The Nation Newspaper

Category: Insurance

  • NAICOM to CIIN: rejig your curriculum for best practices

    •Institute inaugurates new president

    The National Insurance Commission (NAICOM) has said the Chartered Insurance Institute of Nigeria (CIIN) should update its curriculum to either adopt or adapt to contemporary best practices for the benefit of the profession.

    Commissioner for Insurance, Mohammed Kari, gave the advice at the investiture of Mrs. Funmi Babington-Ashaye as the 48th President of the CIIN in Lagos.

    He implored the new president to treat the issue as a priority.

    Kari said this would engender respect and credibility for the institute and the industry. According to him, there is the need for a reawakening by the institute, noting that it has to ensure that the professionals are retrained and equipped with prevailing skills and knowledge for optimal performance in line with international best practices.

    He assured that the Commission would continue to support the institute to ensure that insurance professionals were regularly updated to enable them align with global trends.

    He, however, noted that over  the years, the institute had made some achievements in various aspects, including attracting more people into its fold as members, increase in visibility of the institute and its activities, development of academic activities at the college of insurance, enhanced pursuit of relevance in educational institutions, establishment and sustenance of the Insurance Industry Consultative Council (IICC) and other activities that have continued to foster bonding in the industry.

    He said: “The commission took note of the number of qualified professionals which I’m told have risen to 3,316. However, I think it is imperative for us to ask how many of these CIIN certified and qualified members have exhibited and sustained the spirit of the profession.

    “How many of us conduct our business in line with the ethics, standards and principles that guide the practice of an insurance professional? These are concerns I felt we should try to address, especially as we usher in a new era and leadership in the institute.

    “The developments in the country obviously call for our collaborative effort to reposition the profession and rebrand the institute. With the benefit of hindsight, it is apparent that no arm of the industry can do it standing alone. The achievements of the CIIN over the years could not have been possible without the support and participation of all arms of the industry. I want to implore every segment of the sector to continue to work together and grow the industry for the benefit of all.”

    In her acceptance speech, Mrs Babington-Ashaye said the theme of her tenure is ‘Insurance: Imperative for education and enlightenment. “The choice of this theme was informed by the need to confront lack of general awareness, which is the greatest challenge facing our profession and the industry. 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 to reposition 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.

    “Accordingly, my tenure will focus on regular advocacy, professional development, enhanced insurance awareness, continued efforts on institute’s buildings and reorganisation of the secretariat.”

     

  • NIA gets first female DG

    Nigeria Insurers Association (NIA) has appointed the former managing director of AXA Mansad Insurance Plc, Mrs. Yetunde Ilori as its new Director-General(DG).

    She took over from Sunday Thomas, who was appointed as the Deputy Commissioner Technical, National Insurance Commission (NAICOM) by President Muhammedu Buhari last May.

    The association also appointed the Managing Director of NEM Insurance Plc, Tope Smart, as its Deputy Chairman.

    Smart was the Treasurer of the association before appointment.

    NIA Chairman, Eddie Efekoha, who made the announcement while introducing the new director-general to reporters in Lagos, said the appointments were approved at the council meeting of the association.

    Efekoha said Ilori’s got the job because of her vast knowledge and contributions to the industry. He noted that Mrs Ilori would be the first female director-general of the association.

    He listed others appointed by the council as Managing Director, Cornerstone Insurance Plc, Ganiyu Musa as Honourary Treasurer and Managing Director, Standard Alliance Insurance Plc as Assistant Honourary Treasurer.

    He said their appointments would be ratified at the association’s next Annual General Meeting (AGM).

    Mrs Ilori plans to build on her predecessor’s programmes. She listed professionalism and insurance awareness as some of her plans for the industry.

    She promised to build a relationship with the insurance regulators and other insurance bodies.

  • Insurance firms complying with IFRS requirement

    Insurance firms complying with IFRS requirement

    •NAICOM approves 39 accounts

    Insurance companies are progressing in the rendition of their accounts in tandem with the International Financial Reporting Standards (IFRS), the insurance industry regulator, NAICOM, has said.

    The regulatory authority, the National Insurance Commission (NAICOM), said 39 out of the 48 firms that submitted their accounts have been cleared unlike in the past when only a few of them got clearance.

    This was made known in a report titled: 2016 Status Report on Insurance Companies, released last week and made available to reporters in Lagos.

    According to NAICOM, 39 firms have been approved, two  were queried and review of six accounts is in process while the response sent by one company is under review. The accounts approved by the Commission are FBN General Insurance; Wapic Life; Ensure Insurance; Continental Reinsurance; Zenith General Insurance; FBNInsurance; Consolidated Hallmark Insurance; AIICO Insurance; Leadway Assurance; Mutual Benefit Assurance and Sovereign Trust Insurance.

