The Nation Newspaper

Category: Insurance

  • ARIAN gets new secretariat, plans housing estate

    In a bid to meet the general needs of its members, the Association of Registered Insurance Agents of Nigeria (ARIAN) has secured a befitting secretariat located at 187 Ikorodu Road, Palmgrove, Lagos.

    Its President, Olamerun Gbadebo, at a press breifing to unveil the office, noted that the training room within the office will be used to train stakeholders and equip members with trends in insurance practice.

    He maintained that the association in order to build capacity, has embarked on a campaign encouraging agents to acquire insurance professional certificates, adding that training would be organised for unit and agency managers in the secretariat’s training room.

    He said the association will soon organise training for would be retirees on the differences between annuity and programmed withdrawal.

    He further disclosed that the association will, on the 28th of this month, hold insurance walk in Abuja; Lagos; Ibadan and Owerri, adding that the walk is aimed at sensitising the public on the need to have fire and burglary insurances, and use them to secure their properties against losses.

    The walk, according to Gbadebo, is organised in partnership with the Federal Fire Service (FFC); Federal Road Safety Commission (FRSC) and the Nigerian Police Force (NPF).

  • Recession exit: Insurance sales improve, says CIIN

    Recession exit: Insurance sales improve, says CIIN

    There has ben substantial improvement in the purchase of insurance policies to reflect that the country is out of recession, the President, Chartered Insurance Institute of Nigeria (CIIN), Mrs. Funmi Babington-Ashaye, has said.

    She made this known in an interview with The Nation, noting that the improvement in sales surpassed what was made last year. According to her, although, people have not started feeling the impact of the economy being out of recession, there is hope that things will get better soon.

    She said: “I can see a lot of commercial activities and also a lot of improvement in terms of insurance purchase. If we compare the improvement to what we have last year, we can agree with the Federal Government that technically we are out of recession. But it will take some time before people start feeling the positive impact.”

    Babington-Ashaye, who will be six weeks in office as the president of the Institute, said she will during her tenure make insurance awareness and enlightenment a common issue to be driven by all stakeholders in their various domains.

    She said there is need for insurance operators to confront the lack of general awareness, which is the greatest challenge facing the profession.

    She said: “People lack knowledge about insurance and its importance in all human endeavours, including business undertakings. This manifests in poor patronage of insurance products by the public and the unwillingness to choose insurance as a course of study by the youths.

    “As an Institute, we must continue to take deliberate steps to address these issues with a view to repositioning the profession in the psyche of the people. We must build on the past efforts of our predecessors and the awareness drive of other stakeholders in the industry.

  • NAICOM to operators: brace for change

    Insurance operators should be prepared to face some changes and strict enforcement of regulations in the industry, the Deputy Commissioner, National Insurance Commission (NAICOM) George Onekhena has said.

    He made this known during the sendoff dinner organised by the Nigeria Insurers Association (NIA) for its immediate past Director-General, Sunday Thomas held over the weekend at Oriental Hotel, Victoria Island, Lagos.

    Thomas, who worked as a Director in NAICOM before moving to work as DG NIA was in reappointed in May  by President Muhammadu Buhari as NAICOM Deputy Commissioner, Technical.

    Onekhena further stated the future of the industry has a lot challenges as well as opportunities.

    He said the opportunities might never be actualised, if the industry does not surmount the challenges.

    He told the operators that they would need to work with the Commission to surmount the challenges facing the industry.

    He said: “Operators are doing well with the industry, but there is a lot of challenges and opportunities. I encourage us to work closely with the Commission so that the huge potential that is yet to be tapped will be fully realised. We have a bouquet of opportunities, which can also be called risk like economic, political and social risks.

    “There has been a number of foreign investors entrants into the industry. Substantially, we can say we have made progress but there is need for more to be done to ensure that rules and regulations are strictly adhered to. We expect the level of adherence by operators to improve. There has been good and dangerous competition and NAICOM as the regullator must address it.”

    Thomas said he believed he was able to contribute his quota to the development of the industry,  and would continue to do so as NAICOM Deputy Commissioner.

    He promised to leave the industry better than he met it and urge operators to cooperate with the Commission.

    “I will leave the industry better than I met it. We are in difficult times and difficult decisions will have to be taken. There is so much to be done.

    “I, on my part, will add my quota within the time that I have to work at the Commission. The industry must be better. I have seen a few things since I assumed work at NAICOM. There are some  gaps that we have to fill. There are some demands that the regulator will soon make. I appeal to operators to look at the content and work to improve the industry.”

