Consolidated Hallmark absorbs fuel cost hikes, accelerates solar shift
Nigeria’s climbing petrol and diesel prices—now around N1,400 and N1,900 per litre—are pushing up transport and generator costs for businesses that rely on fuel. In an interview with Nairametrics, Katherine Itua of Consolidated Hallmark Insurance said the company had budgeted for N1,500 petrol and N2,000 diesel this year, so current levels remain within their projections and have not strained operations.
Higher energy costs are reshaping customer behaviour: motorists facing pricier vehicle upkeep may opt for cheaper third‑party cover over comprehensive policies, influencing claims profiles and pricing talks across the insurance sector. Hallmark notes that regulated sectors like aviation, oil and gas and marine see limited impact, but motor insurance is directly affected.
To counter the pressure, Hallmark is prioritising efficiency and cleaner power. They have finished the first phase of a solar inverter upgrade at their head office and plan to complete the second phase before year‑end, aiming to cut diesel dependence and make power costs more predictable. Process automation is also being pursued to lower personnel and capital expenses over time. While expanding their marketer team will raise fuel costs, the extra income is expected to outweigh that increase. disciplined budgeting keeps income ahead of expenditure despite energy volatility.