The defeat was a disappointing outcome for the Ilorin-based side, who had hoped to use home advantage to secure maximum points but were undone by a spirited second-half performance from the visitors.
Both teams approached the encounter cautiously, with neither side willing to take unnecessary risks in the opening exchanges. Kwara United, however, created some promising opportunities through Aliyu Ferinyaro and Uche Jaguar, but their efforts failed to beat Bendel Insurance's disciplined defensive line.
The hosts also suffered an early setback when Anthony Nnamdi was forced off in the 17th minute after sustaining an injury. Mighty Emmanuel came on as his replacement.
Despite the attempts by both sides to break the deadlock, the first half ended without a goal.
Kwara United returned from the interval with greater attacking intent and eventually took the lead in the 49th minute through Stephen Gideon.
The goal followed a determined effort by Ferinyaro, whose shot was parried by the Bendel Insurance goalkeeper. Gideon reacted quickest to the rebound, calmly finishing to put the Harmony Boys ahead.
However, the hosts' advantage lasted only three minutes as Bendel Insurance responded through Kayode Oke, who capitalised on a loose ball that was poorly defended to restore parity in the 52nd minute.
The Benin Arsenal completed their remarkable turnaround in the 55th minute when Chinedu Nwosu found the back of the net to give the visitors a 2-1 lead.
The setback forced Kwara United to push forward in search of an equaliser, while their technical crew made further substitutions in an attempt to alter the course of the encounter.
Despite the hosts' increased pressure, Bendel Insurance remained organised at the back and successfully protected their advantage until the final whistle.
Speaking at the post-match press conference, Kwara United coach Ladi Ojokojo, who stood in for Ashifat Suleiman, expressed disappointment over the result but remained hopeful about the team's ability to recover.
He assured that the players would continue to work hard and improve their performances in a bid to return to winning ways.
The defeat leaves Kwara United in 14th position on the NPFL table with 12 points from 11 matches, increasing the pressure on the Harmony Boys to improve their results in subsequent fixtures.
The Ilorin-based club will have an opportunity to respond to the setback next weekend when they travel to Owerri to face Rangers International, with the team expected to seek a positive result away from home.