The Nation Newspaper

Category: Insurance

  • Leadway Assurance assets hit N101b

    Leadway Assurance assets hit N101b

    Leadway Assurance Company Limited has grown its  assets hitting N101.2 billion at the end of the 2013 financial year from the N68.8 billion recorded in the previous year representing a 47 per cent increase.

    The firm also paid claims in excess of N10.9 billion, a 51 per cent increase from the N7.2 billion record of 2012.

    Its Chairman, Mallam Umar Yahaya, made this known at the company’s 42nd Annual General Meeting in Lagos.

    He said the N10.9 billion claims payout is continuing evidence of the promise that the company has kept to its customers over the years.

    He said though 2013 figures are still emerging, the firm had  remained the single highest claims’ paying company in the industry, adding that it also closed the year with a balance sheet size that remained strong at N97.1billion in 2013 with tradeable reserves (insurance funds) of N49.7 billion, currently the highest in the insurance industry.

    He said: “Competition remains rife within the insurance industry with key dynamic players challenging and changing the way we do business and putting us on our heels not only to consolidate, but also to surpass our current achievements if we are to stay ahead in 2014.”

    “We have positioned ourselves to benefit from the National Insurance Commission (NAICOM)’s market development restructuring initiative (MDRI) following the release of operational guidelines on micro-insurance and have started rolling out new products while extending our markets through new channels in order to take advantage of emerging trends and compete favourably with numerous competitors in the industry.”

    Apart from the parent company, Leadway Assurance Company Limited, other companies in the Group include Leadway Capital and Trusts Limited, Leadway Hotels Limited and Leadway Properties and Investments.

  • LASACO promotes 31

    LASACO promotes 31

    Lasaco Assurance Plc has elevated 31 of its workers.

    They are Miss Omoh Warrie, who was controller. She is now Assistant General Manager; Mrs. Jumoke Koleoso, Mrs. Taiwo Adegbola, Mrs. Abiola Aladejebi and Mr. Lawrence Oyedele, all senior managers were elevated to controllers.

    The Group Managing Director of LASACO, Mr. Olusola Ladipo-Ajayi, said the exercise was part of a strategic goal of the organisation to boost morale of staff and enhance productivity.

    The LASACO boss said the role of human capital development in the industry cannot be underestimated.

    He said: “Huge investment is being made in human capital in order to keep them abreast of global trends for efficiency and optimum performance.

    “The newly promoted staff who are 31 cut across the company’s organisational structure.

    “Human capital development is our major area of focus and we are proud to recognise the contributions of the newly elevated to our collective success. Each will continue to aid in LASACO Assurance Plc’s growth and increase market share.”

  • CIIN to govt: include insurance in your programmes, projects

    CIIN to govt: include insurance in your programmes, projects

    Insurance practitioners have asked the government to make insurance policy mandatory for its contractors. They also want it to be mandatory in the Ministries, Departments and Agencies’ (MDAs) budgets.

    They said this would help in institutionalising insurance policies, and  deepen the 2014 budget, which is key to achieving inclusive insurance that will impact the low-income group and catalyse complete growth in the economy.

    This is contained in paper titled, ‘Role of insurance in the National Budget,’ presented to the Federal Government by the Chartered Insurance Institute of Nigeria (CIIN).

    Drafted by the institute’s Consultant, Biodun Adedipe Associates Limited, the proposal stated that a vibrant and effective insurance industry would contribute to the growth of the economy by enhancing its financial intermediation, creating liquidity and mobilising savings.

    The institute added that the industry can also improve living standards and enhance social stability, support policy formulation and implementation towards the achievement of national objectives, create jobs and foster investment and entrepreneurship by creating an environment that ensures greater certainty.

    The institute said is was time for stakeholders to drive the sector, urging that the government should be the facilitator and regulator. He added that each stakeholder has a role to play in ensuring the transformation of the  economy through a vibrant sector.

    In a addition, the group recommended that  the government should ensure sanity in the sector through regulation and enforcement of rules, while operators provide best practices and clients access insurance policies and pay the premiums according to the contract terms.

    They said: “The government should commence the implementation modalities for “Objective 3” under the housing section in the Vision 20:2020 document, on the establishment of a mortgage and title insurance system that will mitigate credit risks.

