The Nation Newspaper

Category: Insurance

  • LASACO introduces quickteller

    LASACO introduces quickteller

    LASACO Assurance Plc has  boosted the cashless policy of the government with the introduction of online payment through Quickteller for its product and services, Managing Director of Lasaco Assurance Plc, Mr. Olusola Ladipo-Ajayi has said.

    Ladipo-Ajayi, who made this known in Lagos, explained that the new payment regime is simplified as it entails customers logging on to website follow through a simple process to effect payment.

    The new method is one of the strategies being put in place to ensure customers’ convenience thereby deepening the bond between the brand and its customers.

    He said in line with the company’s desire to build on the achievement recorded last year, would focus more on its customers.

  • Group hires CEO for UK insurance firm

    Willis Group Holdings Plc (WSH) has hired Nicolas Aubert from American International Group Inc. (AIG) and designated him as the next chief executive officer of the UK Insurance business.

    Aubert, who was AIG’s chief operating officer for Europe, Middle East and Africa, will report to Willis Deputy CEO, Steve Hearn and take over insurance unit after it receives regulatory approval.

    “Nicolas’s wealth of specialty and retail experience in the UK and abroad, combined with his strong technical knowledge of the market and the evolving needs of complex clients, make him the ideal candidate to drive forward the continued growth,” Willis CEO Dominic Casserley said in the statement.

  • 86.6m Nigerians have no insurance, says CIIN chief

    NO fewer than 86.6 million Nigerians have no insurance cover, while 1.3 million adults, representing 1.5 per cent of adults maintain one category of insurance cover or the other, the President, Chartered Insurance Institute of Nigeria (CIIN), Mr Bola Temowo, has said.

    He made this known at the institute’s yearly education seminar in Benin City.

    Speaking on the theme: Maximising channels of distribution for insurance penetration, he said there was  the need for improvement of the industry’s marketing machinery and action plan for actualising the Financial Inclusion Strategy (FIS) in service delivery.

    According to him, it is envisaged that the record of Nigeria’s insuring population would receive a boost and improve the industry’s profile in global ranking.

    He stressed that the government envisioned an industry that could turn its fortunes around to rank among the 20 largest markets in the world by 2020 from 60th in the world.

    He said: “The seminar theme, therefore, calls for the improvement of the industry’s marketing machinery and the need for an Industry action plan for actualising the Financial Inclusion Strategy (FIS) in the delivery of Insurance products and services to the critical mass, comprising the low income earners. It focuses on the maximisation of existing and emerging channels of distribution as key to achieving deeper Insurance penetration.

    “The significance of insurance in the life of Nigeria cannot be over emphasised. These trying times are fraught with several risk factors for both individuals and corporate bodies. As risk managers, it behooves us to increase the tempo of our campaigns for insurance awareness in order to get more Nigerians to embrace insurance with minimal compulsion.

    “The CIIN has continued to explore all platforms for the propagation of insurance education and promotion of general financial literacy. Our training and retraining programmes are being intensified, while creating new channels for capturing the younger generation and ensuring that they embrace insurance consciously as a course of study”.

    He stated that the campaign for insurance awareness has become the collective concern of the entire industry adding that the Insurance Industry Consultative Council (IICC), the body comprising all arms of the industry, has also taken positive steps towards sensitising Government agencies on the pivotal role of insurance in the country.

    The Council of our institute has also adopted measures geared at involving all stakeholders in the campaign. We have recently been appealing to insurance institutions to adopt a secondary or tertiary institution close to them and support such institutions with their employees as volunteer teachers who would take time off their official schedules to teach insurance courses in the Schools, he said.

    Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye urged the operators to evolve new channel contrary to the channels used to distribute insurance products.

    He told them to eliminate unnecessary overheads by collaborating with other sectors to maximise the enormous insurance benefits in the country.

  • Consolidated Hallmark holds 19th AGM, promises better days

    Consolidated Hallmark holds 19th AGM, promises better days

    Consolidated Hallmark Insurance (CHI Plc) has recorded N4.1 billion in its gross premium income in 2013 financial year, representing a N315.3 million increase or eight per cent improvement over the N3.8 billion achieved in the 2012.

