The Nation Newspaper

Category: Insurance

  • NCRIB urges patience with Buhari

    NCRIB urges patience with Buhari

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has said there is need for Nigerians to be more patient with the administration of President Muhammadu Buhari to ensure the revival of the economy.

    NCRIB President, Kayode Okunoren made this call while speaking on national issues at the Council’s April  edition of NCRIB Members’ Evening  in Lagos. He, however, appealed to the government to begin  the immediate implementation of the 2016 national budget, to give succour to Nigerians.

    He said it was disheartening that up till now, at the expiration of the fourth month of the year, the government has not started the implementation of the budget.

    He said: “Obviously, this is not the best of times for many Nigerians in view of the economic recession being experienced today. Our economy is presently bedeviled by challenges such as unfavourable exchange rate of the naira against the United States dollars; spiraling cost of goods and services that has constituted a hole in the pockets of Nigerians.

    “The rock bottom prices of our crude oil in the international market coupled with the gale of corruption manifesting in the mismanagement of the nation’s resources, has worsened the plight of the country. It is definitely natural that a time like this would ordinarily task the patience of the citizens just as we are already seeing at the moment.

    “However, the take of the Council is that there is need at this period for Nigerians to have more patience and cooperate with the present administration in ensuring the revival of our national economy. Realising that no one could proverbially eat an omelette without breaking an egg, Nigerians need to endure the temporary hardship for a better tomorrow.”

    Okunoren stressed that whilst the citizens are enduring and sacrificing, the onus is also on the leaders to lead by example and ensure their lifestyle conforms to what they preach in order to get the desired support of the followers.

    “Similarly, the appeal has to go to government to immediately commence the implementation of the 2016 national budget, which would definitely give succour to Nigerians. It is disheartening that up till now, at the expiration of the fourth month of the year, government has not started the implementation of the budget.”

    Speaking on delisted brokers by the National Insurance Commission (NAICOM), Okunoren said that NAICOM commenced the publication of brokers list that had satisfied the renewal requirements as at the date of the publication in line with the Commission’s practice.

    He noted that unfortunately, rumour had made the rounds that only the 300 brokers on the list as at the first publication were the only licensed operators in the market, sending misleading signals to the insuring public.

    “This information is quite erroneous as the number has increased to about 314 members as at today. Suffice it to note that it is the statutory responsibility of NAICOM to make public the list of practitioners who have satisfied their renewal requirement as they are cleared by the Commission. The list will keep coming in batches as not all brokers have the same renewal dates and that explains the differentiation in the period of the approval of their licences by the Commission.

    “I like to enjoin my professional colleagues who have not satisfied the renewal requirements to do so as soon as possible to avoid the penalty from the regulatory body,” he said.

    He informed the members that NCRIB and NAICOM had continued to forge effective collaboration in the area of statutory registration.

  • Many Ladipo market fire victims lack insurance knowledge

    Many Ladipo market fire victims lack insurance knowledge

    Over 60 traders at the Ladipo Market in Mushin,Lagos who lost goods worth millions of Naira to fire last week have no knowledge of insurance, The Nation has learnt.

    The fire, which started at about 2.00am last Wednesday, affected over 50 shops where various auto spare parts were stored.

    The traders lamented their losses. ‘’We are not aware of insurance and how it can help our businesses,’’ they said.

    A trader, who simply gave his name as Chinedu, said he lost all his money to the fire disaster.

    He said: “I came this morning to start my daily routine business only to realise that there was a fire outbreak, which had already destroyed my goods.

    “I learnt the fire started around 2:00am on Wednesday till day break before it was put off by the officers of the Lagos State fire service. They said there was a spark of light from the electricity pole which possibly led to the fire outbreak.

    “I have lost my hard earned money and wares to this tragedy which I know nothing about. The goods are the investments that I have worked several years for. I don’t have insurance because I don’t know that it can help me at a time like this.”

    Another trader, Emeka, could not control his emotions as he broke down and wept profusely. He claimed he had just borrowed money from a friend to buy new wares in his shop only for him to face this kind of calamity.

    ‘’I have goods worth over four million naira and everything has been lost, he said.

