Insurance Sector Faces Challenges Amid Tax Reforms and Recapitalisation Mandates
The Nigerian insurance sector is set to face significant challenges in 2025, including proposed tax reforms and mandatory recapitalisation, according to Yetunde Ilori, President of the Chartered Insurance Institute of Nigeria (CIIN). Speaking in her New Year message to members, Ilori outlined the hurdles ahead while highlighting the need for innovation and strategic adaptation.
Economic Conditions and Sectoral Challenges
Ilori described the harsh economic conditions of 2024, including:
• Rising inflation and exchange rate pressures.
• Increasing unemployment.
• Negative impacts on the insurance business.
For 2025, the sector is expected to confront:
1. Proposed Tax Reforms: Several controversial tax reform bills are under consideration by the National Assembly.
2. Recapitalisation Mandate: The Nigerian Senate recently passed the Insurance Reform Bill 2024, raising minimum capital requirements:
• Non-life insurance: From ₦3 billion to ₦15 billion.
• Life assurance: From ₦3 billion to ₦10 billion.
• Reinsurance businesses: From ₦10 billion to ₦35 billion.
Opportunities Amidst Challenges
Despite these challenges, Ilori emphasized that opportunities exist for growth through creativity and innovation. She urged professionals to:
• Embrace technology.
• Promote inclusive insurance practices.
• Focus on customer satisfaction, ethics, and service excellence.
CIIN’s 2025 Agenda
The CIIN plans to strengthen the sector through several initiatives, including:
1. Insurance Industry Week: Increasing awareness and literacy across demographics.
2. Capacity Building for Members: Educational programs and e-community resources.
3. Victoria Island Building Project: Constructing a modern facility for the industry.
4. Recognition Programs: Honoring institutions that uphold professionalism and ethical conduct.
Conclusion
The CIIN is committed to navigating the challenges of 2025 by leveraging innovation, technology, and strategic reforms to strengthen the Nigerian insurance industry. While the road ahead is daunting, Ilori remains optimistic about the sector’s resilience and potential for growth.
The Nigerian insurance sector is set to face significant challenges in 2025, including proposed tax reforms and mandatory recapitalisation, according to Yetunde Ilori, President of the Chartered Insurance Institute of Nigeria (CIIN). Speaking in her New Year message to members, Ilori outlined the hurdles ahead while highlighting the need for innovation and strategic adaptation.
Economic Conditions and Sectoral Challenges
Ilori described the harsh economic conditions of 2024, including:
• Rising inflation and exchange rate pressures.
• Increasing unemployment.
• Negative impacts on the insurance business.
For 2025, the sector is expected to confront:
1. Proposed Tax Reforms: Several controversial tax reform bills are under consideration by the National Assembly.
2. Recapitalisation Mandate: The Nigerian Senate recently passed the Insurance Reform Bill 2024, raising minimum capital requirements:
• Non-life insurance: From ₦3 billion to ₦15 billion.
• Life assurance: From ₦3 billion to ₦10 billion.
• Reinsurance businesses: From ₦10 billion to ₦35 billion.
Opportunities Amidst Challenges
Despite these challenges, Ilori emphasized that opportunities exist for growth through creativity and innovation. She urged professionals to:
• Embrace technology.
• Promote inclusive insurance practices.
• Focus on customer satisfaction, ethics, and service excellence.
CIIN’s 2025 Agenda
The CIIN plans to strengthen the sector through several initiatives, including:
1. Insurance Industry Week: Increasing awareness and literacy across demographics.
2. Capacity Building for Members: Educational programs and e-community resources.
3. Victoria Island Building Project: Constructing a modern facility for the industry.
4. Recognition Programs: Honoring institutions that uphold professionalism and ethical conduct.
Conclusion
The CIIN is committed to navigating the challenges of 2025 by leveraging innovation, technology, and strategic reforms to strengthen the Nigerian insurance industry. While the road ahead is daunting, Ilori remains optimistic about the sector’s resilience and potential for growth.