    He made this   known at the 19th Annual General Meeting (AGM) of the firm in Uyo, Akwa Ibom State capital.

    The company, however, made a significant provision for impairment for outstanding premium. This, they said, is to have a clean break from the era of debtors overhang thus, paving the way for future profitability.

    The company also recorded a cash flow position during the period having improved on the N1.8 billion recorded during the preceding year with an increase to N2.2 billion in its cash and cash equivalents.

    Its Vice Chairman, Tony Aletor, said the company made a provision of N547.7 million as impairment charges for the period.

    He also told the shareholders that having cleaned the books, future results would be better.

    Its Managing Director, Eddie Efekoha, said one of the major strategies that has sustained the company’s business is the avowed commitment to prompt and adequate claims settlement.

    He disclosed that despite the challenging operating environment last year, CHI’s expenses on claims rose from N846.6 million in 2012 to N965.1, adding that at the close of business on December 31, last year, the company  ensured that all fully documented claims for the year were settled.

    He added that the finance company subsidiary, Grand Treasurers Limited (GTL) remained upbeat in their contributions to the bottom line of the Group and has grown its loan book by 125 per cent while keeping its loan loss ratio at 5 per cent.

    He also said CHI Support Services Limited, the NCC licensed vehicle tracking outfit of the company, has continued to play a complementary role to ensure that the company meets the emerging needs of auto insurance customers, who desire added benefits.

  • Allianz raises payout, confirms target amid Pimco trouble

    Allianz raises payout, confirms target amid Pimco trouble

    Allianz SE has pledged to pay a higher share of profit to shareholders and confirmed its full-year profit target as the Pimco asset management unit struggles to contain outflows following the departure of Bill Gross.

    “Starting with the financial year 2014, the intention is to propose an increased regular payout to Allianz shareholders of 50 percent of net income,” the Munich-based company said in a statement. That compares with a pay-out ratio of 40 per cent at Europe’s biggest insurer in the past.

    Investors have pulled billions of dollars from Pacific Investment Management Company’s funds since the September 26 announcement that Gross, who was chief investment officer and co-founded Pimco more than four decades ago, was joining Denver-based Janus Capital Group Inc.

    Pimco, based in Newport Beach, California, suffered 49.2 billion euros ($60.9 billion) in client redemptions in the third quarter, Allianz said. Most of the outflows occurred in the last week of September.

    The asset manager said clients pulled $27.5 billion in October from its biggest mutual fund. “Net outflow development after the resignation of Bill Gross is within our expectation,” Chief Financial Officer Dieter Wemmer said in the statement. “Our unchanged outlook for the full year 2014 and the newly established multi-year dividend policy are visible demonstration of management confidence about the future of Allianz.”

    Allianz’s net income climbed 11 per cent to 1.61 billion euros in the third quarter. That compared with an average estimate of 1.57 billion euros in a Bloomberg survey of 13 analysts. Operating profit at the asset-management unit, which includes Pimco and Allianz Global Investors, fell five per cent to 694 million euros.

    The insurer had been expected to pay 6.20 euros a share for this year, according to the Bloomberg Dividend Forecast. Allianz has promised investors to update them on payouts before year-end. It paid 5.30 euros a share as dividend for 2013, or 40 percent of profit.

    Allianz said it will “evaluate and pay out the unused budget earmarked for external growth every three years.” The first such evaluation will take place at the end of 2016. Payouts won’t be allowed to push the insurer’s Solvency II ratio, a measure of financial stability, below 160 per cent, Allianz said.

    Allianz shares have declined 2.8 percent this year, valuing the company at about 58 billion euros. The Bloomberg Europe 500 Insurance Index has risen 4.3 percent during the same period.

  • PenOp aids pension remittances with EPCCOS

    PenOp aids pension remittances with EPCCOS

    A pension industry platform named Electronic Pension Contribution Collection System (EPCCOS) that will drive seamless pension remittances of employees’ contribution by employers under the contributory Pension Scheme (CPS), has been developed by the Pension Fund Operators Association of Nigeria (PenOp).

