The Nation Newspaper

Category: Insurance

  • Niger Insurance assures of efficient services

    Policyholders of Niger Insurance PLC have been assured of full compensation should the need arise.

    In a statement, its Managing Director Mr Kola Adedeji, stated that the firm’s primary business is to satisfy its customers.

    Adedeji, who acknowledged that the level of disposable income in the country was low, pointed out that with the population of the country in excess of 160 million, there exists huge insurance potential.

    He stressed the company’s resolve to ensure prompt payment of benefits to policyholders, the reason for opening a dedicated account for claims and commission payment to prevent undue delays in claims administration and settlement.

    He said the underwriting company was being reengineered for better services and more innovative products, which would better meet the needs of the insuring public and endear insurance to them.

    He noted that though the organisation has ensured that its customers were properly catered for, it focuses more on the need for customers to know their specific needs, meet those needs and surpass clients’ expectation.

    He said: “The company is striving to ensure that more members of the public embraced insurance culture while concerted efforts are being made to enlighten them so they would know what they stand to benefit by patronising the insurance industry.

    “A building was devoted to the agency operations of the company so that people can have access to insurance products and services offered by the insurance firm wherever they might be in the country.”

     

    In order to ensure financial stability and exude confidence in its services to customers, the firm has also put in place reinsurance treaties with local and foreign reinsurance companies led by Swiss Re, he said.

    Established in 1962, Niger Insurance is fully computerised with the most advanced software technology, the statement added.

  • USAA launches tour to curb texting while driving

    USAA has launched a nationwide tour including more than 10 military installations to demonstrate the dangers of texting and driving.

    USAA provides insurance, banking, investment and retirement products and services to 9.6 million members of the United States military and their families.

    The tour, an extension of AT&T’s “It can wait” campaign, features a simulator that demonstrates the impact of texting and driving ability. Texting, for instance, takes a driver’s eyes off the road for an average of 4.6 seconds. That’s like driving the length of a football field at 55 miles per hour blindfolded.

    USAA encourages members and employees to take the “It can wait” pledge to not text and drive. Earlier this year, 6,500 USAA employees took the pledge.

     

    Distracted driving killed 3,331 people and injured about 387,000 nationwide in 2011, according to the National Highway Traffic Safety Administration.

  • 2012 reports: ADIC, Mansard get NAICOM’s approval

    2012 reports: ADIC, Mansard get NAICOM’s approval

    Two underwriters, ADIC Insurance Plc and Mansad Insurance Plc, have crossed the hurdle of the International Financial Reporting Standard (IFRS) in their 2012 financial reports and secured the nod of the National Insurance Commission, The Nation reveal.

    The National Insurance Commission (NAICOM), the regulatory body of the insurance sector, has maintained strict reporting standard in the financials of insurance companies.

    It was also gathered that more underwriters have submitted their IFRS compliant accounts to the NAICOM to enable them to beat the June 30, submission deadline required by the industry’s law.

    Assistant Commissioner, Finance and Admin, NAICOM, Mr. George Onekhena confirmed to The Nation.

    He maintained that the commission would never approve any account that fails to meet the required standard.

    There are 59 insurance companies in the country with 17 operating as life, 32 as non-life and 10 as composite.

    They include Alliance & General Life Assurance Plc; African Alliance Insurance Company Ltd; ADIC Life Assurance Ltd; ADIC Insurance Company Ltd; AIICO Insurance Plc; AIICO General Insurance Company Ltd; Anchor Insurance Company Ltd; Capital Express Assurance Limited; Consolidated Hallmark Insurance Plc; Cornerstone Insurance Plc; Cystal Life Insurance Limited; Crusader General Insurance Ltd; Crusader Life Insurance Limited; Custodian & Allied Insurance Plc; Goldlink Insurance Plc; Great Nigeria Life; Spring Life Assurance Plc; Guaranty Trust Assurance; Guinea Insurance Plc; Industrial & General Insurance Plc;

    Others are Insurance PHB Limited; International Energy Insurance Plc; UnityKapital Assurance Plc; Lasaco Assurance Plc; Lasaco Life Assurance; Law Union & Rock Insurance Company Plc; Leadway Assurance Company Limited; Linkage Assurance PLC; Mutual Benefits Assurance Plc; Mutual Benefits Life Assurance Company Ltd; NEM Insurance Plc; Niger Insurance Plc; Nigerian Agricultural Insurance Corporation; Oasis Insurance Plc; Oceanic Insurance Company Ltd; Oceanic Life Assurance Assurance Limited; Prestige Assurance Plc; Regency Alliance Insurance; Royal Exchange Assurance; Royal Prudential Life Assurance Plc;

