Category: Insurance

To help build the market capacity and reduce knowledge gaps in specialist underwriting, FBS Reinsurance Limited and Munich Re have trained senior underwriters, claims administrators, business developers and marketers.

The training with theme: Emerging trends in pricing and claims optimisation, with special reference to the casualty line of business is organised by Munich Re of Africa and FBS Re.

Facilitated by members of Casualty and the Global Consulting Unit (GCU) of Munich Re, the purpose of the training is to appreciate the trends in efficient pricing and claims optimisation and upskill the reinsurers client’s knowledge in the post-COVID-era and digitalisation.

The Managing Director/CEO, FBS Re, Mr. Fola Daniel, said the programme was arranged with Munich Re for the Nigerian and other African market, said: “The training is a continuation of FBS Re’s determination to help build the market capacity and the reduction of knowledge gaps in specialist underwriting areas of operations.

“It is coming almost back-to-back with the FBS Re’s specialist training on Cyber security, Bankers Blanket Bond and other emerging financial lines in the African market, held in Accra, the Ghana capital.

“FBS Re is poised to walk the talk of its mantra of ‘For Better Services’, by adding value to the market, through other specialist training in the pipeline.

“It is a way of appreciating the various markets in Africa, for the goodwill extended to FBS Re in its less than two years of operation, manifested in continuing support.

“The seminar focused on Casualty which include the law and liability Pricing and Emerging risks; Specific products focus, which includes professional indemnity including SPPI, Directors and Officers, Public and Product Liability; Key Underwriting & Claims Considerations, Global Consulting Unit (GCU) which includes Claims optimisation, Pricing excellence and Parametric Insurances.”

He further stated that FBS Re’s aspiration is to raise the capacity of the African reinsurance sector.

He noted that the reinsurance market is growing but that FBS Re is positioned to further this growth using disruptive technology and our depth of expertise.

Insurance brokers have disagreed with insurers over a statement credited to the newly elected Chairman of Nigerian Insurers Association (NIA), Segun Omosehin, that gap between the underwriters and brokers, is the major issue responsible for the late payment of claims to families of departed civil servants.

The NIA chairman was said to have made the statement during a meeting organised by the Head of Civil Service of the Federation, Dr. Folasade Yemi-Esan, with underwriters of the ‘Group Life Insurance Policy for Federal Civil Servants’, in Abuja.

Brokers, however, expressed misgivings that such a statement shouldn’t have come from NIA chairman.

Some are, therefore, campaigning for a boycott of the forthcoming professional forum to be organised by the Chartered Insurance Institute of Nigeria (CIIN), which is expected to bring insurance practitioners together.

The brokers are upset that portraying that there is a gap between the operators is inimical to the peace and collaboration formed over the years.

Yemi-Esan tasked insurance practitioners to be alive to their responsibilities in settling outstanding group life claims amounting to over N1.84 billion.

She decried the lackadaisical attitude of insurance firms over the non-payment of civil servants’ death benefits, expressing displeasure with the continuous poor performance.

She noted that “the dead cannot fight for themselves.”

She lamented that, despite the Federal Government’s effort to improve the welfare of families of deceased workers through the prompt release of funds for the payment of death benefits, the underwriters and brokers were frustrating the efforts by their unserious attitudes.

The HOS stated that their non-performance was unacceptable and must be remedied.

According to her, the meeting was necessary to bridge the gap  between the underwriters and brokers as it was unreasonable to continue doing the same thing without achieving meaningful result.

“If the brokers are no longer relevant, then they should be blacklisted,” she added.

She informed them that payment of insurance claim was not rocket science, stressing that the Office of the HoS performs a similar function by settling backlog of claims not covered by the arrangement seamlessly.

She said: “The Key Performance Indexes (KPIs) on settlement of claims as at September, 2022 indicates that the total number of claims reported was 776; number of claims paid was 357; total sum on claims reported, 4,201,392,384.27; number of awaiting EDVs from HoS/MDAs 101; total amount paid 1,574,709,562.12; number of awaiting DVs from LEAD Underwriter 150 (2,626,682,822.15), total amount expected from EDVs 785,123,928.73, number of incompleted documentations 168 and total outstanding claims is 1,841,558,893.42.

“From the breakdown of the report, there is a clear indication of a huge gap between the number of claims reported and those paid, she said. She added that there was the need for improvement from the insurance service providers, as there is always room for other alternatives.

Omosehin expressed his gratitude to the Head of Service for her concerns and show of displeasure with their low performance.

