The Nation Newspaper

Category: Insurance

  • Leadway is best customer service insurance firm

    Leadway Assurance Company Limited has received the award for “Best Customer Service Company in Insurance Services” at the just-concluded 2015 edition of the Nigerian Customer Service Awards held in Lagos.

    The awards are organised by the Nigerian Customer Service Awards (NCSA), a quality service organisation that conducts an independent assessment of quality service.

    The agency uses votes received from customers of each organisation, via a customer service tool that collates and analyses feedback from each customer and grades their responses, using world standards as benchmarks.

    NCSA Co-ordinator Dr. Aliyu Illias, described the award as a  confirmation of Leadway’s commitment to serve and corporate excellence.

    Head, Retail Marketing/Bancassurance of Leadway Assurance, Olufemi Adebayo said: ”We are humbled and proud to be recognised as the Best Customer Service Insurance Company in Nigeria. This award is the evidence of our hard work and commitment to ensuring customer satisfaction.”

    He expressed gratitude to all Leadway customers for the trust and confidence reposed in the company, adding that the underwriting firm has over the years ensured the provision of consistent quality customer service to its customers as they are the main reason the company remains in business.

    The company explained that in ensuring that it fulfils its promises to customers, it has consistently shown examples of satisfying the customers by paying over N11bn in claims for 2014 alone.

  • Be customer-centric, insurers urged

    Insurance firms need to be customer-centric in order to achieve desired result for the insurance sector. An expert on customer service and business etiquette at the enterprise development center,  PAN African University, Mrs Ekaete Augustine-Edet, said this.

    She made this known in Lagos on last week while speaking at the Almond 2015 Insurance Consumers’ Forum.

    She noted that insurance firms, including underwriters, brokers and agents, must join hands to ensure customer satisfaction.

    She stressed that the operators should also consider value when designing products for groups and individuals in the country.

    She said: “No business today can afford to ignore two very important people: the customer and the competitor. Organisations that focus hard on the quality of service they provide grow faster, sometimes twice as fast as the competitor in the market place.

    “Customer Service is key to the success of any orgnisation. It is the act of taking care of the customers’ needs by providing and delivering professional, helpful and high quality products and services.”

    Chief Executive, Almond Productions Limited, Faith Ughwode, in her address, said their strength over the years has been drawn from their  passion for the Insurance industry, including the indispensable insurance consumers and the organised champions of Consumer Rights Advocacy and the support of stakeholders.

    Her worsds: “No doubt, with the actualisation of this third edition, the forum now stands on a tripod with a firmer commitment to pursue its original objective, which is hinged on the promotion of a customer-centric Insurance Industry.

    “This objective has informed our theme for this year’s forum: Customers Relationship and Management in the Insurance Industry. Insurance being an intangible product, operators must see and treat their customers not just as kings but, “super kings”.

    Ughwode said she was elated by the increasing relevance of the industry in the scheme of things, adding that the media have been contributing relentlessly to the much desired insurance awareness campaign, which is helping to make the difference today.

  • Partial implementation of CPS by Southsouth worries PenCom

    Partial implementation of CPS by Southsouth worries PenCom

    The National Pension Commission (PenCom) has expressed worry over the partial implementation of the Contributory Pension Scheme (CPS) by states in the Southsouth geopolitical zone of the country.

    The commission however, said despite this development, the pension scheme under the CPS has generated N5.03trillion worth of pension assets invested in various sectors of the economy.

    Its Director-General, Mrs. Chinelo Anohu-Amazu who spoke during the Southsouth sensitisation conference on the impact of the Pension Reform Act 2014 in Uyo, Akwa Ibom State capital, said the partial implementation of the scheme in the zone has denied them of the advantages that came with full compliance.

    Represented by the Commissioner, Inspectorate of the commission, Prof. Mohammed Ka’oje, she said the scheme also makes available for the benefit of states a pool of investible  funds to drive economic and infrastructural development in their respective areas.

    She said: “It is heartwarming to note that within a decade of the implementation of the scheme in Nigeria, the story of pension administration is changing into a positive narrative; the scheme has so far delivered all the major objectives of the reform.

