CIFM rallies insurers toward resilience, reform

Joy Agwunobi 

The College of Insurance and Financial Management (CIFM) has urged insurance firms to undertake comprehensive customer-centric, strategic, and operational reforms to ensure its long-term resilience and relevance, against the backdrop of Nigeria’s persistent economic challenges.

This call was made by Chizoba Ehiogu, rector of CIFM, during a keynote address at a recent industry gathering themed “Resilience and Growth in Uncertainty: Charting the Path for Nigeria’s Insurance Industry.” The forum served as a platform for stakeholders to deliberate on the pressing issues confronting the sector and to explore innovative pathways for sustainable growth.

Ehiogu underscored the widespread implications of Nigeria’s economic volatility, She pointed to inflation, exchange rate volatility, and the weakening of the naira as primary disruptors of consumer purchasing power and business sustainability.

According to her, the instability in Nigeria’s economic indicators is not only shrinking consumer confidence but also limiting the insurance sector’s growth potential.

She further highlighted broader macroeconomic concerns such as declining oil revenues, dwindling foreign reserves, and an escalating national debt burden as factors that are compounding the sector’s struggles.

“Rising public debt and falling government revenues shrink expenditure on essential services, which in turn discourages investments in sectors like insurance,” she said.

However, Ehiogu argued that adversity can be a catalyst for innovation and progress—if approached with strategic foresight. She urged insurance companies to prioritise resilience by developing adaptive strategies that can withstand shocks and remain responsive to dynamic market conditions.

To ensure sustainability, Ehiogu recommended that insurers focus on strengthening critical pillars such as solvency margins, profitability, risk management, and overall market stability.

“For us to remain in business, there is a pressing need to increase our solvency margin, improve profitability, enhance risk management practices, and ensure market stability,” she stated.

Ehiogu also spotlighted liquidity and working capital management as critical levers for business continuity, particularly under uncertain economic conditions. In addition, she called for a disciplined approach to pricing, urging firms to account for inflation, rising claims costs, and catastrophic risks when managing their margins.

“In these unpredictable times, pricing must be both strategic and responsive. Our margins depend on our ability to balance cost pressures with value delivery,” she noted.

In the area of operational resilience, she advocated for greater automation and the adoption of enterprise-wide risk management systems. She further recommended strategic collaborations to reduce operational costs, manage inventories more efficiently, and protect company earnings from depreciation and related financial threats.

“Automation and enterprise risk frameworks are essential. But beyond internal efficiency, we must look outward—strategic partnerships can help us reduce overhead, strengthen supply chains, and enhance our resilience against external shocks,” Ehiogu stated.

The CIFM rector also emphasised the evolving needs of customers, stressing that insurance products must reflect the socio-economic realities of today’s consumers. She called on insurers to prioritise customer engagement and personalisation to foster deeper loyalty and long-term retention.

On the internal leadership front, Ehiogu highlighted the critical role of visionary leadership in steering firms through turbulence. She urged organisations to cultivate agile, proactive leaders capable of anticipating market shifts and galvanising their teams in response. Recruiting tech-savvy professionals, she added, is equally crucial to remain competitive in a rapidly digitising landscape.

“Future-focused leadership is essential. And as digital transformation accelerates, attracting technologically adept talent will be key to our survival and growth,” she said.

Beyond corporate performance, Ehiogu advocated for alignment with societal goals, emphasising sustainability and ethical governance. She recommended the development of green insurance products targeting sectors like agriculture and renewable energy, the integration of Environmental, Social and Governance (ESG) principles, and consistent stakeholder engagement through community-driven initiatives such as town hall meetings.

Digital and technological resilience also formed a core part of her message. As the sector becomes increasingly digitised, she warned of the growing threats of cyber insecurity. “Insurance firms must invest heavily in cybersecurity and data protection. Companies have suffered huge losses from cyber breaches. We must take preventive measures, including deploying secure storage solutions, backing up data regularly, and complying with data protection laws,” she said.

Ehiogu further urged stakeholders to embrace inclusive insurance through innovation and digital adoption. “Inclusive insurance differs from traditional offerings. To deepen penetration, we must innovate, diversify our product lines, and fully embrace insurtech,” she added.

Also speaking at the event, Olusegun Omosehin, the commissioner for insurance and chief executive officer of the National Insurance Commission (NAICOM), represented by Ekerete Gam-Ikon,the  deputy commissioner of insurance, reiterated the Commission’s dedication to enhancing insurance coverage and building public trust through stronger partnerships and regulatory reforms.

Omosehin pointed to the Commission’s progress in deepening insurance penetration across various sectors, attributing much of the success to strategic alliances with government bodies and industry players. He explained that these collaborations have gone beyond formal agreements, actively contributing to a noticeable rise in insurance adoption in key areas of the economy.

According to him, the commission’s firm stance on compliance has broadened the scope of protection for individuals and properties nationwide, positioning insurance not just as a regulatory requirement but as a crucial tool for social and economic stability.

He noted that NAICOM is using digital verification systems, awareness campaigns, and field operations to tighten compliance, stressing that regulation is now central to industry credibility. Omosehin urged insurers to innovate with inclusive, tech-driven solutions targeting underserved groups and emphasised the need for strong governance and transparency to build trust.