Leveraging Fintech and Insurtech to Bridge Nigeria’s Insurance Penetration Gap
The Mediating Role of Regulation, Trust, and Digital Access
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Abstract
Nigeria’s insurance sector continues to face significant challenges, with insurance penetration stubbornly below 1% of GDP, well under the African average. This study explores how the adoption of fintech and insurtech innovations can help bridge this insurance gap by improving access and trust, crucial factors that mediate the relationship between technology adoption and insurance uptake. Using data from 367 respondents across insurance providers, fintech/insurtech firms, regulators, and consumers, we analysed how digital tools and regulatory support influence insurance penetration. The Pearson correlation analysis was adopted in analysing the collected data from the sample. Our findings reveal that fintech and insurtech adoption strongly predicts insurance uptake (β = 0.384, p < .001), with digital accessibility (β = 0.294, p < .001) and trust in digital insurance channels (β = 0.241, p = .001) serving as significant mediators. Moreover, supportive regulatory frameworks further enhance the positive effects of technology adoption on insurance penetration. Together, these results highlight that leveraging digital innovations within a trustworthy and well-regulated ecosystem holds great promise for expanding insurance coverage in Nigeria’s underserved markets. Policymakers and industry stakeholders must therefore prioritize integrated strategies that combine technological innovation, customer-centric access, trust-building, and regulatory backing to accelerate inclusive insurance growth.
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Copyright (c) 2025 Imo Okorie Imo, Obinna Chilekezi (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Imo Okorie Imo, Joseph Ayo Babalola University, Osun State, Nigeria.
Department of Entrepreneurship
Obinna Chilekezi, School of Business and Public Administration, The University of The Gambia.
Dr. Chilekezi began writing poetry at an early age, and his works have been featured in notable Nigerian and international publications. He has authored several poetry collections, including My Son Chikeziri Too Died, Rejection and Other Poems, and Songs of a Stranger at the Smiling Coast. His poetry often explores themes of love, loss, and the African pastoral landscape, employing vivid imagery and accessible diction to convey deep emotional resonance.
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