By Sola Alabadan
The insurance operators in Nigeria have been charged to be alive their responsibility to mitigate the socio-political risks that can impede social progress and economic growth in the country.
Insurance stakeholders who spoke at the Education Seminar of the Chartered Insurance Institute of Nigeria (CIIN) in Port-Harcourt, Rivers State on Friday, opined that in a country like Nigeria, where socio-political challenges often intersect with economic uncertainties, the insurance industry can play a vital role in safeguarding the interests of individuals, businesses, and the nation as a whole.
The theme of the seminar is “Socio-Political Risks: The Role of the Nigerian Insurance Industry”.
While welcoming to the seminar, the President/Chairman of Council, Edwin Igbiti, affirmed that Nigeria, being Africa’s most populous nation and a key player in the African economy, faces an array of socio-political risks that can impede social progress and economic growth. These risks range from political instability, ethnic tensions, terrorism, civil unrest, to government policies and regulations, among others.
Igbiti, who was represented by the Deputy President, Mrs. Yetunde Ilori, added that the role of the insurance industry in addressing socio-political risks is multi-faceted.
“The insurance industry can act as a catalyst for risk prevention and reduction. By actively assessing and evaluating potential socio-political risks, insurers can collaborate with governments, businesses, and communities to develop risk management strategies and enhance resilience. Through initiatives such as risk education programs, capacity building, and partnerships with relevant stakeholders, the industry can contribute to societal awareness and preparedness, reducing the likelihood and impact of socio-political risks,” the CIIN boss said.
Similarly, the Chairman, CIIN Education Committee, Mr. Olusegun Omosehin stated that in today’s rapidly changing world, understanding and effectively managing socio-political risk has become more important than ever before.
He therefore advised that “Insurers should spread the gospel of mitigating risk across Nigeria, a country with a population exceeding 200 million and a diverse range of socio-political factors at play. Understanding and navigating these complexities is crucial for the sustainable growth and development of the Nigerian insurance industry.”
Meanwhile, the Keynote speaker, Mr. G.U.S. Wiggle, encouraged insurers to tackle the challenges facing the industry for the purpose of opportunities therein, saying “Insurance companies can offer political risk insurance to businesses to help them manage and mitigate risks arising from the adverse actions or inactions of governments. Political risk insurance can help provide a more stable environment for investments and unlock better access to finance.”
He added that the insurance companies should provide financial stability and reduce uncertainty by indemnifying those who have suffered losses.
