The Nation Newspaper

Category: Insurance

  • NAICOM may prosecute ex-directors, for alleged fraud in Goldlink

    NAICOM may prosecute ex-directors, for alleged fraud in Goldlink

    Following the allegations of fraud by KPMG against former directors of Goldlink Insurance Plc, the National Insurance Commission (NAICOM) may prosecute those indicted, The Nation has learnt.

    NAICOM on November 1, 2012 took over the management of Goldlink when it became clear that there were anomalies and misstatements in the audited financial statements of the company for the year ended December 31, 2011.

    The commission reconstituted a seven-man interim Board of Directors headed by James Ayo to oversee the affairs of the company.

    It also engaged KPMG to carry out forensic investigation on the true financial position of the company.

    Unveiling the report of the forensic investigation at the company’s Annual General Meeting (AGM) 2011 to 2014, Ayo said the investigation confirmed the observation of NAICOM that various abnormalities identified in the 2011 financial statement were attempts to conceal the company’s true financial position.

    He disclosed that some irregularities were perpetuated by the former executives and staff of the company, adding that there was a  breakdown of corporate governance typified by the former non-executive chairman’s presence in the office.

    He explained that the interim management board instituted a share capital audit, which revealed that about 2.5 billion shares were inappropriately issued to selected shareholders without considerations into the company.

    He said: “To support the creation of these bubble shares, the Head Office Building and other assets were revalued and inflated by about N1.5 billion. The revaluation surplus was used in part to create these shares against sound accounting standards and principles.

    “Currently, the interim management board has recovered 1.2 billion shares through voluntary surrender and about 134 million shares by way of forfeiture.

    “The interim board also found out  that about 1.2 billion share unit have been disposed of by some of the beneficiaries, and that the interim management board has commenced the process of recovering the disposed shares and associated dividends of about N125 million.”

    The Commission’s spokesman, Rasaaq Salami, in an interview, said the Commission prompted the company to hold its AGM.

    He said they were sure the shareholders had been informed of developments in the company.

    Salami stressed that the Commission would not treat any issue that has to do with fraud with levity.

    “NAICOM will not treat any issue that has to do with fraud with levity. Rather it will ensure that the interest of policyholders are protected. The Commission ensured the company held its annual general meeting so that shareholders and the general public can know what is going on with the company.

    “The report has been forwarded to the appropriate department of the Commission to determine the next line of action. What we want to achieve is to ensure the company gets better than we met it,” he said.

  • Agents sad over exclusion from Insurance Bill Review Committee

    Insurance agents have deplored their exclusion from the Committee for Review of the Insurance (Consolidated) Bill.

    This is coming on the heels of the inauguration of the Committee by the Minister of Finance, Mrs Kemi Adeosun last Thursday in Abuja.

    The Ministry of Finance had constituted a 10-member committee to review the Draft Insurance Bill, a move that seeks to make the bill conform with the ideals of contemporary insurance practice and also ensures an efficient insurance industry in the country.

    The review is expected to form the basis for a new draft bill, which will be sent to the National Assembly for consideration.

    The Association of Registered Insurance Agents of Nigeria (ARIAN) wrote a letter to the minister and the National Insurance Commission (NAICOM) asking that they be absolved into the committee.

    ARIAN President Olamerun Gbadebo in an interview with The Nation said the review will be incomplete without the agents.

    He said the association has a lot to contribute towards enhancing retail business considered to be the panacea to growth.

    He noted that it would be in the interest of the industry if the agents were allowed to contribute to the review.

    He said it had become obvious that the government is the biggest insurance client with businesses like the Nigerian National Petroleum Corporation (NNPC), and group life insurance policy, among others.

    He added that it had also become clear that with the dwindling oil price, the government might not have money to insure all of its assets and properties hence the need to enhance retail business.

    He said: “The fundamentals to increase insurance premium is to invest into the retail arm of the industry and the insurance agents represent the retail segment. The retail segment can fill in the gap of the dwindling oil price while it bounces back.

    “The industry need concentrate on how insurance premium will grow and also increase the Gross Domestic Product (GDP) while the price of oil bounces back.”

    NAICOM said it is not responsible for setting of the committee.

