Insurers peep into 2016 budget for more relevance

Insurance operators concerned about trends in the economy, including the fall in oil prices and the declining foreign exchange, have taken a hard look on 2016 budget and implications for business.

They are particularly concerned that fall in revenue might push people to self-insurance, which does not only expose the economy to greater risks, but also could impact negatively on business performance.

Isioma Chukwuma, president, Chartered Insurance Institute of Nigeria (CIIN), speaking at the 2016 Business Outlook Seminar, organised by the Institute said the seminar is focusing attention on the national budget with emphasis on the fiscal and monetary policy thrusts of the Federal Government and how these would impact on business in the course the year.

“As a risk bearing industry, the insurance industry should be more concerned about the economic situation in the country, especially given the fact that the onslaught of negative economic trend may largely compromise risk management funding decisions, which will portend negative consequences for the industry.”

On emerging risks of terrorism, kidnapping as well as the telling effects of climate change on lives and property, Chukwuma noted that the industry should forge stronger bonds in tackling these new challenges. “For instance, for how long are we going to exclude terrorism from our insurance contracts, whereas the threats are now of increasing magnitude? No doubt the major constraint in this regard has been the paucity of underwriting data, so it remains a cause for concern and must be addressed without further delay”.

She assured that the governing council of the Institute remains poised at providing platforms such as this for knowledge sharing and will continue to sharpen the skills of practitioners through quality educational/training opportunities

“All hands must be on deck in ensuring that the industry human capital continues to be sharpened and updated in order to face current and emerging challenges”

Modestus Anaesoronye