Experts Examine Critical Role of Insurance in Helping Businesses Thrive

Ebere Nwoji

Issues bothering on critical role of insurance in ensuring that businesses navigate and thrive amidst economic uncertainties formed the thrust of Webner session organised by Coronation Insurance Plc.

The core focus of the webinar is  to equip participants with practical knowledge and a deeper understanding of how insurance can be a cornerstone of sound financial planning for business operators.

The keynote address at the session delivered by the Assistant Director Underwriting and Marketing African Reinsurance, Mr Yinka Dawodu, provided a fundamental understanding of insurance by exploring key concepts such as risk, peril, and hazard. 

He emphasised the multifaceted benefits of insurance, highlighting its role in mitigating risk, protecting assets, and fostering peace of mind. This foundational knowledge underscored the critical role insurance plays in ensuring financial stability, especially during challenging economic times.

The discussants delved into the specific challenges currently faced by Nigerian businesses. The panel explored how a robust insurance strategy could be instrumental in navigating issues like inflation, foreign exchange constraints, and talent flight. Real-world examples were presented, showcasing how insurance helps businesses protect essential assets, processes, and outcomes, ensuring continuity and success even in a challenging market.

The discussants emphasised on the imperative of prioritising insurance as a secondary tool for achieving financial stability amidst inflationary challenges in Nigeria. 

Given the recent periods of widespread inflation, the discussants highlighted the correlation between claims and expense inflation with general inflation, with a notable increase observed in recent times.

They noted that since the latest inflationary period occurred, inflation rates have been well contained. 

They noted that as  insurance was a liability driven business, the duration of the commitments and the guarantees/coverage offered shape the asset allocation of insurers and their sensitivity to changes in inflation and interest rates. 

In his submission, Head, Corporate Underwriting at Coronation Insurance, Augustine Aniekwe, revealed that Coronation Insurance provided an exceptional advisory service to ensure clients maintained adequate coverage for their property values. 

He said this  proactive approach has helped clients avoid underinsurance and ensures they received the full value of their claims.