Oliver Moore
Thu, Sep 7, 2023 7:30 PM

Nigerian Insurers Association Launches Quarterly Platform to Tackle Sector Challenges

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Nigerian Insurers Association Launches Quarterly Platform to Tackle Sector Challenges
The Nigerian Insurers Association (NIA) has launched a quarterly platform called NIA Chairman Time Out With CEOs, aimed at strengthening bonds among Chief Executive Officers (CEOs) of insurance companies. The forum will tackle issues confronting the sector in the face of macroeconomic headwinds and diminishing consumer purchasing power due to the removal of fuel subsidies. The initiative will provide an avenue for industry leaders to collectively strategize and drive resilience in the insurance business.

The Nigerian Insurers Association (NIA) has taken a proactive step to address the challenges facing the insurance sector in Nigeria. The association recently launched a quarterly platform called "NIA Chairman Time Out With CEOs" to provide a forum for the heads of insurance firms to come together, brainstorm, and find collective solutions.

The Chairman of NIA, Segun Omosehin, expressed the association's commitment to educating and interacting with its members on current industry events and ways to position effectively in the face of economic challenges. To achieve this, the association has engaged the expertise of Agusto Consulting to analyze macroeconomic issues and assess the operating environment for insurance companies.

During the maiden meeting, industry experts from Agusto Consulting highlighted the severe downside risks that insurance companies and other industries face as a result of macro headwinds. They specifically mentioned two major risks: foreign exchange (FX) risks and weaker consumer purchasing power due to the removal of fuel subsidies.

According to Oritsejimi Ogbobine and Funmilayo Olore of Agusto Consulting Limited, the FX crisis and weakening consumer purchasing power will both have negative impacts on several industries, particularly those heavily reliant on imports and with limited capacity to earn foreign exchange. Industries that import finished goods without much local value add will be the most vulnerable.

With the removal of the petrol subsidy, consumers' purchasing power will be weakened, leading to changes in their buying habits. Consumers are likely to seek cheaper substitute products to cope with reduced purchasing power, especially for non-essential items.

As a result of these challenges, industries are expected to resort to price increases, which may boost nominal revenue, but at the expense of reduced product volumes. Insurance companies will need to navigate these risks and find ways to remain resilient in an uncertain economic environment.

The resolutions reached during the NIA Chairman Time Out With CEOs meetings will be diligently pursued by the association's staff, led by the Director-General, Mrs. Yetunde Ilori. Regular performance evaluations will ensure the successful execution of the agreed strategies.

The NIA Chairman, Segun Omosehin, expressed his appreciation for the massive attendance of CEOs at the maiden event and announced that subsequent meetings would be held quarterly to further foster collaboration and address pressing issues in the insurance industry.

Source of content: OOO News 2023-09-07 News

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