The Nation Newspaper

Category: Insurance

  • ‘90 % of motor insurance certificates fake’

    •NCRIB vows to protect members on code of corporate governance

    ABOUT 90 per cent of motor insurance certificates in the country are fake, the Division Police Officer, Sabo Police Station, SP Mary Ubangha, has said.

    She made this known during last month’s Nigerian Council of Registered Insurance Brokers (NCRIB), Brokers Evening sponsored by Old Mutual Nigeria in Lagos.

    Speaking on theme: “Police concern on insurance fraud”, she described the situation as bad, saying that the situation shows the rot in the industry.

    She urged insurers to be more visible, noting that most vehicle users were faced with no choice than to purchase the fake insurance policies issued by licensing offices.

    She said: “Vehicle owners ply the Nigerian roads with fake policies and that is why when accident occur they find it difficult to settle. The only time when these fake policies are discovered is when accident occurs.

    “The Nigerian Police are burdened about the rot going on in the industry. It is time insurers and brokers begin to think out of the box and devise means to sanitise the industry so that people can have confidence in insurance and the industry. This will reduce the huge insurance loss to fake insurance businesses in the country.

    NCRIB President, President Ayodapo Shoderu assured members that the group would defend and protect the interests of its members to ensure that they are not emasculated by the proposed Code of Corporate Governance which draft issued by the National Insurance Commission (NAICOM).

    He noted that the code has been generating some ripples, adding that the proposed 10-year tenure for managing directors in the code is inimical to broking.

    He said the NCRIB was quite proactive on the matter and would ensure that the interest of its members were not emasculated by the code, stressing that as part of  steps, the council has sent a representation at the Public Hearing held by the Financial Reporting Council of Nigeria (FRCN) in Lagos.

    He called on the government to partner the industry to enforce all the compulsory insurances and inculcate the culture of insurance in every citizen as a tool to managing risks.

  • SA Insurance employs eight management staff

    The management of Standard Alliance (SA) InsurancE Plc has engaged some experts to drive key areas of its underwriting, Group Managing Director, Bode Akinboye has said.

    In a statement, Akinboye said the move was part of the company’s  plans to take its practices to an higher level internationally.

    To achieve this, he said they had carefully engaged experts from  other companies, noting that they were sure of meeting the board’s mandate to push the company to the topmost part of the performance and quality service delivery in the sector.

    He said among those engaged by the company between January and early May were Thompson Akhigbe, from AIICO Insurance Plc to head the Internal Control Division; Olukolajo Ezekiel from Old Mutual Nigeria to head the Technical Division and Jegede Biodun, Divisional Head, Brokers/Multi-Clients Marketing, who joined the company from Associated Insurance Brokers.

    The company also amployed, Mrs. Bosede Akintomide and Blessing Ana from FBN Insurance to head its brokers’ unit and financial institutions; Alo Olusola who heads the Energy and Special Risk Unit from Guinea Insurance Plc and Messrs.

    Akeem Obembe and Temidayo  Akerele from Equity Assurance Plc were also employed.

  • IEI-Anchor PFA removes chairman

    IEI-Anchor PFA removes chairman

    The Board of Directors of IEI-Anchor Pension Managers Limited has removed its chairman, Senator Jonathan Zwingina, following a vote of no confidence passed on him by the directors.

    Zwingina, who has been the chairman since the firm’s incorporation in November 2004, was removed due to allegations of interference with the  management of the company.

    The PFA is believed to have had five managing directors in its 10 years of existence under the Chairmanship of Senator Zwingina, a development, analysts say, does not augur well  for the organisation.

    Stakeholders are hopeful that with this development, the management and the Board would  focus on building value for the stakeholders and remain competitive in the industry.

    A source in PenCom, while confirming the development, said: “We were notified of the action by the management of the organisation. It is within the confines of the organisation to do what it feels right for its smooth operation.”

    On measures put in place to ensure that the problrm does not happen again, the source said: “This is why we have the fit and proper requirement for appointments into any organisation and we shall continue to enforce and monitor it.”

    A former Managing Director of the PFA, who spoke on the condition of anonymity, described the removal of Senator Zwingina as long overdue, adding that his tenure did not reflect  much on the fortune of the company.

    He blamed the senator for the setbacks the PFA has suffered   on his overbearing influence on the management.

