The Nation Newspaper

Category: Insurance

  • Custodian & Allied grows profit to N4.3b

    Custodian & Allied Plc has recorded a profit after tax of N3.6 billion in its audited annual results for the year ended 31 December 2013.

    The Custodian Group’s total asset base stood at N45.6 billion, a result achieved on the back of its robust insurance subsidiaries with gross premium written at N22.9 billion.

    The Group however earned a gross premium of N18.7 billion plus notable fees and investment income contributions from the pension fund administration subsidiary and the holding company.

    A Director of the firm, Mr Wole Oshin who disclosed this in a statement said the Group remains a leader in the other financial services sector and its subsidiaries led in their respective sectors.

    He stated that going by this achievement in the year under review, Custodian’s performance demonstrates its commitment to clients and shareholders.

    He said: “We will always endeavour to remain one of the most attractive stock options in the financial sector, through innovative services, expanded product portfolio, improved operational efficiencies and stronger financial capacity. The merger exercise we concluded last year is yielding favourable results and we will not rest on this performance. We have expanded services offered from General Insurance to Life Business, Pensions and Trusteeship and remain committed to upholding the best standards and practices in the financial sector in Nigeria”.The Custodian and Allied Plc Group is a wholly owned Nigerian investment holding company quoted on the Nigerian Stock Exchange.

  • STI promotes media excellence

    STI promotes media excellence

    • Partners DAME

    Sovereign Trust Insurance (STI) Plc has collaborated with Diamond Publications Limited, organisers of the Diamond Awards for Media Excellence (DAME), to further promote professionalism among journalists with special focus on insurance reporting.

    Managing Director, STI, Mr Wale Onaolapo, represented by the Head, Corporate Communication and Brand Management, Mr. Segun Bankole, at a one-day media workshop organised for journalists, said there is need to learn and improve in any profession.

    The theme of the one-day workshop was ‘Widening the pools of excellence.’

    It held at the Sheraton Hotels and Towers, Lagos.

    Onaolapo said the importance of the media cannot be undermined, hence the need to improve on the pratitioners’ skills. He noted that it is critical for journalists to maintain their role as watchdogs of the society.

    He said the public will only get the best from journalists when the reporting is of good standard premised on proper research and objectivity.

    He enjoined the participants to take advantage of the new insights they have been exposed to and let it reflect in their work in the years ahead.

    He noted that STI would continue to support knowledge acquisition initiatives in promoting the advancement of the insurance industry.

    He said: “The media in any society act as the barometer for social conscience and they must be encouraged to continue to play this very critical role. The company signed on with Diamond Awards for Media Excellence DAME, since 2008, to sponsor in perpetuity, the Insurance Award for Journalists at the yearly event.”

    The Chief Organiser and Administrator of DAME, Mr. Lanre Idowu, said the initiative was borne out of the need to enhance journalists’ professionalism and equip them with modern methods of news gathering for better reporting.

    He said further: “If the goals of impacting positively on the Nigerian Media development landscape are to be realised, reporting standard must be urgently improved upon.”

    He said the support from the firm had been strong, hoping that other corporate organisations would emulate the initiative.

  • Idowu is CIIN’s Staff of the Year

    To reward excellence, the Chartered Insurance Institute of Nigeria (CIIN) has introduced the Staff of the Year Award.

    It announced that Idowu Owa won the award for last year.

    In a statement by its Director, Corporate Affairs, Joseph Obah, the decision was reached through a stringent selection involving nominations by the staff.

    He said it also came as a result of CIIN’s Director-General, Mr. Kola Ahmed’s resolve to reward excellence and to encourage greater diligence amongst the secretariat staff.

    Owa, who hails from Kogi State holds an Ordinary National Diploma in Tourism from the Federal Polytechnic, Idah, Kogi State.

    A staff member, who combines efficiency with effectiveness, Owa’s emergence is well deserved as the institute’s staff paid glowing tributes to him.

    The awardee joined the institute in 2007.

    The Director-General of the CIIN, Mr Kola Ahmed, while presenting a commemorative plaque to Mr. Owa, enjoined him not to rest on his oars, but endeavour to achieve more successes in any given task.

