The Nation Newspaper

Category: Insurance

  • BusinessToday unveils nominees for award

    The management of BusinessToday online, a business online news channel, has unveiled the nominees for insurance and pension awards.

    A statement by the Publisher/Editor-in-Chief, Nkechi Naeche, said 23 firms drawn from the insurance and pension sectors have been selected for various categories and will be voted for by the public.

    She noted that the award which is the fourth in its series was designed to recognise the stride made by firms and individuals, adding that firms and individuals that distinguished themselves will be celebrated at the award ceremony scheduled for the month of May 2017.

    Naeche said the Managing Director FBNInsurance Limited, Val Ojumah; Group Managing Director Royal Exchange Plc, Alhaji Auwalu Muktari and Managing Director/ CEO, Consolidated Hallmark Insurance Plc, Eddie.Efekoha were nominated for the Insurance Man of the year category.

    According to her, Cornerstone Insurance Plc, Sovereign Trust Plc, Niger Insurance Plc, Mutual Benefits Assurance Plc, Leadway Assurance Limited, Royal Exchange Plc, AIICO Insurance Plc and Consolidated Hallmark Insurance Plc were nominated for Insurance Company of the year.

     

  • Cornerstone assures of commitment to growth

    Cornerstone Insurance Plc is committed to the development of the   industry, notwithstanding the tough economic situation in the country, the Group Managing Director, Ganiyu Musa, has said.

    In a statement in Lagos, Musa, who reviewed the company’s operations in 2016, assured that they will continue to improve on their service delivery.

    He said last year was very challenging not only to the industry, but to other sectors, adding that it was expected because the signs were visible the previous year.

    He noted that quality product development, technology and insurance accessible were some of the company’s focus  aimed at developing the market.

    He said the underwriting firm has 30 branch networks across the three geo- political zones in the country.

    “The company has improved its electronic platform delivery and has also strengthen its distribution channel. It is focusing on strengthening its balance sheet, by acquiring FIN Insurance Company Limited in 2016. The acquisition have placed the Cornerstone brand among the top three insurance companies in the country.

    “The industry has witnessed a rise claims settlement in recent times, with an increase in fraudulent. Nigeria has the cheapest rate on third party and insurers are not charging enough, compared to the claims they pay when risks occur.

    “The year 2017 started on a good note but we may see more visible signs of improvement by third quarter. We are optimistic that businesses would improve as the government continues to introduce structures to move the economy out of the present recession.”

    He praised the efforts of the regulator, the National Insurance Commission (NAICOM) in widening the frontier of Takaful Insurance, adding that the business line remains one of the most thriving amongst the firm’s catalogue of products.

     

  • Expert launches Insurance Market to boost profit, penetration

    An ICT firm, Pinet Informatics Limited, has launched an online platform known as Insurance Market where insurance companies and, vendors can sell products to buyers, and in turn can buy any type of insurance policy on their laptop, tablets or phones and pay with their credit cards.
    Managing Director, Pinet Informatics, Lanre Ajayi at the launch and e-Insurance Conference held in Lagos, said the platform will enable insurers realise their profit ambition and deepen insurance penetration.
    He said with proper application of ICT tools in the insurance industry, the sector can be completely turned around, making it a major contributor to the national economy.
    He said the Insurance Market offers insurance firms the opportunity to establish micro websites at a marketplace where anyone can buy from any vendors.
    He said the aggregating platform promises to transform the way insurance business is transacted in Nigeria, adding that enrollment and set up is completely free of charge to insurance companies and brokers.
    The President, Chartered Insurance Institute of Nigeria (CIIN), Lady Isioma Chukwuma, added that ICT is key to insurance learning, especially in tertiary institutions, enhances awareness, penetration and profitability of the insurance sector.
    She said: “We cannot, because of the cost, evade using ICT to drive insurance learning.
    “Though, there are challenges, but it will increase insurance awareness, penetration as well as the profitability of the underwriters.”
    Chairman, Nigeria Insurers Association (NIA), Mr. Eddie Efekoha, said ICT, though, an enabler, but also a great disruption of every businesses, including insurance.
    He was, however, not happy that the current existing data on insurance penetration failed to consider pension, health insurance, agricultural insurance, among others, which was initially part of the industry, but have been snatched away from the industry, saying, if all premiums of these products are added to what is recorded in the industry, the insurance penetration could have been higher than the current figure being circulated.