    “There is need to fast-track implementation of agricultural and micro insurance, as well as social security schemes. Since such insurance products may not be profitable to operators, the government might need to provide either supply side or demand side incentives. This is corroborated by the United Nations Conference on Trade and Development (UNCTAD), which advised that to provide insurance as a public good, the Federal Government should consider placing support mechanisms by acting as a sort of reinsurer; creating public awareness, providing favourable regulatory and enforcement mechanisms, and exploring alternative insurance schemes. This can be like community-based schemes for rural populations or bank account holders receiving insurance instead of interest to strengthen rural insurance or micro insurance towards financial inclusion and inclusive insurance.”

    The  experts said should the Federal Government implements its suggestion, it would to project continuity whenever a project suffers a loss during construction or execution. This, they argued, would catalyse the industry to drive inclusive growth.

    They urged the Federal Government to amend Section 1 of the Companies and Income Tax Act (CITA) 2007 tax policy, which does not recognise micro insurance and takaful as main classes of insurance. Also, Section 3 does not recognise agricultural insurance.

    “The Federal Government should effectively enforce the compulsory insurance of imports and ensure that the Nigeria Customs Service is statutorily empowered to conduct surveillance at the ports to validate genuine insurance documents, adopt and use insurance bonds for government contracts, ensure insurance business is restricted to the practitioners who have the requisite skills for effective risk management, rather than allow other professionals to dabble into the field.

    “Governments and their agencies should pay premium on time in order for the economy to reap the full benefits of compulsory life insurance for paid employees and self-employed individuals while the National Insurance Commission (NAICOM) should review its licensing requirements for micro insurance.”

    The practitioners pointed out that most times, the reference to the national budget is to the numbers – giving attention to how much is allocated to MDAs’ programmes and projects rather than being treated as a policy document that dictates the specific actions that the government intends to take to achieve its objectives as stated in the budget.

    The practitioners also noted that there are allocations in the N4.642 trillion 2014 Appropriation Bill for  premiums, but that these would not be paid until the funds were released after approval by the National Assembly and signing into law by the President.

    “The question is, how much of this provision will accrue to Nigerian insurance companies? The excuse often made is lack of capacity, which the local insurance companies can never build unless they enjoy deliberate government patronage,” they added.

  • Mansard gets NAICOM’s nod on micro insurance products

    Mansard gets NAICOM’s nod on micro insurance products

    Mansard Insurance Plc has secured the endorsement of the regulatory body, the National Insurance Commission (NAICOM), to roll out micro insurance products, the company’s Chief Client Officer, Tosin Runsewe, has said.

    He said the approval has made the firm to become among the first firms to run micro-insurance business in the country.

    He said the approval of NAICOM for the micro insurance business portfolio is an endorsement of the firm’s foresightedness and would spur the company towards maintaining excellence.

    He said Mansard has over the years provided excellent services with products tailored towards making the lives of its clients  better.

    He said: “The micro-insurance business is one of the ways we aim to reach our target clients. With the NAICOM green light to roll-out products, we are encouraged to give our very best and this we would do. Our micro insurance products are designed to be appropriate for the low income market in relation to cost, policy terms, coverage and delivery mechanism.”

    He continued: “The products are aimed at delivering insurance coverage to Nigerians of all walks of life irrespective of their location or socio-economic class and by this approval; Mansard Insurance Plc becomes one of the first underwriting firms to be granted approval to carry out micro insurance business.

    “One of the products is the Mansard Instant Plan (MIP), a simple plan which provides life and accident insurance cover to the policy holder. For as little as an annual premium of N1,000 the plan promises a sum assured of N100,000 cover for permanent disablement or demise and up to N10,000 for medical  expenses in case of accidents. Medical test is not required to buy this policy and it can be obtained at all Mansard Insurance consumer touch points nationwide.”

    Runsewe explained that NAICOM has classified micro-insurance policies to cover little risks and therefore, exclude special risks like motor insurance except tricycles and motorcycles, professional indemnity and other pecuniary risks with sums insured higher than N1 million.

    He added that the commission insists that for any company to get approval to carry out micro-insurance business, its products must be simple, affordable and valuable.

    Mansard was incorporated in 1989 as a private limited liability company and is registered as a composite company with the NAICOM. The firm offers life and non-life insurance products and services to individuals and institutions across Nigeria whilst also offering Investment management and health maintenance solutions through its two subsidiaries, Mansard Investments Limited and Mansard Health Limited.

