Need for actuaries widen as insurance unlock new markets

The on-going transformation in the nation’s insurance industry, with focus on annuity market, life businesses and resilience of the sector has pushed up need for more actuaries in the industry.

According to the National Insurance Commission, the Nigerian insurance sector is undergoing significant transformation, driven by technological innovation, shifting consumer expectations, and an evolving regulatory framework.

“Actuaries play a critical role in this transformation, given their expertise in risk modelling, data analytics, and long-term financial planning. These are essential in ensuring the sustainability, inclusivity, and adaptability of insurance to emerging risks, says Segun Omosehin, commissioner for Insurance/CEO, NAICOM.

Omosehin made the remark at the 2025 Annual Industry Conference of the Nigerian Actuarial Society with the theme ‘Creating Value and Building Resilience in an Evolving Industry’ held in Lagos.

Omosehin represented by Usman Jankara , deputy commissioner for Insurance, Technical said “As we confront challenges such as climate risk, cyber threats, and health system vulnerabilities, the actuarial profession must continue to innovate and lead. You are instrumental in designing effective risk management strategies and developing products that meet the evolving needs of society.”

We also recognise the value of collaboration. Our partnership with the Nigerian Actuarial Society (NAS)—including the Discount Rate Committee and the Supplementary Annuity Guidelines—is central to building a resilient industry. For instance, monthly discount rate data has improved the accuracy of liability management and brought consistency and reliability to calculations across the industry, he said.

Jolaolu Fakoya, president, Nigerian Actuarial Society speaking earlier said the theme ‘Creating Value And Building Resilience In An Evolving Economy’ reflects the changing times that we live in, and the critical role Actuaries play in shaping a strong future for our economy.

Read also: How Nigerians can qualify as actuaries

“As we navigate an economy marked by uncertainty, disruption and transformation, the call to create value and build resilience is more than just a theme, it’s a professional imperative. But resilience as we understand it, to me the ability to withstand shocks, may no longer be enough.”

Fakoya said, as Actuaries, our role goes beyond analysis. It extends to leadership, stewardship and innovation. This conference is a space for us to reflect, to re-imagine how we add value and build resilience in everything we do. Our profession is a calling to build resilience, to equip businesses and institutions to thrive on uncertainty and change.

Rabiu Olowo, executive secretary/CEO, Financial Reporting Council (FRC) said, we are living in a world of complexity and unpredictability. Yet amid this flux, one thing remains constant: the pivotal role of actuaries in navigating uncertainty, guiding long-term decisions, and building sustainable systems.

He said the question is not whether actuaries are relevant, but whether we are fully leveraging their expertise to create value and resilience for society.

“Today’s actuaries are not only designing insurance products or calculating pension liabilities. They are modeling the financial implications of climate change, anticipating demographic shifts and healthcare trends, and advising on digital risks, cyber threats, and the ethical use of artificial intelligence.”

Olowo informed that Nigeria currently has fewer than 30 qualified actuaries, noting that a comparable economy, such as South Africa has about 2,000. This is a capacity gap that directly affects our ability to manage pension funds, price risk, value liabilities, and attract and retain investment, he said.

Babatunde Fajemirokun, managing director/CEO, Aiico Insurance Plc speaking at the event said actuarial profession can really power this innovation.

“At AIICO, our actuarial team co-developed embedded domestic travel products in collaboration with product and underwriting teams. This wasn’t just technical work, it was purposeful innovation to meet a specific industry need. Actuaries are no longer just number crunchers of numbers, they are product designers and value creators, he said.

According to him, InsurTech is opening exciting frontiers for actuarial science in areas of dynamic pricing, innovative risk pooling, and predictive claims modeling are just the beginning.

“These are no longer optional skillsets, Actuaries must evolve their models to incorporate machine learning, data science, and real-time analytics and that’s the path to relevance in the digital age.”

On embracing new data and behavioural insights, Fajemirokun said “We must begin to incorporate alternative data like mobile usage, transaction history, and even social media behaviour into our actuarial models”.

“It’s not just about technical capability, it’s about creating products with real customer value. Actuaries must bridge finance, data, and empathy. As we scale innovation, the customer experience must remain central. Financial soundness means nothing if customers don’t find value in what we build.”

As of quarter one 2025, Nigeria’s insurance sector recorded a 63 percent increase in gross premium income compared to Q1 2024, reaching N769.2 billion in just the first three months of the year.

This growth according to NAICOM reflects market confidence and the increasing relevance of insurance in the Nigerian economy. During the same period, the industry’s total assets stood at N4.12 trillion, underscoring a stronger financial foundation.

Claims paid amounted to N1.59 billion. While this shows an improvement in the industry’s loss ratio compared to Q1 2024, it also represents 89.1 percent of total reported claims, indicating better responsiveness to stakeholders. These figures reflect real financial protection for lives, families, businesses, and futures, the Commission said.