The Nation Newspaper

Category: Insurance

  • LASACO adopts new structure

    LASACO adopts new structure

    LASACO Assurance Plc is set to drop its life insurance arm for a composite underwriter structure.

    Its Managing Director Olusola Ladipo-Ajayi, who made this known, said LASACO Life Assurance Limited will be returned to its parent company, adding that it is better for the underwriting firm to operate as composite company, than operating separately.

    He said the company is discussing with an insurance company, adding that details would be made public after the approval by the National Insurance Commission (NAICOM).

    Ladipo-Ajayi said LASACO set a record by becoming the first insurance firm in the country to get the International ISO 9001:2008 Quality Management System Certification issued by the Standard Organisation of Nigeria (SON).

    He said LASACO is getting certified in other areas of their operations, including customer service. “We are struggling to be the industry leader in every area of our operations. We are trying to do this through the provision of products and services using modern technology and a well motivated workforce,’’ he said.

     

  • Guidelines on micro market coming

    Guidelines on micro market coming

    The National Insurance Commission (NAICOM) will soon release the guidelines that will help unlock the over N60 billion micro insurance untapped opportunities, The Nation has learnt.

    It was gathered that the commission is putting finishing touches to ensure the release of the much-anticipated guidelines that would help deepen retail market and take insurance to the grassroots.

    An industry observer said the guidelines when operational, would strengthen the collaboration between insurers and micro finance banks.Noting that operators are anxiously waiting to leverage on the guidelines.

    Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye, said the embrace of micro insurance and retail market would trigger a revolution in the industry, adding that some companies that have keyed into the system are presently doing very well.

    He urged insurers to develop products that suit the need of the public, adding that any product that does not meet the need of the masses would fail. He said most insurers sell products and not solution.

    He noted that research has revealed that Micro Finance Banks (MFBs) in the country presently have over 20 million customers, stressing that the customers are good prospects for micro insurance.

    He said the problem of insurance is that most people lack education on how it operates, adding that it is worrisome that most operators recycle products developed by their counterparts.

  • Shareholders seek NAICOM’s intervention on fines

    Shareholders have called on the National Insurance Commission (NAICOM) to mandate insurance firms to state the reasons for which they incur fines in their financial accounts.

    This, they said, is to enable them to reduce unnecessary payments on offences that affect their investments.

    The shareholders, who were reacting to a statement by NAICOM that what ought to be their dividend were used by companies to pay avoidable fines, called on NAICOM to go beyond just asking firms to state infractions in their accounts and assist shareholders in protecting their investments, by instructing companies to give a breakdown on the penalties for which they are fined.

    The President, Nigerian Shareholders’ Renaissance Association, (NSRA) Olufemi Timothy said the documentation of reasons for fines would help shareholders know who is culpable and what should be done to stem such offence.

    He said: “It is necessary shareholders know why their companies are fined. This will enable the companies’investors to know the kind of offence committed and watch against it in the future. It will also help to determine who is culpable in the company.”

    He noted that shareholders invest their hard earned income in companies to have return on investment, adding that situations where companies’ mismanage funds entrusted to them and leave the investor to suffer, should be discouraged by government and regulators.

    National Coordinator, Pragmatic Shareholders Association of Nigeria (PSAN), Mrs Bis Bakare, called on NAICOM to go beyond reporting of infractions in yearly accounts of firms and ensure that firms state reasons for infractions to enable shareholders query them appropriately.

    She noted that shareholders had at several fora sought from their organisations reasons for delays in the presentation of their accounts, and that the firms often attribute the delay to NAICOM’s refusal to approve the accounts on time.

    She said though the law states that companies should send to the shareholders the annual accounts at least one month before the Annual General Meetings (AGM), they only get the accounts at the venue of meetings.

  • Consolidated Hallmark, Zenith Bank partner

    Consolidated Hallmark, Zenith Bank partner

    Consolidated Hallmark Insurance (CHI Plc) is partnering with Zenith Bank Plc to ease the procurement of the compulsory third party motor insurance.

    The insurance firm said the collaboration would enable those seeking to renew or obtain a new motor insurance cover to pay for it across the bank’s counters nation-wide.

