Stakeholders Charge Insurers To Mitigate Socio-Political Risk Via Insurance

L-R: Barr. (Mrs.) Ekeoma Ezeibe, Discussant, Mr. Olusegun Omosehin, Chairman, CIIN Education Committee, Mrs. Yetunde Ilori, CIIN Deputy President,Mr. G.U.S. Wiggle, Keynote speaker and Mrs. Abimbola Tiamiyu, CIIN Registrar at the Institute Education Seminar in Port-Harcourt, Rivers State.

Stakeholders have affirmed 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.

Insurers are expected to do this by offering political risk insurance that will mitigate the risks arising from political instability, ethnic tensions, terrorism, civil unrest, to government policies and regulations, among others.

This was the view of the stakeholders who converged in Port-Harcourt, Rivers State for the Chartered Insurance Institute of Nigeria (CIIN), Education Seminar themed “Socio-Political Risks: The Role of the Nigerian Insurance Industry”.

Delivering the welcome address on behalf of the President/Chairman of Council, the Deputy President, Mrs. Yetunde Ilori acknowledged 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, she said, range from political instability, ethnic tensions, terrorism, civil unrest, to government policies and regulations, among others, adding 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,” she said.

On his part, the Chairman, CIIN Education Committee, Mr. Olusegun Omosehin, noted that “In today’s rapidly changing world, understanding and effectively managing socio-political risk has become more important than ever before. Thus, 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.”

The Keynote speaker, Mr. G.U.S. Wiggle, encouraged insurers to scare the challenges facing the industry for the purpose of opportunities therein.

“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 said.

In conclusion, he urged insurance companies to provide financial stability and reduce uncertainty by indemnifying those who have suffered losses.