    Ahmed also encouraged all other staff to see this year’s awards as a motivation to strive to do better in their duties.

  • NAICOM releases guidelines on commissions, rebates, refund premiums

    The National Insurance Commission (NAICOM) has released new guidelines to monitor charges on rebates, commissions, return and refund premiums.

    NAICOM’s new Deputy Commissioner, Technical, Mohammed Kari, who made this known in a circular to all insurance institutions in the country, said the guidelines are in line with the statutory powers of the Commission.

    On rebates and brokerage commissions, the circular, stated it shall be illegal for any insurance institutions to solicit, offer, or allow commissions and/or rebates in the transaction of insurance businesses except as provided by the extant insurance laws and guidelines.

    It said: “For the avoidance of doubt, Over-Riding Commission, Business Acquisition fees and other similar fees not provided for by the Nigerian Insurance Laws shall not be solicited, deducted, offered or paid in respect of any insurance transaction in Nigeria, warning that “an Insurer, who grants or receives a rebate, offers, demands, pays or receives commission contrary to Section 53(1)-(3) of the Insurance Act 2003, may in addition to the penalty prescribed by Sections 53(4) and 76 of the Insurance Act, 2003, shall be liable to other penalties as prescribed.”

    According to the guidelines, “each Insurer shall submit a quarterly return on the rebates, brokerage commission and other fees paid out, or payable on all its production during the preceding quarter to the Commission, not later than 14 days from the end of the quarter. The return shall be in accordance with the format prescribed in form ICR2.3a.

    “In addition to the provision of Section 41(1) of the Insurance Act, 2003, a Broker shall submit to the Commission a copy of his dedicated client account, duly stamped and signed by the bank and a quarterly return of the brokerage commission received, receivable or deducted at source, taxes paid and rebates received during the preceding quarter on all businesses not later than 14 days from the end of the quarter.

    On return or refund premium, NAICOM said: “For the avoidance of doubt and in line with Article 3(9) of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Regulation, 2013, no insurer, broker or its agents shall charge or receive premiums in excess of the actual premium on an insurance policy that may result in refunding the excess amount paid or with the intent of returning the excess in any form, by cash or otherwise to the insured, its agents or any party.”

  • ‘Africa’s untapped market offers prospects’

    ‘Africa’s untapped market offers prospects’

    • ‘Nigeria gets more attractive’

    Insurance groups based in Europe, the United States and South Africa are looking to emerging markets on the African continent in a hunt for better growth prospects because of the maturity of their own markets, where growth is more limited.

    This was made known in a report titled, “Africa’s Insurance markets: Gearing up for sustained growth,” by A.M Best.

    The report showed that the over 160 million population of Nigeria offers a huge opportunity to the foreign investors.

    According to A. M Best, Sub-Saharan Africa offers very strong growth potential but accounts for only 0.2 per cent of total global premiums written, adding that “as a result, insurance groups in Europe, the United States and South Africa have increasingly started looking to emerging markets on the continent in a hunt for better growth prospects because of the maturity of their own markets, where growth is more limited,” the report said.

    “There are a number of attractive markets for insurers in Africa to consider, including Kenya, Nigeria and Ghana. Kenya’s insurance sector has proved robust and resilient, despite there being many poor households. Premiums have been growing by double digits, fueled mainly by the non-life sector, which makes up 66.2 per cent of total premium written.

    “Nigeria has the continent’s largest population at 174 million, and premiums are expected to nearly quadruple in the next five years to N1 trillion (about $6.3 billion) from N260 billion in 2012, according to the National Insurance Commission of Nigeria (NAICOM), while in Ghana, the life market is estimated to be growing by 40 per cent annually.

    The report said economic growth is supported by oil and gas exploration, political stability and a regulatory system that makes it attractive for businesses, adding that many large international insurance groups from developed countries have historically had a presence on the continent.

