•Decries Nigeria’s reactive response to risks, emergencies
By Henry Uche, [email protected]
Nigeria like other countries has peculiar problems that have overwhelmed its leaders. The need for the creation of Office of the Risk Management of the Federation has been herald over the years particularly by Risk Managers Society of Nigeria (RIMSON). Its President, Mr. Gus Wiggle has loudly advocated that Ministries, Departments and Agencies of government at all levels (even the private sector) should factor in, Risk Management Desk (A department that must be manned by an risk management expert) dedicated to direct the organisation on policies and programmes to proactively manage risks implications associated with plans operations, and decisions of the organization. The rationale for risk managers across strata is obvious since our environment is ladened with risks and hazards in diverse forms.
In this interview with Mr. Wiggle, former Chairman of Nigeria Insurers Association (NIA) and now the Chief Executive Officer & Founder of Carefirst Consult Limited, he examined the implications of jettisoning Risk Management office by Mr. President, condemned Nigeria’s reactive response to risk and hazardous incidents, and the need to incorporate insurance studies in academic scheme/curriculum, among other issues.
Excerpt
Overview of insurance & risk management in Nigeria
Insurance and Risk Management are both in the same ecosystem of assessing, exploring, and quantifying the financial risks that individuals and businesses face and how they can manage them. Insurance is the mechanism with which you transfer the financial consequences of covered loss exposures from the insured to the insurer, while risk management involves the identification, prioritization, and control of the threats that may affect the activities and goals of the organization. Countries whose leaders prioritize the welfare, wellbeing and safety of the citizens, do not joke with risk management both at State and federal governance level. That’s why you see them taking proactive steps by setting mechineries in motion to manage every known or unforeseen circumstances (emergencies) to avoid any lost of Life and very minimal lost of property (if at all), but here, what do we have, your thought is as good as mine.
Sadly, we have not wholesomely embraced Risk Management as we have done for insurance in Nigeria. Not that we have done well in embracing insurance itself but it is ahead and above risk management in Nigeria today.
It will surprise you to know that Insurance penetration in Nigeria today is just less than 1 per cent. To me we are not doing enough to increase the penetration.
You advocated the creation of Office of Risk Management of the creation of Office of Risk Managment of the Federation
Creation of the Office of the Risk Management of the Federation, is an agenda of RIMSON and we will continue to push for it until its actualization. We are not giving up because we know it’s for the good of the country. It is unfortunate the administration of President Tinubu ignore the campaign for the creation of this office as someone who has once being in the corporate world before he ventured into politics.
Are you still hopeful?
Yes some of the ministers are okay, one of these technocrats will have an eye for risk management, however we shall continue the campaign for the office of Risk Management of the federation.
Do you think a Special Advisor on Risk, Disaster & Hazard Management would have been a good idea for Mr. President?
That may be a first step but not the same as having a Risk Manager for the Federation. There are more broader scope or framework to cover under this portfolio. You talk about the External Risk – Risk out of your control, pandemic, climate etc; Preventable Risk – Mistakes, Accidents; then Fraud and Strategic Risk. Of the three categories, I find Strategic Risk the most interesting type. Because, unlike the other two, it can add substantial value to a country and be an important part of its strategy.
Where does NEMA comes in… (cuts in)
I don’t think all these mentioned above are under the scope of NEMA. NEMA is the central government agency for emergency management in Nigeria. Its functions are to prepare Mitigate, Respond and Recovery. So any evaluation will be under these four headings.
Every year Nigeria records millions of naira losses in property and hundreds of lives in natural disasters, how far have we gone in managing these issues?
Yes until the government begin to act proactively regarding the matter under review. More so, until citizens begin to heed to warnings. Because Nigerian Meteorological Agency (NiMet) and
National Emergency Management Agency (NEMA) would forecast and issue warning respectively, to both the government and the Nigerian people, but we often take all these with kid gloves, that why you see records of loss of life and property, sadly. So we must start doing the right thing at the right time and place if we must reduce to the barest minimum the level of damage and destruction wrought by our negligence to critical issues.
Compliance level with insurance laws, regulations, and codes of conduct in Nigeria?
We as a people are not too compliant with laws except when harsh penalties are applied because we have a near no consequences for breaking the law and when you are caught, we play the victim card. Where there are no repercussions for offences, impunity will be the other of the day. We always look out for the easiest or quickest way to beat the law, that’s not to say we are all law breakers, no. So to answer your question directly, our compliance rate is average with so much room for improvement.
Insurance literacy and risk awareness is a challenge, what’s your contribution as former NIA boss?
While I was there, we emphasized on it. Even now we’re use every forum anywhere within and outside Nigeria to boost insurance literacy. According to a review of 10 randomized evaluations, 8 in 10 don’t want to hear about insurance because of wrong perspective of what they know insurance companies to represent.
There have been mis-selling of insurance products to uninformed buyers that when claims occur or their policies matured, they are told different stories. Insurance companies need to do more of awareness and build trust in the insurance scheme of informed people. The insurance market must talk and walk in the same direction to earn better reputation from consumers.
Insurance should be part of the curriculum in our secondary school and made elective course in the higher institutions of learning.
Addressing labour shortages in insurance profession, given that it requires specialized skills
The insurance industry is facing a labour shortage like every other sector due to a combined forces particularly after the pandemic disruption and great resignation as many youths re-evaluated their jobs and the need to japa. You have little control over these things.
Unfortunately, the industry can’t afford to lower their standard in their recruitment and will continue to relay on certification of many of their workforce. The industry will continue to incentivize the workforce and ensure standards are maintained from the broader talent pools abound in the country. Notwithstanding, some of the proactive companies in the industry are already deploying technology and automating some of their functions to augment their workforce.
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