    NIA Chairman, Eddie Efekoha said the dinner was in appreciation of Thomas who served the association meritoriously as DG from May 2010 to April, this year.

    Efekoha said given the peculiarity of the market, the role of being the chief executive of a market association is by no means an easy task.

    “It takes a high sense of service, dedication, commitment and strength of character, especially when difficult decisions have to be implemented.

    ‘’Sometimes the position of the market is at variance with your position or conviction, but it takes maturity and selflessness to jettison your view or practice for the collective good. That is the practical demonstration of servant leadership,” he added.

  • Law Union & Rock targets 50% premium growth

    Law Union and Rock Insurance Plc is committed to growing its premium income by 50 percent at the end of the year, its Managing Director, Jide Orimolade, has said.

    At a briefing in Lagos, he said the company has achieved 17 percent growth in its half-year result, out of its  target for 2017.

    He said the company planned to leverag its relationship with brokers and agents, retail business and other channels of distributions to achieve its objective.

    He said: “Other plans for the year include to retain 90 per cent of our customers; growdirect and retail businesses; achieve an improved credit rating from A- to A+ by GCR and become the preferred first choice underwriter amongst the General Insurance business provider in the country.

    “We will also leverage  technology to increase our profitability in 2017. We are doing a lot of strategic alliances with various online platforms believing it will help us to grow our business and achieve our targets within the year.”

    Speaking on claims payment, he stressed that the company pays claims within 72 hours after all paper works had been done.

    “The company IT platform is effective and efficient to enable us  move ahead to cover areas where we don’t have offices. We are investing seriously to upgrade its technology platform to meet the customersdmand. Our customers through our IT platform can purchase insurance; report claims and monitor it to the point of payment without necessarily coming to the office,” he added.

  • ‘Opportunities exist for insurance professionals’

    There are job opportunities for insurance graduates, especially those who have the Associateship (AIIN) of the Chartered Insurance Institute of Nigeria (CIIN), the  Institute’s Kaduna Chapter Chairman, Olugbenga Ogunsanya, has said.

    Ogunsanya, also the Managing Director, Shinning Light Insurance Brokers Ltd, Kaduna, made this known at the Insurance Awareness Day organised by the Insurance Students Association, Ahmadu Bello University, Zaria.

    Speaking on the ‘Importance and desirability of the attainment of associateship’, he said insurance stands tall among professions nationally and internationally due to its critical role to a nation’s economy.

    He said there is huge opportunity for anyone certified as a professional of the institute to fill the manpower gap in the industry, especially in the North.

    He hinted that with AIIN qualification, an individual could reach the zenith of the profession.

    He pointed out that the AIIN is recognised by the Chartered Insurance Institute of London and could, therefore, be used to get a job anywhere with little or no further certification requirement by other countries.

    He added that holders of AIIN could be offered admission for Master programmes in Insurance or related courses.

    ‘’An AIIN holder could also apply for the Associateship of The Nigerian Council of Registered Insurance Brokers (ACIB). AIIN is well- recognised in Nigeria and many African countries,’’ he added.

    Ogunsanya said: “Professional insurers with a minimum of AIIN qualification are greatly sought as managing directors/chief executives, executive directors, chief technical officers,  heads of divisions and directors of insurance companies, reinsurance companies, insurance broking firms and loss adjusting companies. These trend shall continue as the insurance industry continue to grow and expand its operations with the economy of the nation.

    “People who attain this professional qualification with constant upgrades of their skills, competence and knowledge are most likely to be the brides at all times in the industry. A qualified person can operate as an agents of  insurance companies and be allowed to use the companies franchise. He can also operate as loss assesors for clients; risk consultants/managers to organisations and goverments; Actuaries;  pension funds administrators/consultants; insurance brokers; consultants to national health insurance schemes; insurance officers in big organisations, group of companies and multinational organisations, among others.

    ‘’Insurance is a socio-economic system of managing financial risks whereby the bearers of the risks agree to transfer the risks in consideration of payments of certain small amount of money to another party who undertakes to indemnify or compensate any of the bearers who might suffer a financial loss on account of the occurrence of any of the specified risks.

     

  • LASACO settles N1.063b pension legacy funds

    In compliance with the Federal Government’s directive, through the Pension Transitional Arrangement Directorate (PTAD), LASACO Assurance Plc has settled the N1.063 billion pension legacy funds in its custody.

    The company paid the sum to PTAD as final settlement of the funds meant for pensions of six Federal Government parastatals under the Defined Benefit Scheme (DBS).