    It listed Zurich, with key hub operations in Morocco and South Africa; AXA Group, with a strong presence in Francophone Africa (including Algeria, Cameroon, Gabon, Côte d’Ivoire, Morocco, Mauritius and Senegal); Allianz Group, with a growing presence in 10 African countries, including Ghana, and American International Group, with well-established units in Kenya and Uganda and local partners in most African countries, as some of the firms.

    However, they have become more aggressive in their strategies for expansion on the continent.

    “The report said that the strong foreign interest in Africa’s insurance markets began toward the end of the 20th century, when Munich Re, the world’s largest reinsurer, established regional offices in West and Central Africa to service its clients. Since then, some companies from mature economies have entered the market, by either following their clients to Africa, or through partnerships’ joint ventures, the acquisition of a stake in an existing insurer on the continent, or by acquiring a new business license directly.

    “A few of such interests include the the 2005 Sanlam Financial Services Group, owner of Santam, South Africa’s largest general insurer, acquisition of African Life Assurance Co. Limited.

    “The group owns significant stakes in insurers in Botswana, Namibia, Zambia, Malawi, Mozambique, Tanzania and Kenya. It was also stated in February 2014, that Sanlam acquired a stake in the Nigerian stock-exchange, and listed Oasis Insurance to penetrate the country’s growing general insurance sector.

    “In 2009, Germany’s Allianz Group, was approved for a license by Ghana’s National Insurance Commission (NIC) to operate in the non-life and life sectors, as well as in commenced operations. The company is taking advantage of the very strong growth and positive fundamentals in the country and has actively expanded its network in Africa.

    “In December 2013, the United Kingdom’s largest life insurer by market value, Prudential plc, acquired a majority stake in Accra-based Ghanaian insurer, Express Life from LeapFrog Investments, a venture capital firm and specialist investor in financial services in Africa and Asia. Despite Express Life’s relatively small size, the deal is considered significant given Prudential’s entry to the market and its vast resources.

    “In February this year, London-headquartered specialty insurer Catlin Group, said it was considering expanding into territories, including Indonesia, Thailand, and Africa. The firm currently has six underwriting hubs in the US, London, Canada, Bermuda, Europe and Asia Pacific,” the report added.

  • GNI posts N903m profit

    • Unveils new board

    Great Nigeria Insurance Plc (GNI) has posted a profit after tax (PAT) of N903 million in its financial year ended 2012, representing a 119 per cent growth from the N399 million recorded in 2011.

    This is even as the company unveiled its new board members during the 48th Annual General Meeting (AGM) in Lagos following the conclusion of its divestment.

    The company also witnessed a growth in its gross premium, recording N2.88 billion and N2.4 billion in turnover.

    Total assets grew marginally at N8.43 billion in the year under review as against the N7.26 billion recorded in 2011, while N833 million was paid out as claims to its various customers.

    The new Chairman, Mr. Tokunbo Talabi, who made this known at the AGM, assured the shareholders of the board’s commitment to bringing to bear their various wealth of experience to ensure optimum performance by the organisation.

    The Directors are Mr. James Naiyeju, Mr. Bade Aluko, ArchBishop Felix Alaba Job, Mrs. FolusoOnabowale, Mr. Dapo Otunla, and Mrs. Cecilia Osipitan the Managing Director/Chief Executive Officer (CEO).

    Others are Mr. Rotimi Olukorede and Mrs. Roselyne Ulaeto.

    He said: “The company is evolving as all the indices point towards growth. The board is committed to its vision and mission and we will ensure sound fiscal discipline which will enhance profitability and growth.

    “The development of the domestic economy is a major desire of our company and we are eager to be among the leaders of change so as to enhance ultimately the purchasing power of all.

    “The expected continuous improvement in the operating environment will definitely serve as the pivot of our growth. We are committed to this growth. We intend to create wealth and meet the expectations of our various stakeholders.’’

    The Managing Director, Mrs. Cecilia Osipitan, said with the conclusion of the divestment process, the firm is now fully focused on growing its bottomline, implementing the re-engineering initiatives and customer service improvement programme’.

