The Nation Newspaper

Category: Insurance

  • Fed Govt seeks states’ support to enforce compulsory insurance

    Fed Govt seeks states’ support to enforce compulsory insurance

    •Collaborates with Ogun State

    The Federal Government is  working with state governments to key into compulsory insurance, the Commissioner for Insurance, National Insurance Commission (NAICOM), Alhaji Mohammed Kari, has said.

    Kari,who spoke during the Annual seminar for Business Editors and Insurance Correspondents in Abeokuta, over the weekend, said NAICOM was collaborating with the Ogun State government, noting that more visits to other states would continue within the year.

    He said the enforcement of the compulsory insurance at the states’ level would open big opportunities for the industry and the economy in employment, resources and, most importantly, protection of public assets of the states and public interest.

    Citing the various fire outbreak and collapsed buildings in the country, he said such risk could have been protected by the compulsory insurance.

    The NAICOM boss affirmed that insurance losses would reduce drastically if the issue of compulsory insurance is taken seriously.

    He said: “Discussions are already going on with some state governments on the need to adopt compulsory insurances, of which Ogun State is part of. The commission will extend such crusade to other states of the federation, as this would ensure that the motive of the Market Development and Restructuring Initiative (MDRI) is achieved.

    “Our motive is to ensure that all the 36 states, including the Federal Capital Territory (FCT), comply with these insurance.”

    He also disclosed that the commission was working with the Chartered Insurance Institute of Nigeria (CIIN) and other relevant operators to create additional distribution channels aimed at increasing insurance penetration to all sector of the population.

    He added that instead of relying only on brokers and agents these new additional channels would help to increase access to insurance across the country.

    “The commission is equally discussing with insurance market operators, to see how the industry can be expanded using other additional channels to sell insurance products and services. Sakeholders are seriously working to deepen insurance market, in a bid to contribute more to economic growth of the country,” he noted.

    Ogun State Governor, Senator Ibikunle Amosun has urged NAICOM to stop fake insurance policies in circulation.

    Amosun stated this when the top management of the NAICOM  visited at his Oke-Mosan, Abeokuta office.

    He expressed concern that Nigeria has not taken full advantage of the sector.

    “We need to beef up the contribution of the sector to the nation’s economy. We have not taken full advantage of the insurance sector in Nigeria,” he said.

    The governor added: “Nigeria is not bereft of ideas. The problem is that of implementation. For instance, we need to stop fake insurance policies in circulation. It will be in the best interest of the nation if NAICOM enforce the laws appropriately.

    “We are ready to complement your efforts in the area of enforcement. It is more in our interest to collaborate with you, we will be the better for it.”

    The governor urged members of the team to seize the opportunity of the retreat to visit different parts of the state to appreciate the spread of developmental projects put in place by his administration.

    He urged NAICOM to ensure that insurance companies live up to their responsibilities, adding that failure to observe their duties would be inimical to the public.

    He also called on journalists to educate the public on the benefits of insurance to their daily activities.

  • Investors shun NAICOM’s N350m micro insurance licence

    Investors shun NAICOM’s N350m micro insurance licence

    •Commission reviews capitalisation

    The National Insurance Commission’s (NAICOM’s) plan to reach the grassroots through its microinsurance scheme seems to have hit the rock as investors within and outside the country do not show interest in purchasing the N350 million licence to register a microinsurance firm.

    Findings revealed that only registered insurance firms are operating the business on the sideline.

    This is coming five years after the NAICOM introduced the guideline on operations of microinsurance and pegged capital requirement for registering a the company at N350 million.

    The Commission had wooed both local and international investors but the micro insurance guidelines seemed to have failed leading to the Commission to review the process. It plans to break down the N350 million capital requirement and allow staggered licence of unit, state, regional and national operations.

    Like microfinance banks, which have the objective of deepening grassroots banking, NAICOM sought to register microinsurance firms to deepen grassroots insurance in the country. But the objective has not been achieved as investors did not show interest owing to capital issue.

