Category: Insurance

Insurance firms should do more to change the mindset of the people on insurance, the Chairman/Chief Executive Officer, Boff & Company Insurance Brokers Limited, Chief Babajide Olatunde-Agbeja, has said.

Olatunde-Agbeja, who spoke to reporters in Nairobi, Kenya, said while changing the people’s mindset had been extremely difficult, insurers must go endeavour to convince them that insurance administration, especially claims payment, had improved.

He noted that though few companies still avoid claims’ payment, others pay promptly.

He stated that only prompt payment of claims could convince the public that insurance works.

He said: “Simply put, settling a claim instantly is the greatest advert any insurance company can have. A few have however failed in this area in the past. For example, we had a claim over two weeks ago where one of our clients was coming from the airport driving in his car and another car hit him from the rear. Our client had comprehensive insurance on his car and so it was supposed to be a straightforward claim.

“The insurance company involved was ready to pay but they were going to deduct a penalty because the vehicle that hit him from the rear didn’t have a third-party insurance on his vehicle. As brokers, we engaged the company on behalf of our client to make sure they remove the penalty.

“These are some of the issues that come up with some companies. When they collect the premium, it is straight forward and easy but when it’s time to pay claim, they begin to come up with stumbling blocks. We need to simplify claims procedure and this will make people to flog companies and insure. Although the claims payment has improved tremendously, we have had instances of large claims default that Boff has had to pay. In an instance, there were 20 companies that co-insure on a business. When claims occurred, the strong ones paid their portion of claims with ease and we were left with a few of them struggling to pay.

“Niger Insurance and Standard Alliance were notorious in claims default and that was the one of the major reasons why the regulator, the National Insurance Commission (NAICOM) had to sanitise the system by withdrawing their licences.

“At a point, we had to pay $900 claims on behalf of Niger Insurance. But, hopefully, we don’t get to witness such again in the industry.”

No fewer than 695 natural disasters in Africa killed 700,000 people and caused losses worth USD 38.5 billion between 1970 and 2019, the Africa Insurance Pulse report, has shown.

During this period, the continent accounted for 15 per cent of climate-related disasters, 35 per cent of deaths and one per cent of global economic losses.

Notwithstanding, experts said working with public partners, stakeholders in the sector could help protect Africa against climate risks.

They said the industry’s response to climate change risks was an opportunity for it to make the difference in customer service.

The Insurance Pulse report entitled: “Climate change and its impact on the African insurance sector” was conducted by Faber Consulting AG for the African Insurance Organisation (AIO).

The report’s findings are based on research and on in-depth interviews with executives from 24 insurers, reinsurers and brokers in Africa

Partner, Faber Consulting AG, Henner Alms, stated that drought is the deadliest risk, while flood is the most common.

Alms who said Africa is the most threatened by climate change after Oceania, added that services and industry sectors are more sensitive to extreme rainfall and floods

On top 10 African economies, 2020 Gross Domestic Product (GDP) composition by sector and USD million, Alms pointed out that African countries were expected to experience adverse macroeconomic consequences of climate change in the decades ahead.

He said: “Assuming a severe warming scenario, climate change will reduce GDP growth per capita by 2050 in East and West Africa by about 15 per cent; Northern and Southern Africa by about 10 per cent; and Central Africa by about five per cent.

“The services and industry sectors however have a higher sensitivity to extreme rainfall and flood events than the agricultural sector.”

Alms noted that experts expect further weather extremes to drive up prices.

“Survey results from Faber report on weather risk insurance pricing indicates that weather risk insurance rates have increased in the past three years and will continue to increase in the next 12 months.

“Some insurers increased their weather risk insurance capacity, but also retain more risk,” he said.

However, the African insurance would benefit from harmonised climate risk regulation, he added.

“The growth potential for insurance on the African continent is immense. Renewable energy in Africa creates a significant business opportunity for insurance renewable energy investments in Africa, 2000-2020 in USD billion.

“Although the African continent contributes among the least to global greenhouse gas emissions, most African countries suffer widespread losses due to climate change.

