Agboola Pius, Managing Director of Peerless Management & Solutions Limited and former Director of the National Insurance Commission (NAICOM), has highlighted the prohibitive costs of incorporating broking firms as a major barrier to the widespread adoption of insurance in Nigeria. Pius made these remarks at the Nigerian Council of Registered Insurance Brokers Lagos Area Committee (NCRIB-LAC) 2024 midyear workshop held yesterday in Lagos.

Speaking on the theme, “Enhancing Insurance Penetration In Nigeria: The Pivotal Role of Insurance Brokers,” Pius emphasized that brokers are crucial to insurance distribution, generating 68.32 percent of the industry’s income. However, the high cost of establishing broking firms forces operators to focus on profitable urban areas, neglecting rural regions.

Pius called for incentives for brokers willing to operate in rural locations, similar to practices in some developed countries. He pointed out the absence of insurance brokers in 16 states, including Nasarawa, Niger, Adamawa, Borno, Gombe, Taraba, Yobe, Jigawa, Katsina, Kebbi, Sokoto, Zamfara, Ebonyi, Bayelsa, Cross River, and Ekiti, highlighting a significant gap in insurance coverage across the country.

To address this issue and enhance insurance penetration, Pius advocated for increased collaboration and partnerships within the industry. He also stressed the importance of reducing operational costs, harmonizing experiences, and leveraging artificial intelligence to improve efficiency and reach.

The workshop, attended by key stakeholders in the insurance sector, underscored the pivotal role of insurance brokers in expanding the industry’s reach and ensuring that insurance services are accessible to all Nigerians, regardless of their location.