    A consultant to NAICOM on Market Development and Restructuring Initiative, Mr Yemi Soladoye, said the capital requirement by the Commission was not unattainable.

    In an interview with The Nation, Soladoye said the plan by NAICOM to review the required capital for registering microinsurance in the country is commendable.

    He said he had told the commissiom during the administration of former Commissioner for Insurance, Fola Daniel, that N350 million as capital requirement was too high.

    He said: “Five years ago, I told them that N350 million cannot work because they won’t get people to register the business. I believe that if they find anybody to register with the current guideline, the person will not do the micro insurance business. Up until now, they did not get anybody to register except for registered insurance companies that only took a window.

    “I told them to consider staggering the licence to unit, local government, state and national, give each a licence and different capital. For instance, I recommended N5 million capital for unit licence, which is the capital required for a broking firm, N20 million for operating a local government licence and N350 million for national licence.

    “I am happy that the Commissioner, Mohammed Kari has finally in 2016 decided to give it a thought. I am optimistic that if he finally reviews the capitalisation, the objective of ensuring that insurance is downscaled to the grassroots will be achieved,” he added.

    NAICOM’s spokesperson, Rasaaq Salami The Nation that  the commission has seen that microinsurance might not work with the  capitalisation.

    He said the commissioner was trying to look at how to operate it successfully.

    He explained that it would be different from the conventional insurance business for it reach the grassroots, adding that the commission would soon break down the capital requirement.

    “We discovered that capital may be an issue and because of that they chickened out. But if we require a lower capital base, it will enable people operate in their locality.

    “The commission is looking at staggered licence like unit, state, regional and national. This means that if you want to operate a unit office, you will not be required to register with the same amount like someone who wants to operate at a national level.

    “This is the direction of the commission under the present commissioner. We believe by doing it this way, it will the microinsurance initiative will now work and more people will be interested in having the licence,” he said.

  • IGI pays N2b claims

    THE Industrial and General Insurance (IGI) PLC paid N2 billion as claims to its policyholders last year, Managing Director, Rotimi Fashola has said.

    He made this known in a statement over the weekend.

    He said the money was  disbursed last year in its determination to settle all outstanding claims and obligations promptly.

    The lion’s share of the claims  went to life business which amounted to N1,277,683,000, while non-life business totalled N714,936,000.

    He said: “We are focused on our resolve to clear all backlog of claims in the earliest time possible. The result we have achieved so far is encouraging and there is no resting on our oars. In our renewed effort to improve our market share, putting the customers first and treating them with utmost transparency and fairness is sacrosanct. Our ultimate aim is to delight our customers and be seen to be their most trusted partners in wealth creation and protection.

    “IGI is investing on modern technology in all areas of its business that will provide user-friendly online processes through which customers can get real-time support from the company. As a customer-centric organisation, we want to provide policyholders with easy and secure access to their policy information and the convenience of performing self-services from their computers and mobile devices.

    “Our restructuring policy is hinged on pursuing new initiatives and creating opportunities in order to deliver on its promises to all stakeholders while maintaining its integrity at all times,” he added.

  • STI hosts Fourth Open Golf tourney in Ibadan

    Sovereign Trust Insurance (STI) Plc will host its Fourth Eponymous Open Golf Tournament from March 11-13, 2016.

    The company’s Head of Corporate Communications and Brand Management, Mr. Segun Bankole said in a statement that the three-day tournament will  hold at the Ibadan Golf Club on Onireke Reservation Area, Ibadan.

    He said the tourney would bring together some of the country’s finest golfers both at the amateur and the professional levels in the male and the female categories of the competition.

    The Captain of Ibadan Golf Club, Mr. Akin Funmilayo applauded Management of STI for sponsoring the tourney yearly.

    He was optimistic that this year’s event would be more  exciting than the last year’s.

    He enjoined golf enthusiasts across the country to make the ancient city the converging point during the tournament.

  • Stanbic IBTC Insurance Brokers begins operation

    Stanbic IBTC Insurance Brokers has announced its the commencement of insurance brokerage after getting a licence by the National Insurance Commission (NAICOM) in January, this year.