    Spokesman to the Commission, Rasaaq Salami said NAICOM is only a member of the Committee and so there was nothing the body could do about the exclusion of agents from the committee.

    According to him, the Bill is  with the Ministry of Finance.

    Minister of Finance said the committee with members from the public and private sectors, would submit its report in three months.

    The Committee is chaired by Dr. Omogbai-Omo Eboh, an Insurance Law expert, while Dr. Talmiz Usman, Head of Legal Department, NAICOM is the Secretary.

    Other members include a representative of the Ministry of Finance, National Insurance Commission, Nigeria Insurers’ Association (NIA), and that of Nigeria Council of the Registered Insurance Brokers.

    Members of the committee also include a representative of the Institute of Loss Adjusters of Nigeria; a representative of the Attorney- General of the Federation, Kamar Raji and Dr. Ladi Hamalai of the National Institute of Legal Studies.

    The minister said the Review Committee would be funded by NAICOM.

     

  • Lagos pays retirees N649m

    Lagos pays retirees N649m

    NO fewer than 119 retirees from local governments, SUBEB, TEPO and parastatals in Lagos State have received  their Retirement Benefit Bond Certificates of N649 million, the Director-General, Lagos State Pension Board (LASPEB), Mrs. Folashade Onanuga, has said.

    In a statement signed by LASPEB spokesman, Mrs. Basirat Lawal, she said this brings the number of retirees paid between August 2015 and  last month to 2,409.

    According to her, the total accrued pension paid by the government is N10.652 billion.

    She explained that accrued pension rights are gratuity and pension entitlements due to staff that transited to the Contributory Pension Scheme (CPS) but had served under the “Pay As You Go” pension scheme dispensation.

    According to her, the bonds were issued at the 23rd Retirement Benefit Bond Certificate Presentation Ceremony last week in Lagos. Onanuga urged the beneficiaries to take care of their health and invest the money wisely.

    She also advised the beneficiaries to be wary of fraudsters and not accept any business proposal they don’t understand.

    She urged them to keep the money in a fixed deposit account with banks if they could not think of any business at the moment

  • NAICOM may prosecute Okuniyi, others for ‘fraud’ in Goldlink

    NAICOM may prosecute Okuniyi, others for ‘fraud’ in Goldlink

    Following the allegations of fraud by KPMG against former board members of Goldlink Insurance Plc, the National Insurance Commission (NAICOM) may prosecute those indicted, The Nation has learnt.

    The directors include former Managing Director of Goldlink, Femi Okuniyi.

    NAICOM on November 1, 2012 took over the management of Goldlink when it became clear that there were anomalies and misstatements in the audited financial statements of the company for the year ended December 31, 2011.

    The commission reconstituted a seven-man interim Board of Directors headed by James Ayo to oversee the affairs of the company.

    It also engaged KPMG to carry out forensic investigation on the true financial position of the company.

    Unveiling the report of the forensic investigation at the company’s Annual General Meeting (AGM) 2011 to 2014, Ayo said the investigation confirmed the observation of NAICOM that various abnormalities identified in the 2011 financial statement were attempts to conceal the company’s true financial position.

    He disclosed that some irregularities were perpetuated by the former executives and staff of the company, adding that there was a  breakdown of corporate governance typified by the former non-executive chairman’s presence in the office.

    He explained that the interim management board instituted a share capital audit, which revealed that about 2.5 billion shares were inappropriately issued to selected shareholders without considerations into the company.

    He said: “To support the creation of these bubble shares, the Head Office Building and other assets were revalued and inflated by about N1.5 billion. The revaluation surplus was used in part to create these shares against sound accounting standards and principles.

    “Currently, the interim management board has recovered 1.2 billion shares through voluntary surrender and about 134 million shares by way of forfeiture.

    “The interim board also found out  that about 1.2 billion share unit have been disposed of by some of the beneficiaries, and that the interim management board has commenced the process of recovering the disposed shares and associated dividends of about N125 million.”

    The Commission’s spokesman, Rasaaq Salami in an interview said the Commission prompted the company to hold its AGM.

    He said they were sure the shareholders had been informed of developments in the company.