  • Inspen retirement mata debuts on Naija FM

    Inspen Media has launched a pidgin programme on radio aimed at deepening pension awareness.
    This was contained in a statement issued by Inspen Media Chief Executive Officer, Chuks Okonta. He said the programme tagged:’Retirement Mata, billed to begin Friday, April 7, will be aired on NAIJA FM 102.7 on Fridays from 5:00 – 5:30 p.m.
    He added that the 30-minute live programme will focus on how to leverage the pension system to secure fulfilled retirement lifestyle.
    He noted that the programme will be promoted through interviews with pension and insurance operators, regulators, workers and retirees, stressing that there will also be news updates and response to feedbacks from the public, which will be obtained through social media handles and live calls.
    Okonta expressed optimism that the programme would help address low awareness on operations of pension and provide an avenue for the public to interact with regulators and operators, thereby increasing the knowledge base of the public.
    According to him, the programme is centred on lifestyle and designed to reach out to people at the echelon and grassroots and provide opportunities for them to express themselves and proffer ways to improve the pension system.

  • NCRIB gives kudos to Fed Govt for naira appreciation

    NCRIB gives kudos to Fed Govt for naira appreciation

    The Nigerian Council of Registered Insurance, given kudos to the Federal Government through the Central Bank of Nigeria (CBN), on the appreciation in the value of naira against other foreign currencies.
    The Council’s President, Emmanuel Kayode Okunoren, made the commendation over the weekend at the 2017 first quarter press conference held in Lagos.
    Okunoren said it is heartwarming that in the last few weeks, the naira has been appreciating against other foreign currencies, bringing little succour to Nigerians.
    He pointed out that as a consuming nation, the agonies which the weakening naira posed to daily living and survival of Nigerians were much. According to him, the take of the NCRIB is that the firming up of the Naira should be more systemic to sustain the trend.
    He, however, said that government must be unrelenting in promoting the production of local products that could be exported to earn foreign exchange in the international market.
    Okunoren stated that the diversification initiatives must be followed through while there should be a renewed campaign in re-orientating the minds of the citizens away from over dependence on foreign goods and services. He noted that there is no nation that can ever develop depending wholly on foreign products.
    Speaking on the implementation of compulsory fire insurance, the President stated that the renewed efforts being made by the National Insurance Commission (NAICOM) and the Nigerian Insurers Association (NIA) in reenergising the campaign towards enforcement of compulsory insurances in Nigeria as enshrined in Section 64 and 65 of the Insurance Act is appreciated.
    He said: “Needless to say that this effort will enhance the industry’s contributions to the nation’s Gross Domestic Product, as well as reduce exposures to risks by members of the public who ingress and egress in those public facilities. Also, the consideration being given to the Nigerian Fire Service in the scheme of things will assist the institution in undertaking its statutory responsibilities or primary roles of fire prevention without recourse to government as it is the practice at the moment.
    “This is the practice in most advanced countries of the world and it is my hope that the synergy would be sustained. Suffice it to say that the NCRIB will also continually collaborate with such noble intentions of this kind as they unfold.”

  • FBN General records N2.2b premium in 2016

    The 2016 audited accounts of FBN General Insurance as approved by the National Insurance Commission (NAICOM), has shown a gross a premium income of N2.2 billion, up by 17.4 per cent from N1.8 billion recorded in 2015.
    FBN General Insurance, Managing Director, Bode Opadokun, made this known in a statement made available to journalists in Lagos.
    He said the company’s claims expenses also rose by 24 per cent from N205 million to N270 million in the year under review, stressing that the company’s total assets stood at N6.1 billion, a 11.9 per cent increase from the N5.3 billion it had last year.
    Opadokun attributed the result to direct reflection of shrewd management efforts at expanding her client base, excellent underwriting capabilities as well as increased customer acceptance of the brand.
    He said: “In a year where economic uncertainties badly affected many companies’ asset base, we were able to increase ours by almost a billion naira. This is an indication of our strength in depth arising from a solid heritage and consistent investment in quality staff.
    “Insurance thrives on trust. You will agree with me that payment of claims is perhaps the best way for an insurance company to demonstrate it is worthy of the customer’s trust’’Opadokun reiterated.

