Insurance Stakeholders Charge Insurers To Mitigate Socio-Political Risk, others
By Henry Uche
Stakeholders in risk management sector have affirm that in a country like Nigeria, where socio-political turmoil often intersect with economic uncertainties, the insurance industry can play a vital role in safeguarding the interests of individuals, businesses, and the nation at large.
They made this known in Port-Harcourt, Rivers State at a 3- day Education Seminar, put together by the Chartered Insurance Institute of Nigeria (CIIN), with the theme- “Socio-Political Risks: The Role of the Nigerian Insurance Industry”.
Delivering an address on behalf of the President/Chairman of Council of the Institute, the Deputy President, Mrs. Yetunde Ilori acknowledged that Nigeria, being Africa’s most populous nation and a key player in the African economy, faces arrays of socio-political risks that can impede social progress and economic growth.
These risks as stated range from political instability, ethnic tensions, terrorism, civil unrest, to government policies and regulations, among others. Hence the role of the insurance industry in addressing them squarely 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 maintained.
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 risks have become more indispensable and critical than ever before.
Olusegun affirmed, “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.”
In a Keynote speaker, erstwhile chairman of Nigerian Insurers Association (NIA), Mr. Gus Wiggle, encouraged insurers to confront the challenges facing the industry head-on and explore the 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. Insurance companies should provide financial stability and reduce uncertainty by indemnifying those who have suffered losses” he submitted.