The Nation Newspaper

Category: Insurance

  • STI posts N1.5b profit

    STI posts N1.5b profit

    Sovereign Trust Insurance (STI) Plc has posted a profit before tax of N1.58 billion in the year ended December 31, 2012 from a loss figure of N513.8million loss in 2011.

    Chairman of the company, Dr. Ephraim Faloughi, who made this known during the firm’s annual general meeting in Lagos at the weekend, said this was a result of several adjustments occasioned by the conversion to International Financial Reporting Standard (IFRS).

    He said the company recorded a gross premium of N7.7 billion in the year under review from N6.4 billion in the previous year.; this represented a 20 per cent growth.

    He noted that the company continued on its profitability trend after several measures adopted to withstand the challenges and realities of the operating environment,

    Consequent upon this performance, he said total equity stood at N3.13billion as at end of 2012.

    To drive the growth of the company to attain its strategic goals, he said the firm decided to retain its earnings for the year and plough back same into the company.

    The chairman stressed that the firm’s pride was rooted in the quality of people who are its greatest asset and would, therefore, continue to equip and develop then as individuals and collectively as a company.

    He said: “STI will continue to craft its business strategies in a proactive manner to take advantage of the opportunities that could be presented in a growing economy.

    “We have charted a new course for the company and this was comprehensively articulated in our newly developed five year strategic blue print which is aimed at positioning us as one of the pacesetting brands in the insurance industry within the next five years and beyond.’’

    Speaking on the competition that would arise as a result of entrance of foreign insurance brands in the country, he said, the imperative of attracting further capital to boost competitive position cannot be undermined and adequate capitalisation of the business has been identified as a key competitive factor for the coming years.

    “We would therefore continue to explore several capital raising initiatives domestically and across the shares of the nation so as to attract adequate capital for our business,” he added.

  • WAICA confab holds

    WAICA confab holds

    THE West African Insurance Companies Association (WAICA) is set to host a three-day international educational conference with the theme, “An integrated and harmonised insurance industry in West Africa”, in Lagos.

    Its Secretary-General, William Coker, who made this known in Lagos, said the event which begin on November 24,would help the sub-regional body to further tap into the huge business opportunities in the sub-region.

    He said: “If we are promoting the concept of a global village, the insurance industry in the West African sub region needs to be seen as front runners in promoting efforts at regional integration. Charity must begin at home.

    “We expect and educative and rewarding educational conference. It is yet another opportunity to extend the hospitality of Nigerians to delegates from other parts of the world.”

    The Co-ordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala is expected to give the keynote address.

    Founding father and past president of WAICA,  Prof. Jo Irukwu (SAN), will chair the paper which will be discussed by Rev. Asante Marfo-Akenkora, President, Ghana Brokers Association and Mr  Dawda Sarge, past president, WAICA  and Managing Director/ Chief Executive, Prime insurance Company Ltd, Banjul, The Gambia.

  • Prestige Assurance promotes AGM, others

    Prestige Assurance promotes AGM, others

    Prestige Assurance Plc, has promoted some of its top management staff.

    Among those promoted were, Mrs. Jibrin-Yaro to Assistant General Manager (AGM)II from Senior Manager. She is a product of Obafemi Awolowo University and Lagos State University where she obtained Diploma in Business Administration and MBA Marketing. She is also a Chartered Insurer of both London and Nigeria (ACII).

    Also promoted is Mrs. Eunice Olufunmilayo Aina, who was moved from Senior Manager to Assistant General Manager (AGM)II. She is a 1992 graduate of Accounting from the Polytechnic, Ibadan, a Fellow of the Institute of Chartered Accountants of Nigeria, (ICAN), a certified Information Systems Auditor (CISA) and a Certificate Member of the Chartered Insurance Institute of Nigeria. She joined the firm in 2001 as Internal Auditor.

    Other elevated staff were those from Assistant Manager to Manager, Staff from Senior Superintendent to Assistant Manager, staff from Superintendent to Senior Superintendent, staff from Assistant Superintendent to Superintendent.

     

    In total, eight are in the category of Senior Staff while 11 are in the category of junior staff.

