The Managing Director and Chief Executive Officer of Cornerstone Insurance Plc, Stephen Alangbo, discusses the state of the insurance industry following the signing of the Nigerian Insurance Industry Reform Act 2025, the rising relevance of cyber insurance amid increasing digital transformation among businesses, and other key developments with OLUWAKEMI ABIMBOLA
Excerpts:
Insurance penetration in Nigeria is still relatively low, yet stakeholders have described NIIRA 2025 as a potential game-changer for the sector. Do you think it has what it takes to address the industry’s major challenges?
You are correct to say that insurance penetration is low, and some factors contributed to that. The first is trust in the insurance operator. The second is some failures in the past of fulfilling obligations on the part of some organisations. The third is the government’s posture on making insurance compulsory and enforcing insurance. So, NIIRA is addressing most of these.
NIIRA is moving the capital base of the insurance company for the life company from N2bn to N10bn, for the general insurance company from N3bn to N15bn, and for the reinsurance company, it used to be N10bn now to N35bn. So, it means that the insurance companies will be very strong to fulfil their claim obligations. Secondly, on the enforcement of insurance, the government’s part is fulfilled through our regulator, that’s NAICOM, as it is now engaging other government establishments to ensure that some of the provisions in the insurance act that relate to some compulsory insurances are enforced.
One of them, we have always known, is motor insurance. Third-party motor insurance is compulsory to drive on the road in Nigeria. Then the occupier’s liability is also key. When we talk about construction, insurance for buildings under construction is also crucial.
Obviously, we know that group life insurance is important for every employer of labour with a minimum of three employees. Some other insurance is key. So, what NIIRA has done is to, first of all, highlight these and empower NAICOM to liaise and enforce these compulsory insurances.
Also, NAICOM is awake to its responsibilities, as they have been given the power to enforce. They have also issued rules and guidelines on the payment of claims by insurance companies. So, these are some of the things that have been put in place through NIIRA that will make insurance penetration much better than it used to be.
How is your company adapting to the changing regulatory landscape shaped by NAICOM, particularly with the introduction of NIIRA 2025?
For us here, we are a regulatory-compliant organisation and an innovative one. Governance is key to us. Guidelines and regulations are important to us, so we keep to the regulations.
And for capital, Cornerstone is not going to raise any capital because we are in a position to meet the requirements of the regulator after their confirmation of our position. So, we are not going to merge with any company, except if we acquire. We are not going to raise capital because we have enough capital to recapitalise.
Secondly, as an innovative organisation, we have created a platform to reach many Nigerians through our digital platform. So, we created Cici, an AI-enabled chatbot that can give details about our product. Those who want to buy insurance, particularly for these compulsory insurances, can chat with Cici and buy. Our Cici can facilitate the end-to-end purchase of insurance. We have also gone ahead to ensure that you can load your claim quickly through Cici.
Lastly, we are also partnering with our valued brokers to create products that will meet their needs and also enable them to fulfil their obligations under the law. Some of the regulations from the law impose a penalty or imprisonment for non-compliance with some of these laws. So, we are making it easy for them by making a virtual assistant available for them to buy insurance and also to file claims.
With the shift toward technology, beyond Cici, what other digital initiatives is your organisation employing to engage underserved communities or younger audiences?
We know that technology is evolving, and we are in a digital age. We have adopted a simple, basic digital mix of educating people about insurance. So, you see, market traders, market women, and the underserved, they use WhatsApp. They share videos and other information on WhatsApp. And that’s why we strongly believe that having a platform, a WhatsApp kind of platform, will assist in disseminating information, educating the underserved and enlightening them about insurance and also facilitating the purchase of insurance. That’s when we come to Cici again. You can go to our website for those who are a bit tech-savvy. But for the common man, with Cici, it’s WhatsApp-enabled, and it can be reached for information about our products and the company and also to make a claim.
We are also not stopping there; we have other innovative technology products that we are going to release in a few months to enhance customer accessibility to our product. Also, to assist them in filing a claim. You know the capabilities of Cici go beyond just interacting. If you buy insurance and you want to inspect your car with Cici, you can do a car inspection. You can even do your house inspection. Cici will enable you to be able to, no matter the (physical) distance between you and the Cornerstone office, interact with Cornerstone in real time because of the capability of Cici.
A recent Geneva Association report indicated that companies are increasingly securing insurance coverage for risks associated with AI adoption. Is this trend gaining traction in Nigeria, and how can insurers strategically position themselves to explore this emerging market?