    “We are proud to state that since its establishment 11 years ago, there had been no case of malpractice recorded in the administration of the Contributory Pension Scheme in Nigeria.

    “In addition, the scheme has so far generated over N5.03 trillion worth of pension assets invested in various sectors of the Nigerian economy as at date.”

    She said the scheme has delivered all the major objectives for which  the reform was set to acheive.

    She, however, appealed to all the states and local governments in the Southsouth region to step-up  efforts at implementing the scheme in order to avail themselves and their employees the opportunities the scheme offers.

    Speaking on the occasion, Akwa Ibom State Governor, Mr. Udom Emmanuel, who was represented by his deputy, Mr. Moses Ekpo, said the upward review of the scheme, had introduced minimum contribution rate from 15 per cent to 18 per cent from monthly emolument.

    He said this will empower all employers to contribute 10 per cent, while the remaining eight per cent is made by the employee.

    According him, the Reform Act also made it mandatory for employers of labour to open a Temporary Retirement Savings Account, on behalf of its employees who failed to open such account within three months after being employed.

    He said the Pension Reform Act  2014 has criminalised the practice  of misappropriation of pension funds by public officials.

    He said: “Again, it must be put on record that in the recent past, where certain public officials indulged in wanton misappropriation of pension funds, these are acts that are both criminal in nature as well as evil in intention, as they not only deprive hard-working citizens of this country from accessing their due benefits, but further aggravates frustration among such individuals.

    “This is the height of man’s inhumanity to his fellow man, even as it amounts to a crime against the state. “This is more so because pension is a reward for all the toils and sacrifices of the working man and woman.”

  • Royal Exchange tasks youth on leadership roles

    Royal Exchange tasks youth on leadership roles

    Nigerian youths must be ready to step into the shoes of those leading the country today, the Group Managing Director, Royal Exchange Plc, Chike Mokwunye has said.

    Speaking at the 8th Annual Leadership Conference for Secondary School Prefects from 40 secondary schools with over 800 prefects across Lagos State, he told the youths that they are potential entrepreneurs, business leaders who must be ready to step into the shoes of those leading today.

    The forum was organised by the Foundation for Youth Empowerment and supported by Royal Exchange Plc.

    The conference had The Nigerian Youth in an Entrepreneurship focused economy as its theme.

    Mokwunye said the company was motivated by an abiding sense of duty and patriotism to contribute to nurturing the youths to be productive and responsible citizens.

    He stated that the Royal Exchange brand is well known for its empathy and high sense of patriotism, adding that the partnership reflects tthe firm’s belief in the potential of the  youths to soar and excel in their chosen field when given the opportunity.

    He said: “The leaders ruling today will not be here tomorrow and as prefects in your respective schools, you are being thrust into the limelight, with a hope of a better Nigeria, resting on your shoulders.

    “The students attending the conference are already in positions of authority in their respective schools, and we want a situation where they continue to be seen as examples for others to follow. At the end of the training, we expect the prefects to be role models, ready to lead, direct and positively influence others around them.

    “Considering the evolutional stage of our nation, Nigeria, there is no better place to discuss the topic of Leadership than now. You have been placed in a position of leadership in your various schools and I believe that the authorities must have seen something unique before selecting you as prefects.”

    At the national level, he said the country is blessed with abundant resources. “All we need is to put the right leaders in place and we can begin the march towards national prosperity. All of you here represent the future of the nation. That is why we, at Royal Exchange, believe that any investment in the youth is an investment in the future of our nation.

    “There is the element of achieving something positive under the guidance of a change agent who must enjoy the respect and followership of others. So as prefects, your colleagues look up to you as a beacon of hope. As a leading light, each of you has been invested with a responsibility to do the right things and to point the way for others to follow.”

    The Coordinator of the Foundation for Youth Education, Mr. Patrick Ajogwu said the Foundation was founded with the aim of instilling academic excellence, promoting qualitative education and leadership attitude development.

    Ajogwu said the aim of the conference, which is in its eight edition is to enable students start early by developing the necessary leadership skills. It also assists the students with counselling and direction as they begin to make their career decisions.

    Royal Exchange Plc started operations in 1921 and has been sponsoring the School Leadership Conference for the past four years.