    With this arrangement, vehicle owners, insurance brokers and fleet operators can walk into the bank, effect payment and obtain the e-pin for processing of the third party motor insurance cover through either the product portal www.motorthirdpartyonline.com or from the company’s website.

    The company’s Managing Director, Mr. Eddie Efekoha said the company embarked on the arrangement to provide clients with additional options of obtaining their genuine insurance, having pioneered the online web portal payment for the product in 2008.

    He said that with the Consolidated Hallmark e-pin from the bank, clients can generate their insurance certificates from the comfort of their homes or offices within a few minutes, print the document for their immediate use or save for future use after completing a few details.

    Efekoha added that details of the vehicle thus covered are automatically uploaded to the portal of the Nigeria Insurance Industry Vehicle Database, a central registry of all vehicles with valid insurance cover.

    “Customers also have the option of making payments for the product with their ATM cards, or obtaining this and other classes of insurance through the National Insurance Commission (NAICOM) licensed insurance agents across the country.

    “The Consolidated Hallmark Motor Third Party Insurance cover protects the holder for up to N1 million in property damage liabilities to third parties, and also covers bodily injury and death of third parties arising from the usage of the insured vehicle,” he said.

  • NCRIB seeks payment of 59% outstanding premium

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has called on the Federal Government to pay the outstanding 59 per cent of last year’s group life premium.

    Its President Mrs Laide Osijo, who disclosed this at the April edition of the monthly Brokers’ Evening in Lagos, said the government has only paid 41 per cent of the total group life premium for last year, stressing that the non-payment of the outstanding is unhealthy for the insurance industry.

    She said: “I want to appeal to the Federal Government for the release of outstanding premium on group life for 2012. As it stands, only 41 per cent of the premium has been paid; remaining 59 per cent to be paid.

    “This situation has made many insurance companies to discountenance claims under the year in review of the now existent No Premium No Cover policy. This, as we are all aware, is to the displeasure of some beneficiaries especially to those who died in active service.

    “The impression many of them have is that the insurance industry is insensitive to their plights, a situation that creates serious image smear for the industry.”

    She called on the government to assist the industry to avoid further accumulation of unpaid premiums and claims, adding that such could negate the new premium collection system.

    Osijo said the initial apprehension on the workability of the no premium no cover policy is gradually being laid to rest as brokers and underwriters now testify to the gains from the initiative.

    Managing Director LASACO Assurance Olusola Ladipo-Ajayi, lauded the NCRIB, pledging the company’s commitment to work with brokers to deepen insurance in the industry.

    He said the company would continue to esteem professionalism and sustain its achievements, adding that the firm presently is the leader in special risk businesses and remains the only underwriting firm in the country with ISO certificate.

  • A & G Insurance holds road show

    A& G Insurance Plc has embarked on a road show to boost insurance awareness in the country.

    According to the company’s Director of Business Development and Strategy, Mr Dotun Onipede, the purpose of the show was to create awareness for insurance business.

    “With the various developments taking place all over the world, including Nigeria, the relevance of insurance cannot be ignored. Nigerians must know that insurance is important. They cannot do without it,” he said.

    Onipede added: “At such a time like this that it has become imperative for insurance companies to create awareness for insurance, A & G Insurance Plc is leaving no stone unturned in the campaign.”

    The show tagged: ‘Insurance and You’ covered major streets in the ever-busy Lagos Island.

  • Royal Exchange drives MDRI with e-device

    Despite the belief in some quarters that the Market Development and Restructuring Initiative (MDRI) is not being harnessed by operators, some underwriters have started reaping from the programme.

    One of them is Royal Exchange Insurance Group. It said it is using the electronic platform to sell insurance listed in the initiative.

    The Managing Director, Royal Exchange General Insurance, Olutayo Borokini, said: “What we have done in Royal Exchange, is to use electronic platform to sell some of the compulsory insurances. For example, we are about the first to start using scratch cards to sell third party insurance policies through the various licensing offices and other distributing channels.

