Category: Insurance

No fewer than 100 farmers from the Southwest have met to discuss modern farming practices, opportunities and their challenges.

 At the event organised by Leadway Assurance were experts, and stakeholders across the agriculture value chain.

In a statement, Leadway stated that its collaboration with Corporate Farmers International, which led to the event, aimed to foster relationships and exchange ideas for the growth of the crucial agriculture sector.

 Issues discussed included risk management, sustainable farming practices, financial planning, agribusiness development.

 The Senior Agricultural and Microinsurance Specialist,  Leadway Assurance Mr. Oluwaseun Fasoranti, stated: “We are aware of the indispensable role farmers’ play in the advancement of our economy. According to a report by the Minister of Agriculture in February 2023, ‘agriculture contributes 23.78 per cent to Nigeria’s Gross Domestic Product (GDP).

“Yet, this noble responsibility comes with immense challenges, uncertainties, and events, such as droughts, floods, post-harvest losses, and pest invasions, continually threatening to stifle its growth every production season”.

Also, the Head of Agric. Insurance, Leadway Assurance, Mr Ayoola Fatona, said: “This partnership aligns with our mission of working with farmers during times of unpredictability. Leadway’s agriculture insurance policies have and will continuously be curated to meet these imminent needs.”

He added that Leadway’s agricultural policies are not mere contractual documents but reliable promises to provide a safety net in the event of unexpected weather patterns or unforeseen circumstances.

“By focusing on your protection, we hope to foster an environment where you can continue to do what you do best – feed our nation – without the constant worry of losses bothering your productive minds.

Leadway Assurance is a leading provider of insurance solutions, offering a wide range of products and services to individuals and businesses. With a strong focus on customer satisfaction and innovation, Leadway Assurance has established itself as a trusted and reliable partner for all insurance needs”, Mr. Fatona added.

Also, co-founder, Corporate Farmers International, Mr. Akin Alabi, said: “This interactive session with Leadway Assurance fits perfectly with our mandate of empowering farmers even in the face of the irrefutable growing challenges in the sector.

“With Leadway Assurance’s reputable financial and risk management expertise and Corporate Farmers’ superior understanding of the agricultural value chain, we aim to equip farmers with the required tools to thrive in the evolving agriculture landscape.

“Corporate Farmers is an agriculture-focused organisation that promotes sustainable farming practices, knowledge sharing, and community-building among farmers. Corporate Farmers aims to empower farmers with the tools and resources they need to succeed in a rapidly changing agricultural landscape through various initiatives, workshops, and events.’’

The Chartered Insurance Institute of Nigeria (CIIN) is seeking  solutions to climate risks.

 The institute believes this will ensure that insurers assist vulnerable citizens affected by climatic disasters.

The President of CIIN, Edwin Igbiti, made this known at the  CIIN/LBS seminar themed ‘Climate and disaster risk management: The role of Nigerian insurance industry/sector’’, in Lagos.

Igbiti, who noted that the theme was apt, said the industry has been recognised as one that ensures the survival of others by providing solutions which build resilience for individuals, businesses, and the economy.

He said: “There have been several global initiatives aimed at encouraging the provision of insurance solutions for disaster risk; however, the insurance industry seems to lag behind in these laudable opportunities. The industry as the society’s risk managers also occupies a unique position in helping individuals, businesses, and communities transition to a greener economy and a country that takes cognisance of the environment, social and governance issues in its activities.

“It has been agreed globally that the industry should facilitate the transition to a more sustainable and financially secure economy. To achieve these objectives, the industry needs to lead by example and infuse sustainable principles in its internal operations while promoting green insurance policies which are eco-friendly and safe. We need to also begin to effectively manifest as solution providers to the numerous disasters that have been affecting our country in recent times.

“It is quite commendable that the College has brought this issue to the fore with this seminar, and it is my belief that after this event, we would go back to our office to impact our country and provide disaster risk management solutions that would add value to our citizens, businesses and the economy at large.”

He observed that there is a huge untapped market in disaster risk management and financing that would help deepen insurance penetration in Nigeria and that it is time to access this market.