    She said following the Central Bank of Nigeria’s directive for banks with subsidiaries to either sell off their subsidiaries, or adopt a holding structure, Wema Bank Plc, the majority shareholder of the 54-year-old firm, decided to sell its stake in the company.

  • Continental Alarm introduces fire detector

    For insurance firms to protect themselves from high fire and allied claims, Continental Alarm Limited has introduced a device, the Videofied Optical Smoke detector, that will help curb huge claims in the industry.

    The Managing Director Continental Alarm, Mr. OkwyOkeke, while launching the product at a seminar on ‘Curbing losses due to fire and allied claims,’ organised for operators in Lagos, said individuals and other corporate organisations can also curb fire in their homes and organisations.

    Okeke noted that insurers are burdened with significant fire and allied claims, resulting in Mansard Insurance paying about N250 million last year, Sovereign Trust Insurance Plc paid over N186 million.

    According to him, the insurers are beginning to groan under the high claims paid out onfire and allied claims.

    He said the device may as well be the silver bullet for fire and allied insurance same way the auto-tracker has been to auto insurance.

    He said: “Not too long ago, the industry was virtually helpless in face of car theft and vandalism. It initially responded with different low-level technological innovations to protect itself. “We recall the days of double locks on auto doors, especially the Peugeots, and 504 in particular.

    “Then we saw pedal locks, steering locks, demobilisers, fuel-cuts, etc., however these devices were more of inconveniences to auto owners that though many bought them in a moment of panic and anxiety and they ended up not using them as recommended.

    “Both auto owners and insurance companies continued to experiment with different gadgets until the auto-tracker arrived the scene.Auto-trackers are so successful in curbing auto theft it became an instant industry hit. The insurance companies took it to the next level by installing them on their account for vehicles above a certain value threshold, it was a no-brainer and many of us wondered why it took them so long to figure”.

    He said technology has solved many problems in our world and mobile technology has changed the way we live in Nigeria in the last 12 years of so.

    This, he said, would continue to do so even as the simple Subscriber Identification Module embedded in a plastic (SIM Card) is adapter to transmit different forms of data.

    He explained that using a simple smoke detector with an embedded SIM Card many losses due to fire can be curbed just as the auto-tracker has vehicle theft.

    “Our smoke detector will wirelessly transmit a text message and initiate a phone call to you besides just sounding an alarm in the event that it detects smoke unlike the conventional smoke detectors that sounds an alarm on site with little or no chances that the alarm will be heard and by the right person.

    “This Videofied Optical Smoke Detector is a simple device that will help insurance companies save on claims,” he added.

  • Operators not complying with anti-money laundering, terrorism rules, says NFIU

    Many operators are not complying with Anti-Money Laundering and Combat of Financing of Terrorism (AML/CFT) rules in the country, Director, Nigerian Financial Intelligence Unit (NFIU), Francis Usani, has said.

    Usani, at an AML/CFT training for insurance and reinsurance firms and brokers in Lagos, said the Unit would sanction erring operators, saying most operators are still defaulting on reporting suspicious transactions.

    He noted that the Unit has intensified efforts to sensitise the operators to enable them to live up to their responsibilities.

    He said while the unit continues with the sensitisation, any firm found violating the law would be sanctioned in line with the provisions of the law.

    Assistant Director, National Insurance Commission (NAICOM), Mr. Sam Onyeka, said the business environment is getting complex and only institutions that are able to manage their risks efficiently and particularly in accordance with, AML/CFT risk, will survive.

    He said: “AML/CFT compliance is an international obligation and all acts of noncompliance attract sanctions which include N1 million and N10, 000 for each day the offence continues.

    “The Know Your Customer (KYC) requirements are absolutely compulsory. In line with FATF requirements, NAICOM will step up AML/CFT regulatory activities for Insurance Brokers,” he said.

  • ILAN seeks NAICOM’s intervention in dispute with underwriters

    ILAN seeks NAICOM’s intervention in dispute with underwriters

    • NIA sets up Committee

     

    The Institute of Loss Adjusters of Nigeria (ILAN) has called on the Nigeria Insurers Association (NIA) and the National Insurance Commission (NAICOM) to intervene in its dispute with underwriters over the poor fees paid on their scale of service and issues of delayed payments.

