Yetunde Ilori, President of the Chartered Insurance Institute of Nigeria (CIIN), has identified several challenges facing the insurance sector in 2025, including potential tax reforms and recapitalization requirements.
In her New Year message to CIIN members, Ilori acknowledged the challenging economic conditions of 2024, citing high inflation, a struggling exchange rate, and rising unemployment as significant headwinds for the industry.
“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,” Ilori stated.
She further highlighted the potential impact of proposed tax reforms and the impending recapitalization of the insurance sector, as outlined in the recently passed Insurance Reform Bill 2024. This bill significantly increases the minimum capital requirements for insurance companies, which will require substantial investments from industry players.
Despite these challenges, Ilori emphasized the significant opportunities that lie ahead for the insurance sector. She stressed the importance of:
- Increased insurance literacy: Implementing initiatives such as “Insurance Industry Week” to educate the public about the importance of insurance and enhance financial inclusion.
- Professional development: Expanding educational programs and enhancing the professional development of insurance professionals through the CIIN’s e-community.
- Promoting ethical practices: Recognizing and rewarding insurance institutions that demonstrate professionalism and ethical conduct.
Ilori emphasized the need for the insurance industry to adapt to the changing economic landscape, embrace innovation, and prioritize customer satisfaction to navigate the challenges and capitalize on emerging opportunities.
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