Of Terrorism and FG’s Intervention for Insurers

The escalating wave of terrorism across Nigeria presents a stark reality that can no longer be ignored, particularly by the insurance sector. As reported by ThisDay, the federal government must urgently consider the insurers' proposals for collaboration on terrorism insurance. The devastating impact of the September 11, 2001 attacks in the United States, which cost insurers billions, serves as a potent reminder of the financial devastation such events can unleash.

While initially, Nigeria and some other nations might have dismissed terrorism as a distant threat, the subsequent attacks globally—from Bali to Madrid, Mumbai to Moscow—have unequivocally placed terrorism risk at the forefront. For Nigeria, it has transitioned from a mere threat to a pervasive problem impacting both the government and the insurance industry. The evolving tactics of terrorists, as seen in incidents like the 2025 Sydney assault and the 2026 Puerto Vallarta violence, demonstrate a disturbing adaptability that blurs the lines between terrorism and civil disorder.

Internationally, insurers are already contending with significant pressures. The accumulation of risks is immense, with the fear of a single event triggering widespread losses across property, aviation, business interruption, and cyber policies. This has led to higher premiums, reduced coverage limits, and exclusions for war-related risks, especially in politically sensitive areas and urban centers. Furthermore, the surge in cyber threats is forcing insurers to confront the complexities of cyber terrorism, where attacks on critical systems can cripple supply chains and amplify economic damage almost instantaneously.

From our vantage point in Nigeria, the conversation around terrorism insurance is not just about financial risk management; it's about national security and resilience. While Western media often focuses on the geopolitical aspects of terrorism, our concern is deeply rooted in the immediate safety and economic stability of our citizens and businesses. The insurance industry, with government support, has the potential to be a crucial partner in mitigating the financial fallout of such attacks, thereby fostering a more secure environment for investment and daily life.