The way motor insurance is priced and managed is beginning to change. Traditionally, premiums have been based largely on factors such as vehicle type, location and policy type, with limited insight into how customers actually use their vehicles. However, advances in electric vehicles (EVs), connected technology and telematics are creating new opportunities for insurers to better understand and assess risk. 

As interest in electric vehicles continues to grow in Nigeria, insurers are also preparing for a new generation of risks and opportunities. EVs introduce unique underwriting considerations, while usage-based insurance (UBI) offers the potential to personalise premiums based on actual driving behaviour rather than broad assumptions. Although these innovations are still emerging locally, the foundations are gradually being established through technology, policy developments and industry collaboration.

This article explores how electric mobility and data-driven insurance models are reshaping the future of motor insurance in Nigeria, what these changes mean for insurers and policyholders, and why customer data and personalised risk assessment are likely to become central to the next generation of motor insurance products.

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