The President of the Chartered Insurance Institute of Nigeria, Yetunde Ilori, has said that the proposed tax reforms and possible recapitalisation will be some of the challenges that the insurance sector will face in 2025.
Ilori said this in her New Year message to members of CIIN, which was made available to The PUNCH on Tuesday.
The Chartered Insurance Institute of Nigeria is a professional membership institute for the Nigerian insurance industry.
She said, “Despite our achievements, it is pertinent to note that the Nigerian insurance industry operated under very harsh economic conditions in 2024. I wish I could promise you that things will get better in 2025. However, various objective sources have projected that greater challenges lie ahead.
“Our nation is in dire straits, with intimidating inflation that seeks to impoverish all, an excruciating exchange rate, rising unemployment, and other ravenous economic conditions directly affecting the insurance business. Similarly, the proposed tax reform, solvency control, and intervention framework, as well as the inevitable recapitalisation that would be enforced once the insurance reform bill is passed into law, present further challenges.”
She added that regardless of how grave the economic conditions may be, it also presents great opportunities for the sector.
“But change will not come by accident; we have to collectively make a difference as professionals. We must reorient ourselves and push the boundaries of creativity, innovation, customer satisfaction, service excellence, and ethics while leveraging technology and promoting inclusive insurance practices.”
The CIIN boss added that the institute would be focusing on creating awareness about insurance in the country.
Highlighting some of the goals, Ilori said the year 2025 activities of the Institute would include the introduction of some initiatives designed to enhance professional development, increase insurance literacy, and ultimately strengthen our industry, such as:
“Insurance Industry Week is aimed at increasing insurance education and literacy across all segments and demographics of the country. It is expected to host several awareness programmes and recognition of outstanding performances while incorporating some traditional programmes of the Institute. Capacity Building for Members—through our educational programmes within the e-community and increasing the membership of the Institute.
“Recommencement of the CIIN Victoria Island Building Project—to construct a modern and befitting edifice for the industry and recognition of insurance institutions—identifying and presenting awards to insurance institutions in Nigeria that promote professionalism and good ethical behaviours in their business conduct.”
In late 2024, the Nigerian Senate passed the Insurance Reform Bill 2024, which raises the minimum capital base for insurance companies operating in the country.
The reform bill sponsored by the Chairman, Senate Committee on Banking, Insurance, and Other Financial Institutions, Tokunbo Abiru, proposed N15bn as the minimum capital requirement for non-life insurance companies, up from N3bn; N10bn for life assurance, up from N3bn; and N35bn for reinsurance businesses, up from N10bn.
Also, there are four tax reform bills before the National Assembly that have been stirring controversy, which President Bola Tinubu has said would not be withdrawn as requested by some stakeholders in the country.
