The Nation Newspaper

Category: Insurance

  • Crisis hits West African Insurance Institute

    ALL is not well at the West African Insurance Institute (WAII) based in Banjul, The Gambia.

    There are allegations of financial impropriety and harassment of teachers and students against its Nigerian-born Director-General (DG) Prof Mike Ikupolati, a development that has made him to quit.

    The DG resigned on October 28 after accusations and counter accusations of wrong doings were levelled against him.

    Sources said the institute that was supposed to resume a new academic session in September could not. It had to postpone it to the first quarter of next year to enable the council get a new head.

    However, Ikupolati told journalists in Lagos that his hands were clean. He said the allegations were mere boardroom intrigues and petty jealousies orchestrated by a few unscrupulous elements who were bent on putting tar on his 35 years’ service and wanted him out.

    Because of the the crisis, the WAII Governing Council held a meeting after the WAICA Education confab in Lagos.

    But the WAII’s Insurance Foundation Course (IFC) Coordinator in Nigeria and Deputy Managing Director, Industrial & General Insurance Plc (IGI), Mr. Rotimi Fashola, said investigations by the Council proved that there was no evidence to show that Ikupolati harassed his female staff and students, adding that no nobody came out to testify against him.

    He added that his books were clean, because, according to financial records, he did not misappropriate the institute’s funds throughout his 12-year tenure.

    He said: “Rather, it was noted that he was putting his personal funds into the running of the institute besides using his international network to better the lots of the 35-year-old institute and moved it from monolithic institution to degree and postgraduate degree awarding institution within the 12 years of his reign as WAII boss.

    “Also revealed is that the institute most times has been starved of funds and he explored alternative means of ensuring that academic programmes of the school were not disrupted”.

    “We looked into the financials and there was nothing to suggest that he misappropriated the funds. And by the way, where are the funds? This guy would work for the United Nations and donated the money to the school, consulted for Liberian Government and donated the money to the school. Where is the surplus for him to have misappropriated?’’ Fashola queried. Sometimes in six consecutive months, he will not be paid his salaries and he will be working as if nothing happened.

    “This year, for instance, he did not take his salaries from January till October before he eventually resigned due to the inability of member-governments to pay their subventions. Only the Nigerian government did not owe as at October 2013 out of the five member-countries. So, from where will the financial misappropriation come from?’’

    Formed in 1973, the insurance association committed to the development of insurance decided to get a subregional institute. This led to the government of the five West African countries to sign a Memorandum of Understanding (MoU) with the United Nations Conference on Trade and Development (UNCTAD). The UNCTAD is devoted to manpower training in developing countries.

    In August 1978, an agreement that gave birth to WAII between UNCTAD and the governments of the five Anglophone countries, Nigeria, Ghana, The Gambia, Liberia and Sierra Leone was signed.

    WAICA represents the West African insurance industry and was made a founding member of WAII.

  • ‘Innovate to deepen health insurance’

    FOCUS on innovation, especially product development, would deepen health insurance penetration in the country, Managing Director Avon Healthcare Limited, Mrs. Adesimbo Ukiri, has said.

    She spoke in Lagos. According to her, innovation should play a leading role in the evolution of health insurance and the drive to achieve universal health coverage in Nigeria.

    She noted that with a population of about 170 million, the ability to innovate and come up with different products to meet the needs and requirements of the diverse market segments that exist in the country is crucial.

    She also called for innovation in channel development, which in her view is a requirement for offering health insurance products to previously un-served market segments.

    This, she said, would open up new opportunities for the industry.

    Ukiri, who observed that the informal sector, had been ignored by health insurance companies with the focus of most HMOs on a maturing and over served corporate market segment, said there was need for concerted efforts among HMOs in the industry.

    She said: “We need to move away from this trend if we are to progress beyond the current four per cent health insurance market penetration. We find that there is room for innovation in the use of marketing channels and the way HMO products are being offered to the market. There are limited number of people who can be reached when industry players rely heavily on their sales staff.

