The Nation Newspaper

Category: Insurance

  • AIICO repackages policy to enhance savings culture

    AIICO Insurance PLC has repackaged its Corporate Savings Plan to ensure holders of the policy enjoy more benefits.

    The initiative is also to ensure that majority of Nigerians embrace the savings culture to guarantee their financial future.

    Managing Director, AIICO Insurance, David Sobanjo, disclosed this to reporters in Lagos.

    According to him, policy holders will also enjoy the benefits of the policy as it provides a return on the holders’ investment while additional life assurance benefit is payable to the dependents of the policyholder in the unfortunate event of death within the policy term.

    He further said AIICO Corporate Savings Plan is an investment policy that offers protection as well.

    He added that the savings plan is suitable for individuals, members of social clubs, cooperatives societies and employees of organisations that are eager to save through payroll deduction.

    He said rural population and others with seasonal incomes are also eligible to subscribe to the plan as long as they are determined to invest part of their earnings to yield good returns and secure their financial future.

    The AIICO boss explained that the minimum policy term is one year, adding that to make the product affordable to majority of the populace in the country, people can contribute as low as N5000 per month to participate in the plan.

    He said: “Should the policyholder die while the policy is in force, his dependents will be entitled to a life assurance benefit of three times the annual contribution subject to a maximum of N2 million.

    “The plan has been so designed to cater for exigencies as the policyholder has the option of partial withdrawal for emergency cases. Holders of AIICO Corporate Savings Plan can equally pledge the policy as collateral security for loan.”

    He said while the policyholder are assured of guaranteed returns on their investment, they are also free to use maturity proceeds to purchase annuity.

    He also said the underwriting firm has a reputation for prompt claims payment.

    “The insurance firm paid claims totaling N6.3 billion in 2012 in keeping faith with its promise to pay all genuine claims promptly and the firm will continue to discharge its responsibility in the area of claims payment whenever the need arises,” he added.

     

  • Custodian partners Sickle Cell Foundation

    Custodian and Allied Insurance Plc is partnering with the Sickle Cell Foundation Nigeria to sponsor this year’s Sickle Cell Anaemia Walkathon to preserve lives.

    Head of Directorate, Administration & Corporate Affairs of Custodian and Allied Insurance Plc, Mrs. Olubunmi Aderemi, said a seven-kilometre walk for the anemia, observed in Lagos Island recently, was organised by The International Finance Corporation (IFC) Nigeria.

    She said the initiative was aimed at raising awareness and increasing public knowledge about the anemia; both in terms of alertness and recent advancements in management of the ailment. It was also aimed at raising funds to support increased research and provide some support to institutions caring for people affected by sickle cell anemia.

    “At Custodian, we like to associate with worthy courses affecting our environment and people around us. We identify this fight against sickle cell anemia as necessary to preserve human lives and are glad we are able to support a worthy course,” she said.

    “I know of a few people with sickle cell anaemia. Victims and their relatives go through a lot of pain, emotional trauma and such at times of crisis. It is costly to manage and requires patience and understanding by employers and lots of care by family and loved ones.

    “We hope to support the creation of necessary awareness of the condition and help educate the citizenry about its management.”

    Aderemi added that the company believes in partnering with initiatives with groups to impact positively on lives in their environment, notinh that with the awareness and fundraiser, research on sickle cell anemia would make progress in Nigeria.

     

  • Can you hide smoking from life insurance companies?

    Can you hide smoking from life insurance companies?

    How much smoking does it take to be considered a “smoker,” and what if you fudged your answer about smoking on your life insurance application?

    Life insurance companies want an accurate picture of activities that could affect your longevity. Questions about whether you’ve used nicotine in the past few years go along with questions about whether you pilot a private plane or plan to travel to dangerous countries.

    Who is considered a nicotine user?

    Life insurance companies generally use three broad rate classifications for pricing policies: standard, preferred or preferred plus. Then there are the rates for nicotine users, who pay significantly higher premiums within their classes. The definition of a “nicotine user” is someone who uses any form of nicotine delivery, including cigarettes, cigars, chewing tobacco, a nicotine patch and nicotine gum. The look back period will vary by insurer. Some will judge you to be a nicotine user if you’ve used a nicotine product in the past five years.