    Others are Custodian and Allied; Law Union, Wapic General; Axa Mansad; Prestige; NEM; Regency; Lasaco; UnityKapital; Cornerstone; Fin Insurance; Royal Exchange; Leadway Assurance; Old Mutual; Staco; Royal Prudential; Mutual Life; NSIA Insurance; Standard Alliance; ARM; Linkage; Sterling Assurance; Standard Alliance General; Anchor; Niger and United Metropolitan.

    NAICOM noted that the response sent by Guinea Insurance on her account is under review while the accounts of Nigeria Reinsurance Corporation and KBL Insurance Limited were queried.

    The commission said it is still reviewing the accounts submitted by Nigerian Agricultural Insurance Corporation; Equity Assurance; Capital Express; Universal Insurance Plc; UNIC Insurance Plc and Saham Unitrust Insurance Nigeria Limited.

    The industry has before now been known for non-submission of accounts by the majority of firms that stay sometimes three to four years, which has overtime contributed to difficulties encountered by NAICOM in having accurate data of the sector.

  • Anchor pays N21m claims to Bedmate Furniture

    Anchor Insurance Company Limited has paid N21 million to Bedmate Furniture Nigeria Company Limited as claims for a fire incident that occurred at its showroom in Lagos.

    In a statement issued by Anchor’s Brand and Corporate Communications Manager, Jamiu Osoba, and made available to reporters in Lagos, the payment was made in line with the company’s commitment to prompt settlement of genuine claims.

    “The payment was made to indemnify Bedmate Furniture for a claim for an incident that occurred in its showroom which was attributed to power surge/overheating of electrical appliances leading to damage to the furniture on display at its showroom II: Block 4, Plot 283, Idado, Lekki Expressway, Lagos.

    “The fire incident occurred in the midnight of April 27 and 28, 2017. Following the conclusion of claim adjustment, the claim was issued within three days of the insured, executing discharge voucher to the insurer. The payment of this claim has indeed demonstrated the company’s readiness to support businesses by ensuring smooth and continuous operation through timely indemnification when such loss occurs.

    “We encourage the insuring public to believe that insurance plays a key role in sustaining businesses and individuals all over the world. With insurance covers like fire or any in order, businesses or individuals can continue with operations without any hindrance that may arise from any loss.

    “The company has paid over N500 million in claims settlement since inception of the current year to its numerous clients across various sectors of the economy in order to ensure the continuity of their businesses and to meet their targeted business projections,” Osoba said.

  • STI premium income rises by 78 per cent

    DEspite the negative effects of the recession that   characterised the economy during the year, Sovereign Trust Insurance Plc’s total Gross premium written has grown from N2.3 billion in the first quarter of 2016 to N4.1 billion in 2017 representing a 78 per cent growth.

    This was made known in a statement signed by the Company’s Head of Corporate Affairs, Segun Bankole, on the Company’s 2017 first quarter unaudited accounts.

    The statement showed that the net premium income grew from N1.1 billion in 2016 to N1.6 billion in 2017 amounting to a growth of 48 per cent. Similarly, the underwriting profit rose from N571 million in 2016 to N746 million in 2017 representing a 30 per cent growth while Investment income also grew by 12 per cent from N121 million in 2016 to N135 million in the first quarter of 2017.

    The profit before tax grew from N241 million in the first quarter 2016 to N488 million in the same quarter of 2017 representing a growth of 102 per cent. However, the company’s management expenses reduced from N402 million in the first quarter 2016 to N369 million in the same period in 2017.

    The company attributed the reduction in management expenses to its team’s commitment to reducing cost of operation with the ultimate aim of delighting its shareholders.

    Bankole said: “Things are actually looking up considering the company’s first quarter performance in 2017. No doubt, the year 2017 started on a very shaky note shrouded in uncertainty and a very bleak business outlook for some insurance companies, riding on the premise that some of them fell short of their expectations and aspirations in year 2016 as a result of the recession.

    “Notwithstanding the harsh operating environment that has beclouded the operations of so many insurance companies and other corporate organisations in the first quarter of the year especially at a period that the nation was still in recession, we were able to record meaningful appreciation in all the financial indices going by first quarter 2017 unaudited financial statements. The future indeed, looks very promising.”

  • IBN boosts market with N10b investment

    An insurance broking firm, Insurance Brokers of Nigeria Limited, has invested over N10 billion in the insurance market.

    Its Executive Vice Chairman, Prosper Okpue, who spoke at a media parley in Lagos, said the  fund has enabled the firm to have access to key decision makers of all insurance companies and negotiate the best deal for its clients, whether on programme pricing, robust cover or claims settlement.

    The parley was aimed at reviewing the operations of the company in its 62 years of existence.

