WEAK CORPORATE GOVERNANCE HINDERS INSURANCE SECTOR GROWTH – CIOD

The Chartered Institute of Directors (CIoD) has identified weak corporate governance practices as a major constraint limiting the growth and competitiveness of Nigeria’s insurance industry.

Speaking at a recent stakeholders’ forum, CIoD leaders emphasised that poor governance structures, including inadequate board oversight and weak risk management systems, continue to erode investor confidence and slow sector expansion despite regulatory reforms.

Experts noted that while the industry has potential to contribute significantly to economic development through risk protection and long-term investments, persistent governance gaps have hampered innovation, capital inflow, and public trust. Many insurers still struggle with transparency, ethical standards, and compliance, leading to operational inefficiencies.

The CIoD called for stronger enforcement of governance codes, capacity building for directors, and the adoption of international best practices. It also urged greater collaboration between regulators, operators, and professional bodies to address these challenges.

Stakeholders agreed that improving corporate governance is essential for deepening insurance penetration, which remains low in Nigeria. Enhanced practices could attract more foreign investment and support the sector’s role in national development.

The institute pledged continued advocacy and training programmes to elevate governance standards across the insurance value chain.