He made a firm commitment to support the Head of Service by doing the needful to bridge the gap existing between the underwriters and the brokers, which he identified as the major issue responsible for the late payment of claims to families of departed civil servants.

The National Insurance Commission (NAICOM) and Katsina State Government have started activities that will ensure compulsory insurances and Takaful Insurance are implemented and enforced in the state.

While the collaboration between the duo is expected to enable the state government to insure its assets, the protection of innocent third parties who may fall victims of unforeseen occurrences like road accidents, building collapse, fire, accidents in public buildings – offices, shops, schools, malls, among others, are also critical to the insurance drive in the state.

Traders, farmers and the people of Katsina are meant to also be beneficiaries.

NAICOM listed its agenda in the state and sought the help of the state executive council to Incept the process of enacting state laws to domesticate the compulsory insurances earlier highlighted in conjunction with the state legislature: Ensure adequate insurance of assets and liabilities of Katsina State government; liaise with Takaful/insurance operators to determine product best suited for the government, farmers, private companies, MSMEs and individuals in the state; and Conduct on the spot awareness and sensitisation campaigns across the state, etc.

To achieve these, the Katsina Governor, Aminu Masari organised a workshop for top government functionaries, khadis and ulamas on the principles, operations and benefits of the Compulsory Insurances, Takaful and Microtakaful.

The Head, Corporate Communication and Market Development, NAICOM, Rasaaq Salami, said the Insurance Act 2003 and other relevant Laws of the Federal Republic made provisions for certain insurances to be compulsory on us towards the protection of innocent third parties who may fall victims of unforeseen occurrences like road accidents, building collapse, fire, accidents in public buildings – offices, shops, schools, malls, etc.

He said: “It is imperative to mention that we are in Katsina today to discuss the concept of Islamic insurance and forge this partnership with the government and people of Katsina State to pave way for the enforcement and implementation of the six insurance policies made compulsory by extant laws to guarantee the protection of the people of Katsina State.

“They include third party motor insurance for mechanically propelled vehicles that ply the public roads; all buildings under construction that are more than two floors; public buildings, including schools, offices, hotels, hospitals, shopping malls, among others; professional indemnity for medical practitioners and hospitals; group life insurance cover by employers for employees where there are more than three persons; and annuity for retirees as provided under the Pension Reform Act 2014.

“Full implementation of compulsory insurances will help the government cushion the effect of recurring fire inferno in different markets across the state which has been causing so much economic havoc on our traders and the government. One of the cardinal objectives of insurance is to protect us against such natural disasters. We cannot in some cases, stop it from happening but we can pre-empt and minimise its impact. Having the markets and goods insured will ensure stability and comfort for the people and also save the government some cost that ordinarily would have gone into compensating traders.”

Exporting brain capital to the global market will put Nigeria on the path to becoming a developed nation in record time, says a report.

The new report by leading professional services firm, PwC Nigeria, which analysed the best development path for Nigeria, stated that after significantly evaluating relevant trends impacting the global business landscape and Nigeria’s unique circumstances as well as Nigeria’s position in the world, the country has significant brain capital advantage to leverage growth.

The report entitled: “Nigerian Brain Exports: The Optimal Path to Growing the Nigerian Economy” recommended placing Nigerians in high-end global value chains (GVCs) to optimise the country’s potential.

Brain export occurs when a Nigerian based in the country is inserted into global value chains and exchanges their brain capital for foreign currency, which is then remitted to the country where the talent is physically located.

According to PwC, with such a large population that has an average age of 19 years, Nigeria has significant brain capital advantage, especially considering the ageing population in countries such as Germany, Japan, Italy and the United States.

It is estimated that the worldwide working-age population will see a 10 per cent decline by 2060. Japan tops this list with 28 per cent of its population above 65 and Italy comes second with 23 per cent. In contrast, only 2.7 per cent of the Nigerian population is above 65, which means Nigeria is strategically positioned to supply labour to the global market, thus presenting a strong comparative advantage.

Partner & Chief Economist, PwC Nigeria, Andrew  Nevin said Nigeria could transit from a developing to a developed nation within 20 years.

“To achieve this however, the country must seek and follow a path different from the traditional development path. We believe that the traditional strategy for development is not the most efficient path to improve the quality of life for Nigerians. It takes too long to deliver the expected benefits and Nigeria has not been successful in following this path. Most developed countries adopted the traditional path, but it required significant financial investments spread over a long period. Unlike these countries, Nigeria lacks the finances and cannot afford to waste time.