  • AIICO records N3.2b profit

    AIICO Insurance Plc has recorded a profit before tax of N3.2 billion for year ended December 31, 2014 as against N1.2 billion loss recorded in the corresponding period of 2013, representing a 156 per cent increase.

    The company’s profit after tax also grew by 202 per cent from a loss position of N739 million in 2013 to N2.2 billion in the period under review.

    Gross premium written for the period grew to N33.6 billion representing 42 per cent growth compared to N23.6 billion, while underwriting profit increased by 91 per cent from N2.7 billion to N5.2 billion.

    The company’s total assets for the Group also grew by 38 per cent from N42 billion in 2013 to N58 billion in 2014.

    The Chairman of AIICO Insurance Plc, Chief Dr. Oladele Fajemirokun, at the 45th Annual General Meeting (AGM) of the company, promised that the company would sustain the momentum for profits and market leadership, by becoming a truly world class financial services group and economic powerhouse.

    The Managing Director, Edwin Igbiti, said the company’s financial performance was evidence of its people, a customer-centric culture and high corporate governance standards.

    Earlier, AIICO Board announced the appointment of Mr. Babatunde Fajemirokun as an Executive Director. He was until the the Chief Operating Officer (COO) of the company.

     

  • CIIN confab to hold July 26

    Operators have planned  a Annual Mega Conference to hold from July 26 to July 28, this year at the Transcorp Hilton, Abuja.

    The theme is: Developing insurance business for national growth.

    President, Chartered Insurance Institute of Nigeria (CIIN) and Chairman, Insurance Industry Consultative Council (IICC), Bola Temowo, made this known at a briefing in Lagos.

    He said the conference was the first  for stakeholders in the  industry to speak with one voice.

    He added that it was also informed by the need to upscale the capacity of the industry for effective performance and improved contribution to the growth of the country’s Gross Domestic Product, which is receiving  attention of the industry.

    The keynote address at the conference will be delivered by the Commissioner for Insurance, Mr. Fola Daniel while the theme paper will be presented by Mr. Frank O’Neill, Managing Director, Swiss Re, ME & A.

    Other guest speakers are Managing Director, LASACO Assurance Plc, Ven Olusola Ladipo-Ajayi; Managing Director, Financial Derivatives Ltd, Bismarck Rewane.

  • STI promotes 22

    SOvereign Trust Insurance (STI) Plc has elevated 22 staff members, its Acting Head of Human Resources, Adeola Onichabor, has said.

    In a statement in Lagos, she said the beneficiaries cut across the organisation.

    Those promoted were the Eastern Area Manager, Angela Onochie, who is now an Assistant General Manager. Ebinyu Faloughi, a  Deputy Manager, is Manager.

    Two members of staff were promoted Deputy Manager. On the whole, 10 staff were moved as Officer 1 and officer 2; another two moved to officer 3.

    The company’s chauffeurs also benefited from the promotion, she added.

  • NAICOM okays Staco 2014 accounts

    Staco Insurance has joined the few insurance companies that have received the nod for their 2014 International Financial Reporting Standards (IFRS)-based accounts by the regulatory body, the National Insurance Commission (NAICOM).

    Managing Director of the company, Sakiru Oyefeso broke the news to the board and management of the company.

    He said the NAICOM approved our 2014 full year financial accounts, adding: ‘’We are happy about it that we are able to beat the June 30 deadline given to insurance companies to submit their audited full year accounts as stipulated in the Insurance Act 2003.’’

    He said the company recorded a gross premium income of N5.96 billion last year, as against N5.91 billion achieved the previous year.

    He said all genuine claims were paid to its affected policyholders during the outgone year, noting that the company’s priority is prompt settlement of genuine insurance claims.

  • ARIAN partners FRSC on awareness

    The Association of Registered Insurance Agents (ARIAN) is  partnering the Federal Road Safety Commission (FRSC) to create  awreness on motor insurance policy.

    ARIAN President, Gbadebo Olamerun, during a visit to the Zonal Commander Officer, Zone RS2, FRSC, Nseobong Akpabio, said the deal with the FRSC was to enhance its sensitisation on motor insurance.

    He noted that ARIAN was sensitising Nigerians on the importance of third party motor insurance.

    He explained the least motor insurance is the third party, which requires N5000 as premium.

    He noted that motorists could get claims of about N1 million when an accident occurs.

    He stressed that despite that motor insurance is mandatory, only few motorists have genuine insurance certificates.

    This, according to him, has hindered the insurance growth.

