The Nation Newspaper

Category: Insurance

  • Obamacare enrolment hits 7.1m, says U.S

    Obamacare enrolment hits 7.1m, says U.S

    About 6.5 million people signed up for health insurance using the federally run healthcare.gov system by December 26, the United States government said.

    Including 633,000 people, who signed up for Obamacare plans by December 15 using enrolment systems run by 13 states, the total now in coverage under the Patient Protection and Affordable Care Act is at least 7.1 million.

    The state figures, reported separately today by the Health and Human Services Department, don’t include people automatically renewed in their last year’s coverage in California, New York and six other states.

    Federal officials aim to have at least 9.1 million people paying for coverage sold under the law in 2015, up from 6.7 million in October. The 7.1 million signed up so far haven’t necessarily paid their first premium to their insurer, the final step in enrolment, and the figure doesn’t “fully capture the total number of plan selections for coverage beginning January 1,” the government said.

    “With the latest enrollment figures, they are clearly within striking distance of their target,” Larry Levitt, a senior vice president at the Menlo Park, California-based Kaiser Family Foundation, said in an e-mail.

    Coverage under the Affordable Care Act this year has eroded since May, when eight million people had signed up. Some customers found alternative sources of insurance or became disenchanted with the programme.

    ‘Enormous Surge’

    The Congressional Budget Office has estimated that 13 million people should be paying for plans sold under the law in 2015, a figure that would require “an enormous surge” of enrolment in the next six weeks, Levitt said.

    The Obama administration has said the CBO’s estimate is too high, and that the law’s coverage expansions will take more time than the budget agency expects to mature.

    Enrolment has been smoother for 2015 than last year, when the government had only 2.2 million people signed up after three months as it struggled to salvage the healthcare.gov system, which was crippled by software flaws.

    “The Centers for Medicare and Medicaid Services, which oversees the enrolment website, awarded Dublin, Ireland-based Accenture Plc (ACN) a five-year contract extension yesterday, worth about $564 million, to continue running healthcare.gov, according to federal records.

     

    • Culled from Bloomberg

  • Golden First settles U.S. mortgage fraud claims for $36m

    Bloomberg has reported that Golden First Mortgage Corp. agreed to a $36 million settlement of U.S. claims that the company which allegedly saw 60 per cent of government underwritten loans go into default since 2002 defrauded a federal mortgage program.

    Prosecutors claimed Golden First, which underwrote about $707 million worth of loans beginning that year, falsely certified that it conformed to government lending standards, according to a complaint filed last year in Manhattan federal court. Owner David Movtady agreed to pay $300,000.

    “This settlement holds Golden First and its owner, David Movtady, accountable for lying to the government about compliance with HUD requirements and approving bad loans,” Manhattan U.S. Attorney Preet Bharara said, referring to the U.S. Department of Housing and Urban Development.

    In the settlement, approved by U.S. District Judge Jesse Furman, Golden First and Movtady said they submitted loans that were ineligible for Federal Housing Administration mortgage insurance, and failed to comply with U.S. regulations, including the requirement of an adequate quality control program.

    Under the FHA program overseen by HUD, the government pays claims to lenders when homeowners fail to make payments on their mortgages. The FHA paid more than $12 million in claims for loans underwritten by the Great Neck, New York-based lender, according to the government’s complaint.

    The U. S. claimed Golden First accepted fabricated pay stubs and other false documents from loan applicants. More than 60 percent of all loans it underwrote since 2002 went into default, according to the complaint.

  • Steve Webb threatens new law to end ‘shocking’ pension’s rip-off

    Steve Webb threatens new law to end ‘shocking’ pension’s rip-off

    Steve Webb, the Pensions Minister, says he is ready to change the law to force pension firms to end rip-off fees if they fail to scrap “jaw dropping” charges of up to three per cent per year

    He told The Telegragh that Pensions companies have been told they must draw up urgent plans to end “jaw dropping” charges to more than a million customers, after a major report found £26 billion worth of savings is at risk from rip-off fees.