  • Fed Govt cautions insurance brokers on corruption, money laundering

    Fed Govt cautions insurance brokers on corruption, money laundering

    The Federal Government has urged the new leadership of the Nigerian Council of Registered Insurance Brokers (NCRIB) to ensure that their insurance broking function is not exploited as a vehicle for corruption and money laundering.

    Commissioner for Insurance, National Insurance Commission (NAICOM), Mohammed Kari represented by the Deputy Commissioner for Insurance, Finance and Administration, George Onekhena who spoke during the inauguration of Kayode Okunoren as the 18th President of the NCRIB, said insurance broking profession holds the potential of facilitating economic growth.

    He urged the new president to put in place necessary logistics that will ensure that brokers comply with all the laws of the land.

    He stated that as professionals, brokers should take equitable interest in discharging their duties in the interest of all the stakeholders.

    He enjoined brokers to recognise their role in insurance penetration especially as it includes the development of financial inclusion.

    “They should recognise their role as employers of labour and to improve their quota to the resolution of the economic problem that is affecting this nation today,” he said.

    He told the new president that his position is critical to enthroning the change mantra in the sector, noting that he has a role for the future in maintaining the code of ethics and compliance with relevant laws and regulation guiding the insurance industry.

    He assured brokers of cooperation as regulator in facilitating their growth and development.

    In his inaugural speech, Okunoren said his tenure will be  ‘A regime of consolidation and progress.’

    He stated that NCRIB will collaborate with the government on risk management.

    He said: “In view of the pivotal place and role of government in growing the industry and providing social benefits to the people, the NCRIB in the course of this regime will collaborate with government, particularly in availing it with its repertoire of knowledge in risk management, to support relief and operational efforts in the event of losses occasioned by fire and other hazards.

    “We intend that the collaboration would be a win-win situation whereby government would be able to latch on the expertise of brokers in taking proactive steps against disasters when they occur.

    “It is my strong belief that government could transfer the burden of compensation to victims of disasters if insurance is given its due place. This effort will free resources for other progressive ventures and aid the prudential fiscal thrust of government.”

    Speaking on professionalism, he said the first consideration for him would be the advancement of professionalism in the insurance broking profession.

    “As the professional arm of the industry, brokers cannot afford to fail. We shall view and promote professionalism in its holistic form. “While reckoning with the fact that paper qualification is the first step towards professionalism, more attention will be paid to issues such as ethical adherence, image, comportment, business relationship amongst operators and continuous education to buoy up the competencies of brokers.

    “In fact, we shall promote a blend of learning and interpersonal relationships. Whilst individual brokers will continually be attuned to their professional responsibilities, the regime will also concern itself significantly with how brokers are perceived by the clients or the public. It may be noted that the horizon of brokers today has been significantly affected by the image clients conjure about the practitioners.

    “Suffice to state that the wrong and degrading perception of brokers has been responsible for the wrong treatment usually meted to them in bidding for business, unlike other professionals. This must stop. In order to restore or promote the integrity of our practice, this regime will strengthen internal disciplinary process to ensure that members adhere strictly to ethics and integrity in all their professional undertakings,” he said.

    Okunoren said in view of the changing operational environment that has continued to affect the broking practice, his administration will be proactive in relating with relevant regulatory and government institutions whose activities impact on members.

    He added that relationship with NAICOM will be strengthened with initiation of regular interactive platforms to discuss issues affecting brokers, rather than being reactive in their approach.

  • Regulator accuses Shoprite Insurance of selling worthless cover

    Regulator accuses Shoprite Insurance of selling worthless cover

    Shoprite Investments Limited and Shoprite Insurance Company Limited have been accused of selling unnecessary cover and granting credit recklessly.

    The National Credit Regulator (NCR) announced that it had referred both of them to the National Consumer Tribunal for: selling retrenchment and occupational disability covers to pensioners and consumers receiving government’s old-age grants; and selling retrenchment cover to a consumer with a waiting period of six months on a six-months’ loan.

    Shoprite Investments Limited has been cited on its own as it is said to have “granted credit recklessly to consumers.”