    Chief Executive of the brokerage firm, Mr. Anselem Igbo, who made this known in a statement in Lagos said the firm was set to provide risk management and insurance services in Nigeria.

    According to him, this will pave the way for the firm to offer the full spectrum of insurance brokerage, a development that will help in deepening insurance penetration in Africa’s largest economy.

    He said global best practice, including prompt payment of claims, would underline the operations of the firm in the market.

    He stressed that as part of the Stanbic IBTC Group, which focuses on corporate and investment, personal and business banking and wealth management, the new business broadens financial services offered by the group while widening its holding company structure.

    He said: “The business was established to fill perceived gaps in the industry, part of which includes helping clients effectively manage their risks and claims processes, thereby ensuring peace of mind through risk transfer, efficient insurance claims payment and exceptional quality of service.

    ”We believe that the test of any insurance arrangement is in prosecuting claims to a satisfactory conclusion for our clients. Our role as brokers also ensures that insurers, as a matter of obligation, pay claims equitably and promptly.  Prompt payment of claims is a key factor in any insurance contract. We continuously develop key relationships and requisite logistical processes to ensure that your claims are promptly settled.”

    Whilst benefiting from a strong, dynamic and vast group structure, Igbo said the company will be differentiated from the competition as it will be driven by a team of reputable and financially strong underwriters; fully customised solutions, and innovative insurance products at no additional cost to the client.

    “Stanbic IBTC Insurance Brokers’ professional services are at no additional cost. We will negotiate your insurance premiums and get the best quotes available. Our services apply to both individuals and corporate entities and will be offered to both existing customers and non-customers of the group.’’

    He continued: “As insurance professionals with a vast knowledge of the workings of the insurance market, we are able to arrange the most suitable policies for our individual and corporate clients. We proffer advice on the management of risk, secure protection against such risk and reduce exposure to the risks of business disruption, injury and death. We also deliver creative risk management solutions that enable our clients create, protect and preserve wealth.

    “In an industry inundated by a persistent lack of trust and confidence from customers, the reputation of an insurer in Nigeria is critical to its success. We are proud that the brand strength of the Standard Bank Group, to which Stanbic IBTC Holdings belongs, echoes stability, financial strength, expertise and reliability. Consequently, we believe customers who truly want to protect the people they love will put their trust in the reliability we offer. We will work tirelessly to provide the best solutions and service to our clients. We are motivated and determined to continue to deliver innovative and optimal insurance and risk management solutions to our clients.”

    Stanbic IBTC Insurance Brokers Limited is a subsidiary of Stanbic IBTC Holdings Plc, a member of Standard Bank Group.

  • Recession biting hard on insurance business, says NCRIB

    Recession biting hard on insurance business, says NCRIB

    •Brokers urged to obey NAICOM rules

    The economic challenges  facing the country are biting hard on insurance business, President, Nigerian Council of Registered Insurance Brokers (NCRIB), Kayode Okunoren,  has said.

    Okunoren, who spoke at this month’s Members Evening in Lagos, called on the Federal Government to diversify the economy, and as well address the present economic challenges. He said the value of the naira has continued to take a downward plunge against the dollar, the pound sterling and other currencies, to the detriment of the nation’s economy.

    He said the resultant effect of this, is negative on the nation’s economic revival efforts, stating that aside from the possibility of stagnating industrial development and favourable trade, the situation is already causing increasing inflationary rate that is affecting the common man on the street.

    “The mono economy has left the country helpless, considering also the continuous downward slide in the price of crude oil in the international market, upstaging the budgetary anticipations of the government. Definitely, the insurance industry is not insulated from these grievous indices of economic recession,” he said.

    On the recent cancellation of broker’s licences by the National Insurance Commission (NAICOM), Okunoren urged brokers to ensure that all necessary documents are filed with the regulatory authorities in good time to forestall sanctions.

    He described practising brokers who wait till their certificates lapse before filing necessary documents with the authorities, as unprofessional brokers.