    Asked if he has insurance, he said: “I don’t have insurance. I don’t even know what I can gain from it until now. If I knew, I would have insured my goods.”

  • CIIN president bags NANS awards

    CIIN president bags NANS awards

    The President of the Chartered Insurance Institute of Nigeria, Lady Isioma Chukumwa, has been conferred with two honorary awards by the National Association of Nigerian Students (NANS).

    The awards system initiated six years ago and designed to honour individuals in various spheres, conferred on the Chartered Insurance Institute’s President the awards for National Outstanding Leadership Award and the Commander of Nigerian Students Medallion, which were presented by Comrade Kayode Segun Oke-owo and Comrade Lawal on behalf of the President NANS, Comrade Tijani Sheu.

    The delegates praised the CIIN President for contributing positively to the Insurance Industry and the institute.

    Lady Isioma thanked them for their kind gesture  and assured them of her continued performance and support.

    She, however, charged the student’s association to support the student populace by identifying and communicating their needs to the relevant bodies and to stay clear of situations or activities that may bring disrepute such as riots, vandalisation and violence.

    She also encouraged them to look into the threat of cultism on campuses and fashion out ways to curb the activities.

  • Law on revocation of licence faulty, says NAICOM

    Law on revocation of licence faulty, says NAICOM

    The National Insurance Commission (NAICOM) has said there is a gap in the provision of the insurance law on cancellation of operating licence, especially as it affects non submission of financial accounts by insurance companies.

    The Commissioner for Insurance, Mohammed Kari, who made this known while speaking with reporters in Lagos, said may be the gap wold be filled as the committee reviewing the insurance (consolidated) Bill completes their job.

    Among other things, the new law will strengthen the enforcement mechanism by increasing the power of insurance regulator to impose sanctions on defaulting companies, he said.

    He stated that only 12 insurance companies have submitted their 2015 account out of the 59 existing firms as at March 18, this year, adding that the Commission was able to approve only seven out of the 12 companies that submitted their accounts.

    According to him, the law requires an insurance company to submit its audited account six months after the end of the financial year, which is on June 30, next year.

    He said the law went further to provide that any company that fails to submit will be liable to a fine ofN5000 each day of default and that is the much the commission can do.

    He noted that the law went further to say that non submission of account is a ground for cancellation of licence but failed to state how long a company can default before the cancellation of licence can occur.

    He said: “The law, Insurance Act, 2003 requires an insurance company to submit its audited account six month after the end of the financial year on the 30th of June of next year.

    “It went further to provide that any company that fails to submit will be liable to a fine of N5000 on each day of default and that is so much that the commission can do.  In respect to those companies that have not submitted their accounts, we compute their penalties and get them to pay.

    “Let me also inform you that the law went further to say that non submission of account is a ground for cancellation of licence. I am not a lawyer but I think there is a gap in that provision because the law did not tell us at what point you will deem the company to have failed in the submission of accounts. Maybe the gap will be filled as we are reviewing the insurance law. But for now what we do is to penalise the companies for not submitting their account immediately its after 30th of June,” he noted.

  • Zenith Insurance hosts Members’ Evening

    TO broaden its horizon and take advantage of the critical sector of the insurance market, Zenith General Insurance Company Limited will tomorrow host insurance brokers under the aegis of the Nigerian Council of Registered Insurance Brokers (NCRIB) in Lagos.

    The Council, in a statement, said Zenith General would through the hosting, get acquainted with insurance brokers who are regarded as the most critical link in the insurance value chain.

    It said: “The insurance market is often referred to as a broker-market in view of the wide sphere of control of brokers in securing insurance business for underwriters or Insurance companies. At the moment, the Nigerian Council of Registered Insurance Brokers, which is the umbrella body controlling registered brokers in the country has about 560 members spread across the nooks and crannies of Nigeria.

    “It is believed that the market penetration initiative of Zenith General would witness a significant boost through the collaboration.

    The company will utilise the opportunity of the forum to intimate insurance brokers about the new policy direction of the company and its new products in order to expand the market share of the company.”

