Stakeholders, Technology, and insurance experts have come together to stress the need for a policy mandate to make digital identity compulsory as means of driving insurance growth in Nigeria.
Taking a look at the Nigerian insurance market which has a $100 billion potential means that the sector can be one of the biggest sources of revenue for Nigeria. It is only possible if the opportunity is properly harnessed.
The need for the policy mandate arose at the second edition of Digital Identity Matters, a webinar series for enabling conversations for improving contemporary issues in identity technology. The webinar was championed by an organization called VerifyMe Nigeria. The organization is one of the leaders in verification and Know-Your-Customer (KYC) technology. In addition to that, Tech Cabal, a future-focused publication also partners with VerifyMe on this issue.
The panelists discussed why insurance is very important for the growth of Nigeria’s digital economy, while at the same time some of the experts agree that insurance penetration in Nigeria is at an abysmal level.
It is noted that for a population of about 200 million people in Nigeria, $1 billion is contributed to the Gross Domestic Product (GDP) in 2022. South Africa contributed $50 billion but the country’s population is just about a third of that of Nigeria. The penetration of insurance in Nigeria is one percent but in South Africa, it is 17 percent.
In view of this, stakeholders are encouraged to put more effort to ensure that insurance is available to more people so the digital economy can grow.
VerifyMe has the technology and APIs but there should also be strong regulation to close the credibility gap in the insurance market and drive compliance, with the one percent that is insured in Nigeria.
Above all, insurance experts present at the webinar stressed that to drive mass-market adoption in Nigeria, consumers must be informed on how insurance can work for them daily to protect their wealth.