“Given the times we live in, with advancements in research with technology and changes in the ways of working, there is a new optimal development path, one that is strengthened by changing circumstances and Nigeria’s unique assets and attributes. That path is one where Nigeria exports brain capital into higher value-added global services markets,” Nevin said.

With case studies of India and Kenya and a few examples of companies already exporting brain capital from Nigeria and actively participating in the GVC’s, the report created a plausible scenario in which Nigeria captures 17 per cent of the global programming and software development jobs. The earnings that will accrue to Nigerians performing these jobs is about $50 billion.

Based on the market size and the growth potential, Nigeria should have a target of two million remote workers inserted into GVCs within 10 years. This number the report reckons would drive growth in other sectors of the economy through the increased purchasing power of the people inserted into the GVC.

According to the report, it is essential that the talent plugged into GVCs are not in a few selected locations but adequately distributed across the country to ensure prosperity for the nation.

Importantly, the report noted that Nigeria needs to start treating education as an infrastructure for development, not a social service, especially digital education, as screen-based interactions have become as fundamental as reading and writing.

The report acknowledged that it might be complex for the government to tax brain export workers at the moment. But it noted that the advantages outweigh that concern. With increased brain exports, burdens such as extreme poverty and high unemployment would lessen, and the government would also gain indirect tax benefits, like Value Added Tax.

Do you carry Niger Insurance or Standard Alliance Insurance policies?

If you do, experts say the company’s liquidation means that you cannot get compensation for any loss that occurs from June, this year.

Mr. Nwanne and Mr. Segun fit this scenario. Last week, Mr. Nwanne hit Mr. Segun’s car bumper badly.

Rather than fight, Mr. Segun and Mr. Nwanne’s agreed to see their motor insurance certificate only to find out they were carrying certificates of Niger Insurance, a company whose licence was revoked three months ago.

Both were in a dilemma over how to deal with the situation.

As a policyholder, you have a right to demand claims payment from the liquidator/receiver manager of both defunct firms, namely Sanya, Ogunkuade Esq for Niger Insurance Plc and Kehinde Aina Esq for Standard Alliance Insurance.

Both were appointed by the National Insurance Commission (NAICOM) to wind-up the businesses of the two firms.

Unfortunately, both have not come communicated how they planned to pay vlid outstanding and new claims.

When The Nation inquired from the commission what it was doing about the situation, the Deputy Director and Head Corporate Communications, Rasaaq Salami, said the commission would reach out to affected policyholders through the receiver managers.

Meanwhile, both companies have gone to court to stop NAICOM from liquidating them, further complicating things for policyholders.

At present, neither the companies, NAICOM nor its receiver manager are yet to communicate the next line of action to policyholders and the public.

Guinea Insurance Plc  recorded a gross premium income of N1.34 billion last year.

But the previous year, it made N1.05 billion, which represents a 27.4 per increase.

The Chairman of the company, Ugochukwu Godson, broke the news at the firm’s  64th Annual General Meeting (AGM) in Lagos.

At the hybrid event, he said the net claims expenses in 2021 was N0.48billion, which is a 69.1 per cent improvement over the N1.55billion recorded in 2020, noting that this was due to efficient claims management.

He stated that the company was returning to profitability as funds had been injected to strengthen its financial base and increase its capacity for transacting large-scale business deals.

The company’s Managing Director, and Chief Executive Officer,  Ademola Abidogun,  urged the company’s shareholders to see the positive aspects of the upcoming changes.

He said: “With the injection of additional capital,” he said: “Our company is well positioned to attract and transact larger portions of new businesses.

“It is undeniable that consumers are shifting and favouring simplicity more than ever before; as a result, our investment roadmap in technology and digital transformation is motivated by the need to give customers the freedom to purchase reliable insurance products without any geographical restrictions.”

He stated that the company had made efforts to keep management costs to a minimum, obtain regulatory approval for the underwriting of agricultural insurance, and reduce operating expenses.

Continental Reinsurance Plc has bid the immediate past chairman of the company, Chief Ajibola Ogunsola, and three retiring directors farewell.

The retirees are Mr. Ian Alvan Tofield, Ms. Ahlam Bennani, and Mr. Stephen Murphy.

At a dinner, encomiums poured on them.

The company’s Group Managing Director, Mr. Lawrence Nazare,  noted Ogunsola’s exceptional record of service to the company and for being at the forefront of advancing journalism in Nigeria.