“The African insurance sector, through its insurance, investment and advisory functions, plays an important role in understanding and addressing climate change in its complexity,” he said.

He said it was agreed that a timely and harmonised regulation of climate risk would strengthen the role of insurance as an effective risk manager.

“Working closely with public partners, the insurance sector is uniquely positioned to help Africa better protect itself against climate risks and become more resilient.

“Climate change presents a major opportunity for the African insurance sector and new ways are being explored to improve the insurability of weather-related risks in Africa,” he added.

Shareholders of Cornerstone Insurance Plc, have approved N908,319 million as dividend payment of 5 kobo per ordinary share of 50 kobo for the financial year ended December 31, 2021.

The shareholders approved the dividend at the 30th Annual General Meeting (AGM) at Muson Centre, Lagos.

Chairman, Independent Shareholders Association of Nigeria (ISAN), Dr. Anthony Omojola, appreciated the firm for the dividend payout at a time most companies were not thinking of shareholders’ welfare.

President, Nigerian Shareholders’ Solidarity Association (NSSA), Timothy Adesiyan, applauded the firm for an outstanding financial performance amid the economic headwinds.

Chairman, Cornerstone Insurance Plc, Segun Adebanji, stated that the board and management of our company would continue to be resilient and steadfast in their resolve to deliver positive results to shareholders.

The company’s Group Managing Director, Ganiyu Musa, noted that fire portfolio generated the majority of claims incurred during the year with N1.24 billion incurred, the only sub-class to surpass the N1 billion mark.

He said the insurance industry is working with the reinsurers and brokers to address issues of pricing and other underwriting imbalances affecting the fire class.

He said: “Engineering portfolio, which saw a N7.3 million loss signifies stability in our company’s core business and is testament to the success of the stricter risk assessment parameters put in place. The general insurance portfolio grew by 26 per cent from the previous year with all the sub-classes showing an increase except Bond which represents less than 1 per cent of the portfolio.’’

 

 

 

 

“The Oil, Gas and Aviation sub-class continued to lead with a 35 per cent contribution in 2021 and a growth of 28 per cent from the previous year.

“On life business, life underwriting result was higher than the previous year at N2.82 billion compared with N140 million in 2020. We continued to pay close attention to the quality of our underwriting using our carefully designed Risk Acceptance Criteria to filter business opportunities”, he added

Speaking on group life premium, he said it increased by 9.25 per cent in 2021, explaining that the change in

Sovereign Trust Insurance (STI) Plc has grown its Profit After Tax by 42 percent to N974 million for the full year 2021, as against N687million recorded in 2020.

According to statement released by the insurer, Profit Before Tax equally increased from N796 million in 2020 to N885 million in the year 2021 representing an 11 per cent growth rate.

Similarly, Gross Premium Written grew to N12.7 billion over N11.1 billion recorded in 2020 representing a 14.4 per cent increase.

While, Net Premium Income equally grew by 11.2 per cent from the sum of N6.5billion in 2020 to N7.2billion in 2021.

Similarly, Earnings Per Share improved by 42 per cent from 8 kobo in year 2020 to 11.34 kobo in 2021.

The Managing Director and Chief Executive Officer of the company, Mr. Olaotan Soyinka, has attributed the performance to the commitment shown by management and every member of staff who he described as the drivers of the organisation.

The company is scheduled to hold its 27th Annual General Meeting on August 18.

 

Continental Reinsurance Plc has given out prizes worth more than USD 60,000 to more than 80 winners and runners-up of its pan-African (Re) Insurance Journalists Awards since its commencement seven years ago.

The Group Managing Director, Mr. Lawrence Mutsunge Nazare, made this known at the Continental Reinsurance Directors’ farewell and Journalism Awards in Lagos over the weekend.

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

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

He said: “I remember when these awards started and, if you listened carefully back then, you could hear the odd voice questioning the idea behind the awards-wondering what the point was or if they would ever have an impact. One person who resolutely backed the idea stood for the view that as part of building the premier pan-African reinsurance company we must popularise the insurance message and recognise those that tell the insurance story.