    “This has meant there is a large proportion of informal sector segment who would like to buy into health insurance services but have been unable to do so.”

    For her firm, she said the company would continue to play a key role in innovations that will ensure healthcare was accessible to all.

    “At Avon HMO, we are talking to our peers about the need to collaborate in order to innovate. The market is one of great scale and the industry must work together to create the structures needed to achieve rapid market penetration.

    “This will lead to extended reach, expanded market size, more efficiently priced cost of care, wider benefit coverage on plans and ultimately, lower premiums per head,” she added.

  • Lagos assures CIIN of support

    • 158 graduate from institute

    Lagos State government has assured the Chartered Insurance Institute of Nigeria (CIIN) of its support in the provision of its insurance textbook to secondary schools in the state.

    Commissioner for Education, Mrs. Olayinka Oladunjoye gave asurance during the CIIN Graduation and Awards and the launch of its book “Insurance for Secondary Schools” in Lagos.

    The commissioner said she would buy the book as part of their support for insurance education growth in the country.

    CIIN President, Mr. FataiLawal, said the institute would donate three copies of the book to the over 2,000 public secondary schools.

    He noted that this is a significant step in the campaign to facilitate the teaching and learning of Insurance in secondary schools.

    Speaking about the institute professional examinations, he stated that the institute has successfully demonstrated its commitment to the actualisation of its three-tier examination structure which allows qualifiers at each level of the examination to obtain a certificate of completion.

    The exam structure, he said, is a flexible and learner-friendly geared at motivating greater interest in the attainment of professional qualification.

    He emphasised the determination of the institute to strengthen the exam system through regular review of its syllabus and exam structure.

    He said: “Emerging challenges facing the insurance industry today not only require a fresh impetus in human capital development but also a renewed vigor and approach to skills recreation in order to adequately equip practitioners for the huge tasks of managing the current realities in the environment. The industry is faced with a need to deepen insurance market penetration and cope with emerging risks brought about by changing natural and social circumstances.

    Meanwhile, 158 members graduated from the institute this year while 14 became fellows.

  • Ignorance hinders insurance growth, says Gbong Gwom Jos

    Ignorance hinders insurance growth, says Gbong Gwom Jos

    The Gbong Gwom Jos Da Jacob Gyang Buba has said the apathy to the insurance industry is caused by ignorance and lack of understanding of its merits.

    The monarch spoke in Jos, the Plateau State capital, when the management of the National Insurance Commission (NAICOM), led by the Commissioner for Insurance, Mr. Fola Daniel, paid him a courtesy call.

    The Gbong Gwom Jos noted that the misgivings might have been due to the activities of a few operators who engaged in sharp practices in the past, and that such problems were not peculiar to the industry.

    “Just like any other sector of the economy, the activities of a negligible few may have given rise to such negative perception. But that was not enough to over look the good the industry has to offer the people.

    “The people will derive more value from the services of insurance as the industry grows,” the monarch said.

    He appealed to operators to be more forthright in their dealings with the public to erase the negative perception of the people about the sector.

    He advised NAICOM to embark on aggressive public enlightenment to educate the people on the benefits of insurance.

    He urged the Commission to organise one of such campaigns in Jos.

    The monarch said he would not only support the campaign, but also appeal to the state government to align with the literacy awareness drive of the commission.

    Earlier, the Commissioner for Insurance had told the traditional ruler and his chiefs that the era of insurance firms collecting premiums and not paying claims was over.

    He said any policyholder who believed he had been wrongly treated by an insurance company should approach the Commission for redress.

    He added that NAICOM not only has the power to regulate, but also discipline any erring insurance company.

    The Commissioner for Insurance also educated the monarch and his chiefs on the usefulness of insurance as a tool of risk management.

    He said insurance is one of the “cheapest means of managing risk but it is largely misunderstood”.

    He added that the Commission would soon embark on an awareness drive.

    “We believe that one of the platforms we can use to reach the people is that of traditional rulers and that is one of the reasons we have come to visit His Royal Majesty.”