    Salami stressed that the Commission would not treat any issue that has to do with fraud with levity.

    “NAICOM will not treat any issue that has to do with fraud with levity. Rather it will ensure that the interest of policyholders are protected. The Commission ensured the company held its annual general meeting so that shareholders and the general public can know what is going on with the company.

    “The report has been forwarded to the appropriate department of the Commission to determine the next line of action. What we want to achieve is to ensure the Company gets better than we met it,” he said.

  • ARIAN protests non-inclusion in Insurance Bill Review Committee by minister

    ARIAN protests non-inclusion in Insurance Bill Review Committee by minister

    AGENTS are protesting their exclusion in the proposed committee on the review of the Insurance (Consolidated) Bill by the Minister of Finance Mrs. Kemi Adeosun and the National Insurance Commission (NAICOM).

    To this end, the Association of Registered Insurance Agents of Nigeria (ARIAN) has written to the minister and NAICOM, asking that they be absorbed into the committee.

    The Ministry of Finance had constituted a 10-member committee to review the Insurance Bill to make it conform with the ideals of insurance practice and also ensures an efficient industry.

    ARIAN President Olamerun Gbadebo told The Nation that the committee would be incomplete without agents.

    He said the association has a lot to contribute to enhance retail business considered to be the panacea to insurance growth.

    He noted that it was in the interest of the industry if the agents were allowed to contribute to the review.

    He said it had become obvious that the government is the biggest insurance client with businesses like the Nigerian National Petroleum Corporation (NNPC), and group life insurance policy, among others.

    He added that it had also become clear that with the dwindling oil price, the government might not have money to insure all of its assets and properties hence the need to enhance retail business.

    He said: “The fundamentals to increase insurance premium is to invest into the retail arm of the industry and the insurance agents represent the retail segment. The retail segment can fill in the gap of the dwindling oil price while it bounces back.

    “The industry need concentrate on how insurance premium will grow and also increase the Gross Domestic Product (GDP) while the price of oil bounces back.”

    Reacting to the development, NAICOM said it is not responsible for setting of the committee.

    Spokesman to the Commission, Rasaaq Salami said NAICOM is only a member of the Committee and so there is nothing they can do about their exclusion from the committee.

    According to him, the bill has been with the Ministry of Finance.

    The review is expected to form the basis for a new draft bill, which will be sent to the National Assembly for consideration.

    Minister of Finance said the review committee with members drawn from the public and private sectors, was to submit its report within three months.

    The Review Committee, which is yet to be inaugurated, is chaired by Dr. Omogbai-Omo Eboh, a renowned expert in Insurance Law, while Dr. Talmiz Usman (Head of Legal Department, NAICOM is the Secretary.

    Other members include a representative of the Ministry of Finance; a representative of the National Insurance Commission; a representative of Nigeria Insurers’ Association (NIA), and a representative of Nigeria Council of Registered Insurance Brokers.

    Members of the committee also include a representative of the Institute of Loss Adjusters of Nigeria; a representative of the Attorney- General of the Federation, Kamar Raji and Dr. Ladi Hamalai of the National Institute of Legal Studies.

    The minister said the activities of the Review Committee would be  funded by NAICOM, which is the statutory agency of the Federal Government.

    According to the minister, the terms of reference of the committee include a critical review of the draft Insurance (Consolidated) Bill, to make it a framework or principle-based legislation; a comparative review of the bill to align it with the powers of other financial regulators as well as an examination of  market problems and recommendation of appropriate regulatory powers to allow the regulator, act appropriately.

  • Almond takes insurance awareness to Ibadan

    Almond takes insurance awareness to Ibadan

    Given the low awareness and penetration levels of insurance in the country, Almond Productions Limited, producers of Almond Finance and Wealth Report on television and Wetin Insurance Dey Do Sef on Radio, is expanding their reach to Ibadan and its environs, the Chief Executive Officer of the company Ms. Faith Ughwode has said.

    In a statement in Lagos, she said the 30-minute programme chronicles major events and happenings in the financial services sector of the nation’s economy with special focus on insurance reportage and X-rays issues as they unfold through personality interviews in a no-holds-barred session.

    She said the programme would hit BCOS TV from February 14, this year.

