The Financial Reporting Council (FRC) has agreed that the Nigerian Council of Registered Insurance Brokers (NCRIB) should henceforth undertake the submission of its members’approved accounts and that no fine would be imposed on the members, the President, Mr Kayode Okunoren, has said.
He made this known at the April Edition of NCRIB Members’ Evening, in Lagos.
He said this was the outcome of a meeting with the FRC Chairman, Mr. Dotun Sulaimon, and a delegation of the NCRIB that paid a courtesy visit on the financial Council.
He said it was agreed that the accounts submitted would be reviewed by FRC based on the concerns raised by the regulators and that the FRC would collaborate with the NCRIB to organise enlightenment programmes for brokers.
He said it was agreed that no fine would be imposed on brokers for for non-compliance with the FRC Act.
He said, however, that NCRIB members must register their CEOs and CFOs with the FRC, as well as update their membership.
On the Code of Corporate Governance, Okunoren said the meeting affirmed that most broking firms are small entities and that the Code had been suspended and was being review.
He said: “It was agreed that the new code would take cognizance of the peculiarities of different sectors and that the exposure draft would be made available in due course for review by the public before it coming into force.
‘’It was most good that the FRC Management promised that the FRC would be pro-business and pro-development. It is my hope that members would take advantage of the concessions and continue to live up to the responsibilities by registering with the Council and submitting their audited accounts, timeously.’’
Category: Insurance
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FRC stops fines on brokers
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Leadway, AIICO top 10 insurance firms
report has ranked Leadway Assurance Plc and AIICO Insurance Plc, as the best in terms of assets, Gross Premium Income (GPI) and Profit Before Tax (PBT) in 2015 financial year. They both operate life and non-life business out of the 56 existing insurance companies in the country
Besides, out of 41 non-life companies, Leadway also emerged as number one with highest GPI of N15.43 billion and has the highest market share of 8.65 per cent in 2015 financial year.
The report, obtained by The Nation, was published in the 2015 Nigeria Insurance Digest, an annual publication of the Nigeria Insurers Association (NIA) – the umbrella body of insurance companies.
Under the non-life category, Custodian and Allied Insurance Plc and AXA Mansard Insurance Plc were ranked number two and three with GPI of N14.36 billion and N11.37 billion and market share of 8.04 per cent and 6.37 per cent respectively.
According to the report, other companies in the top 10 included Mutual Benefits Assurance Plc with a record of N10.5 billion and N 5.91 per cent market share, NEM Insurance Plc with N10.3 billion GPI and 5.8 per cent market share.
AIICO General Insurance Company Limited has N8.19 billion GPI and 4.59 per cent market share, Zenith General Insurance Company Limited has N8.17 GPI and 4.58 per cent market share, Sovereign Trust Insurance Plc (STI) has N7.1 billion GPI and four per cent market share, Royal Exchange General Insurance Company Limited has N6.8 billion GPI and 3.86 per cent market share and Consolidated Hallmark Insurance Plc with N6 billion and 3.38 per cent market share.
The report showed the bottom 10 companies in ranking order as Investment and Allied Insurance Plc, with the least GPI of N4.4 million and no market share. Others are Universal Insurance Plc with N728 million GPI and 0.41 per cent market share, Fin Insurance Company Limited with N757 million GPI and 0.42 per cent market share, Guinea Insurance Plc – N870 million GPI and 0.49 per cent market, NICON Insurance Plc has N947 million GPI and market share of 0.53 per cent, Nigerian Agricultural Insurance Corporation (NAIC) has N1 billion GPI and 0.58 per cent market share, Great Nigeria Insurance Plc has N1.4 billion GPI and 0.79 per cent market share, Ensure Insurance Plc, formerly Union Assurance, has N1.5 billion GPI and 0.85 per cent market share, and KBL Insurance Limited with N1.8 billion GPI and 1.01 per cent market share.
The report further showed that Leadway has the highest assets to the tune of N44 billion and was followed by Custodian with N27 billion, Zenith N25 billion, AXA N23 billion, Wapic N20 billion, Royal Exchange N18 billion, Linkage N17 billion, Mutual N15.7 billion, Industrial and General Insurance Plc (IGI) N15.2 billion and AIICO N13 billion assets.