    Sterling Assurance Nigeria Ltd; Sovereign Trust Insurance Plc; Staco Insurance Plc; Standard Alliance Insurance Plc; Standard Alliance Life Assurance Company Ltd; Universal Insurance Company Ltd; UBA Metropolitan Life Insurance Company Ltd; Investment & Allied Assurance co. Ltd; Union Assurance Company Ltd; Unitrust Insurance Company Limited; Intercontinental WAPIC Insurance Plc; Intercontinental WAPIC Life Assurance; Fin Insurance Company Limited; Zenith Insurance Company Limited; NICON Insurance; FBN Life Assurance Company Limited.

  • PenCom begins verification, enrolment of Fed Govt’s retirees

    PenCom begins verification, enrolment of Fed Govt’s retirees

    The National Pension Commission (PenCom) has started a nationwide verification and enrolment exercise of all employees of Treasury Funded Ministries, Departments and Agencies (MDAs) of the Federal Government that are due to retire between January and December, 2014 for payment of their retirement benefits.

    PenCom spokesman, Emeka told The Nation that there were mistakes and complications in the process of getting necessary data of the contributors.

    This, according to him, necessitated early commencement of the verification exercise so that all loose ends would be tightened early enough.

    On why the transfer window for contributors to the scheme has not been thrown open for them to change non-performing Pension Fund Administrators (PFAs), in line with the Pension Reform Act 2004, he said it was due to data gathering problems.

    “The commission is aware that the transfer window is an important aspect of the Contributory Pension Scheme but there are a lot of complications.

    “There is the need to sort out issues that has to do with data. The commission is working hard to forestall the challenge of multiple registration which can mar the system if not properly done.

    “As a result, the commission does not want to continue with mistakes that has been discovered and has decided not to rush but ensure a genuine process of the transfer window,” he said.

    Onuoha said at the moment, some MDAs have different data base of their employees, but the commission does not intend to rely on them, adding that the National Data Department of PenCom had been working on how to get the best out of the situation and would come up with a solution soon.

    In line with the Pension Reform Act 2004, PenCom contributors under the new pension scheme who are dissatisfied with the services being rendered to them by their Pension Fund Administrators (PFAs) would have the opportunity to transfer their Retirement Savings Account (RSA) from one PFA to another.

    Section 11(2) of the Act provides that the employee may, not more than once in a year, transfer his RSA from one PFA to another without adducing any reason for such transfer. This provision is intended to facilitate pension assets portability in the pensions industry, and enhance healthy competition among the PFAs.

    It said notwithstanding, Section 11 (2) of the PRA 2004, the provisions of this regulation apply to a single transfer of RSAs in a calendar year, adding that subsequent review of the regulation would address multiple transfers of RSAs within a calendar year.

    PenCom noted that RSA transfers shall only be effected quarterly; namely first, second, third and fourth quarters, adding that, however, an RSA holder seeking subsequent transfer of his/her RSA shall be eligible for such transfer after 12 months.

    PenCom said failure by PFAs/PFCs to provide support to RSA holders shall attract a fine of N100,000 per RSA and N10,000 for every month of violation.

    Similarly, a monthly sanction of N100,000 per RSA shall be imposed on any PFA who violates the law.

    Onuoha further said PenCom has began a verification and enrolment of employees of Treasury Funded MDAs of the Federal Government who are to retire between January and December 2014 for the payment of their benefits.

     

  • 12 horrible pieces of insurance advice

    When you have an insurance claim, the last thing you want to discover is that you didn’t buy the right coverage. While it’s easy to point the finger at agents, coverage gaps could be a two-way street.

    Sometimes friends and family members offer bad advice, including tenuous, illogical and even illegal strategies, hoping to save you a few bucks. But the eventual losses can be huge.

    “When people shop for insurance, a lot of times they’re looking for the best deal,” says Ron Reitz, an independent insurance adjuster and president of Quality Claims Management in San Diego.

    We asked some insurance veterans about the bad advice they’ve heard over the years. Here’s what makes them cringe.

    Lock up all insurance policies and other important documents in a safe deposit box.