    He also stated that the firm will be unveiling a new brand identity this month, stressing that the new brand identity is a resurgence of the firm’s commitment to its clients that it will be around for another 62 years as a truly independent company, focused on helping her clients venture boldly with confidence and maximise opportunities created from their enterprises.

    He added that the company has partnered with UNiBA, a leading global network of independent insurance and reinsurance brokers in over 100 countries in the world.

    According to Okpue, the firm’s specialty service ranges from personal and private wealth management to commerce and heavy industries. He said: “Our new IBN brand identity is a demonstration of our resolve to continue to serve our clients, with knowledge of the past, present and our ability to bring the future today.

    The firm is 62 years old and we are repositioning to meet current trends and remain afloat for many years to come. The firm is Nigeria’s premier insurance broking and risk advisory firm established in 1955 as C.T. Bowring & Company (Incorporated Insurance Brokers). It pioneered insurance broking in Nigeria in 1955 and has remained in the forefront of providing innovating collaborative solutions to various strategy sectors of the country.

    “It has fully integrated risk management and insurance broking and ranks top amongst the most respected broking firms in the country. We leverage on our historical experience of Nigeria and our deep understanding of its business dynamics to help our clients make the right decisions for their businesses.

    “Our strength is our unparalleled local knowledge with global experience and commitment to deliver specialty services as invaluable partner in providing seamless support to meeting your risk and insurance management objectives,” he noted.

  • LASACO posts N1.14b profit

    LASACO Assurance Plc has posted a profit before tax of N1.14 billion in the 2016 financial year ended December 31, 2016 as against N404 million in 2015, representing an increase of 183 per cent.

    The underwriting firm’s premium income also grew to N6.04 billion in the year under review from N5.1 billion recorded in the previous year, representing 18 per cent growth.

    The Total assets further grew from N16.1 billion in 2015 to N19.2 billion in 2016 while shareholders’ fund also grew from N6.58 billion to N7.85 billion.

    The firm’s net premium income, however, reduced by 43 per cent from N2.4 billion in 2015 to N1.4 billion in 2016, due to increase in unearned premium income and reinsurance cost.

    Underwriting profit reduced by N804 million from N1.03 billion in 2015 to N235 million in 2016. In the same vein, claims expenses reduced by N84 million from N706 million in 2015 to N622 million in 2016, while operating expenses for the year increased by N948 million from N1.509 billion to N2.458 billion in 2016.

    LASACO Chairman, Mrs. Aderinola Disu, while speaking at the 37th Annual General Meeting of the firm said they were able to achieve the result despite the difficult operating environment. She stressed that the Nigerian economy went into recession in July 2016 after two consecutive quarters of negative Gross Domestic Product.

    She said: “As a result, the business environment was characterised by a high level of uncertainty, due to various changes in fiscal and monetary policies and regulations. The unpredictability in the economy was felt in every sector, as businesses and corporate entities found it difficult to meet growth targets, due to high operational costs. Consumers also experienced decline in purchasing power.

    “We are striving to shift the focus of the economy from the oil sector to the non-oil sector. The effective utilisation of technology has led to development in various sectors such as information and communication, agriculture and other services.

    “There is still much to be done in terms of infrastructural development and the harnessing of our nation’s resources. This will help to pull the country out of its current fiscal and monetary indiscipline and also stabilise the economy.”

  • Anchor unveils loss of employment scheme for staff

    Anchor unveils loss of employment scheme for staff

    Anchor Insurance Company Limited has launched the Anchor Loss of Employment Insurance Scheme to protect employees at Lagos Sheraton Hotel, Ikeja.

    Its Chairman, Dr. Elijah Akpan, said the product is aimed at providing  financial bulwark for those who lose their jobs.

    He said: “We have an opportunity and a responsibility to innovate and create an insurance scheme to protect employees’ employment income and in doing so to provide a measure of financial stability to millions of Nigerians who may be laid off in the most difficult economic time.  This is an opportunity and our responsibility as an organisation to provide peace of mind to families who may be left in the ditch without a job and nowhere else to turn to.”

    Chairperson of the occasion, Mrs. Nike Akande, praised the cover, adding that the Chamber had always supported the sector to promote best practices.

    Mrs Akande, who is President, Lagos Chamber of Commerce and Industry, said: “Anchor Loss of Employment Insurance Scheme is a welcome development as it seeks to protect employees from unforeseen circumstances, especially as it relates to job losses. This initiative is commendable and will go a long way to provide succor and wide cover for employees that are vulnerable and also stabilise the economic wellbeing of employees and indeed the country. It is a noble contribution to the economy of the country.”

    She enjoined reporters to ensure that the product was given adequate publicity.

    Senior Lecturer, Actuarial Science and Insurance, University of Lagos, Dr. Adebayo Obalola, said insurance cover was essential for everyone.

    He pointed out most people seek compensation for what their insurance does not cover, advising that the  public should understand the conditions of their insurance policy.

