The Managing Director and Chief Executive Officer of Cornerstone Insurance Plc, Stephen Alangbo, has said that cyber insurance has become essential for every business operating in today’s increasingly digital economy.
Speaking in an interview following the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, Alangbo noted that as companies embrace artificial intelligence, cloud systems, and digital platforms, exposure to cyber threats has surged—making cyber risk coverage “inevitable.”
“It’s becoming impossible for any serious business to operate without cyber insurance,” Alangbo said. “Technological advancement comes with exposure. We’re developing capabilities to protect companies from these risks.”
NIIRA 2025: A Game-Changer for the Sector
According to Alangbo, the recently signed NIIRA 2025 could transform the insurance industry by strengthening operators’ capital base and empowering regulators to enforce compulsory insurance schemes.
Under the new law, the minimum capital base for life insurers rises from ₦2 billion to ₦10 billion, for general insurance from ₦3 billion to ₦15 billion, and for reinsurers from ₦10 billion to ₦35 billion.
“This reform ensures insurance companies are financially strong enough to meet claims obligations,” Alangbo explained. “It also mandates stricter enforcement of compulsory insurances like motor, construction, and group life policies.”
He praised the National Insurance Commission (NAICOM) for actively collaborating with other government agencies to enforce compliance and restore public trust.
Cornerstone’s Digital Push
Alangbo said Cornerstone is already well-positioned to meet NIIRA’s recapitalisation requirements without raising fresh funds or merging with another firm. Instead, the company is focusing on digital innovation to reach more Nigerians.
Cornerstone’s AI-powered chatbot, “Cici,” allows customers to purchase policies, file claims, and even conduct remote car or home inspections through WhatsApp and other digital channels.
“With Cici, even market traders and rural residents can buy insurance, make claims, and interact with us in real time,” he said. “It bridges the gap between the company and the underserved.”
He added that new tech-driven initiatives will soon be launched to make insurance more accessible and transparent to young and low-income audiences.
Rising Trust, Stronger Growth
The Cornerstone boss attributed the insurance sector’s renewed growth and investor confidence to better regulation, improved capitalisation, and visible efforts to enforce compulsory policies.
“The share prices of insurance firms are climbing because public trust is returning,” he said. “When people see that claims are being paid promptly and companies are well-capitalised, confidence grows naturally.”
Insurance for a Changing World
Alangbo also highlighted climate risk insurance as another emerging frontier. He said the growing frequency of extreme weather events underscores the need for products that protect individuals and businesses from climate-related losses while promoting environmental sustainability.
“Our role as underwriters is not only to pay for losses but also to support initiatives that prevent them,” he explained.
Legacy of Trust
Looking ahead, Alangbo said his goal is to strengthen governance, rebuild trust in the insurance industry, and make Cornerstone a model for reliability and innovation.
“My legacy will be about governance, trust, and value creation,” he said. “Insurance must become a driver of national development—just like in advanced economies where insurers are major investors in infrastructure and growth.”
