The Nation Newspaper

Category: Insurance

  • NAICOM, World Bank collaborate to strengthen Nigeria’s insurance sector

    NAICOM, World Bank collaborate to strengthen Nigeria’s insurance sector

    The National Insurance Commission (NAICOM) has initiated discussions with the World Bank to explore opportunities for collaboration aimed at addressing key challenges and driving growth in Nigeria’s insurance sector.

    During a courtesy visit by the World Bank delegation, the Commissioner for Insurance, Olusegun Ayo Omosehin, identified the insufficient actuarial capacity within the Nigerian insurance industry as a major constraint.

    He noted that while NAICOM has commenced its automation process, several challenges remain in achieving full automation across its regulatory functions.

    Omosehin pointed out the significance of the New Insurance Consolidated Bill to the World Bank team which he said has already been passed by the Nigerian Senate and is currently awaiting concurrence from the Federal House of Representatives.

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    He expressed confidence that once both chambers approve the bill, it will receive presidential assent, marking a significant step forward for the industry’s regulatory framework.

    Addressing public skepticism towards insurance, the Commissioner acknowledged past concerns over non-payment of claims. To restore confidence, NAICOM has adopted a new operational mantra, “find a reason to settle claims,” which has reportedly led to increased compliance from industry players in claim settlements.

    Omosehin also noted the Commission’s ongoing collaboration with the Nigeria Police Force and other relevant agencies to enforce compulsory insurance, an initiative that commenced on February 1, 2025. He stated that NAICOM has intensified public education efforts on the benefits of third-party insurance through various media platforms to enhance awareness and compliance.

    The Commissioner pledged NAICOM’s commitment to supporting President Bola Tinubu’s vision of achieving a $1 trillion economy.

    Adding to this, NAICOM’s Deputy Commissioner for Technical Operations, Dr. Usman Jankara, outlined the Commission’s focus on operating within a value-driven framework that aligns with the needs and aspirations of Nigerians. He further disclosed plans to develop cyber insurance guidelines and engage industry stakeholders on implementation.

    Mrs. Aisha Bashir, a senior official at NAICOM, spoke on the importance of microinsurance regulation, underscoring the Commission’s efforts to expand insurance access to low-income earners and rural communities.

    Leading the World Bank delegation, Mr. Mehnas S. Safavian assured NAICOM that the bank would consider the Commission’s requests for technical assistance, particularly in areas such as capacity building, automation, and capital market development. 

  • Lasaco Assurance records N1.68n profit before tax

    Lasaco Assurance records N1.68n profit before tax

    Lasaco Assurance Plc has once again demonstrated its resilience and adaptability, defying economic headwinds to maintain a robust presence in the insurance industry. 

    At its 44th Annual General Meeting (AGM) held at Marriott Hotel, Ikeja, Lagos, the company showcased its steadfast commitment to excellence and sustainability.

    Despite the economic downturn, Lasaco Assurance prioritized innovation, customer satisfaction, and strategic growth, solidifying its position as a leader in the Nigerian insurance sector.

    Read Also: GCR Rating affirms Lasaco Assurance’s financial strength

    The successful 44th AGM highlighted the company’s dedication to transparency, accountability, and shareholder value.

    According to Chairman Chief (Mrs.) Maria Olateju Philips, “Lasaco Assurance Plc maintained its market share and fortified its position despite economic turbulence, achieving insurance revenue of N18.29 billion – a 36% surge from N13.47 billion in the previous year.”

    “Notably, profit before tax increased by 6% from N1.58 billion in 2022 to N1.68 billion in 2023. However, profit after tax declined by 13% from N1.52 billion to N1.32 billion,” Philips added.

    “Lasaco Assurance Plc recorded a 5% growth in total assets, from N25.58 billion to N26.97 billion, and an 11% increase in shareholders’ fund, from N12.33 billion to N13.66 billion,” Philips stated.

