- Lesi, Leadway Assurance CEO, bullish on tool
- Be part of risk management strategy of firms
Cynthia Ezekwe
In a call to action amid rising concerns about climate change and flood-related hazards in Nigeria, Gboyega Lesi, chief executive officer, Leadway Assurance Company Limited, has urged individuals and businesses to consider insurance as a crucial part of their risk management strategy.
Lesi highlighted the increasing vulnerability of communities in the face of natural disasters, and emphasised the need for proactive measures to minimise financial losses. Insurance, he opined, offers a vital safety net against the unexpected and unpredictable effects of climate change.
Emphasising the urgent need for action in the face of a climate-uncertain future, Lesi underlined that the failure to adopt insurance as a vital risk management tool could lead to disastrous financial fallout.
The Leadway Assurance chief executive officer, expressed this position in a keynote presentation at a conference convened recently by the Risk Management Society of Nigeria (RIMSON) in Lagos, with the theme, “Insurance as a Catalyst for Economic Growth”.
He also stressed the importance of being proactive in the face of the heightened frequency and severity of extreme weather events, noting that embracing insurance is a necessity in today’s Nigeria, where climate change is increasingly posing a significant threat to livelihoods and businesses.
Lesi also extolled the virtues of insurance as a financial buffer against flood-induced losses, citing benefits that range from property damage and business interruption coverage to protection of livelihoods. Insurance, he pointed out, also serves as a gateway to a wealth of resources and expertise that can facilitate speedy recovery from flood-related setbacks.
In his view, the value of insurance as a tool for mitigating the economic fallout of natural disasters should not be underestimated, especially in a country that faces an ever-growing climate-related threat.
Amid growing concerns about the increasing occurrence of floods, the National Emergency Management Agency (NEMA) has sounded the alarm, warning that as many as 33 states may face severe inundation between August and October.
As a response to this looming threat, NEMA urged all sectors of society — from government agencies to private businesses and individuals — to implement necessary precautions without delay, highlighting the importance of proactive measures to mitigate the destructive potential of floods.
The devastating floods of 2022 have left a harrowing toll, with an estimated 662 lives lost and 33 states affected by the unprecedented inundation, according to federal authorities. The National Bureau of Statistics (NBS) reported that the catastrophe, deemed the worst in recent memory, resulted in approximately $9.12 billion in direct economic damages, a staggering figure that highlights the overwhelming scope of the destruction caused by the floods.
From homes to businesses, from private households to public infrastructure, the floods wreaked havoc across Nigeria, causing extensive damage to virtually every aspect of the nation’s economy.
The gravity of the flood threat, and its potentially devastating impact on Nigerian communities, was reiterated by Lesi, who underlined the need for an immediate, proactive approach to protecting lives, properties, and investments from the looming danger of flooding.
The Leadway Assurance chief executive stated that weather-related insurance policies, such as flood insurance, represent a critical safeguard against the unpredictable and destructive forces of nature.
According to him, by providing a financial buffer against the potential damages caused by floods, these policies offer an invaluable measure of protection to individuals, families, businesses, and communities.
Lesi underscored the vital role of insurance in protecting individuals and businesses from the financial fallout of extreme weather events, noting that by paying a premium, they can effectively transfer the risk of loss to an insurer, thereby ensuring that they are not left to grapple with devastating consequences on their own.
By embracing insurance, he maintained, Nigerians can mitigate their exposure to weather-related risks, thereby enhancing their resilience in the face of the climate crisis.
Lesi further highlighted Leadway Assurance’s commitment to helping Nigerians recover from the ravages of disaster through specialised insurance solutions that cater to the unique challenges presented by flood-related risks.
He noted that by offering insurance products that are designed to address the specific needs of individuals and businesses affected by flooding, Leadway Assurance is providing a crucial lifeline in times of crisis, enabling communities to weather the storm and bounce back with minimal disruption.
“Our comprehensive policies offer robust protection, empowering individuals and businesses to recover quickly and effectively after a flood. We understand that each flood scenario is different, and our coverage is flexible enough to meet specific needs and circumstances,’’ he noted.
Lesi stressed the importance of carefully weighing a range of considerations when choosing an insurance policy, including coverage limits, policy exclusions and limitations, as well as the insurer’s financial stability and reputation. He added that in the face of a changing climate, insurance is no longer a luxury but an absolute necessity, offering a critical layer of protection against unexpected and catastrophic events.
