Category: Insurance

AIICO Insurance Plc’s operations are based on global Environmental Social and Governance (ESG) goals to impact its environment positively, the Executive Director, AIICO Insurance, Adewale Kadri has said.

Kadri said one of the major issues discussed at the African Insurance Organisation (AIO) Conference in Nairobi, Kenya was the sustainability of ESG Goals and that practitioners should make them part of their operations.

He stated that the ESG helps an organisation to assess and manage the risks and opportunities created by changing conditions such as shifts in environmental, economic, and social systems.

He noted that at AIICO has been thriving on the implementation of strategies that meet global and local standards.

He said: “We have set up a framework to achieve ESG goals. We look at our environment to know what we can do and we conduct our operation around it to impact our environment positively. So, we have instituted some initiatives to support some of the corporates that are  environmental-friendly.

“In the area of Social in the ESG, we have our Social Corporate Responsibility (CSR) initiative and have sponsored organisations. We also observe corporate governance in line with  the laws governing our business.

“We are also looking at how internet is affecting our business. We support organisations at different levels and also have a good structure to support government at all levels.”

Kadri emphasised that one of the things that is working for AIICO is its size, governance structure and the vision of the owners of the business.

“If you look at the structure of AIICO, we have internal framework to support whatever initiatives that AIO come up with and same at the local level with our regulators. Few days ago, we held a meeting with our regulators in Lagos on some other areas that we can support.

“We are running our business in such a way that AIICO is not just of today but of the future. This guides the way we conduct our business. We believe that the only way we can achieve this is to be focused and proactive. We have been in existence since 1963. Some of the companies we started with are not in operation anymore. But something must have been working for us and one of them is the initiatives of the owners and ability to comply with all regulatory guidelines,” he added.

He stressed that they follow trends globally and implement some of the ideas even though it could be expensive.

Head Retail Business Division, AIICO Insurance, Gbenga Ilori added: “One of our strategies is also that we made sure we come up with tailor- made products that suit our customers. We understand business is about customers. We are trying to get approval from the National Insurance Commission (NAICOM) on a few products, which, we believe, will enable us serve our customers seamlessly.

“We are also proud of our agency network. We have one of the largest agency networks in Nigeria that has continued to drive our products”, he noted.

FBS Reinsurance Limited’s objective is to add value to the insurance market, its Managing Director, Mr. Fola Daniel has said.

Daniel spoke with reporters against the background of the company’s one year anniversary.

He noted that the firm commenced operations when there was the need for capacity in the insurance market, adding that the reinsurance firm’s aim is to make a difference.

He stated that the firm has as at the end of May, this year, written over $15 million.

He said the firm has since its commencement continued to show commitment to claims’ settlement within 12 working hours, stressing that this has forestalled the problrm of sending reminders on claims, which he said, is not tolerated in the firm.

Daniel maintained that the firm is the only one that has Munich Reinsurance backing and is participating in five treaties.

He said: “We have enjoyed tremendous goodwill. We are poised not to abuse the goodwill.

“We are lucky to have the best technical crew, which helped us to hit the ground running.This gave much confidence to the market.

“We recorded N7.9 billion gross written premium in its first year of operation.”

He further stated that the company generated gross written premium of N7.9 billion ($19 million) and earned profit before tax of N505.47 million ($1.2 million).

Regency Alliance Insurance Plc has paid N1.031 billion claims to its customers in 2021 financial year.

Its Acting Chairman, Mr. Clem Baiye, stated this during the company’s 28th Annual General Meeting (AGM) in Lagos.

Speaking on the financial report, he said there was an increase of 18.36 per cent in the net claims position in 2021 when compared with that of 2020 as net claims grew from N871.279 million to N1.031 billion.

He noted that the increase notwithstanding, the claims ratio for 2021 (35.07 per cent) is lower than the 35.20 per cent recorded in 2020.

He stated that gross premium generation rose by 31.97 per cent to N5.118bn in 2021 from N3.878bn generated in 2020 while net premium rose by 18.82 per cent from N2.475bn in 2020 to N2.941bn in 2021.

Baiye said its profit before tax was N343.275 million as against N681.137 million recorded last year.

He noted that the profit after tax also decreased from N628.587 million in 2020 to N320.746 million in 2021.

The chairman said shareholders fund grew by 5.07 per cent from N6.329billion at the end of 2020 to N6.650billion in 2021.

According to him, the total asset base of the group as of December 31, 2021 stood at N11.869billion, a decrease of N876.498m or 6.88 per cent when compared with position on December 31, 2020.