    Worst insurance advice! Do not keep your life insurance policy in a safe deposit box. If yours is the only name on the safe deposit box, no one but the executor of your will can get into it without Power of Attorney. If your life insurance policy is locked in there, your beneficiaries will have to wait until the estate is opened by a government entity and an executor is appointed.

    •If you want the assurance of having important documents locked up, buy a fire-safe box

    “Just make sure documents aren’t stored in a place where they can be lost in a flood or fire,” says Reitz. With today’s technology, there’s no excuse not to scan everything and create electronic copies of important papers that can be put on disks or in other storage devices.

    •You don’t need flood, earthquake or other disaster insurance

    If an earthquake destroys your home, you won’t recover a penny unless you have an earthquake insurance policy. The same rule applies to floods.

    Decisions about flood insurance should be based on your proximity to a body of water that could overflow, not whether the area flooded before. On the plus side, if you’re in a low-risk area, your policy will cost less while still providing the maximum protection.

    •Get the best rate even if you have to tell lie a little

    It might be tempting to fudge the truth on a life insurance application, especially if you have a serious health condition. “Don’t do it,” advises Steven Modell, president of Modell Brokerage Group in Wayne, Pa. “Not only is it insurance fraud and a felony, but it could prevent your beneficiaries from receiving the death benefit.”

    •Base your home insurance policy on the real estate value of your home

    Experts recommend setting the structural limit of a home insurance policy on what it would cost to rebuild the home if it were destroyed, not the real estate value. Trouble is, the rebuilding cost is a subjective number.

    •Set your dwelling limit low

    Some insurance agents try to give customers the lowest premium possible in order to close the sale.

    “One of the ways they’re doing it is by underestimating the value of the dwelling and slapping a 100 percent extended coverage endorsement on the policy,” explains Bach. “Most policies have four separate categories of coverage which dwelling, contents, other structures and additional living expenses. Three of the four pay a percentage of the dwelling, so if you lowball the dwelling value because you have 100 percent extended coverage endorsement, you’ll be underinsured for your contents, other structures and additional living expenses.”

  • IEI renegotiates Daewoo Securities debt

     Assures shareholders of profitability

     

    International Energy Insurance (IEI) Plc has assured shareholders of profitability and stronger balance sheet in the future.

    This follows its successful share reconstruction, renegotiation of Daewoo Securities (Europe) Limited four-year’s old debt to preference equity capital and full provisioning of premium receivables.

    These formed the excitement of the company’s shareholders who gathered in Uyo, Akwa-Ibom State at the weekend to consider its 2011 financial report and accounts.

    Chairman of the company, Sir Patrick Sule Ugboma, said with the conversation of Daewoo Securities debt to redeemable preference shares, having secured the approval of regulatory authorities and owners of the company, IEI has crossed a major hurdle in its business strategy, and is now well positioned to make good profit for the benefit of shareholders.

    He said: “With this development, Daewoo Securities is part owners of the company and its insurance business among other agreed benefits would be coming to IEI, and I can only assure shareholders that the future is bright.

    “Leadership of your company at the board and management level is committed to our strategic goal of not only repositioning the company and turning to profitability, but to also be among the top leading insurance companies in the next few years.”

    According to him, the firm’s strategies and processes are being reviewed to remove bureaucratic bottlenecks that impair efficient service delivery and position to underwrite big ticket transactions. He added that the ICT infrastructure is also being upgraded for robust and optimal performance to give company competitive .

    Ugboma further stated that IEI was working on increasing its financial and technical capacities to position effectively for the newly introduced risk based supervision introduced by the regulatory authority adding that this will no doubt stand the firm out as a proactive organisation and give it mileage in its niche area

    The underwriting firm which has further positioned for a bigger share of the market particularly in energy insurance, oil and gas and other allied risks, will have the first right of rejection for most of Daewoo insurance businesses within and outside Nigeria, he said.

    Managing Director, IEI, Roseline Ekeng, said the company is positioning to key into the various initiatives of the National Insurance Commission (NAICOM) and explore all opportunities open to it for a strong bottom line despite the challenging business environment.

    “We are however optimistic that the restructuring measures being put in place by our company will no doubt impact positively on our bottom-line in no distant time,” Ekeng said.

  • Insurers seek infrastructure devt to boost growth

    Insurers seek infrastructure devt to boost growth

    Insurance stakeholders in Africa have called for the development of infrastructure along their economic corridors to boost international trade and diplomatic relations to achieve sustainable economic growth.

