The Nation Newspaper

Category: Insurance

  • Agents sensitise clients on Ebola

    Insurance agents have embarked on Ebola Awareness Trek to sensitise drivers, conductors, and artisans on precautionary measures in ensuring the prevention and eradication of the deadly Ebola disease.

    The walk, which started from some streets of Lagos to the state House of Assembly, was organised by the Association of Registered Insurance Agents of Nigeria (ARIAN).

    ARIAN National President, Gbadebo Olamerun, said they had meetings with drivers, conductors, and artisans and gave them gloves and sanitisers.

    According to him, they believe that these groups of people have regular contacts with people every day.

    He said they urged them to wear gloves and use sanitisers to prevent the virus from contacting their bodies.

    The ARIAN boss observed that the government had expressed its intentions to give life cover to volunteers who treat the Ebola patients.

    He said that government was introducing insurance for them, but that insurance is not medicine after death. ‘’They don’t provide insurance when there is eventuality, you get insurance before the eventuality happens,” he said.

    He enlightened that regular washing of hands with soap and water can prevent the ebola virus infection from having any effect on a person’s health.

    Olemerun also said people should imbibe the attitude of protecting their lives and properties with insurance and not wait until they are sick or suffer a loss.

    Stressing the relevance of insurance, he said it contributes  to economies of developed countries, regretting that the reverse was the case in Nigeria.

  • Rofenik, others to sensitise traders, artisans on insurance

    A consortium of consultants comprising of Rofenik Associates and Investments Limited, First Fiducia Projects Limited and Green Focus Global Services, in collaboration with the Association of Commodity Market Women and Men of Nigeria, is planning a workshop to sensitise traders especially the micro, small and medium enterprises (MSMEs).

    The workshop themed “What if it happens,” will hold in October and is expected to create pragmatic activities to encourage insurance for the businesses of market women and men.

    The Managing Director, Rofenik Associates and Investments Limited and Chief Coordinator of the workshop, Femi Ogunjemade, made this known in an interaction with reporters in Lagos.

    Ogunjemade said insurance awareness among traders and artisans in the country is still very low hence the need for more enlightenment. He said for a typical market woman or man, the most pronounced risk category is the hazard risks such as fire, burglary, flood, collapsed buildings, among others.

    He noted that it is important that “What if it happens,” it cannot be avoided and neither should it be retained, therefore, to manage the risk, the impact of occurrence is reduced through sharing. The sharing partner is the insurance company.

    He said: “Without any iota of doubt, insurance business in Nigeria is largely unpopular and still not accepted by a large proportion of the populace. This is apparent but regrettably, lack of interest in insurance has contributed to the slow growth in the industry, which is evident in the fact that most insurance companies listed on the daily official list of the Nigerian Stock Exchange are trading at their par values.

    “Many people who embrace insurance still do so out of compulsion either by regulatory authorities or law enforcement agencies. Many times, motorists embrace third party insurance because that is one of the documents required by Vehicle Inspection Officials (VIOs).”

    The Managing Director, First Fiducia, Shuaibu Ottan, said the importance of a strong and productive Insurance industry to the development of a nation and its economy cannot be overemphasised.

    According to him, the trading sector, though largely informal, is a major employer of labour, yet the insurance business especially at the micro and small trading levels, has not been made attractive, therefore, traders and most MSMEs have looked at it only from cash outlay point of view.

    Ottan said it is in the light of the foregoing that the workshop is being organised.

    He said: “Part of the deliverables will aid the acceptance and prioritisation of insurance policies, which would be appreciated by the public, especially the traders.

    “The need for cheap and affordable policies would be appreciated by the practitioners and removal of all hurdles on timely payment of claims shall be carried out without unnecessary or perceived stress. Participants will also be more enlightened on steps to take for the protection of their wares, and taking policies would be seen as important and necessary when setting up a business or doing business. There will also be a measure of comfort and peace of mind in knowing that there is a disaster recovery option while doing business.”

  • Union Assurance hosts brokers tomorrow

    The Nigerian Council of Registered Insurance Brokers (NCRIB), will tomorrow hold the Council’s Members’ Evening.

