The Impact of Insecurity on Insurance Operations in North East Nigeria

This research examines the impact of armed conflict and insecurity on insurance market operations in North East Nigeria, with particular reference to Adamawa and Yobe states. Prolonged armed conflict in the Lake Chad Basin has severely disrupted commercial activity, displaced populations, and created extreme risk environments that challenge conventional insurance underwriting assumptions. Insurance companies operating in the region face a unique combination of elevated claims exposure, limited premium collection capacity, and significant reputational risk associated with operating in conflict zones. This study employs a descriptive research design using primary data from 40 insurance company branch managers and 20 registered brokers operating or formerly operating in Adamawa and Yobe states. Structured interviews and questionnaires assess operational challenges, product modification decisions, market withdrawal patterns, and strategies for maintaining coverage in affected areas. Secondary data from NAICOM's market reports and Nigerian Insurers Association databases complement the primary analysis. Thematic analysis and descriptive statistics are applied. Preliminary findings are expected to document significant operational contraction in northeast insurance markets, with most firms limiting coverage to oil-related and large corporate clients. The study recommends conflict-sensitive insurance product frameworks and government risk-sharing mechanisms to maintain market functionality in insecure environments. Keywords: Insecurity, Insurance Operations, North East Nigeria, Conflict Risk, Market Withdrawal.