    “The sale of retrenchment and occupational disability covers to pensioners and consumers receiving government social grants is unreasonable and imposes an unreasonable cost to such consumers because they cannot claim benefits under these covers”‚ Jacqueline Boucher‚ of the NCR’s acting investigations and enforcement manager‚ said.

    “Credit providers are required by law to explain the terms and conditions of insurance policies to consumers at the point of sale. Consumers should not be sold insurance that is not suitable and appropriate for their needs.”

    The remedial actions requested by the NCR states that Shoprite refund the affected consumers the retrenchment and occupational disability premiums; An audit be conducted into Shoprite; The reckless loans be written off; and Shoprite pay an administrative fine.

    “The NCR will continue to conduct industry-wide investigations on credit insurance practices to protect vulnerable consumers such as pensioners and the disabled‚” a statement said.

    The Shoprite case follows a similarly trumpeted announcement of action against furniture retailer Lewis and Monarch Insurance earlier this year.

    • Culled from Timeslive
  • Lagos pays 525 retirees N2.1b

    Lagos pays 525 retirees N2.1b

    • To commence free medical treatment for retirees

    Lagos State Governor Akinwunmi Ambode has paid N2.1 billion to 525 retirees, the Director-General, Lagos State Pension (LASPEC), Mrs. Folashade Onanuga, has said.

    Speaking during the 19th batch Retirement Benefit Bond Certificates presentation in Lagos, she said the governor had okayed free health care for retirees.

    According to her, the payment of N2.1 billion to the retirees brings the total amount paid by the governor from August to last month to N4.5 billion.

    She said: “The governor has once again fulfilled his promise of paying retirees monthly till the backlog is cleared,  by paying another set of 525 retirees. This brings the total number of retirees paid from August to September to 1,201. The amount expended for the two months is N4.5 billion.

    “The tradition that retirees receive their Bond Certificates monthly in Lagos State without stress, has now come to stay. The governor desires to see retirees enjoy their life out-of- office without stress.

    “He also promised that retirees will enjoy free health care delivery in Lagos State hospitals as arrangements are on to provide them with Retirees identification cards.

    She reiterated that the pensioners would be well treated by the Pension Fund Administrators and Annuity Service providers as the money paid to them is their rights and not privileges.

    Mrs Onanuga advised the retirees to invest their money wisely.

    She urged retirees to tell their colleagues that were yet to collect their bond certificates that all outstanding backlog would be paid soon, adding that the payments were being structured based on the date of exit and also grade level.

  • Standard Alliance loses N1.9b

    Standard Alliance loses N1.9b

    Standard Alliance Insurance Plc has recorded a loss of N1.9 billion, compared to the N240 million loss of 2013.

    It blamed this development on  impairment provisions on assets, as well as share of losses at its associate company.

    The firm however grew its gross premium income to N4.33 billion in its finacial year 2014 against the N3.78 billion posted the year before.

    The company’s underwriting profit also rose to N1.4 billion, compared to the N1 billion posted tgh eprevious year.

    It however, recorded a loss of N1.9 billion, compared to the N240 million loss of 2013 which was occasioned by impairment provisions on assets, as well as share of losses at our associate company.

    “Notwithstanding the performance of last year, we have continued to improve our efforts to take advantage of the positive business atmosphere from the ‘No Premium, No Cover’ principle, as well as from positive post-election realities.

    Its Chairman, Brig-Gen Dominic Oneya (rtd), made this known at the company’s 2014 Annual General Meeting held in Lagos.

    He announced changes on the Board. Five Directors Alhaji Aliyu Yahaya Sa’ad, Olorogun O’tega Emerhor, Dr. Tom Imokhai, Mr. Ayodele Ajayi and Dr. Ramsey Mowoe retired while two – Mrs. Orerhime Emerhor-Iwuagwu and himself were retained.

    He added that six new directors were appointed to the Board. They are: Mr. Bode Akinboye, the Group Managing Director; Mrs. Adetayo Akintunde, Mr. Johnson Chukwu, Mr. EtigweUwa, Mr. Austin Enajemo-Isire and Mrs. Omolola Oshiafi.