AI is the in thing. That’s why when I talk about Cici, I talk about AI virtual assistants or an AI-enabled interaction platform. So, it’s a fact that everybody is trying to see how to use artificial intelligence to propel their businesses. AI uses data and information to be able to make work a bit simpler and give us information about trends. So, obviously, it makes us go faster than we should normally go. In doing this, there will obviously be exposure.
When you talk about cyberattacks, the vulnerability of most businesses becomes obvious. For us in Cornerstone, we are one of the insurance companies at the forefront of cyber insurance cover. It’s relatively new, but it’s becoming inevitable for every business to have cyber insurance coverage to protect itself against some of the risks that come with technological advancement and cyberattacks. We are developing capabilities to ensure that we are able to cover those who need this cover, who are exposed to this risk. Aside from this and other risk exposures, we continue to position ourselves to ensure that all forms of risk that can be covered by insurance are available in Cornerstone so that we can enable businesses to thrive while we carry their risk. And ensure that they are in sync with the Cornerstone insurance policy.
According to second-quarter data, the insurance sector’s contribution to the economy increased in both nominal and real terms. What factors do you believe are driving this growth, and how can the momentum be sustained?
A lot of things are changing in the sector. We now have people on the operators’ side becoming regulators, and they know some of the pain points, challenges and gaps that we have had; they know them. So, they are trying to cover the gap as a regulator. That’s where you see the area of enforcement of compulsory insurance, collaboration with other government agencies to ensure that the insurance penetration is high, and educating different government establishments on the importance of insurance. We know that most of them have insurance in their budget, but not knowing the usefulness of insurance or paying attention to it might have prevented the adoption or appreciation of insurance.
Furthermore, there were speculations about the recapitalisation of insurance firms. When this happens, many companies will need to strengthen their capital base, positioning them to attract more business opportunities and raising positive expectations within the society.. In addition to this, most profits have been very significant, and this is coming with the financial analysts either analysing and indicating the prospect of investing in insurance. So, expectations are high, and that is driving the investment and the contribution of insurance. Share prices of insurance companies are going very high because of an improved trust in the sector.
What is your view on climate-related risks and how insurance can contribute to promoting environmental sustainability?
Climate change is an emerging topic, and this is coming as a result of climate change and many unusual experiences that we’ve been having in recent times. When there are unusual challenges impacting society, the response should be, ‘What can we do to correct or to improve the situation?’
Part of that may be providing insurance cover for climate-related risks, so that when some of these changes that are negatively impacting humanity and destroying assets occur, there will be some form of relief for those who are affected. On the other hand, there are deliberate actions to ensure that some of the causes of this climate change are addressed, and that’s why the area of organisation is supporting initiatives that will make some of these possible hazards not occur. They have had a lot of funds to be able to support, in a bid to ensure that unexpected events or adverse effects of damage to the soil and environment that have been caused by either industrialisation or whatever are curtailed.
So, in summary, for us as underwriters, one of the things that we can do is to provide policies that will support insurance risk against unexpected occurrences that may be a result of a changing climate. Another area is to support initiatives that will make the environment conducive for us to live in, by funding in the form of CSR and all that.
What kind of legacy do you aspire to leave behind as CEO?
It’s important to make a change or to add value in my little way while I’m the CEO of the organisation. Secondly, it is to ensure that there is good governance and there is trust in the organisation, both by the shareholders and the regulators, and also our policyholders and potential policyholders. Also, it is to give an assurance that we are building enough resources to be in a position to pay claims because the major thing in our business is to ensure that we keep to our word and we keep to our promises of paying claims when they arise.
Another thing is to ensure that I contribute to the change that we are witnessing in the industry for a better insurance industry of tomorrow. Supporting building a good foundation that insurance will rest on, like we have insurance sectors in the West, in South Africa, and in the US, we have insurance firms that are the owners of banks. One of my goals is to be able to support building an insurance sector that will have a similar structure to that which we have in some of those developed countries, where insurance companies are big investors in other sectors and also contribute to infrastructure development in the country as a result of the fund that I have built to support the economy.
QUOTE
“It’s relatively new, but it’s becoming inevitable for every business to have cyber insurance coverage to protect itself against some of the risks that come with technological advancement and cyberattacks.”