    PTAD’s Divisional Manager, Christiana Adebote, who made this known in Abuja after receiving the transfer, commended LASACO for its compliance.

    She said this was an execution of a Memorandum of Understanding (MoU) between the Directorate and the company.

    Adebote said the Directorate, last year, issued demand notices on the insurance firms holding legacy funds meant for payment of pensioners under the DBS to transfer outstanding funds into ‘’our dedicated e-Collection account with the Central Bank of Nigeria (CBN).’’

    She explained that the Pensions Reform Act (PRA) 2014 vested all pension assets, funds and liabilities of pensioners under the old scheme in PTAD and warned that it had become imperative for other concerned firms still holding onto the legacy funds to transfer them to PTAD without  delay.

    She noted that the intention of the Federal Government’s request for the release of these funds is to grow them for the prompt payment of pension.

    LASACO’s General Manager (Marketing), LASACO, Ademoye Shobo, while collecting the Letter of Set Off from PTAD, having fully paid the amount due, said the legacy funds managed on behalf of  parastatals as required by section 42 of the Pension Reform Act (2014) was fully remitted in July.

  • Cornerstone Insurance unveils ‘Ember Promo’

    Cornerstone Insurance Plc is offering its customers a free month cover on motor insurance policy for their patronage.

    In a statement, its Head, Corporate Communication, Cordelia Ekeocha, said the company rewards its customers yearly through its “Ember Promo”, where customers pay premium for 11 months and get 12 months’ insurance cover, that is, they one month free.

    The promo, she said, would run from September 1 till the end of next January.

    She said: “Having car insurance is essential because it covers your expenses in the event of vehicle damage or injuries to other drivers, passengers or pedestrians. All vehicle owners must be insured against their liability to other people, as stipulated in the (Third Party Insurance) Act 1945 (Nigeria).

    “At Cornerstone Insurance, we offer a wide array of pocket friendly Auto Insurance Products, ranging from the compulsory Third Party Motor to Comprehensive. In our 26 years in the insurance industry, the company has identified insurance needs and designed tailor made products for its esteemed customers. More information on the promotion can be assessed through their website, the company said in a statement.

    “Our auto product offerings are Third Party Motor, Private Motor Individual, Motor Enhanced, Auto Variants, Commercial Motor and Uber plans.The Auto Variants Range consists of five bands namely: Compact, Bronze, Silver, Gold and Platinum.”

    Ekeocha continued: Auto insurance is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

    ‘’Auto insurance provides accidental loss or damage to property, liability and medical coverage: Property coverage pays for damage to or theft of your car and damage to properties belonging to third parties.’’

  • Brokers to enhance regulatory compliance with software

    To enhance brokers’ compliance with regulatory requirements of the National Insurance Commission (NAICOM), the governing board of the Nigerian Council of Registered Insurance Brokers (NCRIB) has approved the proposal for a shared service agreement where a software will be designed to assist members.

    Its President, Kayode Okunoren made this known at the last month’s edition of NCRIB Members’ Evening hosted by Zenith-Prudential Life Assurance Limited.

    Okunoren, whose tenure  will end soon, said the programme would further assist members avoid penalties from NAICOM.

    He said the task of leading the Council, sustaining the legacy of the founding fathers, making the profession worth the while and leaving good legacy behind for upcoming professionals had been enormous.

    He said: “It is almost two years now that this administration came on board, I must confess that it has been two years of assiduous work and I like to appreciate the staunch support that I got from the Board and all members, without which, these modest achievements would not have been possible. I am persuaded beyond reasonable doubts that the herculean tasks of ensuring that our vocation becomes an enviable profession has been sustained, even though, we are not yet there, but we are no more where we used to be.”

    Zenith-Prudential Life Assurance Managing Director, Mr. Ebelechukwu Nwachukwu, said the company, which started business in 2006,  has grown to be among the top 10 insurance companies.

  • Law Union achieves 17% growth in gross premium

    Law Union and Rock Insurance Plc has recorded a gross premium written of N2.76 billion in the half year ended June 30, 2017, an increase of 17 per cent against N2.37 billion recorded in June 30, 2016.

    Similarly, the company’s profit after tax rose by  four per cent in the second quarter from N307. 33 million last year to N318,74 million this year.

    Its Managing Director, Jide Orimolade during a CEO Forum with national insurance correspondents in Lagos.

    Orimolade said there was a high increase in the claims report due to the flooding in the half quarter adding that gross claim paid stood at N622.51 million in the half year ended June 30.