    It also stated that the Members Evening of the NCRIB has remained a platform for the exchange of ideas between insurance brokers and guest underwriters in a bid to grow the insurance sector and engender harmony in the industry.

    The statement, added that Cornerstone Insurance Plc will utilise the auspicious event to further drive its belief in the indispensability of insurance brokers in the placement of insurance business as obtained in other advanced climes in the world

    During the event, the President of the Council, Mr. Kayode Okunoren would also brief members on contemporary developments in the economy and the financial services sector as it affects the broking fraternity.

  • Catastrophe exposure grows, says A.M Best

    Insurers in the London, Europe and Bermuda markets writing catastrophe-exposed business take a different approach to retention of risk at the 1-in-100 year level compared with the 1-in-250 year level, A.M. Best, an international rating agency has said.

    At the lower return period, retention has increased more steeply when pricing is favourable.

    In contrast, the sensitivity to price of retained 1-in-250 year risk appears minimal, and has reflected capital allocation decisions, including the management of Solvency II capital requirements.

    A.M. Best said this is one of the conclusions that it has drawn from a sample of aggregated probable maximum loss (PML) data over the 2012-2015 period from 25 of the largest A.M. Best-rated companies writing catastrophe-exposed business in these markets, and which it has published in a new Best’s special report, “Catastrophe Exposure Grows; Alternative Capital Used Selectively.”

    Catastrophic loss is a primary threat to the financial strength of property insurers because of the significant, rapid and unexpected impact that can occur. For this reason, consideration of exposure to catastrophes is a key component of A.M. Best’s rating methodology and is monitored closely on both a company and industry basis.

    The agency stated that the report outlines the key findings of the analysis and discusses possible drivers behind changes in risk appetite.

    Retention increases for 1 in 100 year risk

    The agency said: “In broad terms, the data suggests that the sample’s approach to retention of risk over the period 2012 to 2015 differed at the 1 in 100 year level compared to the 1 in 250 year level.

    “At the lower return period, companies in the sample increased the proportion of business retained over the period as a whole. However, at the higher return period, net and gross exposures moved by very similar proportions.’’

     

     

    “In principle, changes to net exposure in the sample are most likely to result from either: (a) movements in the level of business written on a gross basis by the sample, (b) use of reinsurance which entails movement of exposure into and out of the sample, or (c) changes in modelling which might affect the measured relationship between net and gross exposure.

    “All three effects are expected to have influenced the results of the exercise. However, the rather more stable profile of gross PMLs over the period is a strong indicator that the latter two of these possibilities have been significant influences at the 1 in 100 year level.

    1 in 100 year risk more sensitive to price

    The agency further noted that: “In 2013, property catastrophe (re)insurers were operating in a favourable pricing environment. Premium rates had increased in response to the series of natural disasters in 2011, particularly in the Asia-Pacific region. Meanwhile, rates in the U.S. had been buoyed by insurers’ response to Superstorm Sandy losses in the second half of 2012.

    “In the two years that followed, premium rates for catastrophe-exposed business declined sharply, principally owing to an abundant supply of traditional and alternative capacity.

    “Overall, the sample increased retained 1 in 100 year risk in 2013, when pricing was favorable, but net PMLs increased at a slower rate than gross PMLs in 2014 and 2015 as prices,” it added.

     

  • Stanbic IBTC Pension to hold retirement forum

    Stanbic IBTC Pension to hold retirement forum

    Stanbic IBTC Pension Managers Limited is set to continue its nationwide campaign to raise awareness about retirement planning, its Chief Executive, Eric Fajemisin has said.

    In a statement at the weekend, he said about 600 participants are expected at the forum to be held on Thursday in Lagos.

    According to him, the  campaign, which was launched three years ago, is part of initiatives aimed at encouraging retirement planning among  workers and employers.

    He stated that participants will gain valuable tips from experts and regulators on the imperative of putting in place effective plans to ensure a smooth transition to retirement.

    He said Lagos is the first among key cities across the country to host the forum this year, with similar sessions slated forAbuja and Port Harcourt in July and September .

    This year’s campaign has the theme, “Life Continues at Retirement – Retire well”.

