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The Nigerian Insurers Association (NIA) has launched a quarterly platform tagged; NIA Chairman Time Out With CEOs, that would help to strengthen bolds amongst Chief Executive Officers of insurance companies and brainstorm on how to collectively tackle issues confronting the sector.
Chairman of NIA, Segun Omosehin, at a press conference today after the maiden meeting, which had many CEOs in attendance, said the NIA Chairman Time Out With CEOs, is an additional platform to educated and interact with members on current events in the industry and how to position effectively to surmount economic challenges posing as threat to insurance business.
He submitted that experts from Agusto Consulting,were engaged to dimensioned issues around macroeconomic and examine the operating environment of members.
Omosehin noted that resolutions reached at the meeting, would be vigorously pursued by staff of the association, ably led by the Director-General, Mrs. Yetunde Ilori.
According to the NIA Chairman, performance evaluation would be carried out weekly on resolutions, to ensure they are well executed.
He appreciated the CEOs for massively attending the event, whilst stating that the event would hold quarterly.
Oritsejimi Ogbobine and Funmilayo Olore of Agusto Consulting Limited, speaking on Macroeconomic Review, noted that industries would be exposed to severe downside risks owing to macro headwinds, adding that the two major risks will be FX risks and weaker consumer purchasing power owing to the removal of the
fuel subsidy.
They submitted that the lingering FX crisis would have a material negative impact on several industries particularly industries with high dependence on imports and weak FX earning capacity.
According to them, the most vulnerable industries would be the ones which import finished goods and have little local value add and that the weakening purchasing power owing to the removal of the petrol subsidy would impact the way consumers
purchase products.
More consumers, they stated would seek down market substitute products in a bid to mitigate the risks of weaker purchasing power and that the most vulnerable industries to the weaker purchasing power would be products which consumers view as non-essential.
Overall, industries will largely resort to price increases which may result in increases
in nominal revenue albeit product volumes will contract, they submitted.
