Product Innovation and Market Competitiveness in the Nigerian Insurance Industry

This study investigates product innovation strategies and their effect on market competitiveness among insurance companies in Nigeria, with primary evidence drawn from companies operating in Lagos and Abuja. Innovation in insurance product design, encompassing usage-based pricing, parametric trigger mechanisms, bundled product packages, and digital-first distribution models, is increasingly recognized as a key differentiator in competitive insurance markets. However, the Nigerian insurance industry has historically been characterized by limited product differentiation, with most companies offering standardized products with marginal design variation. This research employs a competitive strategy analysis design with data from 40 product development managers and marketing directors at fifteen insurance companies in the two cities. Questionnaires assess innovation investment levels, new product launch frequency, customer response to innovative products, regulatory approval processing times for new products, and competitive differentiation perception. Secondary data from NAICOM product approval records supplement the primary analysis. Descriptive statistics and comparative case analysis characterize innovation patterns. Preliminary findings are expected to identify regulatory approval delays and actuarial data limitations as primary constraints on product innovation. The study recommends a NAICOM regulatory sandbox for insurance product innovation and collaborative actuarial data-sharing frameworks. Keywords: Product Innovation, Market Competitiveness, Insurance Industry, Nigeria, Insurtech.