    She noted that the choice of BCOS is the reach and clarity of its signal in Ibadan and environs.

    She said: “People easily access the station’s signal in their homes and offices even without antenna. This has made BCOS the station of choice for residents. For us as a production firm, quality is what we stand for hence we are constantly on the lookout for television stations with qualitative transmission to partner with nationwide.

    “Meanwhile, the interview segment of the programme has been re-branded. The new segment called Insurance Townhall will bring together experts from within and outside the industry to discuss topical issues as they unfold. All these innovations are aimed at increasing insurance awareness and by extension deepen penetration in the country.

    “At Almond Productions, we believe that the future of the insurance market is in retail business, especially now that the economy is standing shakily on one leg with the plunge in global oil prices.

    “The retail market can only be developed when people get information on the workings and benefits of insurance. This is why we are taking our programme to Ibadan and environs so that people can visually see and hear what is happening in the insurance industry every week. For operators who wants to pursue retail business this year, our platform will provide their brand the needed visibility through partnership with us.”

    She stressed that with the state of the economy, people were anxious about their tomorrow and insurers must educate them on why they need insurance now more than ever before.

  • ‘87 delisted broking firms not registered with NCRIB’

    ‘87 delisted broking firms not registered with NCRIB’

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has said   of the 108 broking firms delisted by the regulatory body,  the National Insurance Commission, 87 firms are not registered with the Council, its President Kayode Okunoren, has said.

    He made this known at a forum in Lagos.

    According to him, only 21 of the affected brokers are members of the broking fraternity.

    He said the NCRIB had made frantic efforts to ensure that the affected brokers were given soft landing as against the withdrawing of their licences.

    He appealed to NAICOM to ensure sustenance of effective communication channels with the NCRIB in such a way that its members are notified in good times on any aspect of compliance in which they are on the path of erring, stressing that this could even be done through the Council in the spirit of the existing cordial relationship.

    Okunoren said: “As you are aware, NAICOM recently advertised the names of 108 brokers delisted over compliances issues. Out of the 108 Brokers, 21 of them are registered members of the Council.

    “Suffice it to say that the NCRIB is not happy that any operator in the market will continue to flout regulatory requirements as enshrined in the law. However, the Council on my assumption of office, made a representation to NAICOM on this and sundry issues for which, as usual, we got assurance of support from the Commission.’’

    He continued: “While we are still looking at opportunity to assist those with minor infractions by interceding for them in NAICOM, we have equally made this clear to our members that the regulatory environment of today requires more discipline than hitherto and that compliance issues must no longer be treated with levity.’’

    He reiterated his pledge to take the broking profession to lofty heights, adding that he will sustain his promise of running an open door policy

    He also said this is a challenging time for the insurance industry in Nigeria, in view of the recession being witnessed in the economy, which is taking its toll on insurance like any other sector of the economy.

    “However, we share the optimism that the government under the leadership of President Mohammed Buhari will reverse the ugly situation through the enthronement of probity and accountability in governance as we are already witnessing. I wish to spare some thoughts for the present administration’s anti graft war.

    “It is no longer news that, Nigeria’s progress had been stultified by corruption and financial indiscipline and this has permeated the professions also. I hereby commend the ‘war’ and advice that government should work urgently on legal framework for the institutionalisation of the anti-corruption war, even after the exit of the administration,” he added

    Okunoren said the administration should  begin the conscientisation of Nigerians to re-create in the minds of the citizens the real virtues of honesty and transparency which was our hallmark many years past. On the part of NCRIB, he said they would continue to cooperate with the government in achieving this mandate ‘’as we reckon that there is no way insurance industry could grow in an environment with systemic corruption’’.

    However, the question to ask is, what should be our focus as brokers at a time like this? The onus is on us to be creative and proactive in maximising the seemingly gloomy economic situation to our advantage. For instance, it is high time operators began to look at policy direction of the government as partly enunciated in the draft budget, in the area of diversification of the economy.

    The NCRIB under my leadership will ensure that all necessary strategic engagements are done to further enhance the growth of insurance in Nigeria, as well as increase the relevance of insurance brokers.

