MANAGING director and chief executive officer of GOXI Microinsurance Limited, Mr Shina Gbadegesin, says insurance penetration in Nigeria remains below 1 percent, presenting both a challenge and an opportunity.
Speaking in an interview, Mr Gbadegesin said specialised microinsurance operators were well-positioned to drive inclusion by serving populations often ignored by conventional insurers, noting that microinsurance products must be flexible enough to address the specific and daily needs of low-income individuals.
He explained that conventional insurance and microinsurance operated on the same principle of risk pooling but the difference lay in the characteristics of the target market and how products were designed and delivered.
“For microinsurance to be effective, products must be simple and easy to understand. They must also be easily accessible, because low-income people often do not have the luxury of travelling long distances to access financial services,” he said.
Investopedia explains that microinsurance products offer coverage to low-income households or to individuals who have little savings. It is tailored specifically for lower valued assets and compensation for illness, injury, or death.
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The GOXI CEO noted that microinsurance had the potential to accelerate insurance growth and significantly deepen financial inclusion in Nigeria.
He explained that the company’s early years were challenging due to the absence of a local blueprint for specialised microinsurance operations. According to him, GOXI relied heavily on global research, studying successful microinsurance models across different countries and adapting them to Nigeria’s realities.
Despite the challenges, Mr Gbadegesin said GOXI had demonstrated that a standalone microinsurance model would work in Nigeria, noting that one of the most fulfilling outcomes had been dispelling the belief that low-income earners would not buy insurance.
“Our experience has shown that low-income people do buy insurance, provided the products meet their needs and are delivered through the right channels,” he said.
Mr Gbadegesin disclosed that since inception, GOXI had recorded over 1.4 million cumulative transactions and paid more than N790.8 million in claims, mostly to economically vulnerable individuals and micro- and small-business operators. He added that more than 3,500 low-income customers had benefited from claims payments, helping many avoid falling into extreme poverty after events such as fire outbreaks, death, burglary or business disruptions.
He also noted that the microinsurance subsector had expanded since GOXI’s licensing, with about 17 microinsurance companies now fully licensed by the National Insurance Commission (NAICOM), reflecting growing interest and recognition of the segment.
Currently licensed to operate within Lagos State, Mr Gbadegesin said GOXI is in the process of upgrading to a national microinsurance licence. He revealed that the company had met the N600 million capital requirement and fulfilled regulatory conditions, with approval from NAICOM expected once procedural processes are concluded.
“With a national licence, we plan to expand across Nigeria through partnerships to reach remote and underserved communities. Our target is to reach at least five million customers nationwide,” he said.
Addressing trust and awareness challenges, Mr Gbadegesin said GOXI relied heavily on partnerships with organisations that already enjoyed community trust. Through these partners, the company conducted education and awareness campaigns, both below-the-line and above-the-line, to improve understanding and acceptance of microinsurance.
He noted that the COVID-19 pandemic tested the company’s resilience shortly after operations began but also strengthened trust, as GOXI continued to honour claims during the crisis.
Mr Gbadegesin said claims payment remained central to GOXI’s value proposition, with a commitment to settling claims within 48 hours of receiving complete documentation. He added that the company had consistently met this timeline over the past six years.
He also highlighted the benefits of GOXI’s membership of the global Microinsurance Master network, which had provided access to international best practices, innovation and market insights that had improved strategy and product development.
On market potential, Mr Gbadegesin cited data suggesting that over 31.2 million Nigerians were interested in microinsurance, while more than 20 million microfinance bank customers represented a ready market. He estimated that even at a minimum premium of N100 per month, the market opportunity exceeded N80 billion.
Mr Gbadegesin commended NAICOM for introducing a microinsurance regulatory framework, describing it as critical to sector growth and clarity. He acknowledged ongoing efforts to refine the guidelines through the NIIRA Implementation Group ahead of new regulations.
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He identified affordability, low awareness, cultural beliefs and widespread poverty as key challenges facing the sector, noting that some of these required industry-wide and multi-stakeholder collaboration rather than individual company efforts.
As part of awareness creation, he said GOXI introduced the Annual Microinsurance Conference three years ago to bring together regulators, industry players and international stakeholders to discuss strategies for inclusive insurance. The most recent edition, co-hosted with the global Microinsurance Network, attracted wide industry participation.
Looking ahead, Gbadegesin said GOXI aimed to leave a legacy as a trusted, customer-centric brand that transformed perceptions of insurance among low-income Nigerians, strengthened resilience among nano- and small-business operators, and contributed meaningfully to Nigeria’s social and economic development through deeper insurance inclusion.