  • Expert urges agents on professionalism, others

    Expert urges agents on professionalism, others

    AGENTS have been advised to improve on their productivity, professionalism and competence to boost insurance penetration.

    The General Manager, Leadway Assurance, Mr Shadrack Sivhugwana, who spoke as the guest speaker at the conference of the Association of Registered Insurance Agents of Nigeria (ARIAN) at the weekend in Lagos, said there was need for them to overcome these challenges to gain better proceeds.

    According to him, Nigeria has the lowest insurance penetration as less than one per cent of large business penetration flow into the industry.

    Shadrack, who also attributed the problems of the agents to poor image branding, noted that most agents were unable to make meaningful income as they tend to focus on services or products with higher commission rather than selling products to meet consumer needs.

    He urged insurance companies to lead their agents on the right path and change their perception.

    He said: ‘’I think companies need to change their perception on their agents. The way some agents are treated in some companies is as if they are not part of the company.’’

    Former General Secretary of the group, Olamerun Gbadebo, who emerged as the new president of the association following an election held during the conference, said the association will make the business easy to operate by partnering with stakeholders to protect agents as well as make the environment conducive for agents to operate.

    He said: “My mandate is to make insurance business very easy. We are going to collaborate with all the stakeholders, especially with NAICOM and Nigeria Insurers Association and the Chartered Insurance Institute of Nigeria to see how we can eradicate fake agents and enhance our agency structure.

    “We have over 20, 000 agents roaming around Lagos, Nigeria looking for business. At present, we have no fewer than 3,000 agents registered with us and we want to see how we can gain address this.

    He added that the association would, particularly focus on reducing fraud, working towards achieving a high standard of professionality and go global by seeking more knowledge from international operators, noting that agents are the bedrock of insurance companies.

    At the event, Chief Bode Ogunlana was awarded lifetime achievement certificate for his service to the industry. Mrs Ngozi Ndukwe got the best performing agent award, the agency with the highest premium cumulative collected in the year ward went to Mrs Charity Ogbodo while Mutual Benefit was declared the Best Insurance Company.

  • Daniel slams erring firms over non-submission of 2012 accounts

    Daniel slams erring firms over non-submission of 2012 accounts

    COMMISSIONER for Insurance Mr. Fola Daniel has criticised insurance firms that failed to submit their annual reports eight months into 2013 financial year, warning that they were sending a wrong signal to the world about the health of the industry.

    The Commissioner spoke at the just-concluded seminar for insurance correspondents in Ilorin while commenting on the inability of companies to submit their International Financiaal Reporting Standard (IFRS).

    He, however, assured that in spite of this, the industry remained healthy adding that the National Insurance Commission (NAICOM) will ensure the security of the investment of the public.

    He said the commission has written letters to the chairmen of the companies that have not submitted the accounts and have asked them to dig into the competency of the management of their companies.

    According to him, the commission has no apologies for not approving the result of the insurance firms that have submitted, insisting that NAICOM was not ready to bend the rules.

    He said: “The commission will not compromise but will ensure that the companies abide by the rules and regulations. We have no apologies or excuses for not approving accounts that are not correct. We will rather delay clearance of accounts than allow such accounts to be passed.

    “The biggest problem that we have had in the past is accounts coming from the industry that are not trusted by investors. That is why they do forensics on accounts that have been passed by regulators. This is not a good thing for the companies, the industry and the nation.”

    The NAICOM boss pledged that under his leadership, the regulatory body will not allow the insuring public to be misled.

    He noted that the Nigerian Stock Exchange (NSE) and the Securities and Exchange Commission (SEC) agreed with the commission on the affected  companies.

    He added that the commission has done its best in educating the various companies and its external auditors on IFRS and will continue to make corrections until they get it right

    The Commissioner saidNAICOM will be focusing on deepening insurance penetration through Micro Insurance and Takaful Insurance.

    He explained that micro-insurance is not a conventional insurance that is expensive, adding is affordable and the reach of low income earners.

    On Takaful Insurance, he said it is different from the conventional insurance, adding that the concept is unique and it is accepted by both Christians and Muslims alike, adding that Takaful Insurance is based on trust, fairness and equity.

