The Nation Newspaper

Category: Insurance

  • Hybrid calls for competence on loss prevention

    Relevant competence to manage the elements of safety and loss prevention in the country is necessary to avoid deviation from the Nigerian content development initiatives, Managing Director, Hybrid Consulting Limited, Dapo Omolade,  has said.

    Omolade spoke at the company’s  briefing in Lagos over the weekend.

    According to him, the awareness on the importance of safety management in the country has been on the upward trend in the last decades, with greater acceptance and impacts seen in the multinational companies and a few other local industries.

    He however said that risk assessment is a major part of safety and all the insurance companies are part of safety professionals.

    He said: “We have had activities with insurance companies where we bring them into a level of knowledge on the requirement for risk assessment.

    ‘’What this helps them to do is that they can put an accurate figure down, such that if your risk portfolio is high or low, they know what premium to charge, he said, adding that it also helps the insuring piblic to know where to buy their insurance from.’’

     

  • Temowo is CIIN President

    Temowo is CIIN President

    For the first time, a loss adjuster has been elected president of  the Chartered Insurance Institute of Nigeria (CIIN). He is Mr. Bola Temowo.

    The Chairman, Bola Temowo Presidential Investiture Committee and Chairman Education Committee, Mr. Eddie Efekoha, made this known at a briefing in Lagos.

    Efekoha, who said the development is good for the industry, noted that the institute belongs to all practitioners.

    He said more practitioners were showing more interest in joining the council of the institute.

    He, however, said the quality of leadership would get better because a loss adjuster was coming on board.

    Temowo was Deputy President and has worked with the outgoing president,  Fatai Lawal.

    Temowo is the Managing Director of International Loss Adjusters Ltd, a leading loss adjusting firm. Earlier, he  worked with Hogg Robinson Nigeria, Crusader Insurance and the defunct ACEN Insurance.

    An indigene of Ijebu-Igbo, Ogun State, he was born in 1961 in Lagos State to the family of the late Mr. Amos  Temowo and Mrs. Mercy Temowo,  insurance professionals.

    He attended Sacred Heart Private School, Ibadan; St. Patrick’s Grammar School, Ibadan and completed his A’ levels at Igbobi College, Yaba in Lagos in 1979.

    He  studied History at the University of Lagos UNILAG) and graduated in 1982;  and bagged Masters of Public Administration (MPA) two years later from the same university.

    Although he studied History, Temowo’s  ambition was to be like his uncle, Prof. Ade Adefuye, then  a lecture in the Department of History at the UNILAG.

    But fate changed events, when in 1982 the young Bola did his National Youths Service (NYSC) at Hogg Robinson Nigeria, a frontline insurance broking firm. His father had asked him to see Mr. Amos Adeyeye, the helmsman at Hogg Robinson for his national  assignment. The one year experience affected in his career.

    From Hogg Robinson, he moved to Crusader Insurance in 1986 and then felt the urge to become professional by sitting for the Associateship examination of the Chartered Insurance Institute (ACII), London in 1989 and Fellowship of the institute in 1996.

    From Crusader Insurance, he moved to T. A. Braithwaite Insurance Brokers as a Senior Broker in 1990 and later became an Assistant General Manager (AGM).

    He left T. A. Braithwaite in 1992. Temowo attributed the experience he garnered to the trust and the free-hand given to him by the doyen of insurance, Braithwaite to whom, he also owes much of his career.

    From T.A. Braithwaite to ACEN Insurance Ltd in 1992, Temowo’s career  move a meteor, attaining the position of Deputy General Manager before quiting in 1995 to join International Loss Adjusters Ltd on the death of his father.

    Temowo’s watchword is integrity, saying it is a quality he imbibed from his late father.

    Temowo is Vice President, African Region for the International Institute of Loss Adjusters, and a Fellow of the International Federation of Adjusters Association.

    He is married to Sola. They are have two children – Anjolaoluwa and Oluwatooni.

     

  • Transformation of sector key to growth, says Accenture

    Transformation of sector key to growth, says Accenture

    The insurance industry will tap into huge revenue only through a transformation and positioning of the sector, Accenture has revealed.

    The global management consulting, technology services and outsourcing company, said its survey titled: Consumer innovation survey on insurance demonstrates that  customers want relevant, convenient and cost-efficient products that address their buyer values and needs.

    The survey carried out shows that the predominant insurance product uptake by 1.5 per cent of the population that is insured is motor value  insurance.

    Another survey across various geographies also indicates that 67 per cent of customers would consider buying insurance from organisations other than traditional insurance companies, while indicating that insurers must take the offensive, make some bets and take some calculated  risks to attract and acquire new customers and to retain the customers they already have.