    “We recruited agents nationwide to sell these products through the use of scratch cards to members of the public. Apart from the third party insurance, we also created the variants of comprehensive policy. We find out that there are some people that don’t have money to purchase the comprehensive policy.

    “So, we have the variants of comprehensive policy whereby you can decide to purchase third party and damage only which we also sell through scratch card system.”

    He noted that the company has also introduced the sale of public buildings policies through the use of scratch cards, adding that the firm is mapping out strategies to sell these policies using various channels that may be available to it.

    He said the firm is embarking on strategies to reach out to the poor and owners of public buildings on the need to insure them.

    Borokini maintained that though the government is making efforts to get the people to insure their properties, there is the need for more enlightenment.

    He said the firm would send some staff to the market place, to enlighten the people and convince them on the need to have insurance policies.

  • NIA: Vehicle insurance policies hit 1.5m

    About 1.5 million vehicle insurance policies have been uploaded into the industry’s database platform, the Director-General (DG), Nigerian Insurers Association (NIA), Sunday Thomas, has said.

    He disclosed this during a session with reporters in Lagos, adding that operators are still uploading data of new policies they registered.

    He said the association has procured 1,000 motor insurance electronic readers, out of which 25 units have been given to Ogun State Vehicle Inspection Officers (VIO), adding that the units have helped the agency to spot genuine policies.

    Thomas said the association was discussing with the Lagos State Government and that a date for the deployment of the devices in the state would be fixed soon. He said the association was planning to take the units to Abuja, the federal capital and the northern states.

    He noted that with the success achieved from the deployment of motor insurance data, the association would intensify efforts to ensure that before the end of the year, marine data would be deployed followed by property and other classes of insurance.

    NIA said it decided to start the deployment of electronic devices to Abeokuta, because historically, insurance in the country is traceable to the city, adding that the state also was one of the states to indicate interest in the project.

    The industry’s database project, which was conceived in 2010, to help develop robust information on insured vehicles, was launched in June, last year. It is an information technology-based system that will facilitate easy collation and dissemination of statistical and other information relating to insurance and help check activities of fake documents.

    The NIA promised to deploy over 500,000 electronic card readers to security agencies to verify genuine vehicle insurance licences.

    The project, according to NIA, would, among other things eradicate fake insurances and minimise instances of fraudulent claims, provide real time information that would address issues raised by stakeholders: insuring public, market players, law enforcement agents and regulators as well as serve as source of historical data for analysis and benchmarking, thereby providing qualitative analysis of industry performance.

    The initiative will enhance transparency and accountability and restore confidence in the insuring public, create the basis for scientific management of operations in the industry and it will enable the tracking of transactions in the industry.

    Assessing the first quarter operations in the industry, the NIA DG said reports received so far are consistent with expectations. He said the No premium No Cover policy introduced by the industry regulator, the National Insurance Commission (NAICOM) has worked very well for its members as shown by the reports sent in by insurers.

    Thomas said many of the insurers have been able to record very high level of payments which is good for the system.

    “Ordinarily when premiums are calculated, it is with the intention that they will be collected as at when due and invested so that when claims arise the insurer will be able to pay. He said with the current situation, the industry is actually moving from what used to be the order to what should be,” he said.

    Thomas said in 2011, about 28 per cent of the total premium that arose from transactions remained as outstanding premium. He said the situation would not arise this year because of the No premium No cover policy.

    ”The first quarter has been good though not in terms of volume but in terms of real business, that is transacting the business and collecting the premium,” he said.

  • NIMASA plans retirement scheme

    The Management of the Nigerian Maritime Administration and Safety Agency (NIMASA) is planning a Voluntary Lump-Sum Retirement Scheme for staff of the agency on Grade levels 15 to 17 with less than five years in service.

    This was made known to The Nation by Hajia Lami Tumaka, Deputy Director Public Relations.

    In a memo signed by the Director of Administration and Personnel Services, Mr Chuks Mgbemena, addressed to staff of the agency, stated that the scheme is for staff who are in service prior to attaining the mandatory retirement age of 60 or 35 years in service and in the case of directors, eight years on their present position.