    He explained further that Takaful Insurance is not about Muslims as being misconcieved, but rather, a better way of doing insurance business that will benefit those at the grassroots.

    He said NAICOM will soon be joining the other regulatory bodies in the country to create awareness about financial illiteracy, adding that in the next few weeks, the commission will embark on outreach programmes to educate its constituency over the issue.

    On money laundering, he said tackling the menace would be on the agenda of the commission in next year.

  • Custodian and Allied posts N2.5b Q3 profit

    Custodian and Allied posts N2.5b Q3 profit

    Custodian and Allied Insurance Plc, has announced profit before tax (PBT) of N2.5billion for the unaudited third quarter ended September 30, 2013, indicating an increase of 89.5 per cent over the N1.3 billion recorded in the corresponding period of 2012.

    The company’s profit after tax increased by the same proportion from N1.14 billion to N2.1 billion, while the Group’s asset base increased from N40.9 billion to N47.2 billion, indicating 15.3 per cent growth within the nine months period. The gross written premium was N19.8 billion from N9.4 billion.

    Managing Director, Mr. Wole Oshin, who made this known in a statement at the weekend, said the results have been transmitted to the stock market.

    On the performance of the firm, he said: “Our performance demonstrates Custodian’s commitment to its clients and shareholders who expect nothing but the best from us, and we ensure that we always deliver on our promise of meeting and exceeding expectations.

    “We will always endeavour to remain one of the most attractive stock options in the insurance sector, through innovative services, expanded product portfolio, improved operational efficiencies and stronger financial capacity.

    “It was a particularly intense year for Custodian and the insurance industry.We had to grapple with various guidelines and regulations particularly the International Financial Reporting Standards (IFRS), which has 2012 as its adoption year.This new reporting format is a departure from the past as it is more informative and user-friendly for all stakeholders making it easier to compare insurance companies’ results.”

    He noted that the company was able to conclude the merger with Crusader Nigeria Plc, ending a seven- year negotiation with some stockholders.

    The Chairman of the company, Chief Ade Ojo during its 2012 Annual General Meeting in Lagos, said the performance highlighted the company’s determination to increase market share across business classes through a balanced growth focus that ensures its participation in all viable business in the sector despite the challenges and constraints of the operating environment.

    He said Custodian remains focused on improving its systems, processes and operations to meet the challenges of commitment to excellent service delivery, new growth and evolving best practices.

     

  • Car insurance shopping declines

    Fewer consumers shopped for car insurance in the last year, but among those who looked for coverage, a greater share got at least two quotes, according to a new report from comScore, a global Internet research company headquartered in Reston, Virginia.

    In the last year, 48 per cent of consumers shopped for auto insurance, down from 52 per cent in 2012. This year was the first time the number of shoppers dropped below 50 percent in five years. The overall number of policies purchased remained flat at 3.1 million.

    Of those who shopped, 63 per cent obtained at least two quotes, up from 57 per cent last year, according to comScore. Most consumers prefer to shop online, with 67 per cent obtaining quotes from websites, up one per cent from last year and three per cent from 2011.

     

  • ARIAN to hold confab

    Registered insurance agents will hold their conference on November 14.

    The President, Association of Registered Insurance Agent of Nigeria (ARIAN), Mr Kingsley Obuvie, who made this known in Lagos, said the meeting is aimed at consolidating on the increasing attention received in re-positioning the agent as a major stakeholder in the insurance industry.

    He assured that ARIAN is more determined to re-orientate and refocus the agents towards achieving deeper penetration and increase growth for the industry in Nigeria.

    He said this year’s conference with theme, ‘Growing the insurance agency business in Nigeria’ will be followed by the election of new executives and officers for the association along with its fourth national awards.

    The highpoint of the day, he said, will be the national awards and dinner ceremony when outstanding agents, notable personalities and insurance companies that have distinguished themselves by their performances and contributions to the development and growth of agency business in the country will be honoured.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • NAICOM, NHIS partner on indemnity cover

    NEW medical centres may have to provide evidence of the mandatory Healthcare Professional Indemnity Insurance cover to be accredited by the National Health Insurance Scheme (NHIS) to offer health insurance.