    The firm was listed on the Nigeria Stock Exchange in November 2009 and has capitalisation of over N24 billion, thereby making it the biggest insurance company on the stock exchange.

  • Operators urged to uphold virtues

    Operators urged to uphold virtues

    VIRTUES as enshrined in the holy books will enable insurance practitioners contribute positively to the development of the economy, Associate Professor, Department of Religious and Peace Studies, Lagos State University Dr Lateef Adetona has said.

    He spoke at the yearly Ramadan Tafsir (Lecture) organised by the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.

    The event, second in the series, provided the platform for exchange of ideas on issues pertinent to sociocultural and political harmony.

    Delivering the lecture titled: ‘Towards rebuilding a serene society: An ideal Muslim Home to the rescue’, Adetona admonished the participants comprising Muslims and Christians, to strive for harmony in their homes in line with the teachings of Prophet Mohammed. Dr. Adetona called upon the listeners to entrench the teachings of the Holy Prophet in their everyday lives, stating that societal peace originates from the home.

    The CIIN Ramadan Tafsir also featured a lecture titled: ‘In the Spider’s Web’. It was delivered by the National Missioner, Ansar-Ud-Deen Society of Nigeria, Sheikh Abdur-Rahmad Ahmad.

    The lecture created a parallel between the Spider’s Web and the trappings of modern civilisation. Sheikh Abdur-Rahman also called on Muslims to avoid aping the lifestyles of other cultures and civilisations to the detriment of their moral and spiritual well-being.

    The Chairman of the event, Prof M. A. Bidmos of the Department of Art and Social Sciences Education, University of Lagos, lauded the efforts of the CIIN in putting together the event to share and enhance knowledge of Insurance Practitioners.

    President CIIN Bola Temowo, who was represented by his predecessor Mr. FataiKayodeLawal, promised to sustain the event yearly as it is helping the spiritual well-being of members.

    The event was attended by CIIN Governing Council members, chief executives of insurance firms, CIIN members, members of the Professional Insurance Ladies Association (PILA) and friends of the insurance industry.

  • Staco pays N1.87b claims

    Staco Insurance Plc paid claims of N1.87 billion in 2013, its Managing Director, Sakiru Oyefeso, has said.

    Oyefeso, who made this known  at the Insurance Brokers Evening  in Lagos, said the firm paid about N900 million claims during the first six months of the year.

    Oyefeso said the modest achievements recorded by the company since its establishment 20 years ago, has been possible through foresighted leadership and excellent team spirit by the staff of the company.

    He stressed that the company’s strength lies in its passion for high standards and prompt claims settlement, pointing out that this and the notable quality services delivery by the company every time, has enabled it to win numerous awards in the recent past.

    Our vision is to be a world class provider of insurance and other financial services and we pursue this vision vigorously.”

    He called on insurance operators to take insurance to the grassroots in order to increase the level of insurance penetration and density in the country,

    He said: “We must all reckon with the fact that the insurance industry has remained underdeveloped because we have over the years placed more emphasis on large government and corporate accounts, leaving the grassroots unattended to.

    “This is not the case in advanced countries where insurance is the way of life and the last hope of all citizens. The efforts of our regulator in deepening insurance penetration by introducing the six compulsory insurances and anchoring sustained campaigns should be supported by other key stakeholders like underwriters, brokers and loss adjusters.

    “We, as insurance marketers need to evolve strategies, structures and capabilities to ensure that we align our selling processes with the latest technology in order not to lose significant income to technological advancement.”

  • NAICOM releases firms’ quarterly reports

    NAICOM releases firms’ quarterly reports

    •Law Union & Rock, Standard Alliance fail to submit

    The National Insurance Commission (NAICOM) has stepped up its regulatory duties by releasing information on insurance companies’ financials to the  public and has begun release of insurance firms’ quarterly reports.

    The Nation learnt that the development is to end the dearth of timely collation of data that has befallen the Nigerian insurance sector as a result of late submission of annual returns by the companies.

    At present, the commission is working round the clock to provide accurate data of 2012 and 2013 for the sector. Some companies are also yet to get approval for  their 2012 financials.

    On this list is one of the big composite insurance companies, NICON Insurance Plc. Others are Investment and Allied Insurance Plc, a company under NAICOM’s management, Goldlink Insurance Plc, whose management was sacked by the regulator and undergoing reforms, Alliance and General Insurance Company Limited, whose management dragged the regulator to court to contest alleged financial recklessness levelled against the company and the distressed Spring Life Assurance Limited.