    The Audit and Compliance Committee reported: “We reviewed the audit scope and planning for the year ended 31 December 2023 and confirmed their adequacy. Our policies and internal control systems conform to legal requirements and ethical practices.”

    Addressing dividend payment queries, Otunba Akin Doherty, Non-Executive Director, stated: “We strategically retained earnings to invest in growth opportunities, expanding our operations to benefit shareholders and stakeholders in the long run. Our subsidiaries are performing well, reflected in our financials.”

    As it celebrates this milestone, Lasaco Assurance reaffirmed its commitment to exceptional service, policyholder interests, and national economic development.

  • Why Nigerians must take advantage of health insurance, by NHIA DG

    Why Nigerians must take advantage of health insurance, by NHIA DG

    The Director-General of the National Health Insurance Authority (NHIA), Professor Mohammed Sambo, has charged the state offices of the authority to ensure that no life in their domains is left uncovered under health insurance.

    Sambo, who made the call in Kaduna on Monday, October 16, while receiving the Award of Excellence from the Kaduna State office of the Authority, said with the 2022 NHIA Act 2022, health insurance, is now mandatory for all Nigerians and legal residents of the Country.

    Represented at the event by Sulaiman Ibrahim, the Ag. Director of Special Duties of the Authority, Sambo said the Authority has been well repositioned and placed on the right pedestal to achieve its statutory mandate of attaining Universal Health Coverage, especially with the birth of the new NHIA Act 2022.

    He said the NHIA Act 2022 has introduced some landmark innovations such as redefining the objects of the Authority and streamlining the objects of the Authority. 

    Sambo stated: “Accordingly, NHIA is to regulate, integrate, and promote health insurance in Nigeria. The Act has made health insurance mandatory for all Nigerians and legal residents, and the established Vulnerable Group Fund to subsidize the cost of health care services to vulnerable persons in Nigeria, amongst other innovations that have changed the health insurance ecosystem. 

    Read Also: Coronation Insurance records N5.2b profit, grows turnover

    “The Authority has recently unveiled the new Operational Guidelines that would explain and amplify the new law’s provisions. Therefore, I urge you to take advantage of the new health insurance landscape in order to take health insurance to the last man, woman, and the needy on the street.

    “This event is remarkably important for its novelty and timing, in that, it is the first time that a State Chapter of the NHIA would spare time amid its numerous duties to look inward to appreciate and award its Chief Executive Officer, for providing selfless, purposeful and farsighted leadership to the Authority that had once been disarrayed by mismanagement and wanton disregard for law and order,” he said.

    While noting that, through the guidance of God Almighty, NHIA under his stewardship, has addressed the wrongs that characterized the organization before he took over as the Chief Executive Officer, the DG charged Kaduna and other state offices that, “you must work extra hard so that no life in your state is left uncovered under the health insurance.”

    Earlier, the Kaduna state coordinator of the Authority, Aminu Tanimu in his welcome address said the award was organized to celebrate excellence, honour outstanding achievements, and recognize individuals and organizations that have made exceptional contributions to their respective fields under the NHIA ecosystem.

    Recipients of the Award include the Chief Medical Director of Federal Neuropsychiatric Hospital, Kaduna, Prof. Aishatu Armaya’u; Police Health Management Organization (HMO), Giwa Specialist Hospital; Regenix HMO; Freedom Radio 92.9; Invicta FM 98.9; Hajia Ummulkhair Sada and Alhaji Kabiru Umar among others.

  • FBS Re grows gross written premium by 110%

    FBS Re grows gross written premium by 110%

    FBS Reinsurance Limited (FBS Re) has recorded a performance of N16.6 billion gross written premium, in its second year of operation.

     In the company’s 2022 financial report released at its Second Annual General Meeting (AGM) in Abuja, FBS Re grew its gross written premium by 110 per cent to N16.589 billion from N7.906 billion recorded in 2021.