    The EPCCOS platform is free for employers and will enable them comply with the scheme without difficulty. The platform is being tested with over 500 employers and will be formally launched for use by the public in January next year.

    The Managing Director, UBA Pension Fund Custodian and Chairman subcommittee on EPCCOS, Bayo Yusuf, made this known in Lagos at this year’s PENOP media partners retreat in Lagos. He said the pension operators are currently doing a pilot run on the platform with about 500 employers.

    He said the platform developer and host is the Nigerian Inter Bank Settlement System Plc (NIBSS), a company owned by the Central Bank of Nigeria (CBN).

    He said: “What we are doing with the employers now is for us to see whatever challenge an employer can encounter in the course of using the service. It is an industry application supported by the National Pension Commission (PenCom). The Commission has a regulatory oversight to ensure standards are maintained and necessary things are being done. The next phase is for them to give us a national database so that the validation will be done immediately.”

    Yusuf said the objective of the platform is to ensure seamless remittances, minimise reconciliation issues, timely crediting of employees’ Retirement Savings Account (RSA), and the elimination of employers’ burden of multiple schedule generation.

    NIBSS Head Business Process Outsourcing Department, Samuel Oluyemi, said: “Just like we had the problem of unremitted dividends in the capital market, the problem that EPCCOS came to solve is that of unremitted pensions.”

  • Royal Exchange partners NGO on youth education, leadership

    Royal Exchange partners NGO on youth education, leadership

    The Royal Exchange Group said it is determined to instill leadership qualities in Nigerian youth.

    Its Managing Director, Mr. Chike Mokwunye, said it will go into partnership with a non-governmental organisation called Foundation for Youth Education, to accomplish the objective by conducting leadership training and conference for secondary school prefects in Lagos State.

    He said his company’s decision to partner with the NGO, is motivated by an abiding sense of duty and patriotism to contribute to nurturing the Nigerian youth to be productive and responsible citizens.

    A conference was held on November 5, at the College Hall, Igbobi College, Yaba, Lagos, and it brought together over 800 secondary school prefects from 40 schools across Lagos State.

    He said the students attending the conference are already in positions of authority in their respective schools, and they want a situation where they will 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, and positively influence others around them,” Mokwunye added.

    He continued: “The Royal Exchange brand is well known for its empathy and high sense of patriotism. This partnership reflects our belief in the potential of the Nigerian spirit and the ability of the Nigerian youth to soar and excel in their chosen fields when given the opportunity.”

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

    Ajogwu said the aim of the conference, which is in its fourth edition, is to enable students start early by developing the necessary leadership skills, adding that it will also assist the pupils, counselling and giving them direction as they begin to make their career decisions.

    Royal Exchange, which had previously sponsored the Nigerian Idol, has been sponsoring the School Leadership Conference for the past three years. It started operations in 1921 and continues to be driven by innovation and determination to offer services that are of exceptional value to its customers.

  • Swiss Re profit rises by 14 % on lower catastrophe losses

    Swiss Re profit rises by 14 % on lower catastrophe losses

    Swiss Re, the world’s second-biggest reinsurer, said its third-quarter profit has risen by 14 per  cent after lower-than-expected losses from natural catastrophes.

    Net income rose to $1.23 billion from $1.07 billion in the year-earlier period, the Zurich-based reinsurer said in a statement. That beat the $928.6 million average estimate of 13 analysts surveyed by Bloomberg.

    Swiss Re is cutting back on catastrophe coverage and moving into new lines of business to bolster earnings growth as low interest rates and fewer natural disasters undercut prices. Munich Re, the world’s largest reinsurer, said third-quarter profit rose by 16 percent, while German rival Hannover Re reported a 21 percent increase for the period.

    Chief Financial Officer David Cole said in the statement: “I’m pleased to report that all business units have again delivered solid performance during the third quarter, contributing to an overall strong group result.

    “This performance was supported by a lower-than-expected loss burden from natural catastrophes as well as a continued improvement in the life and health operating margin.”