In the life business category, out of the 27 existing companies, Leadway again emerged as number one with N31.2 billion GPI and 23.28 per cent market share, followed by AIICO with N24.2 billion GPI and 18.09 market share, FBN Life N10.3 billion GPI and 7.69 per cent market share, African Alliance N10.1 billion and 7.56 per cent market share, and Niger Insurance Plc N7.8 billion GPI and N5.89 per cent market share.
The bottom five are Spring Life, which is under regulatory intervention with N32 million GPI and 0.02 per cent market share, NICON with N92 million GPI and 0.07 per cent market share, Unic Insurance Plc has N259 million GPI and 0.19 per cent market share, Goldlink Life, under regulatory intervention, also has N757 million GPI and 0.56 per cent market share, while Wapic Life has N1.2 billion GPI and 0.91 per cent market share.
Overall, the underwriting performance of both life and non-life/composite companies, totaling 56 companies in Total Assets, GPI and Profit Before Tax (PBT), showed that Leadway emerged the strongest with total assets of N137.9 billion, N46.6 billion GPI and N6.4 billion PBT.
AIICO recorded assets of N80.7 billion, N32.4 billion GPI and PBT of N1.4 billion. NICON has assets of N39.3 billion, N1 billion GPI and a loss in profit before tax of N11.3 billion. Axa Mansard has a total asset of N37.8 billion, N15 billion GPI and N689 million PBT while Industrial and General Insurance Plc has N33.45 billion assets, N5.42 billion GPI; Mutual Benefit Life Assurance has N32.6 billion assets; N3.3 billion GPI and N151 million PBT.
Others are Custodian and Allied Insurance with N27.8 billion assets, N14.36 billion GPI and N3.5 billion PBT; Zenith General Insurance has N25.9 billion assets, N8.1 billion GPI and N5.7 billion PBT; African Alliance Insurance has N23.12 billion assets, N10.13 billion GPI and N764 million PBT while FBN Life Assurance has N20.93 billion assets, N10.31 billion GPI and N1.8 billion PBT.
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Stanbic IBTC brokers leverages retail to deepen penetration
Stanbic IBTC Insurance Brokers Limited, a newly licensed broking firm, has pledged to deepen insurance penetration through aggressive retail business operations, its Managing Director, Anselem Igbo, has said.
He spoke at a media parley in Lagos, and stressed that the firm, which was recently incorporated to carry out insurance broking business, would explore retail business. This is presently being neglected by most broking firms, leveraging the robust network of the Stanbic IBTC Group; Information Communication Technology (ICT); good capitalisation and liquidity; stable and experience management; strong risk management policies and strong corporate governance, amongst others.
He said the company’s projection was to be among the top five insurance broking firms in the next 10 years, adding that this would be achieved through good working relationship with underwriters to ensure prompt claims payment and partnership with the media to create awareness.
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‘Agriculture, transport, others will grow leasing, insurance’
Agriculture, transportation, education and health sectors have huge opportunities for insurance and leasing products, Managing Director, Law Union & Rock Insurance Plc, Mr. Jide Orimolade, has said.
He stated this in a paper entitled: “Building Synergy between Insurance and Leasing Industry: Opportunities, Product Development and Key Success Factors”, delivered at Equipment Leasing Association of Nigeria, (ELAN) First Quarter Business Forum, which held in Lagos.
Orimolade stated that the leasing and insurance companies are presently not doing very well in the agricultural, education, healthcare, and transportation sectors compared to the potential that exist in those sectors.
He noted that based on the businesses done between the two sectors in the past five years, over 90 per cent are transactional in nature and are generated in the normal course of business and not through deliberate solution work-out or new thinking.
He believed that there could be a closer and deeper business relationship between the insurance sector and the leasing companies, making them to collaborate on what he described as “lease- insure model” for business synergy.
The Law Union & Rock chief said the volume of insurance transactions from leasing companies was far below the market potentials, therefore, there is need to move away from transaction approach and focus on long term, formidable partnerships to create the needed synergy, cut cost, and improve operational efficiency in order to move their companies forward.
He said: “There are lots of opportunities for the two businesses if they create and maintain seamless handshake between the insurance industry and leasing companies. There are three key sectors we are not doing very well in compared to the potentials. These are agricultural, education, healthcare, and transportation sectors.
