The Nation Newspaper

Category: Insurance

  • Commercial insurance rates stable in third quarter, says CIAB

    Commercial insurance rates stable in third quarter, says CIAB

    Average rates for commercial property and casualty (P/C) insurance barely moved in the third quarter of 2014, the quarterly pricing survey released by the Council of Insurance Agents & Brokers (CIAB) said.

    The Council’s Commercial P/C Market Index Survey found that average rates for all accounts increased 0.1 per cent in the third quarter, compared with 0.5 per cent decrease in the second quarter of 2014. During the third quarter, small accounts experienced the largest average price increase, 1.1 per cent, while prices for large accounts fell 1.1 per cent, the survey found.

    By coverage line, the largest increases were in employment practices liability, where rates rose 3.1 per cent; commercial auto, up 2.6 per cent; and workers compensation increased 2.3 per cent.

    In other major lines, directors and officers’ liability rates increased 2.2 per cent, general liability rates inched up 0.6 per cent and commercial property rates fell 1.6 per cent.

    “We didn’t see much change in pricing or underwriters’ approach over the last quarter compared to the second quarter,” Ken A. Crerar, president and CEO of The Council said in a statement. “Capacity remained plentiful, and underwriters were still eager for new business.”

     

     

    According to the Council, the already ample capacity in the market was bolstered further by specialty carriers, including Berkshire Hathaway Specialty Insurance, which entered the market last year. In addition, the relatively calm catastrophe season helped keep coastal property rates stable, the survey noted.

  • Guinea Insurance grows profit to N300m

    Guinea Insurance grows profit to N300m

    Guinea Insurance Plc has declared a profit before tax of N300 million in 2013, as against N179.7 million recorded in 2012, reflecting an increase of 67 per cent.

    The company’s total assets, increased by six per cent amounting to N4.2 billion in 2013 as against N3.9 billion recorded in 2012.

    Insurance contract liability decreased by four per cent to N533 million in 2013 as against N555 million in 2012. Total equity increased by 16 per cent to N 2.9 billion in 2013, as against N2.5 billion in 2012.

    Claims expense increased by 15 per cent amounting to N324 million in 2013 as against the sum of N281 million in 2012.

    Chairman of the company, Sir Emeka Offor, made this known during the company’s 56th Annual General Meeting (AGM), held in Enugu State. Speaking to shareholders of the company, he noted that the ambivalent state of the global economy in 2012 was further worsened by the Euro zone sovereign debt crisis, protracted recessions; unprecedented increases in unemployment; slowdown in global economic growth coupled with instability in financial markets, all of which took a heavy toll on consumer spending and impacted negatively on prices of leading world commodities which remained relatively high and volatile.

    He said the management has however, kept to its promise to revitalise and position the company on a higher pedestal that will further propel confidence and equitable service delivery for the benefit of its stakeholders.

    He said: “In spite of the daunting challenges in the operating environment, the company remained focused and true to its ideals of becoming an insurer of first choice by persistently building capacity, exploring opportunities within the industry and strategically directing its internal processes on the path of returning it to profitability”.

    Managing Director of the company, Polycarp Didam, reiterated his commitment to restructure and reposition the company for better performance.

    “To achieve this, part of our laid down measures have been to improve our performance management method, a move that led to the recent elevation 22 of our deserving members of staff following the outcome of the company’s 2014 half year performance appraisal.

    “On the industry front, we have continued to keep faith with our pledge to constantly support initiatives aimed at pioneering and advocating for increased insurance penetration and awareness in the polity. For some years now, we have been executing various ‘street presence’ CSR initiatives, one of such tagged “Guinea Cleans,” was aimed at creating awareness and keeping its immediate environment clean, because we believe strongly that clean care, is safer care.”

    “The youth are considered the future leaders of tomorrow and as such, they must possess the right attitude and information about insurance in order to advance the progress of the country’s underwriting portfolio. We will continue in our stride to support initiatives geared towards advancing insurance penetration in Nigeria, hence, our donation of educational materials: school bags, biros, notebooks and others in support of this laudable initiative of the industry beauty queen titled ‘Teens for Insurance’’.