    He said Sa’ad has served as Chairman of the Board for nearly a decade while Olorogun Emerhor, who founded the company, also managed its affairs as vice chairman.

    On the company’s future outlook, he said they expected the business environment to be altered.

    Oneya said he was positive about the financial year.

    He stressed that the directors were determined to take advantage of the wind of change in the country and to turn it into profitable opportunity by  focusing their efforts in the market place.

    Akinboye said the industry is among the fastest growing sectors of the economy, with a real GDP growth of about 7.2 per cent last year.

    But the industry’s five-year average yearly growth in premium income over 2010-2014 was about 11 per cent. The industry’s performance is reflective of aggressive marketing by insurers, as well as the impact of policy changes, in particular the upholding of the sanctity of the ‘No Premium, No Cover’ principle which NAICOM began in 2013, and the Local Contents Law 2010 for the energy industry, he added.

    He said: “Such robust growth ushered in foreign investor entries into the industry, especially private equity firms and a handful of global brands.

    “Nevertheless, the industry still faces the three principal challenges of low penetration due to little public awareness, weak enforcement of insurance legislation, and claims fraud.”

    He noted that the company operated in the business environment just described above and it took an adept Management and strong Board oversight for us to arrive at this junction.

    “With hard work and thoughtful customer service, we succeeded in growing our premium incomes at 14 per cent in the year under review, well above industry premium growth rate of about 7.3 per centin 2014.

    “While we managed our claims and expenses effectively, they also had challenges of non-renewal of key customer accounts. We also had to provision for impairments of assets, and needed to book some charges for associate entities we longer wanted to hold investments in. Thus, the overall effects of these impacts were brought upon our Profit and Loss in the year under review.”

    Akinboye further said they had embarked on a transformation agenda that would refocus their strategy and match same with sufficient capital injections.

    He said by last December year, they exited all non-core activities via a divestment in associate companies in real estate, financial advisory and asset management businesses.

    ‘’Our refocused strategy is to aggressively build up our life assurance franchise as embedded in SA Life Assurance Limited,” he said.

  • CIIN warns members against unethical behaviour

    CIIN warns members against unethical behaviour

    The Chartered Insurance Institute of Nigeria (CIIN) has called on its members to shun and report unethical behaviours by fellow members.

    In a letter to its members obtained by The Nation, the institute stated that the major problem facing the growth and survival of the industry is misconduct by practitioners.

    The letter reads: “The major challenge facing the growth and survival of the insurance industry is the unethical behavior of insurance practitioners

    “This has brought about the dire need for us to stand up in order to save the Industry. The survival of the Industry will be guaranteed if we all play by the rules.

    “Do not look the other way. Please report any act of misconduct by practitioners to the institute. The institute can only apply the law when cases are reported. Join us in the crusade for a better Insurance industry.”

  • ‘Insurance department at Finance Ministry vital’

    There is need for the National Insurance Commission (NAICOM) to put in place an insurance department at the Federal Ministry of Finance, Managing Director, Bodman and Company Loss Adjusters, Bode Owoyeye has said.
    During an interview with The Nation in Lagos, Owoyeye urged the Commissioner for Insurance, Mohammed Kari, to implement new policies that would facilitate growth in the sector.
    He said: “There should be an insurance department in the Federal Ministry of Finance that will monitor the budget of the ministries and parastatals in the country.
    “We also need the government support in this sector because without government support, the sector will not grow as it should.”
    Another loss adjuster, Managing Director, Cofu Global Loss Adjuster Ltd, Ike Udoby, said adjusters were expecting a sound working relationship with NAICOM.
    He lauded the ‘No premium no cover’ policy enforcement by NAICOM.
    “The no premium no cover policy which ensures that no cover would be made unless premium is paid has favoured loss adjusters. The situation before was that the insured takes a policy on credit and may eventually not pay at the expiration of the policy but now, you pay premium as the policy is being granted.
    “The ‘No premium, no cover’ policy has made underwriters to have resources for the cover they grant the insured,” Owoeye added.
    He noted that the work of an adjuster is likened to consultancy and if you are offering a consultancy, you must have done the job before you can be paid.
    He lamented the delay by underwriters to pay their fees as at when due noting that this remains a challenge for them presently.