Let’s be honest, when most of us hear the word insurance, our body just reacts. We imagine stress. We think “waste of money.” We remember that annoying agent who used to call nonstop.
But something is changing quietly behind the scenes. Nigeria’s insurance industry is now sitting on ₦2.04 trillion in total assets. That’s an extra ₦240 billion added in just six months, growing faster than many banks!
Yet, while some people are still shouting “Na scam!”, others are already cashing out legally and smiling to the bank.
Let me show you what’s really going on.
“Insurance saved my company”
A young entrepreneur once told me this story.
He ran a logistics company in Lagos, moving goods for big brands. One night, one of his delivery vans, worth about ₦35 million, got completely wrecked in an accident.
He thought his business was over. Until the insurance company paid him the full amount, within one week.
That’s when it hit me.
Insurance isn’t an expense. It’s intelligent protection.
Most of us think insurance is just about paying for nothing, but that’s old thinking. It’s not just about covering losses, it’s also a powerful wealth engine.
How insurance companies actually make money
Here’s what many Nigerians don’t know: when you pay your insurance premium, that money doesn’t sit idle somewhere.
Insurance companies invest it.
They put it into bonds, treasury bills, real estate, and the stock market, multiplying that money quietly and legally.
So while you’re paying ₦20k to insure your car, that ₦20k might already be working in multiple investments, earning interest, dividends, and compounding quietly in the background.
And here’s the sweet gist: the Federal Government’s new Insurance Reform Act has made insurance compulsory for more things, buildings, public spaces, and employee welfare.
That means:
✅ More Nigerians must now get insured.
✅ More premiums will flow into these companies.
✅ More profits for those who position early.
In short, insurance companies are smiling to the bank and smart Nigerians are too.
The quiet billion-naira machines
Here are Nigeria’s top insurers by total assets (as of June 2025):
- Custodian – ₦456 billion
- AIICO – ₦456 billion
- AXA Mansard – ₦234 billion
- Mutual Benefits – ₦164 billion
- NEM Insurance – ₦159 billion
While everyone is rushing to buy oil and bank stocks, these companies are compounding steadily, turning premiums into profits.
They’re like quiet billion-naira machines working in the background.
Where you fit in
This ₦2 trillion industry is just getting started. Experts say it could double again in the next 2–5 years.
And the best part? You don’t need millions to be part of it. You can plug in two simple way, either as an agent or as an investor.
1. Become a licensed insurance agent
Yes, you can make good money helping others protect their assets.
Here’s how it works:
- You get trained and licensed by an insurance company.
- You earn between 10–25% commission for every policy you sell.
- Let’s say you sell 20 policies a month worth ₦100k each, that’s ₦2 million in total sales.
- At 15% commission, that’s ₦300,000 per month (₦3.6 million a year), just from connecting people to the right policy.
No office rent. No capital. Just understanding, consistency, and trust.
It’s like being a financial plug, helping people protect their future while earning from it.
2. Invest in insurance stocks
If you’re not into selling, you can still make money as an investor.
Here’s how to start:
- Open a CSCS or brokerage account using apps like Bamboo, Chaka, Trove, ARM, or Meristem.
- Search for insurance stocks like AIICO, Custodian, AXA Mansard, NEM, and Mutual Benefits.
- Start small; ₦10k to ₦50k monthly.
- Reinvest your dividends.
- Hold long-term (3–5 years).
This is how smart investors grow quietly. They don’t chase every hype or quick win, they compound.
Like one old trader told me: “Slow compounding beats fast gambling.”
Don’t just read, move
We don’t grow financially by reading alone. We grow by doing.
You don’t need to understand everything about insurance before taking the first step. Open that brokerage account. Talk to an agent. Ask questions.
While many are complaining about the economy, the truth is money is moving. It’s just moving to those who understand where to look.
The insurance industry in Nigeria is no longer sleeping. It’s growing faster than banks, backed by government reforms, and rewarding those who move early.
So, the next time you hear “insurance,” don’t roll your eyes. That word might just be the door to your next big financial opportunity.
The earlier you position yourself, the better. Because in this new economy, the biggest wins belong to those who see the shift before the crowd does.
Insurance isn’t just protection, it’s participation. It’s how ordinary Nigerians can quietly plug into one of the fastest-growing wealth engines in the country today.
Grab the gist?