    The Managing Director of the company, Mayowa Adeduro, assured that the company would continue to introduce more unique products, like AnchorLoEIS.

  • ‘NEM committed to economic growth’

    ‘NEM committed to economic growth’

    NEM Insurance is committed to its shareholders’ vision of making the company a model of sound insurance practice in the  industry and growing the economy, its Group Managing Director, Tope Smart has said.

    Speaking at a briefing at the just-concluded African Insurance Organisation in Kampala, Uganda, he said the firm will achieve this goal by offering quality services and pays claims promptly.

    He stressed that the company also engage in marketing programmes that will enable the public make an informed choice about its.

    He said: “We intend to build a customer satisfying insurance institution that is passionate about adding value to the interests of all stakeholders and be the preferred choice of the insuring public

    “The location of our headoffice at Palmgroove area on Ikorodu road brings us closer to our customers. The office is very accessible and people feel comfortable when they can easily assess their partners. It is very accessible and the environment is very friendly unlike where we were on the island and the people are always happy because.

    “It is very comfortable and so we have customers coming in and going out on daily basis and they are satisfied. We believe that it’s not enough for them to come in, but for us to ensure they get satisfaction when they come into our office.”

    On the preparedness of the company in adopting Risk-Based Supervision (RBS) introduced by the National Insurance Commission (NAICOM), he said they were preparing for the risk based supervision.

    He stressed that the company already have consultants to ensure that their reportr was ready on time.

    ‘’We have also put in place a corporate governance structure and we will continue to improve and we have people working with us to ensure that we get it right, ‘’he added.

  • NIA: Only eight million vehicles have genuine insurance

    NIA: Only eight million vehicles have genuine insurance

    •Underwriting hits N380b  

    The Nigerian Insurance Industry Database (NIID), a platform floated by the Nigerian Insurers Association (NIA) six years ago to capture genuine insurance policies in the country, has issued over eight million motor insurance certificates.

    Also, the industry’s estimated volume of business underwritten rose to N380 billion in 2016 as against N311 billion in 2015.

    NIA’s ts Chairman, Eddie Efekoha, broke the news at the 46th Annual General Meeting (AGM) in Lagos.

    Its Chairman, Eddie Efekoha, said the price of crude oil, epileptic power supply, cut throat inflation, internal conflicts between herdsmen and farmers; a near comatose economy and the prolonged recession had serious consequences on the operations of insurance companies.

    He said the association was working on the establishment of a common platform for the sale of third party motor insurance policies.

    He said: “The estimated volume of business underwritten by the industry in 2016 was estimated at N380 billion as against N311 billion underwritten in 2015. The price of crude oil, epileptic power supply, cut throat inflation, internal conflicts between herdsmen and farmers a near comatose economy and the prolonged recession had serious consequences on the operations of insurance companies.

    “In spite of the challenges posed by the economy, the suspension of the Federal Reporting Council Code of Corporate Governance, implementation and improved compliance with no premium no cover, especially by the federal parastatals and ministries’ departments and agencies, the improved Anti-Money Laundering mechanism, full implementation of the International Financial Reporting Standard (IFRS), improved enforcement of the compulsory insurances, renewed vigour by the government to improve the Ease of Doing Business and other efforts, the  industry has continued to be the preferred investment destination for reputable players in the global insurance.”

    He said the platform was demonstrated at the last association’s retreat for chief executive officers of member-companies last March, adding that the association and the service provider would ensure that all the issues raised at the presentation were addressed and NSICOM’s buy-in was obtained before the proposed launch date of July 1.

    He said in the association’s desire to extend the NIID’s coverage to other states, it encountered  network coverage and Internet connectivity challenges.

    He stressed that the association would solve the problems through the deployment of Unstructured Supplementary Service Data (USSD) code.

    He noted that the marine module had been running and member-companies were uploading on the platform, adding that at the end of last May, 33 member-companies had  uploaded 65,000 marine policies into it.

    He called on members to continue to upload their policies, adding that plans were afoot to bring other stakeholders in.

    NIA Acting Director-General, Mrs Lawunmi Idowu, said the NIID has been hitch-free in the last 12 months.

    She said the motor module has  changed the face of insurance in the country as incidences of fake motor insurance certificates have reduced.

    “The system features are constantly being enhanced to meet user’s requirements and expectations,’’ she said, stressing that in the period under review, more features, such as upload of short term policies, SMS alert of claims upload, mobile app of ask NIID and enhanced reporting facility were added.

    She said the marine module is being  embraced by member-companies pending its full utilisation by relevant agencies.

    “In years to come, the association’s expectation is that the NIID platform will fully integrate with all government agencies portals for real-time verification and thereby become an indispensable tool in carrying out their statutory functions and process,’’ Mrs Idowu added.