Corporate Governance and Financial Transparency in Listed Insurance Companies in Nigeria

This study evaluates the relationship between corporate governance structures and financial transparency in listed insurance companies in Nigeria. The insurance industry is a critical component of Nigeria's financial system, yet it has historically been characterized by weak governance, opaque financial disclosures, and low public confidence. Recent reforms by the National Insurance Commission have introduced new governance standards, but their impact on reporting transparency remains insufficiently studied. This study uses a mixed-method approach combining content analysis of financial disclosures from 10 listed insurers with a survey of 88 regulators, auditors, and institutional investors. Corporate governance is assessed using board independence, audit committee quality, and ownership concentration as proxies. Financial transparency is measured through a disclosure quality index developed for this study. Correlation and regression analysis are applied. Results show that board independence and the presence of qualified audit committees are significantly associated with higher disclosure quality scores. Ownership concentration showed a negative but less significant relationship with transparency. The study concludes that strengthening board composition and audit committee effectiveness is key to improving financial transparency in the Nigerian insurance sector. It recommends that NAICOM enforce minimum qualifications for audit committee members and mandate quarterly disclosure reporting to align the industry with global insurance governance standards.

Keywords: corporate governance, insurance companies, financial transparency, NAICOM, board independence.