  • Consumer fraud delays claims payments, says Adeda

    Consumer fraud delays claims payments, says Adeda

    Fraudulent activities of consumers is resposible for  delayed claims payment by insurance operators, the Managing Director, Alpha Choice Insurance Brokers Limited, Sunny Adeda, has said.

    Adeda, who made this known at the Insurance Consumers’ Forum, organised by Almond Productions Limited, in Lagos,  said this was one of the reasons why insurance companies ensure that all necessary documents required for processing claim are provided before compensating the insured.

    He said some Nigerians are very clever to the extent that they always come up with fake claims that will look like genuine ones, all in a bid to dupe their insurers.He cited several examples whereby insurance consumers call for claims that are not genuine.

    He said: “There was a client who valued his BMW car at N4million. Two months after he insured the car with his insurer, he came for claims, saying his car was stolen. In the course of investigation whether the claim is genuine or not, we noticed the car was packed somewhere within Lagos.

    ‘’Thank God, he has a dispute with one of his friends, who sent an anonymous letter to us, notifying us where the car was packed. But the owner was so smart that, by the time we got to where he packed the car, he has relocated it to somewhere else. He kept the dribble game, and since we have no concrete evidence to discard the claims, we have to settle him for N900, 000, instead of the N4 million he was requesting, after several meeting with him.”

    He stressed that this dubious tendency was why insurance companies do request for police report, especially, in the case of car accident and  stolen vehicles, among others, before a claim is settled. He however, appealed to insurance consumers to always make genuine claims, adding that fake claims will only raise suspicion from underwriters.

    Adeda said most vehicles on Nigerian roads parade fake insurance papers, which are sold to unsuspecting public by fake underwriting firms.He said this is why some vehicle owners fight on the road when they hit themselves.

    “Whenever you see two vehicle owners engaging themselves in a fight on the road because of hitting their cars, it is very sure that none of them has genuine insurance claim otherwise they will not need to fight,” he said.

    He however, urged consumers to ensure they understand the policies sold to them by underwriters and brokers in the industry by reading through the policy document.

    Former President Chartered Insurance Institute of Nigeria (CIIN), Adeyemo Adejumo, called on consumers to always engage insurers before patronising them through regular appraisals of their company performance.He noted that insurers will do well, if they are closely checked by consumers who buy their products.

    He added that consumers have the mandate to analyse the financial accounts of insurers to determine those doing well and should be patronised.

  • Increasing, changing weather risks call for risk management adjustments

    The number of weather-related natural catastrophes  have increased losses in three-folds in the last three decades (1980-2013), a report, Munich-Re, has said.

    Likewise, the number of convective (thunderstorm) events in Europe have more than tripled over the same period. Heavy summer storms accompanied by hail have become much more frequent, partly because the water content in the atmosphere is increasing.

    The world’s costliest insured weather loss last year was a hailstorm in Germany with an insured loss of €2.8 billion (overall loss: €3.6 billion).

    In June this year, convective storm, Ela, caused economic losses totalling €2.3 billion and insured losses of €1.8 billion in Germany, Belgium and Luxembourg.

    The trend towards such weather patterns is changing the probability and intensity of hail and flash floods, and hence of potential losses.

    Another noticeable trend has been the increased persistence of weather patterns, which may cause heat waves and droughts under high-pressure conditions in summer, and river flooding during low-pressure systems.

    This was also the origin of the heavy flooding in Germany, the Czech Republic and Austria last year, with most expensive weather event with overall losses of €9.7 billion (insured loss: €2.4 billion).

    In the United Kingdom (UK), flooding at the turn of the year led to financial losses amounting to €1.1 billion and insured losses of €800 million.

    Changing weather risks entail higher risk of losses

    The increased frequency and intensity of such loss events is very difficult to predict locally.

    Moreover, changes in building features–for instance, thermal insulation and solar installations–tend to aggravate claims volatility. “For primary insurers, this means rising income uncertainty and more volatile results,” said Ludger Arnoldussen, member of Munich Re’s Board of Management.

  • Almond Production holds insurance consumers forum

    Almond Production holds insurance consumers forum

    Almond Productions Limited, producers of Almond Finance and Wealth Report on Television and Wetin Insurance Dey Do Sef on Naija FM, has concluded plans to host this year’s Insurance Consumer’s Forum (ICF)

    The Insurance Consumer’s Forum, which started last year, is a platform for interaction between Insurers and the Insured for better service delivery.