On the recapitalisation that was introduced in the industry, he said: “There has not been much development on the recapitalisation. Due to on-going litigations on the exercise, the National Insurance Commission suspended all matters regarding recapitalisation.

“At the company level, various options are being worked on to ensure that the company is on a good stead whenever the recapitalisation resumes. I want to reassure our shareholders and other stakeholders that your company’s fundamentals remain strong, and we are well positioned to meet the new minimum capital requirements.”

The former Managing Director, AIICO Insurance Plc, Mr. Edwin Igbiti, is the 51st President of the Chartered Insurance Institute of Nigeria (CIIN).

During his investiture at the Lagos Continental Hotel, Victoria Island, Lagos said, he said would ensure that the institute continued to be at the frontiers of the technological innovations and trends.

Stating the theme of his tenure as “Building a Sustainable Legacy”, he said its choice was borne out of the need for continuity to sustain and build on the works of past presidents of the institute.

This, according to him, would guarantee that despite global uncertainties, the institute would continue to meet the needs and aspirations of its members.

He listed a three-point agenda of Digital Reinforcement of institute’s Operations, Insurance Awareness for all – Grassroots, Youths and Insuring Public, and Infrastructural Development.

After several years of not granting licences to new insurance and reinsurance companies, the National Insurance Commission (NAICOM) has given reasons it granted FBS Reinsurance, Heirs Insurance Life and General, Enterprise Life

It suspended issuance of new licences for over 10 years.

The Commission said it decided to grant licences to companies based on the profiles of the people behind them and their success rates.

The Commissioner for Insurance, Sunday Thomas, who made this known to reporters in Nairobi, Kenya, noted that the commission would continue to encourage the development of the insurance sector by ensuring that capable players are welcomed into the sector.

Thomas said the Commission would grant licence to more insurance and reinsurance firms that show and have capacity to impact the underwriting sector.

He said: “Insurance and reinsurance firms licensed over a year ago, were granted approval due to their capacity to impact the insurance sector. The last reinsurance company that was approved in Nigeria before we approved FBS Reinsurance, was approved more than 10 years ago and this was the case with insurance companies of which like Heirs and Enterprise were granted licence.

“These companies were not approved because of their numbers, but we looked at the profile of the people behind them and their success rates. We believed they have the ability to impact our sector. I will be happy tomorrow, if I see anyone that has the capacity to impact our sector, I will approve the licence.”

On the alleged foreign dominance of the insurance sector, he stated that the allegation was unfounded, as Nigerians own most of the firms in the sector.

“The issue of foreign dominance should be put in the right perspectives. In terms of ownership, that may not be correct. But in terms of some level of operations, that may be right. For example, on special risks, rates are still determined abroad. But in terms of ownership the companies are owned by Nigerians.’’

He noted that though there are some foreign interest coming in, but that is not enough to tag them dominant factors.

On deepening insurance penetration, Thomas maintained that NAICOM would continue to encourage insurance practitioners to explore opportunities in the retail market space.

He said efforts would also be intensified to create awareness on benefits of insurance, stressing that the people need to know more on the benefits of insurance.

“We need to encourage and mop up individual lability. Another thing is that we have not been able to communicate the benefits of insurance to the public. Why should we be raising money for relations when a member of the family dies? That would have been done through insurance. We must begin to tell people about insurance. That would be the game changer,” he said.

About N1·2 trillion, representing nine per cent of the national budget, is needed to cover 83 million indigent Nigerians that also represent 40 per cent out of over 200 million Nigerians, the Director-General, National Health Insurance Authority (NHIA), Prof. Mohammed Nasir Sambo, has said.

The NHIA is formerly known as National Health Insurance Authority (NHIS).

He spoke while receiving an Award of Honors, known as “Semper Fidelis” from Healthcare Provider’s Association of Nigeria (HCPAN) at the Nigeria Institute of Medical Research, Yaba, Lagos.

Sambo explained that the NHIA Act will ensure funding via Basic Health Care Provision Fund (BHCPF) and taxes/levies from states in a NHIA/SHIAs collaboration that is supported by a national mechanism that would also assure quality across board.

He maintained that the newly signed NHIA Act would ensure expansion of coverage to 83 million indigent Nigerians and fulfill the mandate to ensure every Nigerian has access to qualitative and affordable healthcare services, while also achieving the overall goal of Universal Health Coverage (UHC).

He said expanding health insurance coverage by 70 per cent, 80 per cent and 90 per cent will translate to a 15 per cent, 17 per cent and 19 per cent decline in Maternal Mortality Rate (MMR).