    The Zonal Commander said road users would be more careful while driving when they have genuine motor insurance.

    He said in some countries, road users were more careful while driving because their insurance company do not increase their premium due to bad driving.

    “FRSC believes that insurance will improve safety on Nigerian roads and that is why we are willing to partner with insurance operators to sensitise the road users.

    “With insurance, more awareness will be created for better road use in the country.

    “At present, we have a list of registered insurance companies on our website and we urge Nigerians to visit it so that they are guided on genuine insurance companies,” he added.

  • SA Insurance pays N566.65m claims

    Standard Alliance Insurance Plc paid N566.65 million claims in the first quarter of the year, the Group Managing Director, Bode Akinboye, said.

    A breakdown of the payment shows that the firm paid N278.64milion while its life subsidiary, Standard Alliance Life Assurance Ltd, paid N288.01 million.

    The claims were paid on fire, marine, motor, oil and gas, general accident and engineering classes of general insurance as well as the group and individual life policies.

    He further said a total consolidated  N719.56million was paid as claims to affected general and life policyholders during the period in 2014.

    He said:  ‘’We recognise that the survival or acceptance, progress and reputation of any underwriting company are a function of its consistent ability to respond to claims issues promptly and that is why we give any claims reported all the prompt attention to the satisfaction of our affected policyholders.

    “The company’s ability to settle claims to the tune of N566.65million at a time the insurance business patronages were not impressive owing to the nation’s focus on the general electioneering activities “clearly demonstrates the organisation’s financial strength to manage any size of risk brought to it by the insuring public at any time.

    Some of the major beneficiaries of the claims settlement, according to him, included Karina International Limited, Compact Manifold & Energy Services, Eagle Haulage Nig. Ltd, St. Paul’s Church, Hydrochina Huadong Engineering and DSC International.

    According to Akinboye, these were part of outstanding claims prior to the assumption of duties by the new management last January, noting: “These claims response underscores the passionate commitment of the company’s new management team to aggressively pay down all claims that were hitherto unattended to.”

    He however said the company has employed Olukolajo Ezekiel to handle its underwriting and claims.

  • Insurers grow business to N319b

    Insurers grow business to N319b

    Estimated value of business underwritten by the insurance industry increased to N319 billion as against N285 billion posted in 2013, representing a 12 per cent increase.

    This is just as insurance companies settled claims amounting to N326.25 billion between 2011 and last year.

    A breakdown of the claims shows that N70.71 billion was paid in 2011; N72.20 billion in 2012; N92.95 billion in 2013 and N90.39 in 2014.

    The Nigerian Insurers Association (NIA) stated this in its 2014, 2015 annual report and accounts presented at the Annual General Meeting (AGM) in Lagos.

    NIA Chairman, Godwin Wiggle, noted that the industry was plagued by some challenges.

    He said: “As we know, the insurance sector cannot be insulated from the vagaries and vicissitudes of the  economy.’’ He listed the challenges in the industry to include poor power supply, weak infrastructure and the insurgency in the North.

    “Northeast contributed to slow down the pace of growth of the industry. The introduction of innovative products, strategic business, models and improved service delivery, however, helped to up the ante for the industry.

    ‘’The enforcement of ‘No Premium No Cover,’ implementation of International Financial Reporting Standard (IFRS), strict adherence to anti-money laundering guidelines, better corporate governance structures and tighter supervisory oversight and the shift to development oriented regulation by the National Insurance Commission contributed significantly to the improvement in quantum of premium that we are reporting today,’’ he added.

    Wiggle lauded the National Insurance Commission (NAICOM) for its development-oriented regulations, saying it contributed significantly to the improvement in the quantum of premium recorded.

    On the achievements of the association, he said the association engaged in various activities aimed at enhancing the growth of the insurance industry in Nigeria during the year under review.

    “In the year under review, the association continued to make giant strides in the implementation of the Nigerian Insurance Industry Database (NIID).  Concerted efforts were made to extend the areas covered by the device to locations, such as Abuja, Nasarawa and Lagos.

    “More verification devices were distributed to member companies to enhance their marketing activities. As a fa1l-out of the public acceptance-of the device, the number of uploads has increased significantly from 778,928 in 2013 to 1,099,837 in 2014. As at April 2015, a total of 3.21 million vehicles have been uploaded by the 41 member companies underwriting motor insurance business,” he added.

    He enjoined member-companies to continue to take the issue of upload seriously to avoid embarrassment to the insured.