    A statement from the organiser, Faith Ughwode, said the forum with the theme: “Consumer’s Roles and Responsibilities in Enhanced Service Delivery in the insurance industry,” is scheduled to hold on  October 29, at Lagoon Restaurant, Ozumba Mbadiwe Street, Victoria Island, Lagos by 10:00am.

    This year’s event will be chaired by Mr. Sunny Adeda, a past president of the Chartered Insurance Institute of Nigeria (CIIN) while the lead paper will be delivered by Dr. Lucy Newman, Director-General, Financial Institutions Training Center (FITC).

    The no-holds-barred forum will focus on standards in the Nigeria insurance industry, mobile/e-insurance, mechanism put in place for conflict resolution, simplifying claims payment processes and procedures, among others.

  • Wiggle extols Olowude’s virtues

    Wiggle extols Olowude’s virtues

    The late immediate past chairman of the Nigerian Insurers Association (NIA) and Executive Vice Chairman of Industrial and General Insurance (IGI), Mr. Remi Olowude is a colossus, who cannot be replaced in the insurance industry, Chairman of the association, Mr. Godwin Wiggle has said.

    Speaking at the Service of Songs organised by the association for the late former chairman at the Muson Centre, Wiggle regretted that Olowude could not achieve most of the things he set for himself before answering the final call.

    He said Olowude was a thoroughbred professional, who stood miles apart from his peers and contemporaries.

  • Okonjo-Iweala urges operators on industry growth

    Okonjo-Iweala urges operators on industry growth

    The Nigerian insurance industry is growing at a pace desired by the Federal Government, the Co-ordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala has said.

    The Minister made the statement at this year’s national conference of Nigerian Council of Registered Insurance Brokers (NCRIB), themed: “Disaster Management: Any Role for Insurance and Insurance Regulation?” held in Abuja.

    She said there has been remarkable improvement in the last five years, where the industry was ranked number five in Africa. She said Nigeria is number three, trailing behind South Africa and Morocco.

    She noted that the coumtry’s economy is the largest in Africa, thus having the potential to be the largest insurance industry in the continent sooner than later and can only be achieved by remaining cohesive and focused.

    She stated that it is the government’s expectation that the industry will propel economic growth, adding that NCRIB members should continue to support the National Insurance Commission’s (NAICOM) ongoing efforts to instill market discipline and international best practices.

    Concerning the conference, Okonjo-Iweala said the theme was very apt based on growing incidences of disasters across the country and the impact of the losses on human and material assets.

    She said: “The primary role of insurance is to restore the policyholder back to business whenever the risk insured crystallises. In fact, insurance is the confidence entrepreneurs need to embark on any significant venture.

    “Natural catastrophes affect all sectors of business directly and indirectly. Disasters can cause operational and supply chain disruptions through the physical damage to property and or loss of critical resources and infrastructure, which can cripple an entire operation.

    “Yet, there is this erroneous belief by some entrepreneurs that perceive insurance as a cost. This, indeed, is an error. In reality, insurance is probably one of the biggest value additions to any business. We have experienced devastating events such as natural disasters without any prior warning. Insurance is the only effective mechanism to minimise the loss caused by these unforeseen events, which in some instances can mean saving an entity from having to close shop.”

    She stated that there had been incidences of fire disasters, collapsed buildings, flooding in the country, storms and fatal accidents without insurance cover for these losses, which have reduced the affected individuals to poverty while victims are left without compensations.

    She said the recent flood disasters in the country washed away so many homes and businesses including fish ponds. From available records, she said, the industry was on hand to restore businesses that were insured with them, particularly farmland and produce that were washed off by the flood.

    On regulation of the industry, the minister said the impression one gets is that insurance operators, intermediaries and underwriters abhor regulation. “I’ve seen commentaries in the media of recent, of complaints from operators, of excessive regulation. I’ve seen and read about sections of your profession advocating and soliciting to regulate themselves.

    “Regulation becomes imperative to protect management from the excesses of companies’ directors, the management and directors against infringing the interest of shareholders and policyholders or the exuberant insurance broker against the interest of the insurance company or vice versa.