    Apparently, only 16 companies were able to submit their financial reports for the year ended December 31, 2013 as at end of June, 2014 deadline as mandated by Insurance Law 2003.

    Presently, the submission status of 2013 financial statements of insurance companies as at July 9, released by NAICOM showed that 19 firms have gotten approval for their 2013 financial reports while 19 have submitted but are yet to get approval. Twenty-one are however yet to submit their reports.

    Based on insurance laws, the companies that have failed to meet the deadline are to pay N5,000 fine for each day they remain in breach of the law.

    In a statement by Assistant Director, Corporate Communications, NAICOM, Mr. Salami Rasaaq, to the  public on “companies that submitted first quarter financial returns,” out of the 59 existing firms, 10 companies failed to submit their QI financials while 49 submitted.

    He disclosed that the 10 non-compliant firms are Alliance & General Insurance Life Limited, AIICO Insurance Plc, Industrial & General Insurance Limited; Lasaco Life Assurance; Law union & Rock Insurance Plc; NICON Insurance Limited, Standard Alliance Insurance Plc, Unic Insurance Plc, Investment & Allied Insurance Plc and Spring Life Assurance Limited.

    Salami gave the names of compliant firms as African Alliance Insurance Plc; A & G Insurance Company Plc; ARM Life Insurance Ltd, Capital Express Assurance Ltd, Consolidated Hallmark Insurance Plc, Continental Reinsurance Plc; Cornerstone Insurance Plc, Custodian & Allied Insurance Ltd, Custodian Life Assurance Ltd; Equity Assurance Plc; FBN Life Assurance Limited, Fin Insurance Company Limited and Goldlink Insurance Plc, Guinea Insurance Plc, International energy Insurance Plc, KBL Insurance Limited and Lasaco Assurance Plc.

    Others include: “Leadway Assurance Company Ltd, Linkage Assurance Plc; Mansard Insurance Plc, Mutual Benefit Life Assurance Ltd, NEM Insurance Plc, Niger Insurance Plc; Nigeria Reinsurance Corporation Ltd, Nigerian Agricultural Insurance Corporation, NSIA Insurance Ltd, Oasis Insurance Plc, Old Mutual Nigeria Insurance Company Ltd, Old Mutual Nigeria Life Assurance Ltd, Prestige Assurance Plc; Regency Alliance Insurance Plc, Royal Exchange Prudential Life, Sovereign Trust Insurance Plc, Staco Insurance Plc, Standard Alliance Life Assurance Ltd; Sterling Assurance Nigeria Ltd, UBA Metropolitan Life Insurance Ltd, Union Assurance Co. Ltd; Unitrust Insurance Co. Ltd, Unity Kapital Assurance Plc, Wapic Insurance Plc, and Wapic Life Assurance Ltd.

    “Anchor Insurance Company Ltd, Great Nigeria Insurance Plc, Mutual Benefit Assurance Plc, Universal Insurance Plc, Royal Exchange General Insurance Plc, Zenith General Insurance Company Ltd and Zenith Life Assurance Company Limited.”

    He further stated that firms that have got approval for their 2013 financial report are Mansard, Custodian General Insurance Limited, Custodian Life Assurance Ltd,Cornerstone, Zenith Life, NSIA; FBN Life; Wapic Insurances Plc; Wapic Life Assurances; Regency Alliance, Law Union and Rock; AIICO, UBA Metropolian, Oasis; Leadway, Zenith Insurance Company Ltd, Continental Reinsurance, Niger and Sovereign Trust.

  • Industry faces high-impact emerging risks: Swiss Re

    Cloud computing security, a contagious emerging markets financial crisis, a eurozone crisis leading to deflation, short-termism of macroeconomic policy measures and a significant increase in air pollution are among the high-impact emerging risks facing the insurance industry, according to a report by Swiss Re Ltd.

    The Swiss Re sigma report, published recently, outlines 26 emerging risks relevant to nonlife and life insurance and classifies them as high-impact, medium-impact or low-impact.

    The report was compiled using Swiss Re’s SONAR tool, which uses the company’s internal risk management expertise to identify and evaluate emerging risks.