    They made this call during the 40th African Insurance Organisation (AIO) Conference held in Cairo, Egypt.

    They said the continued reliance on China and other European countries for assistance, rather than developing local economies through trade and exchange would not only make the continent vulnerable to global crises as seen in the last four years, but will continue to deepen poverty and suffering among Africans.

    They pointed out that Africa had for long depended on the rest of the world, entrenching high level poverty, sickness, hunger and decaying infrastructure, resulting in lack of economic development.

    Prime Minister of Egypt, Hisham Qandeel, while speaking at the conference, said lack of infrastructure hinders development in the African continent, adding that at the African Union, governments have identified the need to develop infrastructure along the line of economic corridors.

    He said : “We realise the importance of connecting each other now via roads and waterways to enhance trade and commerce among our nations.

    “The Egyptian government since after its revolution is working very hard to bring stability, economic empowerment, justice and development programmes that will impact on the people through quality investment in infrastructure.”

    Qandeel said Egypt is already working on its Nile water ways to not only create greater access for movement of ships, but open up irrigation channels and roads for trade with neighbouring countries such as Khartoum and Jeba.

    The Minister of Investment, Yehia Hamed, said African governments must create conducive environments that will encourage public and private partnerships. He said that given the role the insurance sector played in payment of compensation, which helped in rebuilding and transition of Egypt during the revolution since two years ago, it has become important that nations strengthen their insurance sector for effective risk management.

    “Governments must make effective regulations that protect the policy holders, strengthen the financial position of the companies; enforce different compulsory insurances as well as help boost awareness for the overall interest of the economy” he added.

    Chairman of the Conference Organsing Committee, Abel Raouf Kotb stated that African economy is set to grow from strength to strength with the continent outpacing the global average GDP growth. He pointed out that the main challenge is to ensure that this growth reflects on the average citizen and that the riches of countries in the region have direct effect of alleviating more Africans out of poverty and tackling inequality.

    He said: “We have many reasons to be optimistic, but let’s not underestimate the challenges we face. Our continent continues to depend on external demand making us susceptible to global economic slowdowns, particularly in China and the Eurozone.”

    He noted that Africa faces many domestic risks such as youth unemployment, political upheaval, low insurance penetration and severe weather, adding that the insurance industry has a pivotal role to play in ensuring that these risks are properly identified and managed in order to ensure sustainable development.

  • WAICA Re to reward shareholders

    Managing Director, WAICA Reinsurance Plc, Abiola Ekundayo has said the company’s 2012 financial accounts approved in March showed positive result.

    He said these results put the company in a position to reward its shareholders soon.

    Ekundayo, who disclosed this to reporters, stated the readiness of the company to pay its first dollar dividend in 2014. He noted that the company is discussing with EDC Limited as financial advisers to use its wide network to attract investors from across the African market to invest in WAICA Re.

    This is coming precisely two years after the establishment of the regional reinsurer.

    According to him, the company is currently operating with about $33million from her first capital raised in 2011 and is planning to shop for another $25million to shore up its operation.

    He further explained: “We want to avoid the initial mistake we made in our first offer, which concentrated only in Sierra Leone, then little in Ghana and Nigeria, so it is going to be more expansive this time.

    “The organisation has come to full operation with full support of cedents from the West African region and beyond, having also enjoyed the goodwill of WAICA Poll as offshoot. Although WAICA Pool funds are still not accessible to WAICA Re because of a few documentations on signatories, the new company has continued to meet its obligations even to the extent of claims settlement on WAICA Poll cedents.

    “Recently we paid $52,000 claims to Ghana Re from the account of WAICA Pool, which we will take back when part of its monies locked up in Union Bank of UK Limited, Commercial Bank of Ghana and some in Nigeria are accessed”.

    WAICA Reinsurance Plc, an organisation belonging to insurance companies in the West African sub-region with head office in Sierra Leone was officially commissioned in 2012 having operated skeletally in 2011.

    The firm with investors across the continent was set up to address the capacity challenge faced by the regional market in its many years of insurance practice, where foreign counterparts had controlled larger share of the market.

    Ekundayo stated that WAICA Re was established to help minimise the effects of the lack of reinsurance capacity within the West African insurance industry. He said: “With the establishment of the headquarters of WAICA Re in Sierra Leone in August 2011, the aim and objective of the corporation is to set up a world class reinsurance cooperation, which will not only capacitate staff in various companies in West Africa but also set a good example of regional socio-economic integration.”