In this report, OMOBOLA TOLU-KUSIMO writes that more people are making fraudulent claims to cheat their insurers.

Due to spiral inflation and falling income, more insured people are resorting to making spurious claims, The Nation has learnt.

They have perfected various ways to commit fraud, leaving many companies on the edge.

Specifically, the companies have lamented an increase in cases of fake insurance certificates in marine and third-party policies, where billions of naira is lost to fake players.

This led the Nigerian Insurers Association (NIA) to embark on technology called the Nigerian Insurance Industry DataBase (NIID), which has helped to address fake motor policies, but still with a lot of gaps.

Observers said false claims are common in motor insurance policies where at the slightest form of accident, customers want to take advantage of it to fix and maintain their vehicles, which they could not do before the incident.

The Managing Director, Old Mutual Nigeria, Olalekan Oyinlade, who confirmed the rising incidents of fraudulent claims, said they had seen false claims from customers wanting to take advantage of their loss situation to better their condition.

He said: “Yes, it is true that some people are taking advantage of their loss to make extra money. There are accidents, but people are taking advantage of it to maintain their cars, which they could not maintain in a while.

“An insured car was bashed from behind and the bumper damaged; now, a new bumper has been bought to replace it, but the owner of the car is asking that the whole body of the car be repainted. That means we are going to pay a panel beater to work on the whole body before painting.’’

The Managing Director, Old Mutual Life Assurance Limited, Olusegun Omosehin, said: “There are spurious claims, but what we have done is to put in place mechanisms to ensure we detect such frauds.”

Similarly, the Managing Director of Lifeguard Microinsurance, Adeyinka Oyekunle, added: “We quite understand the challenges in dealing with small income earners and how often they could ask for claims, but we have professionals who look at these situations critically and take prompt decisions on claims.”

“When claims are reported, right away we communicate with our agents in the field to go there immediately and confirm the situation and in that position, we take decisions and pay claims without delay. So, as much as possible we are able to detect and avoid fraudulent claims in our system.’’

between second quarter 2021 and second quarter 2022, according to a report by TransUnion.

TransUnion examined intelligence from billions of transactions and more than 40,000 websites and apps contained in the TransUnion identity-proofing suite.

The research showed that even though there was a global decline of 14 per cent of suspected digital fraud attempts across industries, the insurance and logistics industries witnessed the biggest increase.

First-party application fraud in the industry was at the top insurance-focused fraud activity recorded.

Director-General of NIA, Mrs. Yetunde Ilori, at a briefing in Lagos, said the harsh economic situation is propelling the incidence.

She stated: “Due to the harsh economic situation, this fraud is real and it is on the high side. Apart from other issues that the insurance industry is grappling with, fraud is a major issue and is killing our business.

“A banker made a claim to an insurance company that he was involved in a fire accident, leading to loss of his car and laptop. In our investigation, we discovered that he insured with about four different insurance companies and he has filed for claims in the different companies. The association had pity on him and went further to gather the insurance companies for his claims payment but realised it was all false.”

 The Group Managing Director, Mr. Eddie Efekoha, said: “If you have interest in an asset and insure it with two bodies or more, then there might be a fraudulent intention. You are paying a premium for one asset to more than one insurance company. It means that something is on your mind and that is a fraudulent act. You cannot suffer more than the loss of an asset and that takes us to the principle of infidelity. If I suffer a loss of a car, I should not be expecting to be paid for two cars. I should only be paid for one car. Why will I insure it with more than one insurance company if I have no fraudulent intention?

“However, the laws of insurance take care of it. The claim will be paid once not twice or thrice and that the claim being paid will be shared by the companies concerned. So, that’s the law, if truly the asset existed.’’

Leadway Health, a subsidiary of Leadway Holdings and sister company of Leadway Assurance company limited, has partnered Vitality Health International to boost wellness, its Chief Executive Officer, Leadway Health, Dr Tokunbo Alli, has said.

Vitality Health International is owned by South African insurer, Discovery, which changed the insurance landscape with their Vitality Shared-value Insurance model that rewards people for healthy living.

