovate, and how deeply we earn the trust of those we serve. The challenge is real. But so is the opportunity.

It is time to insure leadership itself. And the premium is foresight, courage, and action.

Dr. Alim Abubakre
Founder, TEXEM, UK