The Nation Newspaper

Category: Insurance

  • 2012 results: Eight firms get NAICOM’s approval

    EIGHT out of the 22 insurance firms on the awaiting list of the National Insurance Commission (NAICOM) for approval of their 2012 International Financial Reporting Standard (IFRS) compliance accounts have finally scaled the hurdle. This is coming 10 days to the end of this financial year.

    The eight firms, which got their accounts approved are Oceanic Insurance Company Limited, Lasaco Assurance Plc; Crystal Life Insurance; Mutual Benefits Life Assurance Limited; Mutual Benefits Assurance Plc, Nem Insurance Plc; Linkage Assurance Plc and Union Assurance.

    This was made known by NAICOM in the ‘Submission Status Of 2012 Financial Statements of Insurance Companies as at December 20, this year.

    Before now, 21 out of the 59 firms were on the awaiting list, the remaining 13 were jostling for the regulator’s nod.

    Investigation, however, revealed that NAICOM, which approved the accounts of the eight companies in one week, has been working round the clock, to enable them pass the accounts of other companies.

    It was also gathered that the Board of Directors of some firms have relocated their Chief Financial Officers (CFO) to NAICOM headquarters in Abuja with an order that they get the accounts right to enable them secure NAICOM’s approval.

    But as the scrambling continues, six other firms are yet to submit their 2012 audited and annual reports. Only Guinea Insurance, which was among the awaiting list before now, was been able to submit. By tomorrow, these firms risk suspension of their licences, going by the provision of the Insurance Act, 2003.

    The firms that are yet to submit are Industrial & General Insurance Plc, International Energy Insurance Plc, NICON Insurance, Alliance & General, Alliance & General Life Assurance Plc and Goldlink Insurance Plc.

  • NCRIB splits, new body emerges

    Agroup of aggrieved brokers has broken away from the Nigerian Council of Registered Insurance Brokers (NCRIB).

    The splinter group broke away claiming their interest was not protected by the leadership of the NCRIB and was compromised by the dictates of the National Insurance Commission (NAICOM).

    The group has gone to the Corporate Affairs Commission (CAC) to incorporate a body known as Association of Professionals and Practising Brokers of Nigeria.

    However, the NCRIB said it has extended its olive branch to the break-away brokers and would continue to reach out to them.

    NCRIB President, Ayodapo Shoderu, while speaking during a media chat in Lagos, said the Council believes in dialogue in order to move the broking fraternity forward, adding that in as much as the NCRIB will not hinder people from associating, the Council was established by a charter; the Insurance Act of 2003 making it the only body empowered to register brokers in the country.

    He said in spite of this, the Council’s is poised to listen to the factions in order to address their misgivings and resolve all issues amicably.

    According to him, the faction is yet to embrace the invitation extended to them.

    He said: “We cannot stop anyone from associating but we have the rights by a charter, the Insurance Act, 2003. Therefore all intending broker have to register with the NCRIB. The break-away brokers cannot register any broker so we believe it is just a distraction for us.

    “NAICOM ensured sanity in the broking sub sector through the harmonization of provisions of the law regarding NCRIB Registration and NAICOM licensing. The day is gone when unscrupulous brokers hide under either of the two bodies and by so doing misleading the insuring public.

    “This collaboration between the NCRIB and NAICOM should continue for the benefit of the insured and the overall growth of the industry. On the part of my team, I pledged to do all within our powers to ensure maximum cooperation with NAICOM and to ensure that no charlatan breaks the ranks of insurance broking anymore”, he said.

  • NCRIB seeks prompt claims’ settlement’

    NCRIB seeks prompt claims’ settlement’

    The National Insurance Commission (NAICOM) must enforce prompt settlement of claims on underwriting firms, President, the Nigerian Council of Registered Insurance Brokers (NCRIB)Ayodapo Shoderu has said. He spoke at the NCRIB members’ evening hosted by WAPIC Insurance Group, in Lagos.

    He said the directive became necessary because of the importance of claims in the business.

    He urged the regulator to be stringent on its stand on prompt settlement of claims, adding that claims payment remains the best advertorial to boost the industry’s image.

    He said: “One of the areas of interest of our council is the need for underwriters to always pay claims expeditiously. While many underwriters are striving to strictly to the time limits for claims payment to clients, some still do err in this regard.

    “Considering the place of claims payment in insurance’s image and acceptance, the Council under my leadership has taken up the matter with NAICOM during my recent visit to the Commission. We urged NAICOM to consider a directive to underwriting companies on the need for them to be prompt in the settlement of claims to clients.

    “Since the sustenance of any insurance industry is its ability to pay claims promptly, our opinion is that the Commission should be more stringent on its stand or directive to insurers on claims payment, the same way the Commission frowns at brokers with regards to remission of premium.”