    Its underwriting profit also grew by 545 per cent from N813 million in 2021 to N5.244 billion, which according to the company was driven by prudent risk management and operating costs. Chairman, FBS Reinsurance Limited, Alhaji Bala Zakariyau, who announced the performance at the event, said FBS Re’s financial performance just in its second year of operation is a testament to the resilience of its applied business model. He said despite environmental challenges, the company gained positive results in the critical areas of market share growth and profitability.

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    Zakariyau also said the company achieved an investment income of N1.050 billion in 2022 financial year, as against N275 million in 2021.

    Profit after tax rose to N2.491billion, a 544 per cent increase from N387 million achieved in 2021, the chairman further said.

    Zakariyau said: “I am particularly pleased to report that the results were achieved mainly by delivering better services to our cedants and brokers. We shall continue to keep our promises, as has been anointed in our name – ‘For Better Services’ and create sustainable value addition for all our stakeholders.

    “Territorial distribution of premium of the company shows that Nigerian market contributed 69 percent of the total, followed by Ghana market with 17 per cent, while Francophone and rest of Africa contributed five per cent and seven per cent.”

    The chairman also hinted that FBS Re will be embarking on a guided expansion program into other markets and territories outside its traditional Anglophone Zones.

    “This expansion will focus on Central, East and Southern African territories as we continue to study the North African markets.

    “Our risk appetite will determine the expansion initiative and ease of doing business in the selected territories. It will also be in line with the overall corporate objectives of sustainable profitability and delivery of better alternative services to African cedants,” he said.

    Zakariyau also noted that reinsurance is a capital-intensive business. Accordingly, the Board has prioritised raising adequate capital funding, to support the planned rapid market share growth.

    FBS Re authorised and issued shares has been increased from N10billion to N20 billion, and the Board has commenced working with strategic investing partners to raise the needed additional capital, he added.

  • Marine surveyors to insurers: beware of unregistered operators

    Marine surveyors to insurers: beware of unregistered operators

    The Guild of Marine Surveyors has warned insurance firms against doing businesss with registered surveyors at the ports. 

    A marine surveyor inspects, surveys, or examines marine vessels to assess damage, or monitor their condition and that of any cargo on board.They also inspect equipment intended for new or old vessels to ensure compliance with various standards or specifications. 

     President, Guild of Marine Surveyors of Nigeria, Mr. Wale Adetoro, told reporters that some insurance firms still patronised unregistered surveyors, some of who are not professionals. 

     Stating that the guild is sensitising underwriting firms through the Nigerian Insurers Association (NIA) to carry out due diligence on any appointed surveyor to ensure he or she is registered, he added that, the list of registered ones are on the Guild’s website.

    Read Also: Marine engineers, surveyors seek support, collaboration with Oyetola

     He said: “We still have surveyors operating at the port that are not our members, yet Insurance companies engage them. Most of it is a brown envelope under the table and if they commit any fraudulent act, nobody is there to discipline them. But, in our case, we have punitive measures against erring members which has made every member alive to the discharge of their duties and responsibilities.

     “Most of the importers don’t know who a surveyor or Superintendent is. Awareness is still needed to enlighten importers on what our roles are. We have appealed to insurance companies through the NIA that if they want to appoint, they should go through our website to appoint registered members.’’

     The marine surveyors, according to him, are appointed by insurance firms to supervise cargoes that were earlier insured through marine policy to minimise damage and report to their insurers the level of and reasons for damage. 

     He further stated that marine surveyors work in the port mainly to try and limit claim exposures on marine Insurance through prompt monitoring of the discharged cargoes, such that damages are limited in the process.

     He said: “Insurance companies appoint us to be their face at the port, so we are their representative. However, we have some superintendents who work with the Nigerian Port Authority (NPA). As a group, we are not chartered yet, but we are working towards that. We are interacting with the NIA through the Marine Offices Committee (MOC) of the NIA. We also work, in conjunction with the Shippers Council and NIMASA. MOC consists of the marine technical heads in insurance companies. Through the NIID Marine Portal, it has been able to curb, to some extent, fake marine certificates.” 