    Webb, the Pensions Minister, said he was ready to change the law to stamp out high charges if companies responsible fail to take action as he was not prepared to wait for them to give customers a better deal.

    He will be calling representatives from the major pension companies to urgent talks in the New Year in an attempt to reach a voluntary solution.

    But firms that refuse to end the charges will be named and shamed and will face new laws to protect customers’ retirement savings from the “shocking” fees, he warned.

    A year-long inquiry into the pensions plans offered to staff by companies found savers were exposed to 38 different fees that depleted their funds.

    Researchers found almost a quarter of all the money held in workplace pensions run by insurance companies – or £26 billion across 1.5 million separate pots – was at risk.

    In some cases savers were paying more than three per cent a year in annual fees. Calculations showed these people stood to lose as much as two-thirds of their money to fees over the course of their lives.

    Webb welcomed the report, from the Independent Project Board of regulators, consumer watchdogs and industry representatives, for exposing the scale of the problem.

    But he rejected the review’s proposed two-year timetable for action as “much too slow”.

    Instead, he announced that he would call the major pension companies to urgent talks early in the year.

  • NAICOM: Jonathan reappoints Onekhena

    NAICOM: Jonathan reappoints Onekhena

    President Goodluck  Jonanthan has approved the reappointment of George Onekhena as Deputy Commissioner for Insurance, Finance and Administration of the National Insurance Commission (NAICOM) for a second term.

    A statement endorsed by NAICOM Head, Corporate Affairs, Rasaaq ‘Salami,  reads: “Onekhena’s reappointment was conveyed in a letter referenced SGF. 47/S.9/11/636, dated December 11, 2014 and signed by the Secretary to the Government of the Federation Anyim Pius Anyim.”

    Onekhena was appointed in November 2009.

    A Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), Onekhena’s contributions to the Commission and industry are invaluable, the statement added.

  • Nigeria has 2748 professional insurers, says CIIN

    Nigeria has 2748 professional insurers, says CIIN

    • To withdraw errant members’ certificates 

    With the addition of three members’ conferred with fellowship title by the Chartered Insurance Institute of Nigeria (CIIN) and 122 associates graduands, the number of registered professional insurers in the country now stands at 209 fellows and 2,748 associates, its President, Mr Bola Temowo has said.

    Besides, Temowo said the institute has taken into cognizance, the new mandate by the Federal Government requiring the insurance sub-sector to create 150,000 new jobs in the next three years and 300,000 in the next one decade.

    Temowo who spoke at the institute’s Graduation and Fellowship Awards Ceremony in Lagos said the establishment of the College of Insurance and Financial Management planned to take off fully in the first quarter of next year is a significant development in the direction of getting more people into the insurance industry.

    He said with academic programmes on the verge of take-off, the college is poised to provide ample opportunities for persons desirous of joining the industry.

    Temowo however threatened to withdraw the certificates of members who breach the examination process and engage in other unethical practices.

    He said: “Let me state unequivocally that the Institute reserves the right to withdraw its certificate from any holder, if it discovers any breach of the examination process.

    “A further reason for such withdrawal of certificates could emanate from acts unexpected of a holder of the Institute’s professional qualification. This policy remains in force.”

  • Capital Express’ gross premium hits N3.4b

    Capital Express’ gross premium hits N3.4b

    Capital Express Assurance Limited has achieved a gross written premium of N3.42 billion for the year ended 31 December 2013 against N2.8 billion recorded in 2012, a growth rate of 22 per cent in generated premium.

    The company’s net premium income on the other hand, dipped by 11 per cent from N2.79 billion in 2012 to N2.49b in 2013.

    However, underwriting profit recorded a 114 per cent growth from N344 million in 2012 to N735 million last year.

    In spite of the harsh operating space, loss for the year was significantly brought down from N517 million in 2012 to N109 million last year.