Similarly, expanding health insurance coverage by 70 per cent, 80 per cent and 90 per cent will translate to a 41 per cent, 45 per cent and 49 per cent decline in Under 5 Mortality Rate (U5MR).

Meanwhile, before the administration of Sambo, stakeholders under health insurance like NHIS now NHIA, Health Maintenance Organisations (HMO), Health Care Providers (HCPs) and HCPAN had been at loggerheads over tariff dispute and multiple debts owed each other.

All of this is said to have been settled with the new NHIA Act facilitated by Sambo with the National Assembly and signed into law by President Muhammadu Buhari on May 19, this year.

The National President, Dr. Jimmy Arigbabuwo, presenting the award to Sambo, said it was well-thought out in recognition of his immense contributions in repositioning the critical stakeholders in Health Insurance Scheme and issues in the country.

Arigbabuwo explained that the NHIA DG has built an enduring foundation for a better relationship between HMOs, Health Care Providers. NHIA, as well as NECA and the Civil Society, noting that he has been tremendous as a team player and rallying points in regulatory functions.

“The NHIA DG consistency and transparency with transformational agenda so far is worthy of emulation. The recent achievement of Universal Health Coverage modalities with signage of Mandatory Health Insurance bill into Law on May 19, 2022, by the NHIA ACT 17, remains a living testimony of changing the narratives and gameplay in Nigeria health insurance projects.

“He worked with the National Assembly, as well as HCPAN to see the evolution of the Bill into law via serious advocacies, conferences, summit, study tours, intra and inter-ministerial meetings and workshops, among others. Initiatives on NHIA Branded Medicines, Health Insurance for the elderly and retirees in Nigeria, were just but part of the crucial moves on joint advocacies initiated through the Federal Ministry of Health, using the dynamics of the Minister of Health, Dr Emmanuel Ehanire and team. It is also on record that this noble CEO of the NHIA has the listening ears for the feelings and opinions of the critical stakeholders.

“Stakeholders in the sector have developed mutual respect for one another under the administration of Prof. Sambo. The title “Semper Fidelis is a “Latin phrase” meaning “Always Constant, especially to a national course. He is the first nominee and winner of this Prestigious Award of the national body of HCPAN and we are proud of what he has done uniting stakeholders and resolving many issues we have had over the years,” he added.

A GROUP, Africa No Filter, has unveiled the Tony Elumelu Storytellers Fund.

Named after one of African business leaders, Tony Elumelu, the Fund will award grants to emerging artists and storytellers, whose work shines a light on entrepreneurs and entrepreneurship in Africa.

The $30,000 fund is sponsored by Heirs Insurance and Heirs Life Assurance, the insurance subsidiaries of the pan-African investment group, Heirs Holdings.

Chairman, Heirs Holdings and Founder, Tony Elumelu Foundation, Elumelu, has led the championing of entrepreneurship in Africa and has empowered over 15,000 young African entrepreneurs across the continent through a $100 million commitment made by his Foundation.

The Fund is an initiative and an extension of his commitment to catalysing a redefined African success story, powered by African youths and their creative ideas.

The Fund calls on reporters, filmmakers, content producers, and visual and performing artists to submit multimedia creative ideas, that tell the stories of inspiring entrepreneurs and showcase the true and positive spirit of entrepreneurship in Africa.

Applicants must be between 18 and 35, living either on the continent or in the Diaspora. They must have a platform or portfolio of work that shines the light on entrepreneurship in Africa.

Elumelu said: “I have always believed in the potential of young African entrepreneurs to transform Africa. This initiative aligns with our belief and extends the work that we do at the Tony Elumelu Foundation.

“Empowering young creative entrepreneurs and the creative sector provides a channel for us to project Africa’s positives globally.  We need their voices to tell our often less-told stories of triumph, resilience, hard work and innovation.”

Executive Director, Africa No Filter, Moky Makura said: “Our partnership is significant because this is the first African funding we have received towards the fight for narrative change.

“We are also excited to be partnering with one of Africa’s leading entrepreneurs to celebrate entrepreneurship on the continent through storytelling.  We need more success stories, more awareness and more celebrations around entrepreneurial ideas and the dynamic young people driving change here.”

Chief Marketing Officer, Heirs Insurance and Heirs Life, Ifesinachi Okpagu, said: “We are pleased to support this initiative that directly impacts the lives of young African creatives.

“As frontrunners of digital innovation in the insurance space, Heirs Insurance and Heirs Life both recognise the important role the creative sector plays in transforming Africa’s narrative. We are on the same transformative path, and this initiative clearly demonstrates that the ideas that we need to boost Africa are right here on the continent.”