     Similarly, the General Secretary, Guild of Marine Surveyors, Festus Nwiue, urged the Shippers Council to ensure stevedores working at the port are adequately insured with liability insurance and are trained on handling of cargoes, stating that most insurance claims arising from marine insurance were as a result of mishandling of cargoes during discharge.

    “Stevedores are the ones with the responsibility of discharging the ship or loading the ships. Stevedores are those who use forklift, crane and so on and are responsible for loading and unloading the ships.They don’t have any insurance cover, they don’t know anything about insurance. So, some mishandle cargoes that lead to damage of goods, hence, increasing the risks marine insurers are exposed to. And they mishandled cargo because they are not held responsible for damages by the Shippers Council. 

    “So, we have recommended to the Shippers Council to ensure that stevedores are made to procure liability insurance cover, so that they will be careful when handling goods.They are doing that because they know they are not held responsible. We urge the regulator to ensure any stevedore working in the ports has insurance cover,” he stressed. 

  • More directors retire at NAICOM

    More directors retire at NAICOM

    The Director, National Insurance Commission (NAICOM), Inspectorate Directorate, Pius Agboola, and his  Administration and Human Resources counterpart,  Habila Amos, have retired.

    Recently, the commission’s Director, Finance and Accounts (DFA), Barineka Thompson, also retired in line with the Federal Government’s new tenure policy.

    Agboola and Amos were served their compulsory retirement letters recently by NAICOM, along with Thompson, in line with the recent Public Service Circular on eight-year tenure for Federal directors.

    Read Also: Nigeria’s claims ratio among lowest globally, says NAICOM

    The Head of Service of the Federation, Folashade Yemi-Esan, while unveiling the revised public service rules during the civil service rule, had said tenure policy –2021 Revised Edition’ of Public Service Rule (PSR), which took effect from July 27, 2023, stated that Directors (SGL 17), who have spent eight years and above on a post are directed to submit their notice of retirement in line with Section 020909 of the revised PSR.

    Yemi-Esan added that with the policy, about 512 directors in the civil service who have spent eight years on the directorate cadre might be forced out of the service.

    The PSR, which was launched by the Office of Head of Civil Service of the Federation on July 28, this year, in Abuja, also introduced a tenure policy for permanent secretaries who are required to spend four years in office which is renewable subject to performance.

    She noted that the implementation would commence immediately and the rules were revised under the administration of former President Muhammadu Buhari, but the launch was delayed until President Bola Tinubu took over in line with the ‘Renewed Hope’ Agenda.

  • Leadway Assurance gets ‘AA+’ rating

    Leadway Assurance gets ‘AA+’ rating

    GCR Ratings, one of Africa’s foremost rating agencies, has revised Leadway Assurance Company Limited’s financial stability rating to AA+(NG) from AA(NG) in their June 2023 Report. 

    Leadway Assurance made this known in a statement.

    The company stated that the upgraded rating reflects Leadway Assurance’s consistent capacity to meet its financial commitments and obligations, affirming the robust creditworthiness of the insurer.The upgrade also indicates the insurers’ stable outlook.

    The statement read that according to the rating agency, the outlook is underpinned by the leading insurer’s total premium collection of N104.4 billion of which Gross Written Premium (GWP) growth rate at 31 per cent was N92.5 billion or $218.6 million at N423.3/$ as of the financial year that ended December 31, 2022, largely driven by its expansion strategies in its general and life business segments. 

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    It further stated: “In addition, Leadway’s capital base of N81.2 billion or $181 million at N448.6/$ as of December 31, 2022, supported a GCR Capital Adequacy Ratio (GCR CAR) of above 2x. Similarly, the insurer’s regulatory solvency margin ratio was strong at 7x (2021: 10x) in the same year.’’