“Back then it was only 13 countries that entered the awards, slightly more than half the number of countries participating today. You see, in just seven years we almost doubled the number of countries and entrants coming together for this one event. Even, more importantly, we hope that these awards help to tell a very African story, a story of talent and an unshakable belief in the future,” he noted.

 

Capital Express Assurance Limited has grown its total assets to N12.858 billion in the 2021 financial year end, an increase over the N11.95 billion recorded in the previous year, the Chairman, Otunba Ademola Adenuga, has said.

He spoke at the company’s 21st Annual General Meeting (AGM) at the weekend in Lagos.

He stated that despite the challenges occasioned by the COVID-19 pandemic, the company remained resilient, delivering growth in total assets and profits in 2021.

He stressed that the company recorded a Profit after Tax PAT) of N90.68 million, an increase of 33.6 per cent as against N67.88 million in 2020, while Total Equity rose by 16.6 per cent from N5.37 billion to N6.26 billion.

Claims expenses increased marginally to N2.98 billion, while prompt settlement of claims is our flagship and we will continue to forge ahead in this regard he maintained.

He however said the company’s Gross Written Premium (GWP) was N4.412 billion in the year under review, a decrease when compared with the N6.33 billion achieved in the preceding year.

Adenuga further stated that as global constraints began to ease following the COVID-19 pandemic, paving the way for gradual restoration of commodity supply chain, expansion surged with opportunities for growth unlocked.

The chairman lauded the management, staff, and shareholders for their responsive roles across the organisation to ensure the company continues its promise to deliver top life insurance services in the Nigerian market, leveraging on its renewed digitalisation drive.

He said: “The insurance industry witnessed a 10 per cent growth, compared to a negative 13 per cent recorded in 2020. There is a rekindled hope that the renewed insurance awareness will improve Nigeria’s Insurance penetration and growth in the coming years.”

Speaking at the AGM on the company’s initiative to drive insurance through digital platforms, the Managing Director/Chief Executive Officer, Mrs Adebola Odukale said Capital Express introduced its Mobile App and USSD channels to make it easy for the insuring public to get life insurance covers and easily process their claims.

She said, “We’ve created and launched our Mobile App for customers to be able to get different life insurance policies, make premium payments, monitor the status of their policies in the company and process their claims faster without walking into our physical branches.

“These platforms are interactive and give our policyholders the opportunity to engage us and seek clarification on things they need to know about their policies with the company”, she noted.

 

To avert risk of food insecurity, the government has been charged to implement the Federal Government, the Nigeria University System and Nigeria University Commission (FGN-NUS-NUC) Food Secure Consortium (FSC) plan and establishment of targeted support infrastructure.

The government has also been advised to strengthen the ICT use in agricultural productivity through adoption of remote sensing technology, drones, and Artificial Intelligence.

These form part of a communique from the Risk Managers Society of Nigeria (RIMSON) Conference attended by risk management practitioners as well as organisations that play stake holding roles in Risk Awareness and Risk Management in Nigeria.

The presentations were focused on the conference theme, “Repositioning for Economic Recovery, Growth & Resilience”, which, according to the risk managers, underscores the need for effective risk management strategies for ensuring business growth, continuity, and resilience regardless of the global and local challenges.

In the communique, the risk managers tasked the government to address insecurity in the country through sustainable security intervention and promotion of result-based funding extension services.

Other part of the communique read: “There is th e need for government to take over agricultural development in Nigeria.

“The government and stakeholders should embark on voters’ mobilisation and education; voter’s registration should be made compulsory for all voting age; voting in Nigeria should be more flexible and conducive and strict adherence to timelines be enshrined.

“There should also be prompt payment of allowances and dues to Adhoc Staff and sanctioning of erring officials involved in election duties. Furthermore, Non-Governmental Organisations and Community-Based Organisations should play complimentary roles under The National Environment Management Authority (NEMA) than the competitive rivalries.

“Also crucial is that the government should discourage incessant change of the Director-General of NEMA, which leads to inconsistent policies while travel insurance should be taken as a viable tool for ensuring travel security.’’

