Operators in Nigeria’s insurance industry must leverage technology and data to determine appropriate product pricing.
This was the submission of Mr Nelson Akerele, Managing Director of Enterprise Life Assurance Nigeria, at the recently concluded IMT 4.0 Conference in Lagos where he spoke as a panelist.
Mr Akerele emphasized that while the National Insurance Commission, NAICOM, is responsible for providing an enabling environment for operators, it is not the regulator’s duty to provide data.
According to him, the regulators are not the players. We the operators are the players and we are the ones with the data. The real question is, what do we do with the data we already have.
He stressed that data must guide the industry’s course of action.
“If we use data correctly, we can easily determine the right pricing structure. But if we misuse or ignore data, then we lack the basis to agree on what price will truly work.”
Mr Akerele highlighted that technology is the key driver for harnessing big data effectively, enabling the industry to refine and analyze information for actionable insights.
“It is not just about having data, it is about the quality of that data and how it is refined. With properly refined data, we can present accurate insights that justify pricing decisions. That is where technology comes in, it ensures underwriting is based on facts, not guesswork.”
Drawing comparisons with developed markets, he noted that underwriting in Nigeria is still underutilized.
“For instance, in motor insurance abroad, underwriters consider where a car is parked, the daily driving route, driver’s experience, and road quality. These details are fed into data systems, which then help determine fair and sustainable pricing. Unfortunately, we are not applying underwriting to that depth in Nigeria.”
He further reminded practitioners that insurance is a business, not an NGO.
“We run businesses to make profit in the long run. Once you have your data, you clean it up, refine it, and establish a pricing structure. Of course, pricing is never permanent, it evolves with experience and market realities. That is why we must constantly challenge the status quo.”
Mr Akerele urged insurance operators to embrace disruption, innovation, and customer centered thinking.
“We need to do a whole lot of deep thinking. Disruption means we cannot continue doing business as usual. It is a change of behavior, a shift in mindset, and a new way of delivering value. We must stop pushing products and start pulling customers in by showing them the value they get. When customers see the value, they are willing to pay the premium.”
He added that beyond pricing, technology also impacts customer experience and claims processes.
“Technology enables us to deliver services faster, simplify policy wordings, and ensure that customers actually feel the tangibility of our intangible product. It is about delivering real service, not just selling a product. That is the true disruption the industry needs.”
Concluding, Mr Akerele called on all practitioners to return to the drawing board and embrace critical thinking, innovation, and service excellence.
“We are not just pushing products, we are delivering service, we are delivering a lifestyle. That is the future of insurance in Nigeria.”