    “We believe if we can get the buy-in of His Royal Majesty, we will be able to get the message across to the grassroots easily,” daniel said.

  • Regency Alliance records N391m profit

    Regency Alliance Insurance Plc has recorded a profit after tax of N391 million in its financial year ended December 31, 2012, from the N21 million recorded in 2011.

    The gross premium written rose from N2 billion in the preceding year to N2.2 billionin in the year under review, representing an increase of 13 per cent.

    The underwriting profit also increased by N274.2 million from N786.1 million to N1billion, as adjusted, using the International Financial Reporting Standard (IFRS).

    Chairman, Regency Alliance, Justice Adolphus Karibi-Whyte, who made this known at the firm’s Annual General Meeting in Lagos, said management expenses increased by eight per cent in the review period when compared with that of last year.

    He said dividend was not recommended owing to the accumulated deficit in the retained earnings.

    He said the contribution of the subsidiaries to the groups’ profit after tax, after deducting what is attributable to non-controlling interests, increased from N9.3 million in 2011 to N38.6 million in 2012.

    He said: “In line with the decision of the Federal Government, significant public interest entities and companies listed on the Nigeria Stock Exchange were mandated to prepare their financial statements in line with the IFRS which replaced the statement of accounting standards which were issued by the defunct Nigeria Accounting Standards Board.’’

  • Ahmed is CIIN DG

    The Governing Council, Chartered Insurance Institute of Nigeria has appointed Mr. Kolawole Raheem Ahmed as Director-General (DG).

    In a statement, the body said Ahmed is assuming the position after running the secretariat in an Acting capacity, following the retirement of Mr Adegboyega Adepegba.

    Ahmed joined the professional body as Deputy Director-General, a position he assumed in April, 2012 in line with the policy of the Governing Council to engender a succession plan.

    He became Acting DG on Tuesday, August 13, this year on the pronouncement of the institute’s Council and started the dawn of a new era in the administration of the institute’s secretariat.

    The Governing Council on Tuesday, November 12, confirmed Ahmed as DG.

    Ahmed holds a 1981 Bachelors in Insurance of the University of Lagos (UNILAG).

    He has capped this with a Masters of Business Administration obtained in 2001 from the Lagos State University (LASU).

    An Associate of the Chartered Insurance Institute, United Kingdom, Ahmed became a Fellow of the institute 2006. He was in 2007 awarded the Fellowship of CIIN

    Ahmed’s career spans over 30 years. It started in 1981 at Hogg Robinson Nigeria where he got his first employment after his National Youth Service (NYSC) assignment.

  • ‘80% of insurance products doing well’

    The new insurance products have witnessed a boom with about 80 per cent of the products approved last year performing well.

    In a report by the National Insurance Commission (NAICOM) and signed by the Head, Corporate Affairs, Salami ‘Rasaaq, the 12 insurance firms that introduced the products are International Energy Insurance Plc, Unitykapital Insurance, Fin Insurance, Crusader General Insurance Ltd, Crusader Life, IGI, Wapic Insurance Plc, Wapic Life, Mansad, Old Mutual Nigeria Life, Leadway Assurance and ADIC Insurance.

    The products include Home Care policy, Graduation Guarantee Insurance, Third party Motor Policy, Personal Accident policy, Household/House owners Insurance, Funeral Insurance, Esusu Shield.

    The report reads: “Following the trends of the emerging market, the Commission encourages the insurance companies to design and market attractive new products to entice customers with the aim of increasing sales and market development. The companies were to subsequently submit updates on the product performance on quarterly basis after approval has been granted to them by the Commission to sell the products.”

    It added: “The report revealed that about 80 per cent of the products approved for the year 2012 are performing well.The world is witnessing a paradigm shift from simple to a complex society due to technological advancement. The dynamics of the environment changes the consumer’s wants and needs in respect of insurance products.”

  • Royal Exchange makes N743m profit

    • Declares 4k dividend

    Royal Exchange Group has made a profit before tax of N743 million in the financial year ended 2012 as against the N210 million recorded in 2011.