    The event, which will hold at the Insurance Brokers House, Yaba, Lagos will be hosted by Union Assurance Company Limited.

    The Assistant Executive Secretary of NCRIB, Tope Adaramola, who made this known, said the Evening would be utilised by management of the company led by its Managing Director, Mr. Godwin Odah to prospect for greater chunk of the nation’s insurance market through insurance brokers, who are believed to control the critical chunk of the country’s insurance business.

    He said aside the professional interactions, the forum will also be utilised to add the voice of the insurance sector to the containment of the dreaded Ebola virus, through presentations by health professionals invited to grace the occasion.

    The bi-monthly event has become a veritable platform for professional interaction between brokers and host underwriters, in a bid to make the insurance industry cohesive and robust.

  • KBL settles N249m claims in six months

    KBL Insurance has paid N249 million claims in six months, the company’s Head, Corporate Communications, Nwakerendu Ike, has said.

    According to a statement by Ike, the management of the company has assured its customers and the general public, that it is focused on excellent service through prompt claims settlement.

    It stated: “This is part of efforts to ensure customer satisfaction and increased market share.

    “The organization is committed to 48 hours claims settlement once all documents have been received and customer ensures prompt notification of loss and submission of all relevant documents in order not to delay claims settlement.

    “KBL which is in the process of rebranding having changed its corporate identity from Insurance PHB is also focusing on capacity building to further empower its workforce, while continually reengineering its internal processes to ensure and maintain speedy service delivery at all times.”

  • LASACO deploys ICT for insurance penetration

    LASACO Assurance Plc has eased the process of consumers having access to its numerous products through sale of products online real-time.

    The LASACO customers are  able to obtain and pay premiums for their products on line.

    Speaking on the strategic initiative of LASACO Assurance to support its marketing efforts with information computer technology (ICT), the ICT Head, Deji Ogundele, explained that LASACO is committed to ensuring its numerous customers as well potential ones enjoy seamless service satisfaction using the instrumentality of ICT.

    “The ICT operations is on 24/7 basis to ensure seamless flow of the processes so that our customers can enjoy great customer experience. Our products are sold through e-payment systems; awareness campaign; and development of  knowledge in various electronic and print media. The world is actually going digital and more transactions are done online real-time.

    “We have put in place a number of platforms to effectively reach out to our numerous and potential clients by embarking on digital marketing and also making it more accessible through the various social media market platforms. Once the desired product is purchased, several alternative channels are available to make payments easier.”

    He said payments can be made through bank branches nationwide, Quickteller, point of sale (POS), and our e-commerce portal in a seamless manner, adding that these alternative channels of payment are built on a world class web-based integrated solution, which combines the core insurance businesses with powerful administrative and marketing tools.

    LASACO Assurance’s use of alternative channels is a great boost to the Federal Government’s initiative of promoting cashless economy, which is the best global standard practice of driving the economy.

    He stated that LASACO’s operating ICT tool is Enterprise Resource Planning (ERP), therefore, whether the company’s operatives are in the office or out in the field, ERP empowers them to be more productive by providing a highly functional system that meets international standards. It also automates document storage and retrieval, enhances communication links with customers, provides online/ real-time access, ensures effective security and auditing both internally and externally and very scalable.

    “In order to stay ahead of competition, LASACO ICT processes are continuously reviewed to meet up with the dynamic demands of valued clients with a view to ensuring that the retail marketing is enhanced and more accessible to our numerous clients.

    In addition to this, the company is also committed to marketing retail insurance through well trained agency system for effective penetration into the huge population of Nigeria that is yet to be fully maximised.

  • NAICOM, ICPC mobilise against corrupt operators

    NAICOM, ICPC mobilise against corrupt operators

    The National Insurance Commission (NAICOM) has sought partnership with the Independent Corrupt Practices Commission (ICPC) to fight insurers who engage in corrupt practices, particularly in returned premiums through third parties.

    Returned premium occurs when a policyholder seeks to cancel his insurance policy before end of the policy period, which is legal and allowed by the law.