Tokunbo said the company uses experience gleaned from its leading presence in West Africa with over 50 years of insurance experience in Nigeria, which customers have come to know and trust.

He stated that the partnership helps Leadway to provide deep in-market intelligence so Vitality Health International can provide the Health Insurance and wellness offering which the Nigerian population needs.

Read Also: Vitality Health International, Leadway Health<br>partner to offer innovative healthcare solutions

By using quality health insurance  and technology, he said the firm aims to achieve universal and quality health for Nigerians.

He said: “Vitality Health International and Leadway Health are committed to improving the quality of lives of the African people – making the partnership mutually beneficial for both entities. Vitality is a globally recognised programme which rewards people for engaging in healthy behaviours. Members are encouraged to ‘know their health’, take steps to improve their health and get rewarded for meeting their goals.

“With our unique use of technology to provide ground-breaking health insurance, we are able to provide our customers with a better, smarter and more rewarding experience. Through this partnership with Vitality Health International, we want to play an important role in the efforts towards universal health care (UHC) in Nigeria. Our goal is to help improve the provision of care and the quality of life for Vitality Health International members and their families, to accelerate the achievement of our collective vision.”

“Discovery’s Shared-value model is centred on Vitality, a science-based behaviour-change programme that has been proven through independent research to positively impact health outcomes. The Vitality programme is embedded in the Vitality Health International health insurance model.

This dynamic behaviour-change programme combines data analytics with rewards and incentives to encourage people to make healthier choices.

“The Shared-value approach enables employees, employers and Vitality Health International to share in the value and benefits of healthy behaviour by lowering healthcare costs for employers and employees, while decreasing the claims risks for Vitality Health International.”

He said employers are rewarded with a cashback of up to 10 per cent for encouraging their employees to get healthy and the Vitality Health Fund that can be unlocked when members complete their Vitality Health Review extends the employees’ outpatient benefits by up to $100, based on completion of Vitality health assessments and positive engagement with the Vitality programme.

“By engaging in healthy behaviours, employees can earn exciting weekly rewards with Vitality Health International’s rewards partners Jumia and Uber, as well as from leading mobile network in Nigeria, MTN, where vouchers can be redeemed for achieving their goals.’’

Alternatively, employees can choose to donate towards a life-changing vaccine.

“By completing their weekly goals members close their ‘fuel bar’ and successfully earn rewards. They can choose to redeem vouchers from MTN or other alternative partners such as Uber and Jumia, through the Vitality Africa app”, he stressed.

CEO of Vitality Health International, Emma Knox further explains that Vitality Health International has a core purpose running through everything they do:

He noted that to make people healthier and to enhance and protect their lives.

“The foundation of the Vitality Shared-value model is to reward people for healthier behaviours, which also improves their physical and mental well-being, while improving productivity and decreasing the employer’s insurance or ‘health risk’. Through this model Vitality Health International is contributing towards a healthier society by making businesses and their employees healthier.”

Heirs General Insurance (HGI) and Heirs Life Assurance (HLA), subsidiaries of Heirs Holdings, have launched digital channels for customers to make access easy to insurance.

Chief Marketing Officer, Ifesinachi Okpagu, said the channels include a chatbot named Prince, which resolves customer’s inquiries, a USSD channel *1100# for Heirs Life, and mobile apps – Simple Life by Heirs Life Assurance and Simple Protect by Heirs General Insurance, also available on the web.

She stated that to live up to the Group’s ‘Simple Life’ promise, the products demonstrate the companies’promise of superior value to customers, quick and accessible service, thereby driving financial inclusion.

According to her, these channels  tackle the challenge of low insurance penetration across Nigeria, opening the industry to new customers, who require protection for their assets and financial security for their loved ones.

She said: “Using mobile and web apps called Simple Life and Simple Protect, customers can open new policies, manage existing policies, file claims, and get instant support, right from their phones at any time of the day, without visiting an office or speaking to an agent.

“With the chatbot, Prince, customers get instant, personalised insurance service virtually, 24 hours a day. In today’s fast-paced world, Prince enables seamless service for  customers of Heirs General Insurance and Heirs Life.