    Many life insurance companies will allow the “celebratory” or “occasional” cigar smoker to still qualify for non-smoking rates. Insurers generally define “occasional” as smoking 12 cigars or less per year. Of course, the urine sample you provide for your life insurance medical exam must be nicotine-free, too.

    If you’re a regular smoker, it’s not a good idea to lie on your application in order to escape detection to get a lower rate.

    If you’ve lied on your application about nicotine use and then nicotine turns up in your medical exam tests, you’ll be issued your policy at the smoking rate.

    Look at the worst case scenario. Say you die of a heart attack and it comes to light that you’ve been a smoker all your life. The insurance company could justifiably deny the claim. That’s not a position in which you want to put your beneficiaries. It’s better to pay the extra premium and know your beneficiaries will eventually collect the benefit.

    Perhaps you’ve made an application and don’t like the nicotine rate you’ve been given. Don’t try to apply with a different company and lie to get nonsmoker rates; your previous medical exam results will sit in a database operated by MIB Group for seven years. When the insurer checks your new application against the MIB database, which is used to detect fraud, your history will be revealed.

     

    •Tips by insure.com

  • Broker is FEMA DG

    The Federal Government has appointed Mallam Abbas G. Idris, an insurance broker, as the pioneer Director-General (DG) of the Federal Capital Territory Emergency Management Agency (FEMA).

    Idris has over two decades experience.

    The President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Laide Osijo, described the appointment as well-deserved, noting Idris’ pedigree as an economist, insurance professional, and risk manager.

    She said the appointment would propel the new agency to a position of relevance in the nation’s disaster management system.

    Until his appointment, the Idris was the Executive Vice Chairman, Valid Insurance Brokers Ltd and Vice Chairman, Northern Area Committee of the NCRIB, whose roles have aided the entrenchment of the insurance broking in the North.

    A graduate of Economics, Idris also holds Masters of Business Administration (MBA) of the University of Maiduguri and another Master’s in Disaster Risk Management and development Studies from the Ahmadu Bello University, (ABU), Zaria.

    His experience span Withesands Insurance Brokers Limited and NICON Insurance Corporation where he held top management positions, such as Zonal Manager of Maiduguri and Kaduna Zones, as well as Chief Operating Officer (Marketing & Strategy) before he resigned to found Valid Insurance Brokers.

    Idris has delivered several professional and intellectual papers, especially in risk management, insurance and other sectors both in and outside the country. He is on the Board of many companies, including Kirfi Microfinance Bank Limited.

  • ‘No premium, no cover policy boosts industry’

    The enforcement of ‘No premium, no cover’ policy by the National Insurance Commission has improved the finances of the insurance industry, the Managing Director of Scib Insurance Brokers, Mr Sola Tinubu, has said.

    Tinubu told The Nation that although it seemed to operators as if preparations by the regulatory body to enforce in January were not detailed, it was a lot more successful and the industry is better for it.

    He said: “A lot of us felt preparations were not detailed in such a way that it would be less painful by operators coming together to anticipate the challenges we had with it before it will start.

    “Across the industry, we all believed it was a good direction to move. The only difference we had was the modalities and timing, but we all realised later that it was the way to go for the industry to make progress.

    “For us brokers, we encountered challenges with the enforcement of the policy and it cost us a lot doing compliance issues.’’

    Tinubu added that it brought additional cost of manpower, but they realised that as an industry and country, they cannot be in isolation.

    “Everywhere in the world, corporate governance and compliance are the challenges of the day. What happened to the global economy was essentially an example of the collapse of corporate governance and compliance.

    “We do not want to invite the same kind of economy collapse on ourselves here and so we need to ensure that we have rules and regulations and guidelines,” he said.

    On his firm, he said the company’s expertise in broking has continued to grow, noting that the pursuit of excellence of risks solution of a global standard using innovation remains their mission.

  • CIIN holds maiden Ramadan Tafsir

    The Chartered Insurance Institute of Nigeria (CIIN) has initiated a yearly Ramadan Tafsir to capture the Ramadan mood for Islamic faithful in the insurance industry.

    Managing Director, Staco Insurance Plc and CIIN’s Committee Chairman, Mr Shakiru Oyefeso, said the Tafsir was long overdue.

    He said the members of the institute, even the non-Muslims will have a lot to gain from the Tafsir lectures to be delivered by notable Islamic clerics.