    “Definitely, regulation is beyond the registration or management of a club membership. Clubs are voluntarily set for the protection of some interests and the promotion of some benefits and where the two mixes, conflict arises. Regulation should be the coming together of some responsible structures that cater for all and more, of the interest listed above especially, that of responsible governance and of the public image at large.”

    She also admonished operators on the need to join hands with the the government’s quest to ensure financial inclusion in all spheres of the community.

    She noted that the task will entail conducting themselves in a manner that would help deepen insurance, which arguably is the weakest in the chain of financial services.

    “We cannot add value to this noble objective with a decimated insurance industry, no matter the personal urge to satisfy private ends. I would, therefore, enjoin you all to avoid any journey in self-destruction, no matter the temporal benefit that may be perceived as attainable,” she added.

    The NCRIB President, Ayodapo Shoderu, said the council’s adherence to professionalism is undisputable,  adding that the council will spare no available opportunity to chastise charlatans in realisation of the need to promote professionalism and embed high ethical standards among insurance brokers.

    He said the council is engaging NAICOM on a very silent, but robust and result-oriented discourse over the recent deregistration of some of the council’s members by the Commission, stressing that, within a very short period the issue would be fully resolved.

    He added that through the council’s intervention, NAICOM has invited some of the deregistered brokers to update their registration and commence operation.

    While NAICOM has maintained a good stand as arbiter between insurance brokers and underwriters, it has also continued to facilitate adherence to ethics and professionalism through collaboration with the council on implementation of the NCRIB Act.

    It is on record that members have benefited from this formidable relationship through reduction in levies charged by the commission.

  • Lasaco Assurance to sustain growth

    Lasaco Assurance to sustain growth

    Lasaco Assurance Plc has reiterated its commitment to sustain the growth and good performance witnessed in the last fiscal year, the Group Managing Director, Mr. Olusola Ladipo-Ajayi has said.

    Ladipo-Ajayi made this known to shareholders at the end of the company’s annual general meeting (AGM). He said the management is poised to build on the gains recorded in 2013 business year, adding that the company has perfected plans to invigorate its three-pronged growth strategy to ensure better performance.

    He said: “Successes recorded in net profit, gross premium income, net premium earned, underwriting profit and other positive indicators are not accidental, but results of doggedness and strategic planning.

    “Just imagine the level of hard work and team spirit the organisation enjoyed from its workforce to have moved from loss position of N180 million in 2012 to a profit position of N412 million in 2013 business year.

    He said recapitalisation and expansion through the instrumentality of merging and acquisition, new-level branding and world-class quality certification and financial system rating, would be given critical attention in the fiscal year in order to sustain the gains already made.

    Lasaco Assurance Plc was incorporated in December 1979 and started operation in August 1980.

  • Brokerslink targets Nigeria, others in African expansion

    Brokerslink, the global network of independent insurance brokers, which recently announced plans to transform from a non-profit organisation to a profit making company, has unveiled plans to expand into Nigeria, Moroco, Egypt and other two African Countries.

    A member of the company, Prestige Insurance Brokers Limited representing Nigeria, which confirmed the development said Brokerslink is the world largest independent insurance broker network and manages premiums in excess of $15 billion.

    Chairman, Prestige Insurance Brokers Feyisayo Soyewo, who just returned from BrokersLink 2014 Annual Conference in Venice, Italy, said that the group has completed its transformation plan and would soon lunch out as a company.

    He said: “It is a great development for the continent because with the wide network of membership in both Europe and Asia, you can imagine that Africa would begin to benefit from this large network of global players, Soyewo stated.

  • AIICO partners Venia Technologies on auto insurance

    To fast-track the process of selling auto insurance to its customers, AIICO Insurance Plc has signed a partnership agreement with Venia Technologies Limited at the launch of myautogenius.com, Managing Director of the company, Edwin Igbiti has said.

    Igbiti said this is the country’s first online insurance comparison platform that promises to provide car owners across Nigeria with auto insurance policies within five minutes.

    According to him, technology offers insurance companies an unprecedented opportunity to integrate and simplify processes to customers and agents while reducing costs and increasing loyalty in an ever changing environment.

    He said auto insurance has become a very important part of our lives despite the fact that it is mandatory. He added that it is also a unique channel for selling the product with focus on convenience and speed. The website myautogenius.com started live at 12 noon on Monday.