Sim Shagaya, the entrepreneur behind Konga e-commerce platform, uLesson, and Miva Open University, has launched Myka, a licensed digital insurance broker designed to address Nigeria's significant insurance coverage gap.
The platform enables consumers and businesses to purchase insurance products from multiple providers through a single digital interface. Myka secured backing from Ventures Platform, TLcom, Paystack co-founder Shola Akinlade, LemFi founder Ridwan Olalere, and Voltron Capital founder Olumide Soyombo in an undisclosed pre-seed funding round.
Addressing Distribution Challenges
Shagaya identified distribution gaps as the primary barrier to insurance adoption in Nigeria, challenging conventional industry wisdom that blames consumer attitudes.
"It is not that Nigerians do not understand protection. The desire for protection is there. What has been lacking is the distribution of structured protection products to people who have not had it," Shagaya told TechCabal in a May 11 interview.
Myka launches with insurance products spanning motor, gadget, property, health, life, and travel coverage. The platform aims to replicate the success of agency banking models that expanded financial services access across Nigeria's financial technology sector.
Industry Scale Versus Retail Penetration
Nigeria's insurance industry recorded aggregate assets exceeding ₦4 trillion ($2.9 billion) in Q4 2025, according to the National Insurance Commission (NAICOM). Despite this substantial market size, retail adoption remains critically low.
Most insurance premiums originate from large corporate customers who provide coverage as employee benefits, leaving individual consumers underserved. This corporate-focused approach has limited the industry's reach despite its significant asset base.
Trust Deficit and Industry Reforms
Shagaya identified trust issues as fundamental barriers to insurance adoption, stemming from problematic claims processes and industry practices.
"One thing that has caused issues in the industry has been a lack of trust, which has happened because the claims payment process has not been great. Nigerians have felt like they buy insurance, but when it is time to claim, it is cumbersome, it is hectic, it is difficult, and oftentimes they feel like they are treated unfairly," he explained.
The entrepreneur highlighted additional challenges including fake insurance policies and fragmented industry records that prevented consumers from verifying coverage authenticity. These systemic issues reinforced negative perceptions about insurance reliability.
Regulatory Transformation
The Nigeria Insurance Industry Reform Act 2025 introduced significant changes positioning retail insurance and digitization as central growth strategies. The reforms target expanded access, strengthened consumer protections, and improved claims settlement processes.
These regulatory changes create favorable conditions for digital insurance platforms like Myka to address historical industry challenges. The timing aligns with broader trends in Nigeria's technology sector toward digital financial services adoption.
Myka's multi-provider approach represents a departure from traditional single-insurer models, potentially offering consumers greater choice and competitive pricing through platform aggregation.