He said Ogunsola’s tenure witnessed unprecedented growth for the company.

Ogushola thanked the directors, saying: “As chairman, my job was made very easy by the quality of directors that I had to preside over. I enjoyed my position as the chairman.”

At the event, Continental Reinsurance announced and rewarded the winners of the seventh pan-African (re)insurance journalism awards.

The awards recognises the outstanding work of reporters on developments in the sector across Africa and has given out prizes worth more than USD 60,000 to more than 80 winners and runners-up.

Nazare said the awards was created to popularise the insurance message and recognise those who tell the insurance story.

He stated that the programme has also enabled the reinsurance firm to provide 15 reporters with access to mentorship and knowledge.

Plans are afoot to give the industry a strategic document that will codify its long-term projections, the Insurers Committee has said.

The decision was taken during  its meeting in Lagos.

Briefing reporters after the meeting, the Vice-Chairman, Publicity Sub-Committee, Mr. Segun Omosehin, said the associations in the industry had been asked to nominate their members who would constitute a committee that would take charge of drafting the document.

Omosehin, who is also the Managing Director/Chief Executive Officer, Old Mutual Insurance Plc said, said: “We deliberated on the need for an industry-wide strategic plan; a strategic document that will codify the long-term aspiration of the industry over time.

He said: “This will be a high-level document that will have in it what the industry intends to achieve, adding that work on the document will commence soon.

“The need for a strategic plan is to enable us as an industry have codified strategic initiatives that will be implemented over a given period of 10 years. This will help the successive leadership that comes in so that there  is no vacuum. It helps guide the action of leadership in terms of what we want to achieve as industry. It keeps us in focus.

“This is what the strategic document is meant to do and it will cut across the entire gamut of the industry from underwriting to broking to adjusting.

It is going to be a 10-year plan.’’

The industry rebranding project, according to him, becomes an integral element of the document.

He said the industry’s proposed strategic document is to help  future leader. “For example, the Nigerian Insurers Association (NIA). If am running for two years, there is a need for a broader industry-wide initiative that I am expected to run along with my plan,’’ he added.

This, he said, would help every leader to achieve an industry-wide objective.

Also, a member of the committee, and Head, Corporate Communication and Market Development, National Insurance Commission (NAICOM), Mr. Rasaaq Salami, said the regulator would be part of the plan.

Omosehin added that another decision taken at the meeting was the revision of guidelines on Bancassurance.

“We received some cheery news that the regulator is likely to release some new guidelines on Bancassurance. Some elements in the guidelines are being reviewed, and so, we are hopeful and looking forward to some revised role on the operations of Bancassurance,” he added.

Linkage Assurance Plc has reassured of its commitment to the human capital development of its employees to enable them become the best professionals in the industry.

Its Managing Director/CEO, Daniel Braie, gave the assurance when the 51st President and Chairman of the Council of the Chartered Insurance Institute of Nigeria (CIIN), Mr Edwin Igbiti, visited the company headquarters in Lekki, Lagos.

Braie said Linkage Assurance added that 45 associates of the institute, which represents 44 per cent of the work force and 42 student members, are on the staff of Linkage Assurance.

According to him, apart from providing support to the institute in terms of donations and other supports, it has made passing of the institute’s examination compulsory for technical staff; pays their members’ yearly subscription including building levies; reimburses examination fees their student’s members; sponsors the yearly professional forum jotter in addition to ensuring adequate participation by chartered insurers in the organisation.

“We also sponsor academic award for best student in Principle of Marine and Financial Accounting,” Braie told the president.

Igbiti said the focus of his administration would be consolidating on the gains made by the past presidents of the institute with emphasis on the three-point agenda including Digital Reinforcement of institute’s operations; Insurance Awareness through Grassroot, Youths and Insuring Public; as well as Infrastructural Development.

The Managing Director/ Chief Executive Officer, Old Mutual Nigeria Life Assurance Company Limited, Mr. Olusegun Omosehin, has been elected as the 25th Chairman of the Nigerian Insurers Association (NIA).

He was elected along with other executive members during the association’s 51st Annual General Meeting in Lagos.

Omosehin urged members to support him in his quest to drive change in the industry through self-regulation and enforcement of market conduct to enable the insurance industry to take its rightful place among the pillars of growth and prosperity.

This, he assured, would enable insurers earn the trust of Nigerians, adding that he would also address the issues affecting the operators.