“Nigeria has the largest population in Africa and one of the largest globally, presenting a huge potential market for our business. Despite the large population, insurance penetration still remains low. With the current Market Development Restructuring Initiative (MDRI) efforts of the industry players and the regulator, insurance penetration in Nigeria is expected to reach a penetration level of 10 per cent in 2025. This will translate into insurance premiums, running into trillions of naira. This growth will largely be driven by growth of micro, small and medium enterprises (MSMEs), supported by expanding credits, which leasing companies will play a key role,” he added.
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AIICO Insurance embarks on ‘market storm’
TO create awareness and deepen market penetration, AIICO Insur
ance Plc has embark on market sensitisation and awareness programme through an initiative tagged ‘Market Storm’ of some of the major markets in Lagos, the Managing Director, Edwin Igbiti has said.
He made this known to reporters during the company’s “AIICO Storms Tejuosho Market Programme” in Lagos.
According to him, the initiative is aimed at educating the traders in the market on the strategic role of insurance and its numerous benefits.
He said the initiative was also planned at bringing insurance closer to the market men and women who are involved in retail and micro businesses through the provision of tailored insurance services that suits the need of the traders.
He noted that the programme would further give room for market feedback that can be used for further products development.
Igbiti said: “AIICO Storms Tejuosho market programme offers basic retail products to the market traders that guides against business and personal risks. Such products include the AIICO Fire Insurance policy tailored for Shop Owners, AIICO Shield Personal Accident Insurance, AIICO Householder (Home) Insurance and AIICO Auto Insurance.
‘’Despite the fact that no one plans of losing their means of livelihood to fire, flood or any form of natural disaster, these occurrences happen daily resulting in; loss of financial investments, revenue, closure of business, shock and grieve, inability to start again, etc.
“AIICO Fire Insurance for Shop Owners provide compensation up to the tune of N2 million in the event that stocks, materials and/or wares in trade is affected by fire. Benefits include compensation for fire and special perils, permanent disability, medical expenses and public liability.
‘’AIICO Shield Personal Accident Insurance is designed to provide an accident only insurance whereby the Insured, in any mishap, has access to some level of compensations for death, disability and medical treatment for injuries following accident.’’ -
Law Union pays N3.3b claims, grows profit by 100%
Law Union and Rock Insurance Plc has paid claims in excess of N3.3 billion between 2015 and 2016, despite the economic recession in the country.
Similarly, the underwriting firm paid a total of N380 million as claims in the first quarter of the year, representing a 24 percent increase in what the company paid in the same period of year.
Managing Director, Jide Orimolade, made this known during a CEO Forum with the National Association of Insurance and Pension Correspondents (NAPICO), in Lagos.
Orimolade disclosed that the firm’s Profit after Tax further grew by 100 percent at the end of its financial year ended December 31, 2016 as it rose from N280.91 million in 2015 to N561.85 million in the period under review.
He said the underwriting result appreciated to N1.25 billion in 2016 when compared with N1.14 billion achieved in the corresponding period of 2015, indicating 10 percent growth.
He said: “Despite the 2016 economic recession, which affects the growth of all sectors, we have been able to grow our gross premium written income slightly by two percent. The giant stride of the company in Profit after Tax in 2016 galvanised it positively by reducing the previously accumulated loss by 95 percent from N468 million in 2015 to N24 million in 2016.
“We plan to grow our gross premium income by 50 percent in 2017. We see a lot of opportunities in the economy, especially infrastructure, rail system that is being introduced by the Federal Government, local content being enforced by NAICOM among others. In terms of retail business, we intend to launch more products in 2017. We plan to retain 90 percent of our customers at minimum and grow our direct and retail business in 2017. We believe that retail is the future of insurance business. We will also improve relationship with brokers, agents and other channel of distributions such as bancassurance, e-market, social media platforms etc.
“We also plan to achieve an improved credit rating from A- to A+ by GCR, become preferred first choice underwriter amongst the general insurance business provider in Nigeria and commitment to improved service delivery to customers and policy holders. We have been looking at our brand visibility nationwide through various brand equity strategic architecture and development of three new products in the retail business and agricultural insurance business,” he assured. -
Insurers to pay N3m licensing fee for Bancassurance
•NAICOM orders training for desk officers
Insurance firms have been authorised to sell insurance products in banks through the Bancassurance Referral Distribution Model with an application and licensing fee of N500, 000 and N2.5 million from April 1.
