Management of Insurance Portfolio Risk in a Volatile Nigerian Economic Environment

This study investigates portfolio risk management strategies employed by Nigerian insurance companies in response to macroeconomic volatility characterized by inflation, currency depreciation, and fluctuating investment returns. Insurance portfolio management encompasses both asset-liability matching, investment allocation, and underwriting portfolio diversification, all of which are significantly affected by the instability of Nigeria's macroeconomic environment. This research employs a professional practice study design using primary data gathered from 30 chief actuaries, investment officers, and risk managers at insurance companies operating across Lagos, Abuja, and Port Harcourt. Structured questionnaires and interviews examine portfolio composition, risk management frameworks in use, regulatory compliance with NAICOM's investment guidelines, and adaptive strategies employed during recent periods of economic stress including the naira devaluation cycle of 2022 to 2024. Qualitative findings are supplemented by secondary data from company financial reports. Thematic analysis and descriptive statistics identify common portfolio risk management patterns and gaps. Preliminary findings are expected to document widespread asset-liability duration mismatches and over-concentration in short-term government securities. The study recommends actuarial capacity-building programs and more flexible NAICOM investment allocation regulations to enable better risk-adjusted portfolio management. Keywords: Portfolio Risk Management, Insurance Investment, Macroeconomic Volatility, Asset-Liability Management, NAICOM.