Justice Okamgba <[email protected]>
5:14 PM (3 minutes ago)
to me
———- Forwarded message ———
From: Godwin Aikigbe <[email protected]>
Date: Fri, 17 Oct 2025 at 3:33 PM
Subject: SUNDAY CEO
To: <[email protected]>, Kemi Agosu <[email protected]>, Justice Okamgba <[email protected]>
Cyber insurance now essential for firms – Cornerstone CEO
The Managing Director and Chief Executive Officer of Cornerstone Insurance Plc, Stephen Alangbo, discusses the state of the insurance industry following the signing of the Nigerian Insurance Industry Reform Act 2025, the rising relevance of cyber insurance amid increasing digital transformation among businesses, and other key developments with OLUWAKEMI ABIMBOLA
Excerpts:
Insurance penetration in Nigeria is still relatively low, yet stakeholders have described NIIRA 2025 as a potential game-changer for the sector. Do you think it has what it takes to address the industry’s major challenges?
You are correct to say that insurance penetration is low, and some factors contributed to that. The first is trust in the insurance operator. The second is some failures in the past of fulfilling obligations on the part of some organisations. The third is the government’s posture on making insurance compulsory and enforcing insurance. So, NIIRA is addressing most of these.
NIIRA is moving the capital base of the insurance company for the life company from N2bn to N10bn, for the general insurance company from N3bn to N15bn, and for the reinsurance company, it used to be N10bn now to N35bn. So, it means that the insurance companies will be very strong to fulfil their claim obligations. Secondly, on the enforcement of insurance, the government’s part is fulfilled through our regulator, that’s NAICOM, as it is now engaging other government establishments to ensure that some of the provisions in the insurance act that relate to some compulsory insurances are enforced.
One of them, we have always known, is motor insurance. Third-party motor insurance is compulsory to drive on the road in Nigeria. Then the occupier’s liability is also key. When we talk about construction, insurance for buildings under construction is also crucial.
Obviously, we know that group life insurance is important for every employer of labour with a minimum of three employees. Some other insurance is key. So, what NIIRA has done is to, first of all, highlight these and empower NAICOM to liaise and enforce these compulsory insurances.
Also, NAICOM is awake to its responsibilities, as they have been given the power to enforce. They have also issued rules and guidelines on the payment of claims by insurance companies. So, these are some of the things that have been put in place through NIIRA that will make insurance penetration much better than it used to be.
How is your company adapting to the changing regulatory landscape shaped by NAICOM, particularly with the introduction of NIIRA 2025?
For us here, we are a regulatory-compliant organisation and an innovative one. Governance is key to us. Guidelines and regulations are important to us, so we keep to the regulations.
And for capital, Cornerstone is not going to raise any capital because we are in a position to meet the requirements of the regulator after their confirmation of our position. So, we are not going to merge with any company, except if we acquire. We are not going to raise capital because we have enough capital to recapitalise.
Secondly, as an innovative organisation, we have created a platform to reach many Nigerians through our digital platform. So, we created Cici, an AI-enabled chatbot that can give details about our product. Those who want to buy insurance, particularly for these compulsory insurances, can chat with Cici and buy. Our Cici can facilitate the end-to-end purchase of insurance. We have also gone ahead to ensure that you can load your claim quickly through Cici.
Lastly, we are also partnering with our valued brokers to create products that will meet their needs and also enable them to fulfil their obligations under the law. Some of the regulations from the law impose a penalty or imprisonment for non-compliance with some of these laws. So, we are making it easy for them by making a virtual assistant available for them to buy insurance and also to file claims.
With the shift toward technology, beyond Cici, what other digital initiatives is your organisation employing to engage underserved communities or younger audiences?
We know that technology is evolving, and we are in a digital age. We have adopted a simple, basic digital mix of educating people about insurance. So, you see, market traders, market women, and the underserved, they use WhatsApp. They share videos and other information on WhatsApp. And that’s why we strongly believe that having a platform, a WhatsApp kind of platform, will assist in disseminating information, educating the underserved and enlightening them about insurance and also facilitating the purchase of insurance. That’s when we come to Cici again. You can go to our website for those who are a bit tech-savvy. But for the common man, with Cici, it’s WhatsApp-enabled, and it can be reached for information about our products and the company and also to make a claim.
We are also not stopping there; we have other innovative technology products that we are going to release in a few months to enhance customer accessibility to our product. Also, to assist them in filing a claim. You know the capabilities of Cici go beyond just interacting. If you buy insurance and you want to inspect your car with Cici, you can do a car inspection. You can even do your house inspection. Cici will enable you to be able to, no matter the (physical) distance between you and the Cornerstone office, interact with Cornerstone in real time because of the capability of Cici.