    The lecture will hold on July 18, at Alausa, Ikeja in Lagos. The theme is: Tolerance and Inter – relationship.

    He added that the choice could not be better, stating that it is time, more than ever, to preach religious tolerance and co – existence in the light of the sad experiences at the stage of our Nationhood.

    CIIN’S Deputy Director-General, Kola Ahmed, assured that the Tasfsir will be a huge success.

    Ahmed also said dignitaries, who have been invited to the Tafsir, will be hosted by the CIIN President Mr Fatai Kayode Lawal.

    The lectures will be delivered by clerics, which include Dr. Saheed Timehin of the Lagos State University (LASU) and Dr. Junaid Sirajudeen of the University of Lagos (UNILAG).

  • ‘Slow uptake, culture hinder premium expansion’

    Decades of slow insurance uptake exacerbated by widespread cultural aversion and the inefficiency of the micro economic parameters, have slowed down the desired growth in the sector.

    A report by Nigeria Insurers Association (NIA) obtained by The Nation, indicated that this was happening despite significant headway for premium expansion the grassroots base provides

    NIA said if the various initiatives in the sector are strengthened, the sector’s revenue will assume a positive dimension in the coming years.

    It said: “The long term call on the sector is ably supported by its obvious demographic advantages and Nigeria’s economic growth prospects relative to other emerging markets.

    “Based on statistical data made available by Swiss Re Economic Research & Consulting, insurance premium on the global scene resumed growth in 2011 as insurers gradually restore underwriting capacity to pre-crisis level, while building larger capital buffers after two years of sluggish growth following global economic crisis.

    “Robust economic recovery and reforms especially in the developing economies continue to fuel strong rebound in premium across a broad spectrum of the insurance industry value chain.

    “Globally, the near term outlook suggests that risk aversion will continue to wane, supporting modest premium growth across regions, as the world assumes full speed economic recovery.”

    The report continued “Meanwhile, global life insurance premium shrank by 2.7 per cent. Similar trend permeates both the advance and emerging markets while the non-life segment proved robust in most cases. The emerging market of the non-life sector recorded 9.1 per cent in premium growth and 1.9 per cent over all. The fluctuations in life market resulted in -0.8 per cent record decline in world total.”

    On global losses of 2011, NIA said the promising start to the year was shortlived by disruptive disasters of monumental proportions.

    “By July 2011, the sector was reeling from the impact of one enormous disaster after another, and was looking at the highest payout year on record, eclipsing the previous record payout year 2005.

    “A series of natural disaster, including the Japanese earthquake and tsunami in March, combined with flooding in Australia and Asia-Pacific, the New Zealand earthquake, tornados in the eastern United States, and political unrest in the Middle East and Africa racked up claims costs enormously.”

    It added “It was reported that on August 1, 2011, insurer Lloyd’s of London was reporting pre-tax losses for the first half of the year – $139.5million – and other insurers were also reporting steep losses.

    “In all, the sector is facing losses of more than US$50billion. In response, US catastrophes reinsurance rates went up by 10 per cent while premium in the areas most affected by catastrophes have risen in some instance by 50 per cent.

    “We expected fast growing economies in Africa, such as South Africa, Morocco, Algeria, Egypt, Kenya, Nigeria, Ghana and Angola to witness appreciable increase in nominal premium in the near term. However, the greatest downside risk to premium growth in Africa remains economics and political instability, insufficient awareness of the operation and structure of insurance policies, as well as their significance.

    “Population growth has, historically, outpaced growth in insurance premium in most African countries in the past, accounting for the low density across the continent. Nonetheless, we expect a deeper insurance market in Africa premised on expected rapid economic growth.”

     

  • NHIS engages Accenture for scheme’s growth

    NHIS engages Accenture for scheme’s growth

    • Asks stakeholders to complement efforts

    The National Health Insurance Scheme (NHIS), the Federal Ministry of Health in collaboration with International Finance Corporation (IFC) and World Bank, has engaged Accenture to develop an effective and industry-wide platform for sustainable growth as well as financing plan for scaling up the scheme’s coverage.

    Acting Executive Secretary of NHIS, Dr. Abdulrahaman Sambo, disclosed this during a consultative forum with stakeholders in Abuja.

    According to Sambo, the objective of the consultancy services from Accenture is to enable the repositioning of the scheme towards effective implementation of its programmes to the benefit of the citizens, promising to adhere strictly to the findings and recommendations of the consultants.