This was made known by Commissioner for Insurance, National Insurance Commission (NAICOM), Mohammed Kari at the Maiden Bancassurance Certification Workshop held at the College of Insurance and Financial Management (CIFM), Asese town on the Lagos/Ibadan Expressway.
Speaking on the guidelines by the Commission and the Central Bank of Nigeria (CBN), the Commissioner who was represented by the Director, Authorisation and Policy, Mr Pius Agboola, said that insurance companies are to pay renewal fees of N1 million.
Bancassurance is the collaboration between a bank and an insurance company to market insurance products to the customers of the bank.
The commissioner, however, said that a training on bancassurance mandatory course for 12 and 18 hours is binding on employees of an insurance company that aims to act as bancassurance manager or desk officer.
He stressed that the training was aimed at equipping the operators of the bancassurance scheme with the requisite knowledge needed for seamless bancassurance operations.
He added that the training was to ensure that those representing the partner insurer were competent.
He said the Commission believes in the ability of the CIFMS to give competent training and certification that would be sufficient for any employee occupying this position alongside other qualifications stated in the guidelines”
Agboola at the training explained to the participants that Bancassurance referral service shall be by referring to the Insurer, bank customer that require insurance services and products while establishing a Bancassurance referral operation might also be by way of locating a Bancassurance Desk in the banking hall of the Referral Bank.
He said the insurer shall maintain a Bancassurance relation with not more than two referral banks at any one time and vice versa.
On restrictions and conducts, he noted that the insurer approved to partner with a referral bank shall not engage the referral bank in any form of marketing, sales or services other than referral only.
He said: “The insurer shall make known to the customers so referred that the insurer will wholly be liable for underwriting of the risks, assessment, adjustment and payment of claims that may arise from the risk covered; not use any advertisement or promotion that would make people to mistakenly believe that the Referral Bank stands behind or guarantees any return on the Insurance Products; not pay compensation to any individual for the referral of a customer where such a person is not an approved referral bank; not fail to disclose in writing to the Customer that the insurance policy to be sold is not a cash deposit; not insured by the Nigeria Deposit Insurance Company (NDIC) and not guaranteed by the CBN.
“The insurer shall not enter into a referral arrangement with more than two referral bank; not fail to keep distinct and separate, the records relating to Bancassurance transactions and that, such records are to be made available to NAICOM as and when required; and not made any payment to the referral bank by whatever name called (fees, charges, etc.) over and above the approved referral Commission; and not pay fees or commission for the insurance of a policyholder that is not a referral client on the referral client list maintained in the insurer records.
“Other restrictions include that the insurer shall ensure that all prospective clients are allowed to decide out of their own volition, which insurance product they wish to buy and from which insurance company; not fail to open and maintain a dedicated premium/operational account for the purpose of capturing bancassurance (referral) transactions; maintain a standstill period of one year for an account/business that have an existing intermediary before a change to Bancassurance referral is uphold.”
The Rector, Dr. Yeside Otetayo further said the college has been appointed as the certifying body of the principal officers in the Bancassurance business.
“The commission has confidence in the college knowing that it has the capacity to certify and develop human capital within that segment of the market. The Commissioner has kicked off the maiden edition.
“At the end of each workshop, we are going to have an assessment so it is not an automatic certification taken workshop. After the end of the sessions, we will have an assessment to judge the knowledge of the participants as regards what they have learnt from the workshop. It is after they have passed that assessment that we issue them a certificate.’’ -
Africa Re retains 28% of shareholders’ fund
•’Gross turnover hit $642m in 2016’
Africa Reinsurance Corporation held about 28 per cent of the total African shareholders’funds as at 2015, the Managing Director, Corneille Karekezi, has said.
Karekezi, who stated this in Lagos, last week, said the corporation was able to secure reinsurance premiums on the continent as a result of its huge shareholding in the company.
He said, without this capacity and given the relatively undercapitalisation of African reinsurers, which stood at average solvency of 85 per cent in 2015, more reinsurance premiums would have exited the continent to overseas reinsurers.