“Heirs Life unveiled its USSD code *1100# to deepen insurance penetration. The USSD will allow Heirs Life to reach millions of customers in need of savings and life insurance plans, expanding its reach to remote areas traditionally excluded from financial services. The USSD code also provides faster access for existing customers to manage their policies”.

While stressing that customers are at the heart of their business, Okpagu noted that they are committed to driving inclusion.

Third party motor insurance policy of N15,000 provides motorists  with N3 million protection against third party accident, life and damages not only in Nigeria, but also in the West African sub-region, insurers have said.

The Sub- Committee of the Insurers’ Committee said the policy is one of the cheapest globally.

Chairman, Publicity Sub Committee, Insurers’ Committee, Akinjide Orimolade at a press conference in Lagos, said it is the only policy where you pay N15,000 premium and enjoy up to N3 million protection.

He said this is why insurance remains the best way to protect lives and properties and also mitigate unforeseen risks.

Read Also: NAICOM rolls out new guidelines for insurance industry

He promised that operators would continue to soothe pains of policyholders by providing them good policies.

As part of their commitments, he said they would begin an education campaign on third party motor insurance tagged: ‘Small Premium Big Coverage’ to enable the public understand what they stand to benefit when they embrace insurance.

He said: “According to him, the new rates contained in the circular, which took effect from January 1, 2023 are N15,000 premium for private motor and N3million claims; Own Goods, N5million claims, for N20,000 premium; Staff Bus, N3million claims, for N20,000 premium. Commercial Trucks/General Cartage N5million for N100,000; Special Types N3million for N20,000; Tricycle N2million for N5,000 and Motorcycle N1million for N3,000.

“According to the circular by the National Insurance Commission (NAICOM), the comprehensive motor insurance policy premium rate shall not be less than five per cent of the sum insured after rebates/discounts. Insurance companies have since commenced the implementation of the new rates and consumer education continues to dominate discussions at various fora.

“It is in response to the plethora of questions and enquiries received from our clients that the Insurers Committee through its Publicity subcommittee decided to embark on a short but eventful campaign to shed more light on the new rates and improve insurance uptake among the citizens.

“The drive is pan-Nigerian campaign covering social media, print, radio jingles and television commercials, some of which you will be seeing now, submitting that over the three-month period that the campaign is scheduled to last, that the industry expects massive publicity.’’

There is an urgent need to address local content problems of insurance in the oil and gas industry.

The challenges range from demand and supply gap, regulatory impediments and technical capacities of suppliers.

There is also a need to encourage specialised products that address human capacity, ensure adequate risk pricing, comprehensive coverages and risk management.

Commissioner for Insurance, Sunday Thomas, made this known at the Oriental News Summit in Lagos.

Read Also: NAICOM inaugurates actuarial committee on rates

Speaking on the theme, ‘Building local content synergy between the oil and gas and the Insurance sectors in Nigeria’, Thomas stated that  the regulator is committed to creating an enabling environment that will enhance the capacity of insurance institutions.

He expressed the need for reciprocities from operators, one of which is compliance with the requirements of the guidelines by the Commission and NCDMB.

He maintained that National Insurance Commission (NAICOM) and other regulators in oil and gas would collaborate to promote the needs assessment of insurers, reinsurers and brokers for growth and development

He said: “The drive towards enhancing local content speaks to the long-term plan of the government, burning out of good intention and strategy to grow our economy, develop the Nigerian Industries and her human capital.

“It is worthy to note that prior to the Nigerian Oil and Gas Industry Content Development Act of 2010 (NOGICD ACT), the Insurance Act 2003 made far reaching provisions for the domestication and domiciliation of insurance services in Nigeria. In particular Section 65(7) made it compulsory for any property in Nigeria whether moveable or immovable to be insured with a Nigerian registered insurer. Section 67 requires that insurance of all imports into Nigeria must be insured by insurers registered in Nigeria.