    The move is a fallout of the non-compliance by medical practitioners with the law mandating them to take such cover.

    Professional Indemnity Insurance cover is part of the six compulsory insurances under the National Insurance Commission’s (NAICOM’s) Market Development and Restructuring Initiative (MDRI) being pushed for implementation.

    It indemnifies the medical practitioners against legal liability on negligence, error or omission, committed in their professional duties during the period of insurance. It is based on this that NAICOM suggested to the NHIS to make it a precondition for the issuance of certificate of registration by the scheme to medical centres.

    The two agencies have concluded plans to set up a joint standing committee to enforce the mandatory Healthcare Professional Indemnity Insurance in the country.

    The Commissioner for Insurance, Fola Daniel, who disclosed this after a meeting of agencies at the instance of the Commission, said the collaboration has become imperative in view of the need to protect and provide succour to innocent victims from the errors and mistakes by medical personnel that may result in death and permanent disability, among others, in the course of performing their duties.

    Daniel, who was represented by the Deputy Director, Authorisation and Policy, Mr Leonard Akah, told the meeting of the Commission’s efforts at ensuring compliance with the provision of the NHIS laws by healthcare providers as it affects the mandatory insurance cover for such medical providers registered with the NHIS.

    He highlighted the benefits of such insurance cover for the innocent third parties, and also the healthcare provider. He however, urged the NHIS to collaborate with the Commission by ensuring that all medical centres registered under it, comply with this aspect of the law, noting that the NHIS could make it a precondition for the issuance of certificate of registration to medical centres.

    The Acting Executive Secretary of NHIS, Dr. Abdulrahman Sambo, in said the meeting between the two agencies could not have come at a better time.

    He expressed the desire of the scheme towards the successful collaboration with NAICOM for the enforcement of the NHIS laws on insurance.

    Sambo said out of a total number of 3000 medical centres registered with the NHIS across the country, less than five per cent actually have the professional indemnity cover in place for their personnel.

    He lent his support to the constitution of a joint committee to facilitate the collaboration in the next two weeks in view of its urgency.

     

  • ‘Enrollee satisfaction survey key to quality healthcare’

    The National Health Insurance Scheme (NHIS) has further undertaken a User Satisfaction Survey in the Northeast geo-political zone, to determine the effectiveness and quality of services rendered by the providers

    Its Deputy General Manager in the Planning, Research and Monitoring, Dr Thomas Adeoye, who led one of the monitoring teams in the assignment, said this was a follow-up to the just- concluded training of schedule officers in uniformed services in the zone.

    According to him, this is the concluding phase of a nation-wide Comparative User Satisfaction Survey among enrollees in both the public and private healthcare facilities which took place in four states of the region, namely, Adamawa, Taraba, Bauchi and Gombe states, adding that similar exercises had earlier been conducted in the other zones of the country.

    He explained that the survey is expected to be a feedback strategy for the purpose of assessing the quality of services rendered, as enrollees and their dependants access care in public and private primary healthcare facilities, so as to determine their level of satisfaction under the scheme.

    “The scheme is embarking on the comparative user satisfaction survey, because of reports in its custody, to the effect that enrollees are not getting maximum services from providers, saying the survey, which is one among the key regulatory functions of the scheme, is a routine programme aimed at determining that enrollees’ rights to qualitative healthcare service delivery are honored.

    “The scheme is commited to ensuring that enrollees have access to qualitative healthcare services at affordable cost. The data analysis that will result from the survey will inform future policy decisions of the scheme, as they relate to enrollee satisfaction,” Adeoye, said.

    He therefore assured that the project will increase the scale of user satisfaction, as the application of the report of the exercise will deepen decision making, leading to greater enrollee service satisfaction.

    The expected outcomes of the survey he noted, include generating statistical data of the level of patronage at the primary, secondary and tertiary levels of healthcare, as well as the level of satisfaction or dissatisfaction of enrollees with the quality of healthcare services at public or private facilities.

    The comparative enrollee survey was conducted among enrollees from federal ministries, departments, agencies, as well as para-military institutions.