    However, insurers, brokers and agents connive to manipulate the policy by inflating the value of the premiums without the policyholder’s knowledge.

    Brokers, who are intermediaries between the insurer and the policyholder (client), inflate premiums above the normal values, and afterwards, the surplus is shared by broker and others involved in the shady deal.

    For instance, a broker negotiating for a N1 million premium on a particular cover for government or organisation, colludes with the underwriter and staff of an insurance company and inflates the premium to N1.5 million, after which the excess N.5 million is shared between the broker, underwriter and the staff involved in the deal. This inflation of premium is done keeping the client completely in the dark.

    During the meeting between the two federal agencies in Abuja, NAICOM Chairman, Governing Board, Hon. Chibudom Nwuche, urged the ICPC to join hands with the insurance regulatory body in the fight against fraudulent transactions or activities in the insurance industry. He said the collaboration will help deepen insurance penetration in Nigeria.

    He told the ICPC that while NAICOM is saddled with regulating the insurance industry, it does not have the requisite powers of enforcement especially in terms of arrest and punishment of fraudulent culprits.

    NAICOM Commissioner for Insurance, Fola Daniel, reiterated that the primary responsibility of the commission is to ensure protection of policy holders.

    He added that insurance is built on the principle of utmost good faith and thus, every insurance practitioner is expected to uphold this principle in words and deeds.

    He said: “We are seeking assistance of the ICPC in fighting corrupt practices in the industry particularly in the area of returned premiums. We assure that NAICOM will not tolerate returned premiums through third parties.”

    The ICPC Chairman, Mr. Ekpo Nta, appreciated the board and management of NAICOM for the initiative. He expressed the readiness of the ICPC to collaborate with NAICOM to ensure a corrupt-free insurance sector in Nigeria adding that NAICOM has also improved insurance services in the country in recent years.

    He said: “Insurance regulator has become more effective in recent years as evident in the prompt settlement of insurance claims by insurance companies. I am looking forward to such a time when Nigerians will go out of their ways to get insurance cover.

    “The ICPC over the years have been working with regulatory bodies in the monitoring of activities within their sectors saying that it is faster and cheaper to adopt this model in checkmating activities of operators in the various sectors through the regulators.”

  • ‘No premium, no cover policy rewarding’

    ‘No premium, no cover policy rewarding’

    The ‘No premium, no cover’ policy unveiled in January last year by the National Insurance Commission (NAICOM) has improved liquidity in the sector, Managing Director, Niger Insurance Plc, Kola Adedji has said.

    He made this known at a briefing  on the impact of the policy in Lagos.

    He said this notwithstanding,  some challenges accompanied  the introduction the policy.

    At the beginning, the policy was difficult to implement by his colleagues.

    He said the public also found it difficult to adjust to the policy but has gradually accepted it.

    The policy, however, slowed  business as most of their clients  started renewing their policies only lately, he said.

    He said: “For us at Niger Insurance, we fully complied with the ‘No premium, no cover’ policy and it has turned our balance sheet around. The policy has also helped us to clean up our accounts.

    “We were able to grow our gross premium income from N10.3 billion to N10.4 billion in 2013. We were still able to keep the same gross premium income as we recorded the previous year despite the lull in business as a result of the policy. But, perhaps, it would have been better and we believe it will be better this year now that people have adjusted to it.

    “Overall, it will keep improving liquidity for us. There is no point having an aspect of debtors in our balance sheet and the cash will not come. We are better off even if it is just for the purpose of the computation of solvency adequacy or liability adequacy test of our International Financial Reporting Standard (IFRS).”

    Adedeji said when the policy was  to usfirst rolled out, some people thought it wouldn’t work but people are adjusting to it now because it has helped insurers in output liquidity unlike in the past when the business is written with a promise by policy holder to pay later.

    ‘’In such situation, he said, once the policy period is over, it becomes sticky and, in most cases, it becomes bad and irrecoverable debt.’’

    On the firm’s plan, he said the management and staff were working towards a company that would be internally driven by an Information Communication Technology (ICT), where transactions would be done via telephone, laptop and iPad in the next five years.