    He said: “Law Union is now committed and strategically positioned to consolidate on her profit earned this year to delight our shareholders and all other stakeholders. Our overall goals for 2017 is to grow our gross premium written by 50 per cent, retain 90 per cent of our existing customers, grow our direct and retail businesses, improve relationship with brokers and other channels, achieve an improved credit rating from A- to A+ by GCR and become the preferred first choice underwriter amongst the general insurance business providers in Nigeria.

    “We have developed and released four products in 2017. They include I-Salute designed to provide support and relieve to officers and their families in event of accidents that result in any or a combination of Bodily injury requiring resulting in medical expenses; Doctor-on-Cover designed to help medical doctors comply with the law as well as  protect them from unforeseen legal liabilities that could prevent them from practicing what they love; GPA is a Group Personal Accident product designed for Schools and Students/Pupils at all levels of education – kindergarten, nursery, primary, secondary and tertiary and SurePAY, an e insurance product that provides some  level income security in event of loss of employment. It guarantees the payment of an agreed amount of monthly income up to six months after job loss. These products fit in to insurance for Small Medium Enterprises (SMEs) and we hope they will contribute to the company gross premium in 2017.’’

    Orimolade continued: “The company is a well-known underwriting firm with a stable outlook and result oriented management. We have numerous strategic initiatives which have contributed immensely to the growth of our financials. The company is not only determined to meeting all her obligations to the policyholders and committed to continue adding values to her esteemed customers through disruptive innovation that delivers seem less, convenient and stress free business ecosystem.’’

  • NAICOM to restructure industry

    NAICOM to restructure industry

    The National Insurance Commission (NAICOM) will in four weeks release at least eight new restructuring and market documental policies, the Commissioner for Insurance, Mohammed Kari, has said.

    The Commissioner, who made this known during a meeting with the Nigerian Stock Exchange (NSE) and insurance operators, said the Commission would consult the operators.

    He said the Commission would release a draft of many policies, noting that it would be for the betterment of the industry.

    He said the NSE Chief Executive Officer, Oscar Onyema, had made presentations to the Commission on how they think insurance companies’performance on the floor of the stock exchange can be improved.

    He said the Commission would adopt the NSE’s proposals

    He said: “We have adopted his presentation as a working paper of the Insurers Committee and we are going to have a Subcommittee to dissect it and come up with how we can ensure that our members that are quoted play their role and members that are not quoted see incentives on what he has presented to make them come to the floor of the exchange.

    “We have made efforts to entrench transparency in the sector and we hope that the reality of the partnership with the stock exchange will be a game changer for operators.”

    On issues that have not allowed proper growth in the industry, Kari said: “We make ourselves special because we feel we are special. Otherwise anybody who has been in this industry for 25 years will remember insurance companies in this country used to own banks. They use to own investment in the stock exchange and owned even the premises of the stock exchange. Those were the days when we were not special. We looked at ourselves as insurance companies that provide services and we invest our funds where we should invest it.

    “Suddenly, we started thinking we are special. Every time a rule is made in Nigeria to better the sector, a player will object it. We lost it from the day when Technical committee on privatisation and commercialisation dictated that all institution must increase their capital and the banks we used to own capitalised much higher than us. We rather went to court challenging it and that was where we lost it. And we still haven’t gone as half as others have gone. When Risk-Based Supervision came, we still said we are special. We have been dragging our feet when other sectors have reached five per cent. The solvency policy is not waiting for us. Others have already gone ahead and we are yet to start.

    “I want to assure operators that we have quite a few programs that we will be embarking upon.  Within four weeks we are going to call out at least eight new restructuring policy, market development policy which will be in consultation with the operators. We will release exposure drafts, many policies, too many for you to have good Christmas but you should be ready for it. They are all for the betterment of what we do.”

    Onyema said the Exchange, NAICOM and with other regulators in the financial sub-sector were working to harmonise account submission procedures.

    He said this was expected to relive operators from sanctions of late submissions of accounts.

    He added that financial reporting is highly essential to investors as it aids their investments decisions.

    “We are not happy when a company has an infraction. We actually celebrate companies that have no infraction so it doesn’t give us joy to punish a company. We would rather love if that wasn’t the case.

    “We think that we can have better perception of insurance companies that can deepen penetration of provision of insurance services. Right now there are about 3.5 million users of insurance in the country for a country of 180 million. So, the opportunity to have deeper penetration is greater.

    “The use of data technology and other things that we can do to really improve the state of the insurance sector are some of the things we have proposed to them. As part of strate gies risk management, via securitisation has been recommended,” he added.