    Tumaka said interested staff in this category willing to benefit from the scheme were encouraged to apply to the Administration and Personnel Services Department.

    “The Voluntary Lump Sum Retirement Scheme is part of the conditions of service in NIMASA under Chapter 7 Section 7.10 of the agency’s conditions of service handbook. This section stipulates that in order to encourage early voluntary retirement, staff who have five years or less to retirement by years of age or years of service may be offered lump sum payment.

    “The payment shall be based on Annual Terminal Base Salary for the remaining active years of service and prorate. All other entitlements shall also apply. The lump sum payment inducement option shall, however, be subjected to management discretion to apply it as and when it deems necessary,” Tumaka stated.

    This scheme was put in place to encourage staff who may be willing to retire early to go into some other ventures not to lose out entirely on their outstanding years of service. It is a voluntary scheme enshrined in the agency’s conditions of service and only members of staff who are willing to accept it can benefit from the scheme. It is not the right of staff as this scheme can only be invoked by the discretion of the executive management when it deems fit, she added.

  • Underwriters battle to produce IFRS compliant accounts

    •Only three firms sent in drafts, says NAICOM

    Underwriters are battling to beat the six months deadline given by the National Insurance Commission (NAICOM) within which they are expected to submit their audited and approved International Financial Reporting Standard (IFRS) compliant accounts.

    NAICOM said out of the 60 insurance and re-insurance firms in operation, only three have sent their IFRS draft accounts to the Commission three months to the deadline for submission of 2012 financial reports which must be IFRS compliant.

    The Director, Supervision, NAICOM, Nicholas Opara, who disclosed this during a meeting in Lagos, said the drafts have been returned to the companies as there are still areas to be worked on after necessary observations made by the Commission.

    He said last year’s financial reports of operators are special to the industry, as they are expected to herald the migration to the new IFRS regime.

    He said: “At the moment, no company has submitted full IFRS compliant account. It is only three companies that have sent in their drafts which we have returned to them, as there are still many things they are yet to get right. The 2012 reports are special because it is different from what we have been doing in the past.”

    According to a roadmap to guide companies’ on transition to IFRS, insurance and reinsurance companies are classified under public interest entities and were expected to start their transition from January 1, 2011, while the insurance brokers, classified under other public interest entities, were to take their turn in 2012.

    The transition from the National Standard to IFRS was endorsed by the Federal Government on July 28, 2010, to take effect from January 1, 2012.

    On efforts to ensure the actualisation of the IFRS initiative, the Commissioner for Insurance, Fola Daniel, said NAICOM has been engaging operators, auditors, directors and management of companies on how to seamlessly migrate to the initiative.

    He said two main outcomes have been reached by NAICOM and stakeholders on the initiative, adding that it was agreed that the market should adopt common approach to IFRS provided that such option will not place any individual company or the market at a competitive disadvantage domestically and internationally.

    He said the second issue, was that an accounting practices committee made up of the representative of NAICOM, insurers/reinsurers and external auditors should be set up to address all accounting issues of concern to the industry, including those emerging from IFRS standard setting processes.

    He explained that the Board of Directors of each company would be responsible for the issuance of financial statements, adding that both transition and sustenance of IFRS in accounting practices, should be a major item on directors’ agenda at this time.

    Daniel noted that NAICOM’s decision to engage stakeholders was informed by the need not only to create awareness of the implication of IFRS for financial reporting responsibilities, but also to acquaint them with the scale of change and the sense of urgency in the attention it deserves.

    “Our expectation is that at the end of our engagements, the stakeholders will have sufficient level of understanding as to know what critical questions to ask and what steps to take in the bid to ensure that their companies successfully transit to and imbibe IFRS in their accounting practices within the timelines specified in the Nigerian Roadmap.”

    He said NAICOM has established IFRS help desk in the commission to address issues that companies may have in the process of transiting to the new scheme..

    He said NAICOM has succeeded in significantly improving the level of compliance with the Nigerian GAAP by getting some companies to amend their financial statements to reflect a standard we believe all operators should comply with, if their financials will be relevant and useful to both domestic and international users.”

    Daniel said the feedback received from many users has been encouraging.