    He said: “The interactive sessions are aimed at providing stakeholders, particularly people approaching retirement, a platform to have a clear view of the path to a comfortable retirement, while removing the stress of pondering what will happen when the individual disengages from active service.

    “Apart from being an avenue for updating participants on new developments in the pension industry, the forum is also an effort to shape industry agendas, the ultimate goal being to highlight benefits of the country’s nascent pension scheme, which will enable Nigerians harness the opportunities.

    “Part of our objective in organising a forum like this is to encourage people to take advantage of the provisions of the Pension Reform Act 2014 to prepare for retirement now, and avoid severe financial difficulties during old age.”

    Fajemisin advised employers of labour who are yet to embrace the new pension scheme as stipulated under the enabling Act to do so, so as to guarantee a secure retirement for their employees.

    “We believe that people, especially employers of labour who have yet to embrace the new pension scheme as stipulated under PRA 2014, will use this opportunity to come on board and ensure secured retirement for their employees,” he stated.

    He said the firm was set up with a mission to enable Nigerians retire well after their working lives.

    “We want to help people plan for their retirement to ensure that the retirement phase is as rewarding and productive to them as possible,” he stated.

    Stanbic IBTC Pension Managers is a subsidiary of Stanbic IBTC Holdings, a member of Standard Bank Group, a full service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. Standard Bank Group is the largest African bank by assets and earnings. It is rooted in Africa with strategic representation in 20 countries on the African continent, including South Africa. Standard Bank has been in operation for over 153 years and is focused on building first-class, on-the-ground financial services organisations in chosen countries in Africa and connecting other selected emerging markets to Africa and to each other, applying sector expertise, particularly in natural resources, globally.

     

  • UN seeks insurers role in climate change response

    UN seeks insurers role in climate change response

    The global insurance industry is a key actor in forging new instruments to anticipate and manage climate risks, and must continue to work with the United Nations (UN) to manage and reduce such risks, its Secretary-General, Ban Ki-moon has said.

    Speaking during a high-level meeting on resilience with insurance industry leaders and other stakeholders at the UN headquarters in New York, United States, at the weekend, he said:  “It is not enough to simply create new products to respond to climate catastrophes.

    “At some $25 trillion, you own some of the world’s largest investment portfolios. Your investment decisions are crucial f climate change will affect every aspect of our lives,” the Ki-moon said the insurance industry played a key role at the Climate Summit hosted two years ago and was instrumental in mobilising momentum for the Paris Agreement in December last year.

    “The world needs your leadership to meet the climate challenge,” he said in a statement at the weekend.

    Climate change “profoundly affects” the core business of the insurance industry because the industry will be faced with “mounting claims of a magnitude not yet seen” and also because the industry’s investment decisions can give rise to unexpected risks, Ki-moon said.

    “Conversely, if you invest wisely, you could reap new rewards – for both your own businesses and society at large,” the UN chief told the insurers.

    Recalling the ‘Anticipate, Absorb, and Reshape’ multi-stakeholder global initiative that he launched this past year to increase climate resilience, Ban stressed the importance of better anticipating and acting on climate hazards through early earning and early action, as well as reshaping development to reduce risks at both national and international levels.

    Among the actions that the insurance industry should take, he suggested, include “greening” its investment portfolios and, by 2020, measuring its carbon footprint. In addition, the industry should also ‘decarbonise’ its investments so as not to contribute to rising greenhouse emissions, the Secretary-General said.

    Ki-moon also challenged the industry to double investments in clean energy and work with the UN to ensure that early warning and early actions are made available to the most vulnerable countries by 2020, since more than one million people have already lost their lives to disasters in this century. In addition, he said that the world’s most vulnerable people should be provided with greater access to risk transfer mechanisms.

    “The poorest and most vulnerable people – those who have done least to cause climate change – need support to reduce their exposure to climate impact,” the UN scribe said.

    He challenged the insurance industry to develop auditable standards in the industry that incorporate the UN’s Sustainable Development Goals.

    “It is no longer sufficient to work on voluntary principles and guidelines that do not affect vital decisions. It is no longer sufficient to think that human development is the responsibility of governments alone. We thought the same about climate change for years. We were wrong,” he said.