    Swiss Re has fallen about five percent this year, valuing the company at 29 billion Swiss francs ($29.8 billion). That compares with a 4.3 percent increase in the 32-company Bloomberg Europe 500 Insurance Index.

    Swiss Re wants to invest $3 billion of its excess capital at an 11 per cent  return on equity by next year. It does not disclose how much of the capital it holds.

    Reinsurers such as Swiss Re that help primary insurers cover the costs of damage claims from disasters like floods and hurricanes are under pressure from declining prices for their coverage and years-long slump in borrowing costs across developed countries.

  • NIA pledges enforcement of insurers’ market agreement

    NIA pledges enforcement of insurers’ market agreement

    The Nigerian Insurers Association (NIA)  would soon enforce market discipline by encouraging peer review among member companies with a view to aligning the market practice with international best practices.

    This was disclosed by the newly inaugurated Chairman of the association, Godwin Wiggle at the ceremony marking his investiture as the 21st Chairman of the NIA, where he highlighted his vision for the association.

    The association, he said, has commenced the implementation of a market agreement as a way of checking ethical breaches, promoting discipline and improving service standard in the market.

    NIA market agreement, which stipulates infractions and penalties for inadequate pricing of risks, was signed by all the chief executive officers of NIA member companies in 2009, but it there are signs that members may have dumped the agreement because most of them don’t abide by it. No company has been sanctioned for failing to abide by the agreement even when companies break it.

    Wiggle said Nigeria has the comparative advantage in the production of oil and gas, therefore, the association will fast-track the process of re-establishing the oil & gas insurance pool to allow the industry reap the full benefit of the Nigerian Content Act.

    He also said the association will sustain the current effort at addressing those laws that are militating against the growth of the market, noting that the Companies Income Tax Amendment Act (CITA) 2007, amongst others, readily comes to mind.

    Wiggle further stated that the association is appreciative of the efforts of the National Insurance Commission (NAICOM) in promoting micro-insurance to deepen insurance penetration in Nigeria.

    He said: “My administration will take up the challenge of micro-insurance by encouraging member companies to institute corporate structures that will ensure the success of the initiative.

    “We will also reach out to other regulators in the financial services sector whose oversight functions impact on our business. We will increase the support for the technical committees of the Association with a view to realising their potentials, which will be harnessed for the achievement of the overall goals of the Association while strengthening the cordial relationship that exists with other arms of the industry.”

    President, Nigerian Council of Registered Insurance Brokers (NCRIB), Ayodapo Shoderu, in his goodwill message delivered by his Deputy, Kayode Okunoren, said the emergence of Wiggle as NIA Chairman will usher in the envisaged harmonious and progressive relationship between the association and the council.

    He noted that the Nigerian insurance clients have become more demanding and sophisticated, hence the need for all operators to be more professional and cohesive in the delivery of services. “Irrespective of our professional divide, we must come to terms with the need to always collaborate in order to project a positive image and to collectively grow our industry,” he said.

  • Insurance broker launches Ebola liability cover

    United States insurance broker, Aon, has launched Ebola liability cover for hospitals and other health care institutions, Reuters has reported.

    The Ebola virus has killed nearly 5,000 people worldwide, mainly in West Africa.Fear of Ebola infections spreading to developed economies has prompted insurance companies to add exclusion clauses to their standard policies or to develop new products.

    The U.S. broker’s Ebola cover is for situations “where existing liability programmes may not apply” and provides up to $25 million of liability coverage, Aon said in a statement.

    “There are several areas where there have not been certainty about coverage for Ebola,” Gigi Norris, Managing director of Aon Risk Solutions’ Western Region Health Care Practice, said.This is something our health care clients are extremely worried about.”

    The cover will protect hospitals from cases related to their response to Ebola brought by employees, patients, or even potential patients who have been refused admission, Norris said.

    It has been designed for U.S. hospitals, but could be adapted for the international market, she said.

    The policy has been developed with British insurance company Hiscox, and will be available through other brokers after 60 days, Aon said.