    Its Chairman, Otunba Babatunde Adenuga who spoke during  the 13th Annual General Meeting (AGM) of the firm in Lagos, said the growth prospects of the firm in the coming year remain modest due to the high uncertainties surrounding commodity prices, rising cost- push factors, increased volatilities in the foreign exchange market, and tight monetary policy stance.

    He also said this notwithstanding, assessments within the Central Bank of Nigeria (CBN) suggests that the  economy is projected to remain strong, driven largely by increased growth in agriculture, trade and services, while activities in the oil sector are projected to recover this year.

    He added that the company will position itself to take advantage of any business opportunity available in the economy to ensure an improved performance in the years ahead.

    On the insurance industry, the chairnan said it has been characterised by certain weaknesses over the years. He said if the weaknesses are addressed, it will position the sector to realise most of its potentials as well as attract sufficient businesses both locally and internationally.

    He said: “The industry has started to witness a lot of emerging opportunities on the back of current government legislation which has supported the prospects of growth in the industry. This legislation has triggered strategic mergers and acquisitions, interests from foreign investors as well as increases in competition and standard among players in the industry.”

     

     

     

  • LASACO strenghtens marketing drive

    LASACO strenghtens marketing drive

    Lasaco Assurance Plc is strengthening its marketing drive by re-invigorating the various branches to deliver on cutting edge insurance services, Group Managing Director, LASACO Assurance Plc, Mr. Olusola Ladipo-Ajayi has said.

    In a statement, he stated that the drive is part of the company’s strategic growth plan for better market penetration.

    He said: “The company which operates through branch structure organised on regional basis believes that its growth permutations and postulations are dependent on result oriented aggressive marketing.

    “It operates and drive its marketing effort through Southwest, Southsouth, FCT Northern regions and a public sector directorate. It  has perfected plans to ensure that each regional office adopts situational approach that would deepen the brand’s penetration in their areas of jurisdiction.”

  • Standard Alliance grosses N3.7b in 2013

    Standard Alliance grosses N3.7b in 2013

    • Pays N1.07b claims

    Standard Alliance Insurance Plc has recorded a gross  premium of N3.78billion just as it has paid out N1.07billion in claims to its policyholders, its Chairman,  Alhaji Aliyu Sa’ad has said.

    He spoke during the company’s Annual General Meeting (AGM) for the financial year ended December 31, 2013.

    According to him, much of this drop related to the expected impact of the ‘No Premium, No Cover’ policy as well as the slow growth of the economy.

    He said the underwriting profit was N3.13 billion as against N4.99 billion in 2012, a decrease of 37 per cent. The company recorded a loss of N240 million as against N 1.05 billion in 2012.

    He said: “The improvement in performance in comparison to the loss made in 2012 was a result of cost optimisation and prudent management of ‘No Premium, No Cover’ policy in the year under review.

    “We are, however, encouraged that the company continued to make operating profit from its core business. We are, therefore, determined to turn the cycle and return the company to profitability in 2014 and beyond.”

    He noted that available investment opportunities for the insurance industry in the country’s operators include the local content initiative of the Federal Government in oil and gas sector, investment in physical infrastructure and the convergence of the pension industry and the health management organisations (HMOs).

    He said: “Government’s target of 70 per cent local content provides significant opportunities for insurance companies whose capacity had hitherto been a hindrance to meeting earlier targets. The obvious infrastructure needs of the country also provides companies with alternative investment avenue and business opportunities.

    “Year 2013 marked a major shift in the history of the industry with the full implementation and enforcement of ‘No Premium, No Cover’ rule as provided for in the lnsurance Act, 2003. This was initially intended to take effect in October 2012 but was later shifted to January 1, 2013.”

    He explained that this meant that only cash production was recorded in the books of the company, thereby reducing the burden of receivables faced by many insurance companies.