    They also intended to grow the company’s balance sheet in the next five years by 100 per cent, he added.

  • Guinea Insurance pays N138m in Q2

    Guinea Insurance pays N138m in Q2

    Guinea Insurance (GI) Plc  paid N138 million claims  at the end of the second quarter of the year, its Managing Director, Polycarp Didam, has said.

    This, he said, was part of the company’s strategy to reposition the company to grow its market share through decisive long-term plan.

    Didam said the company believes in customer satisfaction as it  builds brand loyalty.

    He said the firm adopted a Rapid Claims Payment System (RCPS) aimed at settling claims within 72 hours on receiving a duly Executed Discharge Voucher (EDV) from the insured.

    He added that the company’s capacity to settle genuine claims to the public is underscored by its increasing premium yielding policies and capital generating ventures.

    He said: “Our company’s strength lies in our passion for high standards and determination to become a world class enterprise, one with the scope and economies of scale necessary to serve the financial and risk management requirements of our numerous customers, many of whom trade not just in domestic markets, but regionally and throughout Sub-Saharan Africa.”

    Guinea Group Lead, Technical, Wole Fayemi, who gave the breakdown of paid claims, said of the N138 million paid, N44 million was paid on general accident insurance policies, representing 32.2 per cent, while N41,532,642.89 was paid on Marine Insurance policies; that is, 30.1 per cent.

    He explained that motor insurance policies accounted for 13.5 per cent of the claims paid amounting to N18.6 million, while oil and energy insurance policies accounted for 15 per cent, that is, N20 million.

    He said engineering and fire insurance policies stood at N12.6 million, representing 9.12 per cent and  N135,715, 0.1 per cent on aviation insurance policies, was paid for the period.

    Fayemi emphasised the company’s commitment to optimise its  processes to meet the dynamic needs of its numerous customers.

    ‘’We are bent upon becoming one of the top five insurance companies in the country by 2018; hence, we have carefully crafted a five-year strategic business plan; our objectives being to build capacity, consolidate and reposition the GI brand and, ultimately, build a tribe of loyal and dedicated customers who would remain our brand ambassadors because our commitment to them is total, he said.

  • Brokers urge NLC to drive pension reform law

    Brokers urge NLC to drive pension reform law

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has urged the Nigeria Labour Congress (NLC) to tackle firms that have breached the provisions of the 2014 Pension Reform Act.

    NCRIB’s President, Nigerian Council of Registered Insurance Brokers, Mr. Ayodapo Shoderu,  said this during an interactive session by the NCRIB, NLC and some insurance operators in Enugu.

    He said participants also suggested the need to create platforms of interaction among NLC, employers’ unions and other critical stakeholders to highlight the importance of the Group Life in the new reform and the need for compliance.

    Shoderu said it is the responsibility of the NLC to meet professional bodies, especially human resources or workers, to execute the new reform in favour of workers.

    He called on NLC to impress it on notable regulatory institutions to show evidence of compliance with Group Life as a prerequisite for granting approvals or yearly renewals as being done for insurance operators, who are requested to show such evidence before renewal of their yearly licence with the National Insurance Commission (NAICOM).

    He added that there was the need to create more aggressive awareness campaigns to encourage workers to adhere to the Reforms Act and sensitise employees to demand compliance by their employers.

    According to Shoderu, the welfare of workers should be given priority by governments, pointing out that the quality of Labour is a major index for determining the advancement or other wise of countries.

    The NCRIB chief said countries, such as the United States, United Kingdom, Japan and lately, China, have attained their enviable state as developed nations because of due consideration their governments accorded Labour.

    He stressed that the Reforme Pension Act has mandated employers to take Group Life Assurance for their workers, noting that the step would increase the regime of benefits that could accrue to workers in retirement.

    He said: “Aside from the increased pension contributions on the part of the employers, the reform provides that an employer’s contribution under the Group Life should not be less than 20 per cent of the employee’s monthly emolument. In addition, a Group Life Insurance policy must be maintained in favour of the employee’s annual total emoluments similar to the old Act.

