WEAK INSURANCE SECTOR THREATENS BANKS, FINANCIAL STABILITY – EXPERTS

Financial experts have warned that the weakness of Nigeria’s insurance sector poses significant risks to the banking industry and the country’s overall financial stability.

They said low insurance penetration, limited risk coverage, and inadequate capital within parts of the insurance industry could weaken the financial system’s ability to absorb economic shocks and support sustainable growth.

According to the experts, a stronger insurance sector is essential for protecting businesses and individuals against financial losses while complementing the role of banks in managing risk and mobilising long-term capital.

They noted that improving public awareness, strengthening regulation, encouraging innovation, and expanding access to insurance products would help deepen the industry and boost confidence among consumers.

Stakeholders also called for closer collaboration between regulators, insurers, and financial institutions to build a more resilient financial ecosystem capable of supporting investment and economic development.

They stressed that reforms aimed at increasing insurance penetration and enhancing industry capacity would not only strengthen the sector but also contribute to a more stable and inclusive financial system in Nigeria.