He said last year, although the corporation’s gross turnover exceeded US$ 642 million, only 9.5 per cent of this income came from mandatory cessions in the 41-member countries, the bulk income came from North Africa, saying that the corporation has been carrying on the reinsurance business in the African continent in the past 41 years
Karekezi said: “This journey of dedicated service to the insurance industry has contributed in no small manner to the economic development of the continent. The main purpose for the establishment of the corporation in 1976, was to prevent capital flight from the African continent, a practice which was massively prevalent in the 1960s and 1970s, and which still persists nowadays, though in a reduced way.
“In addition, Africa Re’s mission includes the development of the insurance and reinsurance industry in Africa, promoting the growth of underwriting and retention capacities across the continent, and supporting African economic development.
Karekezi saif the pursuit of this mission has been the sole focus of the Board of Directors, management and staff of the corporation over the years, addig that from the onset, Africa Re’s mission in Africa is unique in that it sets itself apart from the rest of the industry and clearly defines its responsibilities vis-à-vis the development of the African continent.
He said the corporate mission also informs its legal status and shareholding size and structure, including its 41 African states. As a result, the Corporation enjoys a large acceptance across the continent and this has allowed it to concentrate up to 28 per cent of the total African shareholders’ funds in 2015, an indication of its weight in the total African underwriting capacity. Without that capacity, given the relatively undercapitalisation of African reinsurers (average solvency of 85 per cent in 2015), more reinsurance premiums will leave the continent to overseas reinsurers.
“Africa Re believed in the continent before anyone else and it demonstrated that by opening offices and subsidiaries, today at the number of eight, long before the ‘Africa Rising’ narrative started recently. After more than four decades of determination and focus, Africa Re is now the leading African reinsurer on the continent,’’ he added.
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Wapic introduces five products
Wapic Insurance Plc has introduced five lifestyle insurance products into the market to cater for the protection and goal-oriented needs of individuals, families and businesses.
Speaking at the launch of the products, its Managing Director, Mrs. Yinka Adekoya said the products are classified under Wapic Smart Investment-linked products.
She said the products include the Smart Life plan, Smart Life+ plan, Smart Scholar plan, Smart Senior plan and the Smart Wealth plan, which come with flexibility and convenience, focused mainly on the family, education, retirement, short and medium term plans.
She stressed that as is the case with most Nigerians having to save or keep funds in their savings account for specific projects or towards long- term goals, such as building project, and vehicle purchase, the Wapic Smart Life+ Plan is a unique product designed to help individuals attain their goals and targets with added advantages.
She said: “It is an insurance solution that provides you the opportunity of systematically accumulating funds towards meeting short term obligations and emergencies. The Wapic Smart Life+ Plan uses an insurance vehicle that provides needed control to guide the customer towards achieving set goals as well as guarantees the policy holder a more competitive interest rate, withdrawals without being penalised and a free life insurance cover.
“Every caring parent wants the best for their ward, however, life is full of uncertainties and even the best laid plans can go wrong. An unfortunate event could make them insecure, especially when you are no longer there for them. A careful financial planning can help you fulfill the aspiration that you have for your children.
“The Wapic Smart Scholars Plan is an insurance solution that provides the opportunity to save funds towards financing your child’s education and offers embedded insurance protection against the risk of demise and permanent disability on the life of either or both parents.
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Mutual Benefits appoints Ashiru-Mobolaji ED
The Board of Directors of Mutual Benefits Assurance Plc has announced the appointment of Mr. Biyi Ashiru-Mobolaji as Executive Director, Operations.
The appointment, effective from April 1, is aimed at repositioning the company for greater efficiency.
In his new role, Ashiru-Mobolaji will oversee the Technical and Marketing and Distribution Channels of the company. Prior to his new appointment, Ashiru-Mobolaji was the General Manager in charge of the Marketing and Distribution Directorate of the company, a position he has held since early last year.
Ashiru-Mobolaji is an Insurance graduate of Ibadan Polytechnic with an MBA from Lagos State University(LASU). He is an Associate Member of the Chartered Insurance Institute of Nigeria who made a distinction in Aviation Insurance in the professional Insurance examination. He is also an Alumnus of the Lagos Business School, where he attended the Senior Management Programme (SMP).