    Also attending the meeting were Robert Glasser, special representative of the Secretary-General for Disaster Risk Reduction; Selwin Hart, director of the UN’s Climate Change Support Team; and Mike McGavick, chairperson of the Geneva Association.

  • NAICOM ‘not broke’

    NAICOM ‘not broke’

    •’Fines not substitute for subvention’

    The National Insurance Commission (NAICOM) is not broke, the Commissioner for Insurance, Mohammed Kari, has said.

    He spoke in Abeokuta, the Ogun State capital, while reacting to insinuations by some operators and shareholders that the Commission has resorted to penalising them with huge fines to raise funds.

    The operators believe that NAICOM became broke as a result of its exclusion by the Federal Government from the list of departments and agencies that receive subvention to aid its regulatory operations two years ago.

    But Kari said the Commission decided to up the level of compliance in the industry hence, the heavy penalties.

    He said: “Government removed NAICOM from the list of department and agencies that receive subvention because it thinks it can survive without any financial support. At the time the financial support was stopped, government’s income has gone down to a level and indeed this directive was issued in the days of corruption.

    “So, it doesn’t mean something is wrong with NAICOM and we have survived since then.

    “It is not that we are imposing fines on people because we are broke. We just wanted to up the level of compliance and in all the finding we have made, nobody has ever challenged us for imposing illegal fines. But anytime we move to improve the level of compliance, somebody will find a reason to rubbish what we are trying to do.

    “The good ones pay quietly but the bad ones complain and don’t pay. We have up the compliance game and it has made a lot of difference. We are willing to continue taking complaints from them as long as we satisfy the consumer,” he said.

    In September 2013, the government informed NAICOM that it would stop receiving budgetary allocations from 2014.

    The former Commissioner for Insurance, Fola Daniel said adequate measures had been in place to remain self-sufficient.

    Explaining that the government’s decision did not come as a surprise, Daniel said long before the Federal Government voiced out its decision to stop financial support to NAICOM, the commission had been remitting funds to the national treasury.

     

    “We can fund ourselves. In 2012, we remitted over N1 billion into the government treasury.

    “The government’s decision is a good thing for us because the government has many responsibilities pressing for attention. We believe that the resources being allocated to us can be channeled elsewhere,” the commissioner said.

  • Cornerstone, others for awards

    The Nigeria Brand Award, which is in its sixth year, will honour outstanding organisations and individuals.

    Over 100 companies and individuals werer honoured in various categories of the award in previous editions.

    Cornerstone Insurance Plc was nominated for Iconic Brand of the Year in the insurance category while Heritage Bank was nominated as the Most Customer Focused Bank of the Year

    Integrated Corporate Services was nominated as the Best CSR- Driven Human Resources Brand of the Year while Insight Communications have three nominations for the Best Campaign of the Year for Custodian Insurance, Pepsi Long Throat and Techno Phantom 5 Campaigns.

    DKK & Associates was nominated for the Best Campaign of the Year for NLPC Pension, Zenith Pensions was nominated for the Best Pension Custodian of the Year  and First Pensions was for the Most Customer focused Pension Custodian of the Year. Oak Pensions was nominated for the Best Pension Manager of the Year.

    Nominated for various categories of Platinum Awards include Dr. Ken Onyeali Ikpe of MediaCom (Media Icon of the Decade) while Mr. Adedayo Ojo of Caritas Communications (PR Icon of the Decade) and Dr. Josiah Ebhomenye of Market Trends Research (Market Research Icon of the Decade).

     

    The programme which was initially scheduled to hold in April has been shifted to July to enable a new sponsorship partner to be able to collaborate with the organisers of the program. The Keynote speech will be delivered by Mr. Babatunde Adedoyin, National President of the Outdoor Advertising Association of Nigeria and the paper is on “The Strategic Role of Outdoor Advertising practitioners in Building Brands in Nigeria”.

    Governor Abiola Ajumobi of Oyo State was nominated as the Best Governor of the Year for his peoples friendly policies while Governor Aregbesola was nominated as the Children Friendly Governor of the Year.