Speaking on the communique, the President/Chairman of the Governing Board, Risk Managers Society of Nigeria (RIMSON), Gus Wiggle said following the outbreak of COVID-19 and the Russian invasion of Ukraine induced disruptions, the relevance of the theme to businesses in Nigeria is accentuated by the approach of another election year, with many uncertainties and the possibility of change of macroeconomic policies which always impacts the socioeconomic landscape.

 

He said presentations at the Conference underscored the imperative for integrating risk management into public and private corporate governance structures and Nigeria’s national socio-economic life and diligent implementation.

The Conference was also a platform for the continuous education of risk managers and sharpening their risk management skills by practical training, solutions, and insights from experienced global experts, he added.

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African Alliance Insurance Plc has revived its policyholder businesses and compensated N4.08 billion losses in the first half of the year, the Managing Director/Chief Executive Officer, Joyce Ojemudia has said.

Ojemudia, in a statement, reaffirmed the company’s commitment to paying genuine claims promptly.

She pointed out that the company was built on a foundation of claims payment.

“Year in, year out, we do not shy away from fulfilling this critical obligation to our policyholders as due.

“Our pay-off is not just an empty statement of facts but indeed an assurance, to remain devoted to our policyholders despite unforeseen circumstances which may arise. It’s been 62 years, and we have not wavered from our commitment.

“We have paid N1.81 billion for annuity claims; N857.2 million in individual life claims; N765.4 million Group Life; N436.3 million Takaful as well as N208 million Esusu payouts,’’ she said.

Capital Express Assurance Limited has expressed its commitment to making life insurance policies more accessible to its customers through its digital channels.

The Managing Director, Capital Express, Mrs Bola Odukale, in a statement, said the company introduced its mobile app and USSD channels to make it easy for the public to get life insurance covers and process their claims.

She said: “We’ve created and launched our mobile app for customers to get different life insurance policies, make premium payments, monitor the status of their policies and process their claims faster without walking into our branches.

“These platforms are interactive and give our policyholders the opportunity to engage us and seek clarification on the things they need to know about their policies with the company.”

By using the USSD code of the company, Mrs Odukale said, customers could have access to their products from any where.

She said the digital platforms allow the users to renew their policies, lodge any complaint and track transaction records which are on the app.

“The apps can be installed on mobile phones from the App Store (iOS) and Play Store (Android). As a customer-centric organisation, Capital Express ensured that the Apps are user-friendly and convenient to use for old and new customers.

“These two features are targeted at simplifying the process of buying insurance and operating insurance policies without having to visit our office or get worried over engaging with the organisation,” she added.

Cornerstone Insurance Plc has announced a dividend payment of 5 kobo per ordinary share of 50 kobo for the financial year ended December 31, 2021.

According to the firm, dividend payment would be paid after shareholders’ approval at the Annual General Meeting (AGM) tomorrow. The Group Managing Director, Ganiyu Musa, stated that the company’s performance was as a result of its  adherence to its growth strategy based on sound business principles and the core values of integrity, empathy, professionalism, innovation and team spirit.

He said these had culminated in the company achieving a landmark results,  earning Gross Premium Income in excess of N20 billion.

The Chief Financial Officer, Kehinde Olorundare, said the company recorded Gross Premium Income of N20.9 billion, from N17.5 billion it recorded as at December 2020.

He stated that the increase of 19 per cent was as a result of their superior value proposition and increased patronage from their customers.

“The company posted an underwriting result of N5.2 billion, from N1.08 billion in the preceding year. Growth of 381 per cent was driven by focus on cost optimisation and our conservative approach to underwriting. Profit before Tax of N3.7 billion was also recorded as against N2.19 billion in 2020. The increase of 69 per cent was driven by our strong revenue growth and improved operational efficiency.

“There was Profit after Tax of N3.5 billion, an increase of 60 per cent. Total assets of N49.3 billion, an increase of 13 per cent from N43.8 billion in the preceding year. Growth has been driven by turnover, which dovetailed into growth in insurance funds.

“We recorded a shareholders’ funds of N20.17 billion,’’ he added.