As Nigerian businesses accelerate their digital transformation, cyber insurance has emerged as a critical safeguard against escalating online threats, according to Stephen Alangbo, Managing Director and Chief Executive Officer of Cornerstone Insurance Plc. In an exclusive interview with PUNCH, Alangbo emphasized that the rising adoption of artificial intelligence (AI) and technology is not only propelling innovation but also exposing firms to unprecedented vulnerabilities.
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“AI is the in-thing,” Alangbo stated, highlighting how data-driven tools like AI are streamlining operations but simultaneously heightening cyber risks. “When you talk about cyberattacks, the vulnerability of most businesses becomes obvious. For us in Cornerstone, we are one of the insurance companies at the forefront of cyber insurance cover. It’s relatively new, but it’s becoming inevitable for every business to have cyber insurance coverage to protect itself against the risks that come with technological advancement and cyberattacks.”
This perspective aligns with a recent Geneva Association report, which noted a global surge in companies seeking coverage for AI-related risks. In Nigeria, Alangbo affirmed that the trend is gaining momentum, driven by the country’s deepening digital economy. Cornerstone is actively developing tailored cyber policies to meet this demand, positioning itself as a key player in risk mitigation. “We are developing capabilities to ensure that we are able to cover those who need this cover, who are exposed to this risk,” he added. “Aside from this and other risk exposures, we continue to position ourselves to ensure that all forms of risk that can be covered by insurance are available in Cornerstone, so that we can enable businesses to thrive while we carry their risk.”
Alangbo’s comments come amid transformative changes in Nigeria’s insurance landscape, spurred by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law earlier this year. Described by stakeholders as a potential “game changer,” the Act addresses longstanding barriers to low insurance penetration — currently hovering below 1% of GDP — such as eroded trust from past claim failures and lax enforcement of compulsory policies.
Key provisions include a significant hike in minimum capital requirements: from N2 billion to N10 billion for life insurers, N3 billion to N15 billion for general insurers, and N10 billion to N35 billion for reinsurers. “It means that the insurance companies will be very strong to fulfil their claim obligations,” Alangbo explained. The reforms also empower the National Insurance Commission (NAICOM) to enforce mandatory covers like third-party motor insurance, occupiers’ liability for constructions, and group life insurance for employers with at least three staff.
Cornerstone, a regulatory-compliant and innovative firm, is well-prepared for these shifts. “We are not going to raise any capital because we have enough capital to recapitalise,” Alangbo revealed, dispelling merger rumours and underscoring the company’s robust financial position post-NAICOM verification.
To bridge the penetration gap, especially among underserved communities and younger demographics, Cornerstone is leaning heavily into technology. Central to this is Cici, the firm’s AI-enabled chatbot, which facilitates end-to-end insurance purchases and claims processing via WhatsApp — a platform widely used by market traders and low-tech users.
“We have adopted a simple, basic digital mix of educating people about insurance,” Alangbo said. “For the common man, with Cici, it’s WhatsApp-enabled, and it can be reached for information about our products and the company and also to make a claim.” Upcoming enhancements will extend Cici’s reach to virtual inspections for vehicles and homes, eliminating geographical barriers.
The CEO teased further innovations: “We have other innovative technology products that we are going to release in a few months to enhance customer accessibility to our products.” These efforts, including partnerships with brokers to simplify compliance and avoid penalties, aim to demystify insurance and foster trust.
Second-quarter data from the National Bureau of Statistics shows the insurance sector’s contribution to Nigeria’s GDP rising in both nominal and real terms, fueled by recapitalization expectations, improved enforcement, and heightened investor interest. “Share prices of insurance companies are going very high because of improved trust in the sector,” Alangbo noted, attributing growth to regulators with operator experience addressing pain points like compulsory insurance adoption.
Looking ahead, Alangbo addressed climate-related risks, another emerging frontier. With unusual weather events on the rise, insurers like Cornerstone are crafting policies for climate-induced losses while supporting sustainability through corporate social responsibility (CSR) initiatives. “Part of that may be providing insurance cover for climate-related risks, so that when some of these changes… occur, there will be some form of relief,” he said. The firm is also funding environmental projects to curb hazards from industrialization.
Reflecting on his tenure, Alangbo outlined a legacy rooted in governance, trust, and sector elevation. “It is to ensure that there is good governance and there is trust in the organisation… and to give an assurance that we are building enough resources to be in a position to pay claims.” He envisions a mature Nigerian insurance industry mirroring global leaders in South Africa and the US, where insurers invest in banks, infrastructure, and beyond.
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