    It said: “The revenue potential for the industry is significant but will only be realised through deliberate transformation and positioning that enhances all channels and experiences.

    “Companies that transform their technologies as well as underlying business models will be  equipped to deliver the experiences that customers will increasingly expect and demand. Only true digital transformation at a strategic level will let customers define their own experiences rather than simply provide products for them to buy.”

    Accenture recalled that the EFInA Access to Financial Services in the Nigeria 2012 survey confirms that while 28.6 million adult Nigerians are banked, representing a banked population of 32.5 per cent of the adult population, only 1.3 million adults, 1.5 per cent of the population have personal insurance.

    As a result of the deliberate collaborative strategy and individual actions by banks to focus on specific un-banked and under-banked groups, the banking sector is well on track to dent the financial exclusion trap and to increase banking inclusion to 80 per cent by 2020.

    The industry is over-concentrated on intensively competitive, over-sold and narrow-margin corporate underwriting, dominated by brokers while under-serving and under developing personal risk underwriting.

    The same report indicates that the areas where risks are experienced which in turn imply a high need for insurance have extremely low insurance uptake.

    Accenture said: “There is an opportunity for the industry to translate the areas of acknowledged need to effective demand for risk cover.”

    Some of its key finding shows that insurance must be ‘sold’ and the driver for growth in insurance are effective selling predicated on clear customer segmentation and customer-centric strategies. Also, optimal sales performance insurance is achieved by knowledge-based customer insight, enabled by the combination of distinctive sales methods and supporting sales tools.

    On youths and insurance, Accenture said: “With the demography of the Nigerian population, clearly a successful digital positioning will be necessary for insurers to realise the opportunities offered by the younger generation.”

  • NAICOM, insurers to introduce cover for terrorism victims

    NAICOM, insurers to introduce cover for terrorism victims

    The National Insurance Commission (NAICOM) is working with operators to fast-track the provision of terrorism cover, Commissioner for Insurance, Fola Daniel, has said.

    Daniel, who made this known at the weekend at a seminar for insurance correspondents in Uyo, Akwa Ibom State capital, said the move was necessary to bring relief to victims of terrorists attacks.

    At present, terrorism insurance is  excluded from coverage in Nigeria. It is considered a difficult product for insurance firms to market as the odds of terrorist attacks are difficult to predict and the potential liability enormous.

    But Daniel said it was time for operators to expedite action and design ways of providing insurance cover on terrorism.

    Describing terrorism as the bane of the country, he called on firms to  rise to the challenge of providing cover for terrorism to avert loss of businesses in the industry.

    He urged the firms to take the initiative on terrorism insurance before an agency is set up to provide for risks on terrorism.

    He noted that the commission will work with the operators to see that the government supports the initiative as done in other climes.

    He said the industry has potential for massive growth, adding that the population of the country, if adequately harnessed, will gives an added advantage to the industry to further develop its market.

    Daniel said considerable progress has been made under the Market Development and Restructuring Initiative (MDRI), which commenced in 2009, adding that between 2009 and 2012, policies written rose sharply from 72,180 to 152,181, a whopping increase of 111 per cent.

    He said premium written within the period also rose from N14.93 billion to N28.68 billion increase of 92 per cent.

    Daniel added that the industry in the last three years has had some geometric projections.

    He said: “The industry will achieve well over 100 per cent at the time the performance of 2013 is added to the figures available. Despite the inability of the Commission to attain the one trillion naira mark it planned to achieve through the Market Development Restructuring Initiative (MDRI), in 2009 it has vigorously pursued it across the six-geo-political zones of the country and considerable progress has been made given the above statistics.’’

    He added: “The performance so far shows that  insurance companies are voluntarily meeting up to their obligation without the commission getting involved and are also paying claims payment.

    “Going forward, we will consolidate on the gains made so far and ensure proper implementation of compulsory insurance products to be able to enhance the industry contribution to GDP.”

  • Guinea partners CIIN on awareness

    Guinea partners CIIN on awareness

    Guinea Insurance Plc (GI) is partnering the Chartered Insurance Institute of Nigeria (CIIN) on its Fitness Walk insurance sensitisation programme.

    Divisional Director, Corporate & Legal Services, Guinea Insurance, Isioma Omoshie, who spoke during the pre-walk, said the company hosted the event to support the industry.

    She said the aim was also to ensure that the “street presence” exercise was seamless.

    She said: “Our partnership with the institute is in sync with the repositioning programme of the company. We are poised to support all laudable initiatives that will engender the much needed industry awareness as well as rekindle the true spirit of sportsmanship that would foster unity in the sector.”