    ILAN President, Chief Lebi Omoboyewa, who made the call in Lagos, said the dispute has remained unresolved for many years.

    He said there is urgent need for intervention by the Commissioner for Insurance, Mr. Fola Daniel to avoid unethical practice in the profession.

    He said: “Over the years, underwriters pay us poorly and in some other instances, delay our payment. This has been bothering us. Adjusters in Nigeria had an agreement with the underwriters over 50 years ago on scale of fees. Some few years back, we went back to NIA to let us agree on a new fee for our service by reviewing it upwards. This was in view of inflation which has rendered loss adjusters to operate below economic level.

    “Presently, quite a lot of adjusters have been frustrated out of service, whereas in the industry, the older you are, the more experienced you are supposed to be. But when this people are treated with indifference, they go away.

    “Quite a number of underwriters see adjusters as mere contractors forgetting that we are equally professionals like them before we branched into the specialised area of loss adjusting. We also play the balancer between them and the insuring public,” he said.

    Omoboyewa noted that the underwriters treat them like beggars after rendering service to them, adding that the institute has complained to the Commissioner, who rationalised the issue as a trade dispute.

    “We have complained to the commissioner who said it is a trade issue. But we believe that all arms of the industry, including loss adjusters, underwriters, brokers and agents are under NAICOM and if one arm is aggrieved, it is the duty of the Commission to seek audience with the two parties and find a way of resolving their problems.

    “We believe that there is no amount of money you spend on advertisement without maintaining a sound understanding and confidence between you and the insuring public, your money goes down the drain. It is the adjusters that can say what underwriters should pay to the satisfaction of the public.”

    Omoboyewa said despite the setback and the frustration on their members, the Institute has continued to ask the members to continue to obey the ethics of the profession.

    He wondered how long the loss adjusters can hold-on to this if proper things are not done.

    Reacting to the ILAN president’s claims, NIA Director-General, Mr. Sunday Thomas, said the association has set up a committee to look into the matter.

    He said the loss adjusters are paid based on percentage, irrespective of the claims figure.

    He said that as the amount of claims go up, the fee they are paid also increase, noting that insurers and other arms of the industry are all victims of low fee and rate in the industry.

    He said: “We are all victims and we have explained to the loss adjusters that we are partners in progress. A committee is already looking into the matter and if there is need for adjustment in the fee we pay to them, we will do it.

    “On the issue of delayed payment, we have told them to report any insurance company that has refused to pay them beyond the 90 days stipulated period. But none of them have filed any report with us.”

  • NCAA mulls third party passengers’ liability cover

    NCAA mulls third party passengers’ liability cover

    The Nigeria Civil Aviation Authority (NCAA) is planning to provide third party passengers’ liability cover, The Nation has learnt.

    This is coming on the heels of accusations by insurance operators of encroachment on their business by government agencies in the aviation sector.

    The operators said NCAA is planning to provide insurance protection to aviation passengers.

    NCAA spokesman, Mr. Sam Adurogboye told The Nation that the agency is championing the course to provide the third party cover.

    He said: “On the additional third party passengers’ liability cover claim, the NCAA is championing it and it is still at the formative stage.

    NCAA has, through the ministry of aviation, gone through the due process and gotten the necessary approval. Also, private Nigerian insurance firm has been selected to participate in the project.

    “It is pertinent to point out here that the National Insurance Commission (NAICOM) is an ally of NCAA on insurance matters as they provide the necessary guide to the authority on the credible and accredited insurance firms that are qualified to operate in the country.

    “At present, Nigerian airlines are in compliant of the local content law and NCAA ensures that the operators abide by this law before going to place their insurance abroad. This is upon satisfaction that the full content or cover cannot be fully provided locally”.

    Adurogboye added that one of the key elements an airline must put in place before NCAA allows it to operate is insurance.

    If the insurance of any aircraft has expired, it’s required that the plane must not fly. Violation is viewed seriously and it is,s in fact, a criminal case.