    Medium-impact risks outlined in the report include: concussion risk in sports; consumer use of genetic testing; digital slander; potential health and safety issues surrounding e-cigarettes; increased financial consumer protection regulation; changes from closed to open business models; food and water safety issues arising from companies’ focus on growth; secession risks in Europe; one-size-fits-all regulation; the threat to rubber production from plant pathogens; health risks associated with aluminium; so-called smart cities; demographic inclusion in the workplace; and urban farming.

    Swiss Re said that low-impact risks include epigenetics, or the study of heritable genetic changes not caused by changes to the DNA sequence; a move to 4-D from 3-D printing; and possible technological changes triggered by the missing Malaysia Airlines flight MH370.

    “The future is not a simple linear extrapolation of the past,” said David Cole, group chief risk officer at Swiss Re, in a statement. “Rather it is characterized by rapid and continuous change, thus looking back and extrapolating past experiences into the future is not sufficient to assess tomorrow’s exposure.”

  • NAICOM chief urges shareholders to protect investments, drive profits

    NAICOM chief urges shareholders to protect investments, drive profits

    The National Insurance Commission (NAICOM) has urged shareholders of listed insurance companies to safeguard their investments and drive growth of the industry.

    The Commissioner for Insurance, NAICOM, Mr. Fola Daniel, who made the call, said shareholders should see safeguarding of their investments as part of their responsibility, adding that the main objective of every investor is to get return on his investment by way of dividends, capital appreciation, rise in the price of stock and bonus issue.

    Daniel spoke at a forum between NAICOM and shareholders of quoted insurance companies in Lagos. The event was meant to evaluate and discuss the performance of listed insurance companies.

    He said the forum, which henceforth will be held quarterly, would provide them (shareholders and NAICOM) the opportunity to review the performance of listed insurance companies and the level of their returns to investors.

    He said given the performance of listed insurance companies in Nigeria today, they have been able to achieve the investment objectives of the shareholders adding that it is open secret that not many of these listed companies make substantial profit if at all they make any profit. He noted that the direct consequence of this situation is that the companies are not able to pay dividends, bonus issue and no capital appreciation.

    In fact, the price of most insurance stocks in the Nigerian Stock Exchange (NSE) remains at nominal value of 50k, he said.

    He listed the challenges hindering the performance of most companies as low pricing of risk, poor investment decisions, issuance of policy on credit and bloated premium, which the Commission recently addressed and high management and underwriting expenses that is about the worst in the world.

    He criticised shareholders who delegate their responsibilities to the board and management of their companies.

    He said: “Most of you do not ask questions as to how well your companies are being managed by your representatives. Beyond the annual general meetings which you attend, how often do you seek information and get satisfactory feedback from your board and management? Do you engage in intelligent and constructive interrogation of the financial reports of your companies? If you are not doing this as a shareholder, it means you have no interest in protecting your investment. It also means that your objectives for investing in these companies are at variance with the ones I have earlier mentioned.

    “I want to say by way of advice that while you look up to the regulators for solutions, shareholders should have a change of heart and live up to their responsibilities by taking keen interest in what happens in the companies. It is also imperative that the various shareholders associations look inwards and purge themselves of fakes.”

  • ‘Summit’ll lift old age dependency syndrome in Africa’

    The World Pension Summit tagged ‘Africa Special’ holding in Abuja today has the potential to address the seething individual dependency syndrome that characterises old age in Africa, said Wilson Ideva, Managing Director of Premium Pension Limited.

    Ideva, who spoke with reporters in Lagos, said it is important to note that poverty in Africa is as a result of numerous factors exacerbated by lack of social security at old age.

    He reiterated that the Contributory Pension Scheme (CPS) is a vehicle for savings and investment and provides lump sum payment at commencement of retirement and also programmed monthly pension for retirees.

    He explained that the scheme also avails the government large pool of funds to drive social and economic development.

    He said: “It is important that this special summit is taking place in Nigeria and co-hosted by the National Pension Commission (PenCom). Nigeria remains in no small measure the epitome of Africa and the exchange of ideas and experiences from around Africa and the world would only serve to enrich the rendition of the contributory pension scheme across the continent.

    “The pension industry is becoming central to the contemporary narrative of development in Africa. With increasing economic growth consequent upon local and foreign investment, the pension industry will continue to provide a platform for savings among the working population in Africa. It is heartwarming that this summit is addressing important aspects of and tools for effective pension delivery mainly from the prism of African peculiarities.”