  • GNI introduces PayDirect

    Great Nigeria Insurance Plc, an underwriting firm, has introduced PayDirect and Quickteller payment solutions to make it easier for its customers to pay for their insurance and financial services at any bank branch nation-wide.

    A statement by its Corporate Communications and Brand Manager, Oyinkansola Sobande, said the innovation in service delivery was introduced in a bid to make insurance more accessible to customers.

    She said the effort is geared towards reiterating the commitment of the GNI Brand to meeting and surpassing the expectations of its esteemed clients.

    Head, Information Communications and Technology, Fasasi Kaseem, said the new payment channels were introduced to provide  a secure and fast way of enabling customers make premium payments and renewals of insurance policies anywhere anytime.

    He said: “While PayDirect offers a customer the opportunity to complete an insurance transaction in any bank nationwide, Quickteller on the other hand operates on simple easy-to- do steps that are self-explanatory”.

    The Managing Director/Chief Executive Officer (CEO), Mrs. Cecilia O. Osipitan,  said the new payment solutions were adopted to enable customers pay for their services without stress.

    She said considering the fact that insurance is gradually becoming an integral part of our human existence coupled with the emerging innovations in the insurance industry, these payment solutions have become necessary to encourage the “Do it Yourself” attitude of the public.

    She mentioned that customers can now walk into any Bank branch nation-wide to pay for their respective policies on the PayDirect platform.

    To remain a major player in the industry and with a mission of “Giving you peace of mind by keeping our promises”, Great Nigeria Insurance Plc strive to ensure the delivery of exceptional quality service having created an effective and functional customer service desk.

    For Great Nigeria Insurance, the journey has just begun and the insurance industry is set to witness more innovative ways of doing insurance business in Nigeria.

  • Binji is Acting MD, NAIC

    Agriculture and Rural Development, Minister Audu Ogbe, has confirmed the appointment of Bashir Haliru Binji as the Acting Managing Director/Chief Executive Officer (CEO) of the Nigerian Agricultural Insurance Corporation.

    The appointment took effect from January 2, this year.

    Binji’s appointment followed the resignation of the Managing Director, Bode Opadokun.

    Binji, who hails from Sokoto State, was until his appointment, the Executive Director Operations of the Corporation.

    He holds a Bachelor of Science in Management Studies. He is an Associate of the Chartered Insurance Institute of London, among other qualifications.

  • Mutual celebrates 20th Anniversary

    Twenty years after its establishment, Mutual Benefits Assurance Plc has been able to overcome the turbulence in the business environment, Group Managing Director and founder of the company, Akin Ogunbiyi has said.

    He made this known during the company’s 19th Annual Thanksgiving in Lagos.

    He said the firm was a vision handed over by God.

    Ogunbiyi, who recounted how the company was started 23 years ago, said: “You divinely dropped the idea into my spirit. A young and restless professional. I conceived setting up an insurance company that would be unique and a model for what insurance services in Nigeria should be. You provided men and women as pillars of support for the vision, and the Trinity as the divine help.”

    He recalled how the company almost out of nothing acquired its first head office on Ajose Adeogun in Victoria Island, Lagos; bought on credit eight Mercedes Benz 200 from a source he never knew before the transaction; met N3 billion insurance sector recapitalisation in 2007 after an initial public offer (IPO) that cost N450million and raised a paltry N52 million; acquired its head office on Ikorodu Road, named after its founding chairman Aret Adams, through a loan finance Corporative Bank, even when there was no relationship with the bank, among others.

    Ogunbiyi continued: “We have become pathfinders into a new dawn for insurance in Africa and trailblazers for creating massive employment, empowering citizens by generating income at the bottom of the pyramid and developing rural communities.

    “With brand Mutual, we have broken the bond of misery and helped people to help themselves. Through value, adding hard work, we enhance and boost the wealth of the rich. At the same time, we help the hardworking poor to cast-off the chains of poverty and climb steadily up the ladder of sustainable progress.

    “Our team in Mutual has demystified the misconception that the business of spreading risks to promote investments can only thrive in the informal sector. The whole of Africa has adjudged Mutual as the most innovative insurance Company, because today, we have successfully used our strategic resources to purposefully play and add value in the informal sector,” he said.