Enterprise Risk Management (ERM) in the Nigerian Insurance Industry

Abstract

The study looked at how Nigerian listed insurance companies performed in terms of enterprise risk management. The ex post facto research design was used in the study. According to Nigeria Stock Exchange data as of December 30, 2021, there were 23 insurance businesses listed on the Exchange (NSE). Ten Nigerian insurance firms made up the sample size. In choosing the selected firms, we used the convenience sampling approach. The sample firms’ financial statements and annual reports were used to collect data for the study. The statutory audit of the financial accounts served as the foundation for validity and reliability. Inferential (multiple regressions) and descriptive statistics were used to analyse the data. The results showed enterprise risk management has no significant impact on listed insurance companies in Nigeria’s earnings per share; return on asset of listed insurance companies in Nigeria; or return on equity of listed insurance companies. According to the study’s findings, enterprise risk management has little or no financial impact on Nigeria’s listed insurance businesses. The research proposed that risk committee meetings be held regularly in order to improve performance and that members of the committee should be proficient in managing risk-related issues. It also advised that the committee be allowed its independence to operate.