    He said NCRIB and NAICOM would continue to partner in enforcing ethical practice, urging operators to play according to rules.

    Acting Managing Director WAPIC Insurance Group, Ashish Desai, said the firm has been repositioned. He called on stakeholders to join hands to enable the industry takes its position in the economy.

  • Cornerstone makes N543m profit

    Cornerstone makes N543m profit

    Cornerstone Insurance Plc has made a pre-tax profit of N543.9 million in its 2012 financial year. This is 259.92 per cent growth over a loss of N340.1 million in 2011.

    This firm made this known during the company’s 21st Annual General Meeting (AGM) in Lagos. It made gross earnings of N4.6 billion against N4.2 billion in 2011, an 8.2 per cent growth in turnover over the company’s performance in the preceding year.

    Its income grew by 54.2 per cent to N2.4 billion; the previous year it was N1.5 billion.

    The total assets rose to N12.1 billion. It was N11 billion 2011, an increase of over 100 per cent.

    Meanwhile, shareholders’ funds grew to N6 billion compared to N5.5 billion in 2011.

    The firm’s Chairman, Dotun Sulaiman said the company has approved a five-year plan. It involves overhauling its retail business, strengthening its distribution partnerships, growing microinsurance channels and refocusing the takaful business.

    “We are also rebuilding our technology platform and securing the human resources required to drive the implementation of the new plan by bringing in new skills, retraining existing staff and reviewing remuneration to reward performance and achieve greater alignment.”

    Sulaiman said the successful implementation of these plans would would lead to profi and enable it to resume payment of dividends.

  • STI hosts Fifth Table Tennis tourney

    STI hosts Fifth Table Tennis tourney

    SOvereign Trust Insurance (STI) Plc has hosted its Fifth Annual Ikoyi Club 1938 Table Tennis competition for members and their spouses.

    The three-day competition had members compete for laurels in the various categories.

    The event held at the Table Tennis Section of the Ikoyi Club1938.

    Chairman, Table Tennis Section of Ikoyi Club 1938, Otunba Femi Oduntan, thanked the management of STI for its support, appealing to other corporate organisations to emulate its gesture.

    He said: “The least that any corporate organisation can do is to be socially responsible by contributing the little they can to the development of their immediate community and the nation at large.

    “Sovereign Trust Insurance Plc has consistently shown its commitment to the promotion of sports and the development of young talents to further enhance the human capacity in the sports industry”.

    STI’s Head, Corporate Communications and Brand Management, Mr. Segun Bankole, said his firm would continue to support the promotion and development of sports, adding that it is one of the key elements in the firm’s corporate social responsibility (CSR) .

    He said the CSR policy of the firm recognises sports as an integral factor in achieving a healthy society and contributing to its advancement.

  • Seven firms fail to submit financial reports

    Seven firms fail to submit financial reports

    Seven insurance firms out of of 59 are yet to submit their 2012 audited annual reports to the National Insurance Commission (NAICOM), eight days to the end of this financial year.

    The firms are Guinea Insurance Plc, NICON Insurance, International Energy Insurance Plc, Alliance & General, Alliance & General Life Assurance Plc, Goldlink Insurance and Industrial & General Insurance Plc.

    NAICOM made this known in its 2012 Submission Status Report on Insurance Companies Financial Statements.

    The defaulting firms risk cancellation of their operating licences, even as they are already in breach of last June 30 deadline for submission of accounts.

    Section 26 of the Insurance Act, 2003, states: “Failure to file annual return constitutes a ground for cancellation of their operating and an insurer shall be deemed to have failed to file its annual returns if the provisions of the section are not met 12 months after the end of the financial year.”

    However, 22 have submitted, but are yet to get the nod of the regulator. This is even as most of them have been on the awaiting list for over three months.

    They include Mutual Benefits Assurance Plc, Lasaco Assurance Plc, Crystal Life Insurance, PHB Insurance Plc, Great Nigeria Insurance, Oceanic Insurance Company Limited, Wapic Life Assuarance Ltd, Nem Insurance Plc, Lasaco Life Assurance, Linkage Assurance Plc and Mutual Benefits Life Assurance Limited.

    Others are Union Assurance Limited, Nigeria Reinsurance Corporation, The Universal Insurance Company Ltd, Staco Insurance PLc, Capital Express, Standard Alliance Insurance Plc, African Alliance Insurance Plc, Anchor Insurance, Nigerian Agricultural Insurance Corporation and Unic Insurance Plc.

    Meanwhile, 30 firms have complied with the International Financial Reporting Standard (IFRS).

    They are Mansard Insurance Plc, ADIC Insurance, WAPIC Insurance, Consolidated Hallmark, Oasis Insurance, FBN Life Assurance, Continental Reinsurance Company Plc, AIICO Insurance Plc and Leadway Assurance Company Ltd.