    He said the Council has succeeded in getting NAICOM to address some issues affecting the broking fraternity, adding that the Commission has acceded to the request for a joint committee to review the list of requirements expected from brokers for rendering returns to the Commission on a yearly basis.

    “I am sure that many of you would be itching to hear from us on efforts made on the recently lapsed certificates of some of our members by the National Insurance Commission late last year.

    “It is an unfortunate incident. We have made concerted efforts to ensure that we get the understanding of the Commissioner for Insurance, Alhaji Mohammed Kari, on the development and happily that has crystalized in the call for re-application by the companies concerne.

    “Whilst still making efforts to continually enlist the understanding of NAICOM on issues relating to our members, I am happy to note that the Commission has acceded to our request for a joint committee to review the list of requirements expected from Brokers for rendering returns to the Commission on a yearly basis.

    “It is believed that the joint adhoc committee will pave the way for better and early compliance of our members. It is however expedient of me to state, without any contradiction, that it is unprofessional for any practicing broker to wait till its certificate is lapsed before filing necessary documents with the authorities.

    “The Governing Board has considered the retention of the help desk earlier established as a standing body to assist members in addressing areas that portend challenges for our members with regards to compliance with regulatory institutions,” he said.

  • Universal Insurance pays N300m claims

    Universal Insurance Plc paid over N300 million claims in the past three years, the Managing Director, Ben Ujoatuonu has said.

    He made this known when the firm hosted insurance brokers in Lagos.

    He said the firm has been consistent in paying claims and would continue to meet its claims responsibilities.

    He also said the firm has been transformed and is set to be amongst top ten insurance firms in the country.

    He said: “Part of the transformation going on in the firm is leveraging on electronic platforms to deepen its operations. The firm would soon engage more hands to drive its operations, even as plans are in top gear to open more branches.

    “The firm has paid over N300 million claims in the past three years and has continued to make profits within the same period. We intend to further boost insurance penetration by ensuring that appropriate insurance products are made available to meet the needs of the insuring public.”

    He lauded brokers’ support to the firm and pledged to enhance the relationship.

    He called on the public to embrace insurance especially now that the economy is faced with challenges.

  • ‘Low oil prices, instability affecting Middle East, North Africa insurance’

    Once viewed as an economic power house among emerging markets, with seeminglyunstoppable growth prospects, the Middle East region has succumbed to a deterioration in medium-term economic forecasts, driven by unrelenting low oil prices and persisting regional instability.

    A. M. Best Associate Director, Market Development & Communications, Dr. Edem Kuenyehia made this known in a report made available to The Nation in Lagos.

    According to him, these two key challenges are likely to dictate the operating landscape of Middle East and North Africa (MENA) economies over the near to medium term,and will have repercussions for the insurance markets across the region.

    He stated that the price per barrel in January, this year stood at approximately a quarter of its market value two years previously, and at the lowest point since 2003.

    He noted that despite the substantial fall inthe price of oil, there are further potential headwinds that can place greater pressure on the sector including reduced levels of demand from emerging economies, such as China, increased shale oil extraction mainly from the United States and the prospect of Iran reenteringthe market as a major supplier following the removal of certain oil-related sanctions.

    He said: “With a clear imbalance between global supply and demand already in existence, there is concern that a further reduction in demand and, or increased supply could drive oil prices as low as $15 per barrel. The Middle East, North Africa economies displayed relatively strong levels of resilience to the 2008 global financial crisis, however, with oil production and refinement the foundation of most economies in the region, the impact and severity of a prolonged period of low hydrocarbon, political instability remains a further and somewhat interlinked challenge for the MENA.

    “Inthe aftermath of the Arab Spring uprising, some of the countries affected have made positive strides from a political standpoint while others have seen a marked deterioration. Whilst the causes for political instability have not to date been directly linked to low hydrocarbon prices. There is a concern that heightened regional instability and political tensions over the longer term may exacerbate economic pressures on many MENA economies.”