    CIIN Director-General, Kola Ahmed, said the firm’s bid to bring innovation to partner with the institute  brought the need for change in venue this year and make it better.

  • Leadway donates to charities in memory of founder

    Leadway donates to charities in memory of founder

    In commemoration of the 15th Anniversary of the death its founder, Sir Olusola Hassan Odukale, Leadway Assurance Company Limited, has donated medication, foodstuff and equipment worth thousands of naira to four homes in Lagos State.

    The homes are Modupe Cole Memorial Child Care and Treatment Home School, Akoka; Ile Aanu Olu Pre-school, Surulere; Nigeria Society for the Blind and Wesley Schools for Hearing Impaired Children.

    A statement from the underwriting firm stated that the donations were made following the May 3 anniversary date in furtherance of the ideals of the late founder who was well-known for his philanthropy, integrity and sound professional/business ethics within the industry.

    Using the platform of the Leadway movie club, the company also hosted about 180 children from less privileged homes to a kiddie movie at the Silverbird Galleria, Ahmadu Bello, Victoria Island, Lagos.

    The children from Modupe Cole Memorial Child Care and Treatment Home School, Down Syndrome Foundation Nigeria, the Slum to School Project along with their caregivers, were treated to popcorn and drinks and were excited to visit the renowned cinema house.

    Speaking at the event, Amaka Obidi of the Down Syndrome Foundation Nigeria, lauded the company’s initiative in providing the platform as an alternate means of educating the children.

    Born in March 1926, Sir Odukale started his business life as the general goods store owner of Hassan Stores.

    He established Leadway Assurance Company Limited in 1970 to fill the gap of an indigenous insurance company that would compete favourably with the foreign companies at the time and was its founding Managing Director/Chief Executive Officer.

    He was the company’s chairman from 1993 till 1999 when he passed away. Sir Odukale was a devout Christian and philanthropist. He was blessed with children and died May 3, 1999. He was 73.

     

     

  • Biba admits Ncrib as affiliate

    Biba admits Ncrib as affiliate

    The British Insurance Brokers Association (BIBA) has admitted the Nigerian Council of Registered Insurance Brokers (NCRIB), as  an affiliate of BIBA, the world leading umbrella body of insurance intermediaries.

    Conveying the admission after a special session with Nigerian delegation to the 2014 BIBA Conference held in Manchester, United Kingdom, the Chairman of BIBA, Lord Hunt said through the synergy, the two professional bodies could now latch on each other’s strength to grow insurance broking in their different jurisdictions.

    Hunt, a former UK Science Minister, said the contemporary challenge of technology and global business had placed insurance business at the centre stage in the scheme of things, necessitating the dire need for strong international synergies across insurance professionals in the world.

    He noted that the world of insurance and pensions have become highly complicated thereby making insurance brokers and similar intermediaries more relevant than they had ever been.

    Hunt said that the market basis between UK and Nigeria was similar in so many ways; hence the two climes must look unto each other for continuous guidance.

    NCRIB President, Ayodapo Shoderu, said the need to grow the Nigerian insurance broking practice across international borders informed his administration’s focus on global synergies, noting that the new BIBA affiliation will provide a leeway for insurance brokers under the aegis of the Council to develop greater capacity.

    He appreciated BIBA for acceding to the request for affiliation which was made during his recent visit to the association.

    He said the development would place NCRIB and its members in a better pedestal in terms of professionalism and market exposure.

     

  • Firms pay N308m fines, penalties to NAICOM

    Firms pay N308m fines, penalties to NAICOM

    •Commission receives N1.8b levies

    More than N308 million fines and penalties   imposed on  some insurance firms in 2012 by the regulatory authority, the National Insurance Commission (NAICOM’s ), have been paid, The Nation has learnt.

    The payment represents a 280.24 per  cent increase over the N81.3 million paid by  erring firms in 2011, going NAICOM’s Financial Statement for the year ended December 31, 2012.

    This increase in fines and penalties, however indicated that the firms have continued to flout the rules and regulations guiding the operations of insurance business as stated in the NAICOM Insurance Acts, 1997.

    NAICOM also received N1.8 billion insurance levies from the firms in the year under review.

    According to the Act, NAICOM  is entitled to charge one per cent insurance levy on every insurance institution. It charges an insurer or a reinsurer, one per cent based on its gross premium income, an insurance broker based on its gross commission and a loss adjuster, based on its gross fees.

    The Acts further provides that every sum payable by any insurer, reinsurer, insurance broker or loss adjuster under this Decree, shall be payable on or before  September 30 of each year.