    Sambo however charged stakeholders of the scheme to complement efforts of the NHIS towards the attainment of universal coverage through prompt service delivery.

    The NHIS boss called on healthcare facilities providers to brace up to the task ahead and ensure that the scheme’s mandate of universal coverage is achieved.

    In his presentation, the Programme Manager, Accenture, Mr. Martin Eigbike said the group’s task as providing services in four key areas, he identified as; reviewing the regulatory policy frame work, designing an IT system, reviewing current business practice and proposing new ones to ensure sustainability. It also include conducting a review of long term funding requirements and identifying other strategies and mechanisms for securing potential sources.

    He further explained that this assessment is aimed at identifying existing constraints to achieving universal health coverage and specific opportunities to improve the effectiveness of NHIS.

    “The assessment will also establish the foundational principle that will guide the design of a blue-print for scaling up the capabilities of the scheme.

    “Review of the legal frame work to make the scheme mandatory would go a long a way in accelerating the attainment of universal coverage,” he said.

    Meanwhile stakeholders, unanimously agreed to work with the NHIS, but stressed that existing lacuna in the system be addressed to enhance attainment of this lofty goal.

  • ‘Insurance sector records growth’

    The insurance sector recorded improvement in the past few years as its contribution in the ratio of premium to the nation’s Gross Domestic Product (GDP) increased from 0.5 per cent to 0.7 per cent.

    The Commissioner for Insurance, the National Insurance Commission (NAICOM), Fola Daniel, disclosed this during the opening of the commission’s Northcentral Zonal office in Ilorin.

    He said the sector’s gross premium income increased from N157billion in 2010 to N250billion last year, which resulted to an increase in the ratio of premium to GDP.

    Speaking on other achievement recorded, he said companies with foreign equity increased from three to 10, generating substantial foreign direct investment.

    He added that there was also an increase in local capacity for oil and gas risks from 10 per cent to 48 per cent while the commencement of implementation of Section 50 of the Insurance Act 2003 on ‘No Premium, No Cover’ has improved financial assets of operators.

    He said: “The sector recorded increase in the number of policyholders from 500,000 in 2010 to 1,500,000 in 2012 and collaborated with PENCOM to develop the annuities market.

    “These are all the outcome of efforts by the Commission which is already being felt in the industry and by extension, the economy following the massive sensitisation campaigns across the country.

    “The campaign was to further educate and inform the public about insurance, build confidence and grow the gross premium income.”

    The commissioner noted that the Governing Board of the Commission in 2011 approved the establishment of three additional Zonal Offices to be located in Ilorin, Port-Harcourt and Maiduguri as part of the mandate to deepen insurance penetration and awareness in the country.

    These locations, he said were carefully selected owing to their strategic economic importance and relevance to the growth and development of insurance in the respective zones noting that the Ilorin branch will serve the entire Northcentral zone.

    We are making arrangements to commission the Southsouth and Northeast Zonal offices, he added.

     

  • Capital Express repackages education policy

    The new Managing Director of Capital Express Assurance Limited, Mrs. Bola Odukale has revealed a repackaged education insurance policy that would ensure unveiled education for children till university level.

    Speaking with reporters in Lagos, Mrs Odukale said the Education Assurance Plan was designed to guarantee the education of the child named in the policy up to university level subject to the sum assured.

    According to her, the plan pays the sum assured in the event of the death of the breadwinner during the policy term and creates immediate estate sufficient to guarantee payment of school fees of the named child adding that this will forestall the abrupt stoppage of the child’s education.

    She said if the breadwinner suffers critical illness, permanent disability due to accident or sickness or death, the policy will ensure that the child’s education is not halted.

    While explaining some of the key features of the policy, she noted that the parent or breadwinner decides at inception of the policy, the estimated amount required to finance the future education of the child, after which the estimated amount will represent the sum that will be assured under the policy.

    Odukale said: “The breadwinner can arrange to be paying his premium annually or in installments over a maximum period of five years

    “The policy has flexible benefit administration options that suit payment of school fees. One child can also be substituted for another during commencement of benefit or benefit payable to the insured’s estate.”

    She noted that education is relevant to the society and that it remains a permanent legacy parents or guardians could bequethe to their children to ensure their future.