  • Linkage inroduces new third party policy to address economic crunch

    Linkage Assurance Plc has introduced a new motor third party insurance policy where the insured’s vehicle is guaranteed a maximum of N250,000 cover.
    The company’s Managing Director, Pius Apere, who made this known to journalists in Lagos, said the new product is called the ‘Linkage Third Party Plus.’
    According to him, the product has been developed with Nigerians in mind, having realised that many may not have the fund to take comprehensive insurance for their vehicles at this time of economic recession.
    He stated that the company also aims to enhance the consumer benefits in motor third party insurance with additional protection for the insured’s vehicle.
    According to him, beyond taking care of third party damage, the cover guarantees the insured a maximum of N250,000.00 cover for his or her damaged vehicle, which hitherto is not covered in the compulsory third party insurance.
    The premium for the Linkage Third Party Plus policy is N10, 000.00 per annum, just an additional N5,000 to the ordinary third party cover.
    He said: “It covers all the benefits under the compulsory third party insurance such as third party property damage, bodily injury and death liabilities, plus the additional benefit of own damage protection.
    “Third party motor cover is a compulsory insurance policy under the 2003 Insurance Act for all vehicles plying the Nigerian roads against third party damage or loss. Premium is N5, 000.00 for cars and N7, 000.00 for commercial vehicles. This new product is an invaluable, budget friendly product for all Nigerians particularly in this period of economic recession. With Linkage ‘Third Party Plus’ you are able to get own damage cover up to N250,000.00 for just an additional N5,000.00 premium.

  • Insurers’ N300m rebranding project stalled

    Insurers’ N300m rebranding project stalled

    Indications have emerged that Insurers’ Committee comprising the National Insurance Commission (NAICOM) and Chief Executive Officers (CEOs) of 58 insurance companies cannot raise N300 million for the industry’s rebranding project aimed at deepening insurance awareness and penetration.

    The cash was meant to fund the project for massive insurance education and awareness across the federation.

    However, The Nation learnt that lack of commitment to the fund by most insurance companies who  are expected to commit a minimum of N5 million each has stalled the project.

    The project billed to begin last October could not do so, hence the commencement date was shifted to the first quarter of this year. The first quarter is ending yet nothing has happened.

    The Nation learnt that the project was stalled owing to disagreements among CEOs and NAICOM over sharing formula for the required fund. While the chief executives want 50 per cent of the funding to come from NAICOM as the regulator, they also want to share the remaining 50 per cent based on the Gross Premium Income (GPI) of each company, of which some of them disagreed.

    One of the CEOs who spoke with The Nation, under the condition of anonymity, said they cannot just contribute N300 million without help from the regulator.

    He said: “We have agreed to rebrand the industry to engender growth and I believe we will do it but we cannot bring out money just like that. We need NAICOM’s support.

    “The other challenge that we have is that the smaller companies are saying we cannot all share the money equally.They want the big companies to contribute more while some of the big companies think otherwise.

    “But basically, we want NAICOM to bring at least 50 per cent of the money. We told NAICOM that if we deepen insurance and expand the industry, it will increase the one per cent insurance levy we contribute and the gains will indirectly go back to them.”

    Other companies further revealed that they are yet to commence the process of releasing their portion to the fund.

    Chairman of the Insurer’s Committee on publicity, Oye Hassan Odukale, said the first phase of the multi-million Naira project will utilise the online medium such as Facebook, Twitter, among other online platforms to create awareness on the need to subscribe to insurance products and services following the rapid increase in the number of Internet and online users in the country.

    Odukale, who is also the Managing Director, Leadway Assurance Limited, added that this would later be followed by jingles on broadcast media, while also utilising the print and bill board mediums.

    A senior official of NAICOM told The Nation that the CEOs appealed to the commission to help contribute 50 per cent of the fund which it assented to but the commission in return asked the operators to first contribute their share of 50 per cent.

