CIIN challenges insurers on controls, governance
The Chartered Insurance Institute of Nigeria (CIIN) has called on insurance operators to strengthen financial controls, corporate governance and compliance frameworks as the industry navigates a more complex and tightly
- 2026 budget tightens operating climate
The Chartered Insurance Institute of Nigeria (CIIN) has called on insurance operators to strengthen financial controls, corporate governance and compliance frameworks as the industry navigates a more complex and tightly regulated operating environment in 2026.
Speaking at the Institute’s 2026 Business Outlook held at Paradise Event Arena, Yaba, Lagos, the President/Chairman, CIIN, Mrs. Yetunde Ilori said the insurance sector must move beyond viewing controls and governance as mere regulatory obligations and embrace them as strategic enablers of sustainability, investor confidence and public trust.
Themed “Navigating Complexity: Strengthening Financial Controls, Corporate Governance and Compliance in the Insurance Industry,” the forum brought together regulators, chief executives, board members and other key stakeholders to examine emerging risks and set an agenda for the year.
In her welcome address, Ilori described the current business landscape as one defined by rapid economic shifts, regulatory evolution, digital transformation and heightened stakeholder expectations.
She said: “The insurance industry today operates in an environment of increasing complexity. For our industry to remain resilient and trustworthy, we must continuously strengthen internal controls, promote transparency, uphold ethical leadership and align strictly with regulatory requirements.”
She reaffirmed the Institute’s commitment to professional excellence and collaboration with regulators and operators to enhance governance structures across the insurance value chain.
A major highlight of the event was the keynote presentation by the Executive Vice-Chair of Emerging Africa Group, Dr. Oluwatoyin Sanni who painted a sobering picture of the industry’s structural realities despite its strategic importance to economic stability.
Read Also: PDP not holding congresses, says Turaki
According to her, while insurance contributes between six and seven per cent of global GDP, Nigeria’s penetration rate remains below one per cent, far behind South Africa’s approximately 14 per cent and Kenya’s 2.3 per cent.
Insurance penetration is not just an industry metric, it is a measure of economic resilience, capital depth and institutional trust, she said.
While identifying penetration gap and trust deficit, Sanni stated that persistent public distrust, especially around claims settlement, weak financial discipline, fragmented balance sheets and undercapitalisation as key constraints holding the industry back.
Although Nigeria has over 50 licensed insurance companies and gross written premium estimated at over N1 trillion, she observed that the sector’s contribution to GDP remains disproportionately low relative to its potential.
She warned that weak internal controls, manual processes, poor cash-flow alignment with claims projections and inadequate technical reserves are amplifying operational and financial risks in a volatile macroeconomic environment.
She stressed that at the core of these challenges lies one critical issue which is financial control describing it as the first line of survival for insurers in periods of economic stress.
Sanni linked her analysis to the thrust of the 2026 Federal Budget, themed “Consolidation, Renewed Resilience and Shared Prosperity,” arguing that it signals tighter liquidity conditions, inflationary pressures and stricter regulatory oversight.
She said insurers must proactively plan capital, optimise reinsurance arrangements and ensure adequate reserves to absorb economic shocks.
Boards, she stressed, must move beyond passive oversight to active engagement in underwriting standards, investment decisions, capital adequacy and operational risk.
“Boards must clearly define and own the firm’s risk appetite, demand early warning indicators — not post-mortem reports — and ensure the independence of risk, audit and compliance functions,” she said.
She also cautioned against treating IFRS 17 as a mere compliance exercise rather than a transition to more risk-sensitive, economic-value reporting.
On corporate governance, Sanni described it as a competitive advantage rather than a box-ticking requirement.
She urged insurers to align executive remuneration with risk-adjusted performance, embed ethical leadership, and strengthen board committees with the right mix of skills and independence.
“Weak governance destroys trust faster than poor financial performance,” she warned.