    Meanwhile, there has been a decrease in the Commisssion’s Board and Executive Emolument in the year under review as against   the   figures obtained in the preceding.

    They received N61 million in salaries and allowances in 2012 lower than the N82 million in 2011. They also  received sitting, travel and other expenses of about N17 million as against the N26 million it spent in 2011.

    But staff salaries and allowances increased in 2012 to N53 million and N746 million respectively, as against  the N44 million and N590 million  recorded in 2011.

    On administrative expenses, NAICOM spent N5.6 million in 2012 on rent and rates as against N13.8 million spent in 2011; local travelling and hotel expenses gulped N61 million in 2012, against N47.4 previously.

    NAICOM spent N1.2 million on overseas travelling in 2012, while N7.8million  was spent in 2011.  N18.4 million went for bank charges in 2012, as against N2 million in 2011. Also N17.9 million  was spent in 2012 on security and other expenses, as against N15.2million in 2011.

    It also spent N10.4 million in 2012 against N4.5 million in 2011 on entertainment, while N27.4  million  went for software amortisation among others, N6.9 million was spent the previous year.

    Also, NAICOM said it would sanction market offenders.

    The Commissioner for Insurance, Fola Daniel, said it is the regulator’s wish not to impose any sanctions if there is compliance but if people will break rules or laws, then they should be ready to bear the consequences.

    He said they will not be excused from their offences and appropriate sanctions will be imposed on any insurance operator who runs afoul of any rule or regulation put in place for the smooth operations of the insurance industry.

  • ‘Global insurance rates decline in Q1’

    ‘Global insurance rates decline in Q1’

    Global insurance rates declined in the first quarter of the year, mainly driven by softening property rates, Marsh said in its Global Insurance Market Quarterly Briefing.

    Rates tracked by the Marsh Risk Management Global Insurance Index declined for the fourth consecutive quarter and it is now at its lowest level since the third quarter of 2012, the firm reported.

    Strong competition, ample capacity and a lack of major events contributed to the property insurance rate decline across all major regions during Q1, Marsh said.

    The United States and United Kingdom had their largest quarterly decline in more than two and a half years (2.5 per cent and 5 per cent, respectively) while in Asia-Pacific, rate reductions of up to 20 per cent were widespread for commercial business, in some cases nearing 25 per cent, depending on the size of the risk, Marsh said.

    Latin America recorded the largest average property renewal rate reduction among major global regions, at 7.6 per cent, according to Marsh.

    Casualty rates were generally stable during Q1, with decreases experienced in Latin America, Asia-Pacific and the United Kingdom, while the United States and Europe saw a slight increase, Marsh noted.

    “The first quarter saw marked evidence of additional capacity flowing into the global market, primarily from existing players looking to increase their market share in particular lines of business or growing territories,” David Batchelor, president of Marsh’s International Division said in a press release.

    “And continuing competitiveness in the reinsurance market also added fuel to pricing reductions in primary markets,” he added.

    For professional liability, rates were stable in general, and flat or declining by up to 10 per cent in Australia, France, Germany, India, and Korea, depending on the quality of the risk, Marsh said.

  • STI partners centre on leadership

    STI partners centre on leadership

    To fulfill its commitment towards the advancement of the Nigerian Society through Corporate Social Responsibility, Sovereign Trust Insurance (STI) Plc has  collaborated with the Centre for Values in Leadership (CVL), in hosting the maiden edition of the Centre’s Road Show tagged ‘Walk The Talk”.

    The event is geared at entrenching good leadership and promoting positive values in the society.

    It brought together distinguished Nigerians, such as Prof Pat Utomi, Managing Director, STI, Mr. Wale Onaolapo, Joke Silva, and Kate Henshaw.

    The ‘Walk-the Talk’ campaign, which means ‘practice what you preach’  is a change movement initiated to preach CVL’s leadership values while reaching out to correct some social, economic and political challenges in our society.

    The objective of the movement is to equip generations of young Nigerians with values and leadership skills which will make them become effective and value-driven leaders in future.

    The event co-coordinator, Miss Stephanie Etokeren, lauded the management of STI for its continued commitment in identifying with laudable CSR initiatives in the Nigerian Society over the years.

    Managing Director, STI, Onaolapo, said the company is committed to the development of the Nigerian Society in every regard, and he equally opined that a great deal of work still need to be done in getting to the desirable state that every Nigerian would be proud of.

    He identified the company’s vision of being the leading brand as the pivotal force responsible for most of the initiatives embarked upon by the company.

    He said the firm is proud to be associated with the Centre and what it represents in the larger society. and would not rest on its oars in embarking on CSR initiatives that would further enhance and advance the quality of the human capital resources in the country both at the local and national level.