     ”This growth translated to a market share of about 12 per cent of the Nigerian insurance industry’s GWP. The insurer’s GWP is concentrated in the annuity, group life, and special risks business lines, which contributed 29.5 per cent, 20.3 per cent, and 18.2 per cent to GWP, in 2022, although concentration to the annuity business is higher at 42.2 per cent of Net Written Premiums (NWP).”

      Consequently, GCR projected Leadway’s continued leadership in the Nigerian insurance industry: “Over the next 12-18 months, we expect Leadway’s leadership position in the Nigerian insurance industry to be sustained, supported by its wide distribution network and expansion initiatives, especially in the retail segment.”

      Managing Director/Chief Executive Officer, Leadway Assurance, Tunde Hassan-Odukale, said: “We are delighted to receive the upgraded ‘AA+’ rating from Global Credit Rating (GCR), validating our company’s strong capitalisation, prudent risk management practices, exceptional underwriting performance, and unwavering dedication to sustaining a robust financial foundation to consistently deliver outstanding value and excellent services to our policyholders and stakeholders.

      “Over the last five decades, Leadway has demonstrated resilience and adaptability to navigate through dynamic market conditions while maintaining financial solidity and credibility in fulfilling its obligations to diverse policyholders. The “AA+” rating from GCR further reaffirms Leadway Assurance’s ability to weather uncertainties and maintain stability even in challenging economic environments.”

  • Capital base to determine insurers’ categories soon, says NAICOM

    Capital base to determine insurers’ categories soon, says NAICOM

    The issue of minimum required capital base for insurers will soon be settled with the adoption of risk-based capital (RBC) regulatory framework by the industry.

    Commissioner for Insurance, National Insurance Commission (NAICOM), Mr. Sunday Thomas, made this known at the just-concluded  insurance seminar for reporters at Ibom ICON Resort, Uyo, the Akwa Ibom State capital.

    He said though the issue of recapitalisation was in court following suits by shareholders seeking to stop the recapitalisation of insurance companies, the commission has not given up on the plan.

    According to him, the Consolidated Insurance Bill at the National Assembly, when passed to law, will settle the matter.

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    Specifically, he noted that the implementation of risk-based capital will settle the issues related to increasing capital of insurance companies.

    He stated that the commission will no longer dictate capital to individual company as they will sort themselves by what is called ‘own-risk assessment’.

    “We haven’t given up on recapitalisation. In one of my engagements with insurers on RBC, I mentioned that two things will happen. We are looking forward to the Insurance Consolidated Bill to become an Act. Once it becomes law, there is a definite section on RBC and so it will take care of issue of recapitalisation and we don’t need to fight ourselves.

    “However, I can even tell you that companies are willingly writing to us to increase their capital on their own. They are writing to us giving us evidence of increase in capital. But the moment the bill becomes an Act and we are implementing with a minimum regulatory capital, it will be the end to issues relation to recapitalisation.

    “What we will be left with is the individual company’s capital needs for transaction which will be independent of the risk that the individual company is carrying. At that point, if you are heavy in aviation and oil and gas business, you cannot be expected to have the same capital as somebody who is transacting motor business.

    “You can also not be expected to have the same capital as those who are heavy on annuity business that have  70 per cent of their portfolio as annuity funds. So, these are risk-related capital. It will not just be the commission dictating capital to individual company. There is what is called own-risk assessment, whereby you will access it by you. All we need to give you is a standard that you will work with.”

    Meanwhile, the Commissioner also said NAICOM will soon carry out its naming and shaming plan on insurers with unpaid claims.

    He said they have mandated  insurance companies to commence publications of outstanding claims.

    “The Commission has written the operators and given them enough time to sort out outstanding claims and begin publications in national dailies.There would be consequences for not adhering to the mandate. As a regulator, we have done a lot to ensure companies live up to their responsibility as regard payment of claims.’’