    Others are Crusader General Ins. Ltd, Crusader Life Ins. Ltd. UBA Metropolitan Life Ins. Company, Zenith Insurance Company Ltd, Unitrust Insurance Company Ltd, Unity Kapital Assurance Plc, Standard Allied Life Assurance, Custodian & Allied Ins. Plc, Regency Alliance Company, Royal Exchange Assurance Plc, Sovereign Trust Insurance Plc, Zenith Life Insurance Ltd, Royal Prudential Life Assurance Plc, Sterling Assurance Nigeria Ltd, Law Union & Rock Insurance Company Plc, Cornerstone Insurance Plc, Oceanic Lif e Assurance Plc (Old Mutual), Prestige Assurance Plc, FIN Insurance Ltd, Niger Insurance Plc and Equity Assurance Plc.

    Commissioner for Insurance, Mr Fola Daniel has, however, criticised insurers who have not submitted their last year’s report, saying the companies might be sending a wrong signal to the industry.

    The Commissioner, who spoke in Ilorin, assured that the industry is healthy, noting that the Commission would ensure that their investments erre not jeopadised.

    Deputy Manager, Supervision, NAICOM, Cyprian Amadi, said insurers refused to be carried along by the Commission in the transition to the IFRS.

    He accused insurance firms of submitting poorly prepared statements.

    He said: “NAICOM made series of efforts to ensure that insurance companies buy into the IFRS mandate, but the indifferent attitude of these insurers frustrated all their efforts.

    “We took time to train insurance companies on IFRS but they still did not get it right when they started submitting their financial statements.

    “Some of them have refused to do what is right. They keep submitting accounts that the figures do not add up. Some also employ the services of consultants who only copied what was written in textbooks without any practical experience. These consultants have not been involved in practical IFRS transition as such cannot get it right and such attitude does not help anybody.”

  • NAICOM inaugurates steering committee on micro-insurance

    NAICOM inaugurates steering committee on micro-insurance

    The National Insurance Commission (NAICOM) has inaugurated a 14-man steering committee made up of representatives of stakeholders across the financial services market to assist in making the micro-insurance initiative successful.

    NAICOM has also said the guidelines on micro-insurance will take effect from January 1, 2014 with the objective of providing minimum standards for the conduct of micro-insurance in the country.

    The committee, which is headed by the director-general of the Nigeria Insurers Association (NIA) has representatives of NAICOM, Central Bank of Nigeria, FSS2020, NIA, German Cooperation (Giz), National Health Insurance Scheme (NHIS).

    Others are Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), LeapAfrica, National Association of Micro Finance Banks, the Nigerian Council of Registered Insurance Brokers (NCRIB), Industrial and General Insurance Plc, Association of Registered Insurance Agents (ARIAN), Institute of Loss Adjusters of Nigeria (ILAN) and others.

    The terms of reference for the committee include; developing the action plan for micro-insurance implementation in Nigeria,  identifying and making recommendations to NAICOM on issues that affect micro-insurance implementation in Nigeria; make recommendation on possible improvement that can be made on regulatory and operational framework; and any other assignment as may be directed by the regulator.

    Commissioner for Insurance represented by Deputy Commissioner, Finance and Admin, Mr. George Onekhena who inaugurated the committee at the NAICOM Office in Lagos tasked them to start working on the terms of reference earlier announced during the launching of the guideline.

    He said the introduction of micro-insurance would help reposition insurance practice in the country, adding that it would help deepen penetration and reach to the public at the grassroots.

    He called on would-be-operators to leverage the opportunities provided by technology and initiatives in the banking sector to reach out to the public, stressing that without technology, it would be difficult for the operators to operate successfully.

    He also urged the committee to explore the successes recorded in other nations where the practice has been entrenched and workout measures that would make the practice successful in the country.

    He said the objectives of the guidelines it is to ensure consumer protection, establish general features of micro-insurance, establish duties and responsibilities of micro-insurance operators and service providers, establish conditions for entry and exit from the micro-insurance market.

    According to him, the concept of micro-insurance products is insurance products that are designed to be appropriate for the low income market in relation to cost, terms, coverage and delivery mechanism.

    Chairman of the committee, promised to leave up to the confidence reposed on them, adding that the job assigned them is significant and that they would give it the seriousness required.

    He said the committee would engage in studies, consultations and examine how nations that are making progress got to where they are.

  • ‘Capacity underutilisation in real sector hinders growth’

    Underutilisation of capacity in the real sector is affecting growth in the insurance sector and the nation at large, Director-General of the Nigeria Insurers Association (NIA), Mr. Sunday Thomas has said.

    The DG, who made this known in Ijebu-Ode said there is underutilisation of capacity in the real sector. According to him, when the real sector is not doing well, it becomes difficult for the insurance sector to grow.