  • Mutual Benefit boosts housing with Mutual Alpha Courts

    Mutual Benefit boosts housing with Mutual Alpha Courts

    To complement government initiative on the provision of affordable housing for Nigerians, Mutual Benefit Group is offering 18 blocks of 54 units and two blocks of two units of a residential estate, Mutual Alpha Courts located within the Costain area of Mainland Local Government Area of Lagos State on a mortgage plan.

    Its Group Managing Director,  Dr. Akin Ogunbiyi who spoke during the inauguration of the scheme in Lagos said the housing needs of Nigerians have been put at 17 million and recent efforts by government at all levels and the private sector fall very short of what is required.

    He said the firm’s foray into housing development was to complement governments’ initiatives at providing affordable homes to Nigerians.

    He commended Lagos State Governor, Babatunde Fashola’s effort for providing 300 houses to date.

    He said the governor had also noted the fact that prohibitive costs would not allow the government to provide the expected cheap houses.

    He said: “President Goodluck Jonathan’s effort has also been  commendable. Few weeks ago, the Federal Government launched the first 60,000 mortgages to signpost the commencement of the Presidential Initiative for the delivery of the houses under the Nigerian Mortgage Refinancing Company (NMRC).

    “According to the Coordinating Minister of the Economy and Finance Minister, Dr. Ngozi Okonjo-Iweala, the initiative was designed to address limitation by banks to deliver mortgage services. At the last National Insurance Summit organised by the CME, the insurance industry was charged with the responsibility of supporting government’s initiative on the provision of affordable housing for Nigerians.”

    Ogunbiyi said the provision of houses by Mutual Group through mortgage services is a clear response to the CME charge to the industry.

    He said three years ago, Mutual Benefit commenced the construction work on Mutual Alpha Courts, located within the Costain Lagos State.

    He said: “The estate is made up of four bedroom apartments on the two floors with an additional two-bedroom apartment on the ground floor as service quarters or income generator if leased to a tenant and has easy access to main arterial axis roads to the Island and the state capital, Ikeja, via Funsho Williams Avenue/Eko Bridge and Third Mainland Bridge.

    “It is worthy of note that while prelimimary activities were in progress, Lagos State witnessed the most devastating flood to date in its history in the month of August 2011. Our company quickly went back to the drawing board, drainages were raised by as much as 600mm in some parts, and all foundations were raised to ensure that if such rainfall, with its attendant flooding ever occurred again, the estate will be safe and today, the estate is sitting pretty on what used to be a very deep swamp.

    “What differentiates the Mutual Benefits brand is that we use insurance to bring enduring value to the relationship with our customers. “Our needs-based selling model makes it compelling for us to provide beneficially unique risk management solutions.” he said.

  • NAICOM re-introduces advertorial processing fee

    NAICOM re-introduces advertorial processing fee

    The National Insurance Commission (NAICOM) has re-introduced advertorial processing fee to ensure that operators are actually creating the much needed awareness about the insurance industry. This is coming on the heels of the discovery made by the commission that insurance operators always pretend to be embarking on awareness campaigns and record in their annual report to be spending huge sums of money on awareness campaigns and advertorials.

    Commissioner for Insurance, Mr. Fola Daniel said the level of insurance awareness is still very low in Nigeria. To this end, he said, the commission has re-introduced advertorial processing fee, hoping that if the operators have spent money to secure approval for their advertorials, they would be forced to put such advertorials in the public space. He blamed some operators for abusing the magnanimity of the commission which had made the processing and approval of advertorials free until recently, and therefore, never took the issue of awareness creation seriously.

    “NAICOM therefore decided to re-introduce the advertorial processing fee after having found out that some operators were in the habit of flooding the commission with awareness campaign materials which were never made public after they were approved.While pretending to be engaging in awareness campaign, some operators usually design campaign materials, present them to NAICOM for approval, only to keep them in their offices after the approvals have been secured,” he said.

    The insurance boss said although the insurance business began in Nigeria about 95 years ago, the insurance gap in the country is about 96 per cent, which implies that only four per cent of Nigerians have one form of insurance cover or the other.