    “The elimination of Letter of Administration for the processing of Group Life to beneficiaries of deceased workers is also a good idea that has made access to death benefits by dependents much easier than it was before.”

    He regretted that despite the laws on compliance with Group Life by employers, the government has continued to fail to comply.

    “The Federal Government and its agencies could be said to be less culpable as records show higher compliance by Federal Government agencies. Some of the weak reasons being adduced were that the Group Life Insurance enforcement is a national law that must first be complied with by federal institutions for their workers while the states and local government could comply at their convenience. The fact must be made that law is law and must be complied with by all strata of government, irrespective of jurisdictions,” he added.

  • NAICOM to operators: Pay policy holders’ N128m claims

    NAICOM to operators: Pay policy holders’ N128m claims

    The National Insurance Commission (NAICOM) has compelled 13 insurance and two broking firms to pay claims valued at N128 million to policy holders.

    The claims, which have been in dispute, according to a report by the Commission, were settled between January 1 and June 30, this year.

    The report said the sector’s regulator, compelled the affected companies to pay the amount in respect of 26 claims by policyholders after NAICOM’s intervention in the dispute.

    The report titled, ‘NAICOM’s intervention in disputes over claims settlement: Report of activities and achievements for the half year, January 01 – June 30, 2014,’ was signed  and made public by Assistant Director/Head, Corporate Affairs, Salami Rasaaq.

    The claims were paid to the 26 complainants out of the 83 complaints that were received within the first half of the year.

    The report showed that the complaints received include those of year 2013 to date, totaling 404, out of which 215 have been treated with an outstanding of 189 as at end of June, 2014.

    A breakdown of the settled cases revealed that out of the 26 cases resolved, Standard Alliance Life, had seven cases, making it the firm with  the highest number of disputes resolved in this category, while Standard Alliance Insurance Plc had one case resolved.

    AIICO had four cases resolved; Industrial and General Insurance (IGI) and Guinea Insurance had three cases, while Staco, NSIA, NEM, NICON Insurance, Sterling Assurance and Cornerstone had one case each.

    The report further showed that Standard Alliance Life was compelled by NAICOM to pay Andrew Ilanse Life Insurance benefits of N32,777, Ogbene Virginia & Company life benefits of N543,000, Oyeleke Teslim life benefits N136,303.17, Abida Ademokoya life benefits of N2.32 million, University Of Ibadan life benefit of N2.32, A-Asken & Company Life benefits Of N1.124 million and Nigerian Air Force life benefits of N234,032.

    Standard Alliance Insurance Plc was also compelled to pay Udoka Bestman, a General motor policy of N42.12 million.

    Also, Aiico paid Finbank Insurance Brokers a General Aviation of N17 million, AIICO paid Adwunmi Adepoju life benefits of N690,000, AIICO paid Paul Adie Life Benefits N120,000, and Nichodemus Ali life benefit of N24,835.

    IGI paid Benjamin Solicitors life benefits of N3.48 Million, Federal Ministry Of Education & Agencies Group Life Insurance of N1.5 million, Low Bond Solicitors life benefits of N819,802.

    The Commission also compelled Staco Insurance to pay Arizona Insurance Brokers a general motor policy of N1.52 million, NEM paid First & Foremost Investment motor benefits of N 8.87 Million, NSIA paid Eternalie Risk Insurance Brokers Marine of N547,295 NICON paid Hanatu Jankaro motor benefits of N153,800, Sterling Assurance paid Vilisco motor policy of N5.6 million and Cornerstone paid IGI motor benefits of N15.4 million.

    Guniea Insurance paid Sam Omokaro fire benefits of N2.31 million Guinea & Oasis paid Standwell International Co Ltd marine benefits of N803,566 Million while Guinea & Sterling/Chrome Insurance Brokers paid Consolidated Hallmark fire policy Of N10 million.

    Emerald Insurance Brokers however paid Equity Insurance unremitted premium of N6.58 million while Kapex Insurance Brokers paid Chief Abraham Yepwi life benefits of N3.58 million.