“The historical relationship between both industries could be traced to the birth of the latter, following the issuance of the NOGICD ACT, the insurance industry in collaboration with the Board brainstormed leading to issuance of the Guidelines for Oil & Gas Insurance Business issued in 2010, which amongst others, stipulates the roles and responsibilities of insurance institutions in ensuring compliance with local content law, with the primary consideration of ensuring actual exhaustion of available In-Country Insurance Capacity.”

The commissioner pointed out that the  aim is the development of indigenous content through increased indigenous participation.

“It is succinct to re-hash that from the German exploration for bitumen, to the Shell D’Arcy Oil Exploration in Nigeria; from the 1958 Oil Field discovery to the classification of Nigeria as an oil producing nation; from the ancient environs of Oloibiri to the ongoing transition to renewable and clean energy; oil and gas had been a major discovery for our nation’s strength.

Nigeria holds the largest natural gas reserves on the continent and, according to BP’s estimates in its June 2022 Statistical Review of World Energy, it was ranked sixth globally among exporters of liquefied natural gas (LNG) in 2021.

“The economy had over decades enjoyed a boost from the oil and gas industry as a catalyst and major contributor to her Gross Domestic Product (GDP). This is, however, not without appreciating the diversification of the economy incepted by the last Federal Administration. This significant milestone was not only limited to exploration and production, but also the extensive contribution of other ancillary services; of which insurance should not be sidelined.

“The synergy between both industries was renewed when both agencies identified the need for a veritable platform for inter-agency collaboration to give effect to the requirements of sections 49 and 50 of the NOGICD Act 2010 by providing guidance to operators in the oil and gas necessary for satisfying the provisions of the law in relation to insurance transactions.

“The journey for the renewed collaboration transited to the signing and unveiling of the Guidelines on submission of insurance programme by operators, project promoters, alliance partners, and indigenous companies in the oil and gas industry.

“Other than the circulation of the Guidelines, there was an unveiling at the 21st NOG Energy Conference and Exhibition in Abuja.

“The Guidelines portend to satisfy the intent and provision of the laws: thereby enabling the NCDMB monitor utilisation of in-country insurance capacity which is a road to increased retention, growth in in-country technical capacity, Job creation, increased penetration and GDP growth, human capacity development, and many others.

“It is also projected that the Guidelines will entrench effective regulatory oversight. This is to be the dividend of an active approach to Joint Regulatory Framework for driving Local Content in Nigeria.”

Putting into context the benefits of the Guidelines to the two industries and the country, Thomas said the intention is tilted towards encouraging preventive, detective; as well as corrective and compensatory regulatory controls.

He stressed that It is beneficial, to also state, that necessity is on uthem to ensure that risks are accurately priced and professional advice is given to insuring entities, especially in the Oil and Gas space, as it poses vantage position to avoiding overpricing of products, underrating of risks, negligent omission of necessary covers and its consequential effect on avoidable pressure and burden on finances.

“The company’s exposures where not accurately reviewed could deter incentivization from the regulator that could be provided in future to compensate for risk improvements deployed to reduce potential environmental liabilities, or the advantages enjoyable by deploying capital on transition from high based carbon energy and its environmental impacts.

This is in contemplation with the pressure to reduce Green-House Gas (GHG) emission and transition to Clean and Renewable Energy.

“A platform that aids juxtaposition of company’s operations with the obtained Insurance coverages would enhance the pace of the regulators’ oversight on the appropriateness of products offering to the market. Proper profiling of the entities’ coverages will compel joint collaboration and facilitation of knowledge sharing in ways optimally beneficial to both Industries.

“The disclosure and reporting requirement of Section 49 of the NOGICD ACT is to ultimately enhance regulatory decisions that will benefit the Oil and Gas industry and the at large. Another merit of the collaboration as highlighted in the blueprint between the Board and the Commission is to bridge the identified knowledge gap in the demand and supply sides of the oil and gas insurance value chain. This would not have been possible where there is no special vehicle of research and development which engine is the access to information and data from both the suppliers and consumers.

“The Commission has shown a positive attitude to Market Development by the release of the Soundbox Guidelines which is an instrument to test ingenuities in the Market; hence the Commission seek to facilitate and promote innovative insurance solutions that will address the gaps in current insurance offerings”, said.