  • ‘Operators not complying with ifrs’

    • Five firms submit report

    Five months into 2013, only five of the 60 insurance companies operating in Nigeria have submitted their 2012 International Financial Reporting Standards (IFRS) compliant audited financial statement to National Insurance Commission (NAICOM) for clearance.

    The Commissioner for Insurance and Chief Executive of NAICOM, Mr. Fola Daniel who spoke to reporters in Cairo, Egypt, revealed that out of the five that submitted, only one has been approved by the commission.

    Warning insurance firms against late account submission, Daniel said the commission recognises the challenges they face in migrating to IFRS standards, and noted that a help desk has been dedicated to guide them on compliance indicators.

    In April 2013, NAICOM issued a circular to the 31 underwriters listed on the Nigerian Stock Exchange NSE warning them against delay in submission of their 2012 accounts to avoid sanctions from the regulatory bodies.

    The circular signed by Director, Supervision, Nicholas Opara, read in part : “We are concerned about non-submission of your IFRS complaint audited financial statements for year ended 31st December 2012 as at today 11th April, 2013. As your primary regulator, our review and subsequent approval precedes submission to both the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) which hitherto was on or before the close of business on 31st March following the year end of the financial statements.”

    The commission, however, advised the operators having challenges in meeting the directive to revert to the commission immediately stating in clear terms what the issues are.

    The circular also stated that the commission now has a policy to notify any insurer that has submitted its account within four days whether there are still issues to be addressed or whether the submitted account is good enough to be considered for approval.

  • Seven mistakes in naming life insurance beneficiaries

    Naming who should get the life insurance money after you die sounds simple, but designating beneficiaries can get tricky.

    Mistakes are common, financial advisers say — and they can be heartbreaking and expensive.

    When mistakes are made “you’re not creating problems for you,” says Keith Friedman, principal of FBO Strategies, an estate planning and insurance firm in Stamford, Conn. “You’re creating problems for the people you leave behind.”

    Here are seven life insurance beneficiary mistakes to avoid.

    Naming a minor child

    Life insurance companies won’t pay the proceeds directly to minors. If you haven’t created a trust or made any legal arrangements for someone to manage the money, the court will appoint a guardian to handle the proceeds until the child reaches 18 or 21, depending on the state, which is a costly process.

    Instead, you can leave the money for the child’s benefit to a reliable adult; set up a trust to benefit the child and name the trust as the beneficiary of the policy; or name an adult custodian for the life insurance proceeds under the Uniform Transfers to Minor Act.

    Overlooking your spouse in a community-property state

    Generally you can name anyone with whom you have a relationship as beneficiary, even a secret lover.

    “Life insurance is not a judge of someone’s morals,” Friedman says.

    Assuming your will trumps the policy

    A life insurance policy is a contract. Regardless of what your will says, the life insurance money will be paid to the beneficiary listed on the policy. That’s why it’s important to contact your insurer to change your beneficiary if needed.

    Forgetting to update

    “Designating beneficiaries are not ‘set it and forget it’ events,” says Tara Reynolds, vice president at MassMutual. You should review your policy every three years and after major life events, such as marriage, having children or divorce. Change the beneficiaries when circumstances change.

    Unfortunately, many people forget to do so.

    Neglecting details

    Do you want to leave life insurance money to your kids and grandkids, and you want it divided evenly?

    There are two ways of distributing the money — per stirpes and per capita. You can specify either method on the life insurance policy, and both are acceptable options when naming beneficiaries, says Ed Graves, a professor of insurance for The American College in Bryn Mawr, Pa. “But the possible outcomes can be drastically different from one approach to the other.”

    Per stirpes means the proceeds are divided by branch of the family, and per capita means they are divided by head.

    Be specific when you name beneficiaries. Instead of “my children,” list their names, social security numbers and addresses, Graves added.

    Otherwise, “the insurance company has to launch a search and that can take a lot of time,” Graves said.

    Staying mum

    “The most important thing is to tell someone so they know you have a life insurance policy, where it is and how to find it,” says Joshua Hazelwood, vice president at MassMutual.

    Giving money with no strings attached

    Naming your young-adult children as beneficiaries without setting any conditions for how the money is dispersed can be a setup for financial failure. How many 18- or 21-year-olds can handle a huge influx of cash? One way is to set up a trust with specifics for how the money can be released and what it can be used for until the young adult reaches a certain age.

    • Tips by insure.com.