#ENDSARS Events and the Impact on the Insurance Industry

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Tuesday, October 27, 2020 / 11:13 AM / by CSL Research / Header Image Credit: Trendsmap


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The peaceful protests staged by youths across the country, mobilized through various social media platforms to protest against the activities of the Special Anti-Robbery Squad (SARS), took a sad turn last week following alleged shooting of unarmed protesters at the Lekki toll gate. In what could be referred to as a reaction to the shootings, hoodlums hijacked the protests and began the destruction of both private and public properties. For example, In locations like Surulere, almost every shop, bank, shopping mall and ATM gallery along Bode Thomas and Adeniran Ogunsanya streets were damaged and goods carted away freely and there were reports of similar incidences in other parts of Lagos and in other states. There were also reports of BRT buses burnt at terminals and buildings razed down by fire. The Lagos State governor Babajide Sanwo-Olu was reported to have said the state alone would need c.N1 trillion for reconstruction after the destruction caused by the hoodlums.

 

The massive destruction of both public and private property has sparked worries on the ability of the insurance sector to cope with the expected number of claims. According to news reports, many operators expect claims to run into billions of naira which may be overwhelming for the insurance players if the government fails to offer some sort of aid especially as the sector is right in the middle of a recapitalisation exercise. In what may be a reaction to these fears, the Nigerian Stock Exchange (NSE) Insurance Index, a benchmark to measure the performance of the insurance sector closed lower by 0.59% for the week (ended 23-Oct-2020). It is however not too clear how much of the #EndSARS loss incident is covered  under the different types of available policies.

 

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The Nigerian Insurance sector remains largely underdeveloped with Insurance penetration still at c.2% and with the sector contributing less than 0.5% to GDP. The sector which contracted by 29.5% in the Q2 GDP report released by the Nigerian Bureau of Staistics is set for a deep recession this year. Yet to recover from the effect of the Covid-19 pandemic which has resulted in an increase in in health, travel and business disruption claims, players will now have to face the impact of the recent destruction of properties across the country on claims amidst trying to meet the new capital requirements set by regulators.


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Related News on #ENDARS

1.       #EndSARS: The State of The "Revolution" - OpEd by Reuben Abati, October 27, 2020

2.      Lagos Coordinated Attacks: An Attempt to Weaken Southwest Economy LASG, October 25, 2020 

3.      The #ENDSARS Protests: A Fundamental Lesson in Democratic Governance - Bola Tinubu, October 25, 2020 

4.  Our Youth and the Unfolding National Crisis: Need for Urgent Intervention- Concerned Nigerians, October 23, 2020 

5.    President Buhari Calls for Peace, but Insists on Decisive Action Against Carnage- State House, October 22, 2020 

6.   #ENDSARS: President Buhari to Address the Nation by 7pm - State House, October 22, 2020 

7.  NBA Condemns the Killing of Peaceful #ENDSARS Protesters in Lagos by the Nigerian Military - NBA, October 21, 2020 

8.       Deja VU - In Tragic Vein - Wole Soyinka, October 21, 2020 

9.  Statement by Olusegun Obasanjo on Violence Against Protesters in Nigeria: An Appeal for Calm - Olusegun Obasdanjo, October 21, 2020 

10. Lekki Toll Plaza Attack: Governor Sanwo-Olu Sets Up 5-Man Fact Finding Committee - LASG, October 21, 2020 

11.  #ENDSARS Protests: Speaker, Gbajabiamila Calls for Wholesale Reforms of The Nigeria Police Force - House of Reps, October 20, 2020 

12. IGP Deploys Anti-Riot Police Nationwide To Protect Lives and Defend Critical Infrastructure - Police, October 20, 2020 

13.   Lagos State Police to Enforce 24 Hour Curfew, Proshare Reverts to Remote Access Work - October 20, 2020 

14.  #EndSARS: Understanding Nigeria's Emerging Active Citizens- Abiodun Awonusi, October 20, 2020 

15.     Governor Babajide Sanwo-Olu Imposes 24-hour Curfew in Lagos State - LASG, October 20, 2020 

16.     #EndSARS: The Generation that said "Enough is Enough"- Reuben Abati, October 20, 2020 

17.     Establishment, Composition and Training of Nigeria Police SWAT to Replace the Disbanded SARS

18.  PDF: Establishment, Composition and Training of Nigeria Police SWAT To Replace the Disbanded SARS


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