A recent Geneva Association report indicated that companies are increasingly securing insurance coverage for risks associated with AI adoption. Is this trend gaining traction in Nigeria, and how can insurers strategically position themselves to explore this emerging market?
AI is the in thing. That’s why when I talk about Cici, I talk about AI virtual assistants or an AI-enabled interaction platform. So, it’s a fact that everybody is trying to see how to use artificial intelligence to propel their businesses. AI uses data and information to be able to make work a bit simpler and give us information about trends. So, obviously, it makes us go faster than we should normally go. In doing this, there will obviously be exposure.
When you talk about cyberattacks, the vulnerability of most businesses becomes obvious. For us in Cornerstone, we are one of the insurance companies at the forefront of cyber insurance cover. It’s relatively new, but it’s becoming inevitable for every business to have cyber insurance coverage to protect itself against some of the risks that come with technological advancement and cyberattacks. We are developing capabilities to ensure that we are able to cover those who need this cover, who are exposed to this risk. Aside from this and other risk exposures, we continue to position ourselves to ensure that all forms of risk that can be covered by insurance are available in Cornerstone so that we can enable businesses to thrive while we carry their risk. And ensure that they are in sync with the Cornerstone insurance policy.
According to second-quarter data, the insurance sector’s contribution to the economy increased in both nominal and real terms. What factors do you believe are driving this growth, and how can the momentum be sustained?
A lot of things are changing in the sector. We now have people on the operators’ side becoming regulators, and they know some of the pain points, challenges and gaps that we have had; they know them. So, they are trying to cover the gap as a regulator. That’s where you see the area of enforcement of compulsory insurance, collaboration with other government agencies to ensure that the insurance penetration is high, and educating different government establishments on the importance of insurance. We know that most of them have insurance in their budget, but not knowing the usefulness of insurance or paying attention to it might have prevented the adoption or appreciation of insurance.
Furthermore, there were speculations about the recapitalisation of insurance firms. When this happens, many companies will need to strengthen their capital base, positioning them to attract more business opportunities and raising positive expectations within the society.. In addition to this, most profits have been very significant, and this is coming with the financial analysts either analysing and indicating the prospect of investing in insurance. So, expectations are high, and that is driving the investment and the contribution of insurance. Share prices of insurance companies are going very high because of an improved trust in the sector.
What is your view on climate-related risks and how insurance can contribute to promoting environmental sustainability?
Climate change is an emerging topic, and this is coming as a result of climate change and many unusual experiences that we’ve been having in recent times. When there are unusual challenges impacting society, the response should be, ‘What can we do to correct or to improve the situation?’
Part of that may be providing insurance cover for climate-related risks, so that when some of these changes that are negatively impacting humanity and destroying assets occur, there will be some form of relief for those who are affected. On the other hand, there are deliberate actions to ensure that some of the causes of this climate change are addressed, and that’s why the area of organisation is supporting initiatives that will make some of these possible hazards not occur. They have had a lot of funds to be able to support, in a bid to ensure that unexpected events or adverse effects of damage to the soil and environment that have been caused by either industrialisation or whatever are curtailed.
So, in summary, for us as underwriters, one of the things that we can do is to provide policies that will support insurance risk against unexpected occurrences that may be a result of a changing climate. Another area is to support initiatives that will make the environment conducive for us to live in, by funding in the form of CSR and all that.
What kind of legacy do you aspire to leave behind as CEO?
It’s important to make a change or to add value in my little way while I’m the CEO of the organisation. Secondly, it is to ensure that there is good governance and there is trust in the organisation, both by the shareholders and the regulators, and also our policyholders and potential policyholders. Also, it is to give an assurance that we are building enough resources to be in a position to pay claims because the major thing in our business is to ensure that we keep to our word and we keep to our promises of paying claims when they arise.
Another thing is to ensure that I contribute to the change that we are witnessing in the industry for a better insurance industry of tomorrow. Supporting building a good foundation that insurance will rest on, like we have insurance sectors in the West, in South Africa, and in the US, we have insurance firms that are the owners of banks. One of my goals is to be able to support building an insurance sector that will have a similar structure to that which we have in some of those developed countries, where insurance companies are big investors in other sectors and also contribute to infrastructure development in the country as a result of the fund that I have built to support the economy.