    Speaking on the impact of foreign exchange and inflation on insurance, Thomas said the current foreign exchange crisis and the inflationary trend have impacted on insurance sector just as it is being experienced in other sectors of the economy.

    He expressed optimism that the negative impacts will elapse as the federal government strives to stabilize the economy through various initiatives.

    He advised the insured to adjust the value their assets in order to derive maximum benefits because when the value is increased, it means more premiums to pay.

    “Under the present circumstance, those who are wise need to adjust the value their assets in order to derive maximum benefits because when the value is increased, it means more premium to pay. When we have this less level of exchange rate, assets replacement becomes an issue, and when you get to the position where assets that were acquired at a particular amount, especially assets that are foreign exchange dependent, people are not quick to revalue there assets.”

    He inflation rate such as it is presently has affected life insurance business, noting that it is worst hit.

    “But you see what we are going through as nation; I believe that it is temporary. Two things had happened, the issue of subsidy removal and the issue of consolidation of the exchange rate. All these are at the point of policy change and there are bound to be push back. So, what we are experiencing now is all push back; push back is bound to affect every sector of the economy. If you look at what is happening now, the exchange rate is adjusting itself downwards. However, there are things still being done and by the time, the entire initiatives materialize, definitely it will find its level”, he submitted.

  • LASACO Assurance maintains stable performance

    LASACO Assurance maintains stable performance

    LASACO Assurance Plc has maintained the A(NG) performance rating in the latest GCR rating. 

     The company in a statement said it hit the “stable outlook” standard in the last performance assessment of the world-acclaimed rating agency, maintained the feat through professional discipline, customer relations, prompt claims payment, and innovation.

     According to the company, the rating signifies Lasaco’s robust financial strength, competitive position, and improved financial profile.

    The statement further read: “The rating placed the company at the top echelon of the claim underwriting business in the country as it reflects the company’s effective management of its financial resources and competitive professional muscle.

    Read Also:Lasaco Assurance pays dividend

    “The feat also reinforced the company’s creativity and commitment to long-term growth and sustainability, providing reassurance to investors, stakeholders, and customers.

    “Lasaco Assurance has effectively managed its financial resources and demonstrated a strong competitive stance that has made it a force to reckon with in the industry. “

    “The company has also prioritised its claims settlement to customers and made significant progress in enhancing its financial performance.’’

  • NAICOM Finance Director retires

    NAICOM Finance Director retires

    The Director of Finance and Accounts, National Insurance Commission (NAICOM), Barineka Thompson, has retired.

    Thompson and two others were retired last Friday in tandem with the Public Service Circular on eight- year tenure for federal directors. He has worked in NAICOM for 10 years and 10 months.

    The tenure policy – 2021 Revised Edition’ of Public Service Rule (PSR)- which took effect from July 27, stated that directors (SGL 17), who have spent eight years and above, should retire.

    Thompson is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), an Associate Member of the Chartered Institute of Taxation of Nigeria (ACIT) and the Nigerian Institute of Management (AMNIM).

    He is also a Certified Anti-Money Laundering Specialist (CAMS), and Certified Advanced AML Audit Specialist (CAMS-AUDIT) of the Association of Certified Anti-Money Laundering (AML) Specialists (ACAMS), USA. He is the only Resident Nigerian with the CAMS-AUDIT certification.

    A highly skilled professional, Thompson was the Chief Finance Officer, Linkage Assurance Plc, before joining the National Insurance Commission (NAICOM), Abuja. He had served as Acting General Manager/Chief Executive, NICON Hotels Limited, a subsidiary of NICON Insurance Plc.

    He was a director of Associated Properties & Trust Plc, Nigeria Aluminium Extrusions Limited, Globe Reinsurance Plc, Nigeria Hotels Limited and Abuja International Hotels Limited.  At NAICOM, he  was the Director, Supervision and Inspectorate.