Nigeria Reconsiders Terrorism Insurance Amid Rising Threats

The Nigerian government is rethinking its stance on terrorism insurance as the threat of terrorist attacks has escalated, particularly in states like Borno, Benue, and Kwara. This reconsideration is prompted by a global increase in terrorism-related incidents and the financial strain on insurers from frequent claims.

The article references the U.S. Terrorism Risk Insurance Program, established after the September 11, 2001 attacks, which provides a federal backstop for terrorism risk coverage.

Similar measures may be necessary in Nigeria, where claims from families of soldiers killed by Boko Haram have reached N1.5 billion in the first half of 2013 alone. The global insurance market faces significant pressures due to rising terrorism risks, which have led to higher premiums and lower coverage limits.

Insurers are struggling to manage the financial implications of these risks, which include not only direct attacks but also cyber threats that can disrupt economies and supply chains.