    He said government has however continued to say it is doing its best for the industry, adding that its best isn’t good enough.

    He said: “We expect that from some of the privatisation taking place in the power sector, apart from producing power, it will also deepen the sector. It should create employment and boost the efficiency in power generation.

    “This will enable the real sector to produce and increase its capacity. We believe that the insurance sector will be a beneficiary if the real sector performance is high.”

    Speaking further on the growth potentials of the insurance market, Thomas urged insurers to work harder to meet the growing demand and expectations of consumers in the country.

    He noted that the industry has an advantage of a huge population of about 170 million and should leverage on it.

    He said: “We talk about low penetration but we see it from a negative perspective and not from the opportunity that is available. The regulator, the National Insurance Commission (NAICOM) is doing a lot in the area of market development with the Microinsurance and Takaful guideline issued and many other initiatives.

    “All these are expected to increase the level of penetration and to this effect, a lot of foreigners are coming in. We are lucky the regulator said it won’t allow them set up new firms but should rather buy into existing ones. Otherwise, they would have taken over the structure of the market.

    “But I think it is good that other people from other jurisdictions are coming in to see how competitive this market can be in terms of service delivery because the Nigerian economy will be better if we do it and do it very well.

    “What the consumers are expecting from us now is very high in terms of service because insurance awareness among them has also grown.”

     

  • Custodian embraces sustainable insurance

    Custodian and Allied Insurance Plc, a registered member of the Nigerian Insurance Association (NIA), has emerged as the first Nigerian direct underwriter to join the United Nations Environment Programme Finance Initiative (UNEP FI).

    The underwriting firm is also a signatory to the initiative Principles for Sustainable Insurance Initiative launched at the RIO+20 UN Summit on Sustainable Development in June 2012.

    Speaking on this development, the Managing Director, Custodian and Allied Insurance, Mr Wole Oshin said: “Custodian is committed to the sustainable development of its environment through proper governance and risk engaging methods.”

    According to him, the company has consistently been environmentally conscious and is determined to contribute its quota to the principles in a responsible manner.

    He said the world is facing increasing environmental, social and governance challenges which present diverse, interconnected and complex risks as well as opportunities which must be prudently managed.

    In recognition of this, Oshin said the firm’s operations and activities impact on the environment, economy and society and realise the importance of ensuring they are carried out positively and in a forward looking manner.

    Oshin added that in order to internalise the firm’s commitment to identify, assess, manage and monitor the risks and opportunities associated with environmental, social and governance issues, it has continuously putting in place strategies, systems and processes to ensure transparency, traceability, compliance and accountability in a constantly evolving operating environment.

    “We will continue to demonstrate our commitment to sustainable insurance and integrating environmental, social and governance factors in our operations,” he said.

    Custodian and Allied Insurance is quoted on The Nigerian Stock Exchange (NSE) and is approved by the regulatory bodies in Nigeria to offer insurance services.

  • Firm launches safety campaign

    To help safeguard lives this ember season, Old Mutual Nigeria has begun a radio campaign tagged Old Mutual Safety Tips.

    Group Chief Executive Officer, Old Mutual West Africa, Offong Ambah who disclosed this, said the safety campaign is to enlighten the public on protection tips and safety measures covering everything that can constitute a threat caused by natural occurrences.

    Ambah stated that despite unavailable statistics, the ‘ember’ season is often associated with an increase in accidents and death, which often occur due to people’s carelessness.

    He said: “During this period in the year, the roads are usually busier with a higher risk of accidents; and it is the tradition for people to use fireworks despite the fact that they are a life-threatening hazard. People are also exposed to safety risks at work, home and in their neighbourhood. As such, Old Mutual Nigeria has decided to focus on those seemingly minor details we ignore in our daily lives which pose a threat to our safety and those of our loved ones.

    “Part of the values of the Old Mutual Group of which Old Mutual Nigeria is a subsidiary, is to support the communities in which it operates by contributing positively to their wellbeing. This campaign is in line with this value; it is our own way of helping to safeguard lives.”

    He reiterated that the Old Mutual Nigeria provides a range of insurance solutions tailored to meet its customers’ needs. Its current life product offerings include the Group Life Assurance & the Credit Life Assurance.

    He stressed that Old Mutual group is looking to invest about $600m across East & West Africa of which Nigeria is a critical part of that expansion strategy. The company completed the acquisition of a majority stake of Oceanic Life from Ecobank Transnational Incorporated (Ecobank) in April 2013. Old Mutual Nigeria would be combining local resources and skills at its disposal and leveraging off the Old Mutual Group capabilities and experience around the world.

    The safety radio campaign is running in Abuja, Lagos and Port Harcourt on Cool FM Lagos & Abuja, Wazobia Port Harcourt, Nigeria Info FM Lagos, and Smooth FM Lagos, he added.