Digital payment gap stalls insurance uptake, renewals
For many Nigerians, buying or renewing an insurance policy still feels like a difficult task. They have to make calls, embark on physical visits, and, too often, experience several failed
- Leadway Assurance emerges bright spot
For many Nigerians, buying or renewing an insurance policy still feels like a difficult task. They have to make calls, embark on physical visits, and, too often, experience several failed payment attempts. In a digital-first age, the process remains stubbornly analogue.
Across the industry, the slow adoption of seamless digital payment systems is quietly undermining policy acquisition and renewals, reinforcing one of the sector’s oldest problems of low penetration.
Operators still rely heavily on brick-and-mortar channels, manual processes, and fragmented payment options. The result: customers drop off midway, abandon renewals, or simply walk away.
“People are willing to buy insurance, but not if the process is stressful,” a Lagos-based policyholder, Frank Emenike said. “If I can’t pay in two or three clicks, I’ll postpone it and sometimes I don’t go back.”
Industry data and recent reports point to three persistent gaps as manual bottlenecks, weak payment infrastructure, and a shortage of digital talent. In health and motor insurance especially, onboarding still involves paperwork and human intervention, slowing down what should be instant transactions.
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Even where online channels exist, they are often unreliable. Payment failures, poor integration with banks, and clunky interfaces frustrate users. Unlike the banking sector, where apps and USSD have simplified transactions, insurance platforms are yet to catch up.
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However, the regulator, National Insurance Commission (NAICOM) has been taking note and has repeatedly emphasised the need for end-to-end digitisation as part of broader reforms under the Nigerian Insurance Industry Reform Act, 2025 (NIIRA Act 2025).
The Deputy Commissioner for Insurance, Technical, Dr. Usman Jankara Jimada while speaking on the trend at an insurance forum, said the future of insurance distribution would be largely digital.
He stated that ease of payment is critical, noting that if customers cannot conveniently pay premiums, they will not sustain policies.
He pointed out that the industry must close that gap quickly.
Stakeholders say the issue goes beyond technology but survival.
“Insurance is a promise,” an industry analyst noted. “But if customers struggle at the point of entry, payment and renewal, that promise never even starts.”
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Yet, amid the slow pace, a few operators are beginning to show what is possible.
One of them is Leadway Assurance Company Limited, which has invested heavily in digital channels to simplify customer journeys.
From onboarding to payment and policy issuance, the company has built a system that allows customers to complete transactions in minutes.
Its digital ecosystem includes “Prince,” an AI-powered WhatsApp assistant, alongside a mobile app that enables policy tracking, premium payments, and renewals.
A check on its platform shows a largely frictionless process—users can select products, make payments, and receive confirmation almost instantly, without the back-and-forth that defines much of the industry.
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Speaking on the company’s approach, the Managing Director/CEO, Gboyega Lesi said the focus has been on removing barriers.
“Insurance should not be complicated. We have deliberately simplified our payment channels because we understand that convenience drives adoption. When customers can pay easily, they are more likely to buy and renew”, he said.
The contrast is becoming clearer. While some firms are building for speed and accessibility, others remain tied to legacy systems that slow them down.
With the new reform law pushing for a more modern insurance landscape, analysts say digital payments will be a defining battleground.
For now, the gap remains and it is costing the industry not just transactions, but trust.