    Kuenyehia said A.M. Best believes that the impact of these two key challenges on the insurance markets inthe region is difficult to predict, but will undoubtedly hinge upon where the “new normal” oil price lands and how governments manage potential budgetary cuts and social unrest.

  • IEI restructures

    IEI restructures

    International Energy Insurance (IEI) has rebounded as a result of measures employed by the Interim Board appointed by the National Insurance Commission (NAICOM).

    Its Interim Managing Director, Peter Irene who made this known in Lagos, said this was achieved in nine months.

    He said part of the restructuring undertaken include improved operational efficiency, productivity and competitiveness, sound policies including a revamping of human resources which has necessitated a right-sizing of the work force.

    According to him, the major task within the period was to quickly ascertain the vital areas of operations of the organisation that required immediate intervention and review to reposition the firm.

    Such critical areas he said, are corporate governance issues, investment policies, prompt payment of claims, products, human resources, cost management, and sales growth, among others.

    He said: “Fifty staff and 35 drivers affected by the exercise are to be given a special exit package. The brand pulse at the moment portends very positive signs of growth, now and in the future. We have addressed all issues bordering on the late submission of annual financial statements.

    “Our 2013 financial statement was approved by NAICOM while 2014 has been submitted and awaiting approval. Our external auditors are working on the 2015 financial statement with the aim of meeting the March 31 deadline set by Securities and Exchange Commission (SEC) for quoted companies. We have worked hard to retain existing business and break into new market frontiers.”

    IEI Head of Corporate Communications Tamuno Kiri added: “This is no mean feat by the Interim Board and management who have succeeded in boosting the brand equity in terms of meeting requirements for the submission of bids and improved turnaround time.

    “The staff and management wholly embrace the structural templates and policies introduced by the board as a panacea for the overall growth and stability of IEI Plc brand in line with its core values of integrity, dependability, innovation, proficiency and her aspirations to be the leading underwriter in energy and general insurance businesses.

    “The organisation is driven by her mission and commitment to be a dependable partner while delivering value to all her stakeholders.”

     

  • Stanbic IBTC Pension’s assets hit N1tr

    Stanbic IBTC Pension’s assets hit N1tr

    Stanbic IBTC Pension Managers Limited, a Pension Fund Administrator (PFA), has recorded over N1trillion worth of assets in 10 years, the Chief Executive of the company, Eric Fajemisin has said.

    In a statement in Lagos, he said the company has emerged as Nigeria’s leading PFA with over one million retirement savings account holders under management.

    He said the company is paying more than N2.1 billion to over 38,000 retirees monthly, adding that over N204 billion has been paid to retirees since they began operations in 2005.

    He noted that their aim is to continue to set higher standards of service delivery and ensure that “our retirement savings account holders derive maximum value from their contributions,” Fajemisin said.

    He said in line with its commitment to enriching customer experience, the company would continue to broaden and enhance its service channels for efficient service delivery. He said: “This is in fulfillment of its promise to provide quality and stress-free pension fund administration and financial management services to our clients and Nigerians wherever they may be. The cardinal value propositions of the PFA are participation, accessibility, quality, convenience and efficiency.

    “The company can be reached via a number of service channels, including its over 217 branch offices spread across the country, its 24-hour multilingual contact centre, SMS, Stanbic IBTC ATMs, email, its mobile office, mobile app, and the Pension Guru online, Fajemisin said, adding that the PFA is committed to ensuring that clients are able to experience excellent and convenient service in any of its touch points.

    “Our promise is to avail as many Nigerians as possible the opportunity to have quality pension fund administration and financial services, which will enable a life of comfort in retirement. To achieve this, we have continued to broaden our service channels so that we can reach as many Nigerians as possible and encourage participation in the Contributory Pension Scheme.”

    He said that Stanbic IBTC Pension Managers will constantly explore additional avenues where Nigerians can conveniently access its services to meet their pension and retirement needs, adding that the company is backed by the necessary experience, strong and sound financial clout of the Standard Bank Group, to ensure efficiency in the management and safety of clients’ investments.

    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 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 and is rooted in Africa with strategic representation in 20 countries of the 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.