 

THE Commissioner for Insurance, NAICOM, Mr. Sunday Thomas, said the licences of Niger Insurance and Standard Alliance were cancelled because the firms were unable to settle  claims for over three years.

Findings show that N15.4 billion total insurance contract liabilities have been transferred to the receivers/liquidators of Niger Insurance Plc and Standard Alliance Plc, following the cancellation of the certificates of registration of the companies.

The financial reports of companies show that while Niger Insurance Plc has contract liabilities of N11.5 billion, Standard Alliance has contract liabilities of N3.9 billion.

For Niger Insurance, Sanya, Ogunkuade was appointed receiver/liquidator while Kehinde Aina of Aina Blankson LP was appointed receiver/liquidator for Standard Allaince.

Sequel to this, the Nigerian insurers Association (NIA) had delisted the two troubled firms from its membership in June last year.

According to NIA, the expulsion became a necessity on the back of defaults in obligations to policyholders.

Chairman of NIA, Mr. Ganiyu Musa, noted that the association took the measures against the two companies to reinforce the stand of the organisation and industry on the importance of claim payment.

Industrial and General Insurance Plc, Staco Insurance Plc, NICON Insurance Plc and Nigeria Reinsurance Corporation are under the spotlight of the National Insurance Commission (NAICOM), The Nation has learnt.

Recently, NAICOM cancelled the licences of Niger Insurance and Standard Alliance.

It was learnt that NAICOM might soon wield the big stick on the companies to rid the industry of firms that are unable to fulfill their obligations to the insured.

IGI

IGI Insurance used to be one of the leading brands in the sector. Unfortunately, the company has not been able to pay claims. It has been recording a poor performance as it failed to submit its financial results to the regulators promptly since 2012. Worse still, the company is owing its staff.

In 2015, NAICOM took over its operations. It directed IGI to appoint an auditing firm from among KPMG, PWC and Deloitte to conduct a comprehensive financial review of the company and submit the report to the commission within two weeks.

The firm was to review IGI’s accounting system, conduct capital verification and validate the financial position of the company as of July 31, 2015.

The company’s spokesperson, Mr. Steve, said: “There is no doubt that we have some challenges. What we have been doing is to get investors to inject fresh funds into the company.

“We have also been trying to sell our assets, but we have a challenge in getting buyers due to the economic challenge. We keep giving our claimants confidence that we will pay and we are not running away. They should please be patient with us.”

Staco Insurance

Staco has not been able to pay claims promptly. The company is rattled following boardroom brawl. Its former Managing Director, Dr. Sakiru Oyefeso,  allegedly mismanaged over half a billion naira belonging to the company.

In a suit filed at a Federal High Court in Lagos, Staco Insurance had alleged that Dr Oyefeso obtained unauthorised loans in the name of the company and converted same. He was also accused of making illegal expenditures,  from the funds of the company.

The company said the alleged irregularities were discovered during the forensic audit by Ernst & Young, and that despite demands for payment, he had failed to pay, and as at the date of filing the petition, he owed the company N575,943,276.70.

The company urged the court to issue an order declaring Oyefeso bankrupt. The creditor also sought an order directing that assets, interests, and his holdings be liquidated and the proceeds applied to off-set the debtor’s debts.

An order divesting Oyefeso of  shares, interests and holdings in public and private companies. It also asked for an order of perpetual injunction, restraining him from taking up appointment as a director in any company.

Oyefeso, however, denied the allegations. He stated that he had for 25 years invested and been dedicated to the company, as the founding Managing Director and shareholder. He asked the court to dismiss the suit.

At the end, the court granted his prayers.

Still, NAICOM has taken over the company, describing its action as an administrative intervention.

NICON Insurance and Nigeria Re

NICON and Nigeria Re have been enmeshed in a battle of ownership with the Asset Management Corporation of Nigerian (AMCON).

NICON Insurance and Nigeria Re were owned by businessman Jimoh Ibrahim. They have been seized by the authorities for failing to pay a debt of N69.4 billion.

Findings by The Nation have that NAICOM is waiting to see the direction of the controversy between NICON and Nigeria Re with AMCOM in terms of ownership before it can take its decision.

Policyholders, brokers and operators  are lamenting the non-payment of claims by the two companies.

The commission, it was learnt, is also inundated with unpaid claims by the companies.

A source said the commission has had a conversation with AMCON and BPE and is waiting for their reports before it can know the next step to take.

The source said NAICOM has delayed taking action against the two companies because it does not want to act against its other government agencies, AMCON and BPE.