    The company, however, gave out dividend of 4k per 50k ordinary share for shareholders for the year ended December 31, 2012.

    Chairman, Royal Exchange Group, Kenneth Odogwu told shareholders at the 2012 Annual General Meeting in Lagos that the result was credited to marked improvement in the performances of subsidiaries, except for Royal Exchange Prudential Life Plc which posted a low of N223million.

    The group consists of Royal Exchange General, Royal Exchange Healthcare, Royal Exchange Prudential Life, Royal Finance, Royal Exchange Microfinance Bank.

    Odogwu said despite the hostile operating environment, experience by the insurance sub-sector and in finance industry in general, Royal Exchange Group remained resilient in its performance, exploiting new opportunities and maintaining a strong hold on its existing business in 2012.

    He said: “During the period under review the company generated gross written premium of N7.6 billion,while that of his preceding year was N6.82 billion, representing 11.85 per cent..

    “Claims expenses during the year amounted to N1.63 billion similar to N1.64 billion spent in 2011. In relative terms, the claim ratio dropped from 35 per cent in2011 to 30 per cent in 2012.”

    The Royal Exchange boss said this translated in to net income before overhead expenses of N3.5 billion as against N3.1 billion of 2011, an increase of 11.91 per cent.

    “Similarly, investment income increased significantly by 35.1 per cent from N475.2 million in 2011 to N642 million in 2012. The appreciable recovery of the capital market and pricing of money market instruments enhanced the ability of your company to maximise returns from our quoted equities and cash portfolios within the year,” he added.

  • ‘Agents vital to insurance growth’

    The newly elected President of the Association of Registered Insurance Agents (ARIAN), Mr. Olamerun Gbadebo, has described the contribution of insurance agents as a panacea to deepening insurance penetration.

    Olamerun, who made this known while speaking with journalists in Lagos, said poor remuneration, premium suspension and poor perception of agents in the country have been the bane to the agency business, hindering their contribution in achieving the desired results.

    He said the association was, however, poised to deepen insurance penetration and increase insurance contribution to the Gross Domestic Product (GDP) by ensuring proper remuneration of the agents and drive member’s active contribution.

    He said the role of agents in selling insurance to the grassroots cannot be over emphasised, adding that they were the major stakeholders in delivering insurance products to every nook and cranny of the country.

    He explained that his mandate as ARIAN chief is to make insurance agency business easy by collaborating and partnering with other stakeholders, especially the regulatory body, the National Insurance Commission (NAICOM), and other bodies, like the Nigeria Insurers Association, Chartered Insurance Institute of Nigeria and Nigerian Council of Registered insurance Brokers (NCRIB).

    He added that poor perception of the agents and premium suspension by a few agents is a challenge the association is working to eradicate through professionalism among its members.

    He said: “In this regard, ARIAN intends to eradicate fraud among members by making sure alert system for premium paid is activated by underwriters such that any client who does business with an insurance company and does not get payment alert can report the agent to the regulator for sanctions.

    “ARIAN will also make a benchmark to ascertain what is profitable for agents across board.”

  • SA Life MD is IoD Fellows

    The Institute of Directors (IoD), Nigeria has elevated the Managing Director, SA Life Assurance Ltd, Mr Austin Enajemo Isire, along with nine others, to its Fellows grade at its Fellows’ Evening in Lagos.

    The institute’s President, Chief Eniola Fadayomi, said: “Yearly, the institute confers the status on deserving members who have served in varying capacities while making notable contribution to the business community.”

    She said financial members with a minimum of 10 years unblemished character of directorship experience who have sustained their IoD membership for not less than five years are upgraded yearly to the fellowship of the institute, adding that Isire and his fellow recipients have been found worthy by the institute.

    Isire, who is the Vice Chairman of the institute’s Banking and Financial Services Committee and Member, Finance and General Purpose Committee, has been an active member of the institute and has used his position to assist it.

    Isire was appointed Managing Director/CEO of SA Life in March, 2002.