    According to him, the commission has always supported the operators in the industry. “We have always supported the operators in the industry. For instance, we have been advertising and creating publicity for compulsory insurances which are their products. They are supposed to market and publicise the products but we are helping them to do so committing huge funds towards advertisement. We told them that we want to see their commitment first. We had this agreement at the last Insurer’s Committee meeting in October last year and they agreed they will do the sharing.

    “But they have not been able to even agree among themselves. I remember they said 50 per cent will be shared on equal basis and the other 50 per cent will be shared based on GPI of each company. We think this is fair but some of them still do not see it that way.

    “Based on the budget that was agreed with consultant that help them calculate how much will be required for the project, each company will spend N5 million. Is that too much to spend on publicity? Some are complaining of recession, lack of business, among others. It is sad because some of them just don’t want to do anything. They prefer to remain in their comfort zone even if it means for the industry not to grow farther than where it is today,” he noted.

  • Mutual Benefits cautions customers against cash payment to staff

    Mutual Benefits Assurance Plc has cautioned its customers not to pay their premium in cash to any member of its staff.

    This is coming on the heels of allegation of unethical practices going on in Mutual Benefits by some insurance agents.

    The Head, Corporate Communication, Ellen Offo, who made this known in a statement, noted that as a deterrent against fraudsters, the company has instituted a policy against payment of cash to members of staff with the accepted mode of payment is clearly stated on all proposal forms and policy documents.

    In addition, she said the company has put in place secure and convenient cashless means of payment of premium such as direct debit, bank branch pay-direct, web-pay, online transfer, along with our third party insurance scratch cards.

    She assured policyholders of safety of their funds and investments while calling on potential customers to be wary of fraudsters.

    She, however, said the company was investigating alleged unethical practices being perpetrated by a staff.

    She said: “While there was no mention of any specific member of staff in the report we do commiserate with the customers involved and we have taken immediate steps to investigate and urgently look into the issues raised in the report. We use this medium to assure our numerous customers that we shall prosecute anyone found to be complicit. Mutual Benefits has zero tolerance for fraud hence it is viewed with grave seriousness.

    “Mutual Benefits has operated for over 21 years in the insurance landscape as a leading brand in the sector with a reputation for speedy claims settlement and excellent service delivery. It is strong, well-capitalised and committed to protecting the interests of customers at all times.

    “Between January and February this year, claims paid are in excess of N3 billion while over N50 billion was paid as claims settlement between 2012 and 2016 across our business lines. This is a testimony of the value we place on our customers and their needs. Customers can access their transactions, from the comfort of their homes on our web portal or by calling Mutual Care Line,” she added.

  • New Insurance book to be distributed to 350 varsities, others

    A new insurance book recently launched by an expert is set to be distributed to 350 universities others and tertiary institutions in the country.

    The book titled: Insurance in Practice :All You Need to Know about Insurance in Nigeria, is aimed at communicating insurance to stakeholders in simple and easily understandable language.

    The author , Mrs. Funmi Babington-Ashaye, said the book would also enable potential policyholders to see the benefits, rather than mandatory requirement to obtain an insurance policy.

    She stressed that there was need to bridge the communication gap between insurers and stakeholders who do not understand the meaning of concepts or words used in insurance policies.

    She noted that except the next generation of business and family leaders are strategically positioned to key into this message, insurance will remain an afterthought that no one desires.

    The book will further help to create awareness as well as deepen insurance knowledge amongst our youths, she added.

    Commissioner for Insurance and Chief Executive Officer, National Insurance Commission (NAICOM), Mohammed Kari while speaking at the event disclosed that the lack of local study materials has been one of the major challenges confronting the development of insurance professionals in the country which he strongly believes would be reversed if more professionals would sacrifice time to produce materials on the subject.

    The commissioner, who lauded the author, called on other professionals in the insurance industry, especially the men, to burn the candle and make the industry proud.

    As well known, he said that insurance is not a popular subject in schools in Nigeria, while only a few institutions offer it at the tertiary level, and, but for the recent effort of the Chartered Insurance Institute of Nigeria (CIIN), it would have been non-existent at the lower levels.

    He observed that this is one way they could bridge the knowledge gap in insurance and combat the dearth of insurance books in the country.

    He pointed out that NAICOM has in the past few years contributed to the development of insurance profession in the country through support to the CIIN and the College of Insurance.