The Nation Newspaper

Category: Insurance

  • ‘How to grow insurance during the pandemic’

    ‘How to grow insurance during the pandemic’

    As the pandemic ravages on, insurance operators are moving to adapt to the new paradigm shift, bracing for the new normal through quality and effective value delivery using Information Technology. Omobola Tolu-Kusimo writes.

    Insurance operators have met to rethink how to sell their products effectively.

    Concerns have been raised by stakeholders, especially policyholders, on the quality of their service.

    The pandemic has also revealed the many gaps that needed to be filled with new insurance products like cybercrimes, an area that is witnessing huge demand.

    It is in the light of this that the operators in the insurance value chain came together during a virtual training (Webinar) organised by the College of Insurance and Financial Management (CIFM), owned by the Chartered Insurance Institute of Nigeria (CIIN).

    Presenting a paper on the theme, Insurance value delivery in the pandemic and beyond: A new reality,  Senior Manager, Agricultural Value Chain Finance, Nigeria Incentive-Based Risk Sharing Agricultural Lending (NIRSAL) Mr. Opeoluwa Ogundipe, charged the operators to take advantage of the new realities.

    He said the pandemic is not the first.

    He stated that despite shutdown of businesses, some businesses are experiencing boom either based on foresight or luck.

    On opportunities in the industry, he said operators do a lot of out-of- the box thinking and focus on hard work.

    He said: “Nigeria is in need of a quick recovery after the pandemic. The insurance industry is in a prime position to aid the country in this recovery by taking up its two most critical roles in nation building.

    “The two critical roles are building the resilience and productivity of businesses which will in turn allow other sectors in the economy to grow. The second opportunity is the pooled premiums invested in long-term productive opportunities such as infrastructure development that will create jobs, fuel growth and encourage innovation.’’

    Former President CIIN, Mrs. Funmi Babington Ashaye further stated that the question was how they could ensure customers’ satisfaction through quality and effective value delivery even during this pandemic using Information Technology (IT).

    READ ALSO: FBN Holdings divests from fbn Insurance

    “It is common knowledge that the prosperity of the economy is the prosperity of the insurance business. The channel of marketing and communication with existing and potential clientele has changed and as operators, we must be ready as insurance professionals, for this new paradigm shift. To do this successfully, we need to reset our various areas of insurance operations, especially, the insurance value delivery. We need to consider the new opportunities by coming up new innovations especially in the area of cyberattack and cyberattack and cybercrimes.

    “There is huge demand in this area. Indeed, customers, expect insurance companies and brokers to come up with policies that will address many gaps revealed during the pandemic. Technology and cloud based software are also needed now in other to enhance remote work. Whether we like it or not, remote work is here to stay. With covid-19, communications are very key to both our clients and employees.”

    The Rector of the college, Dr. Yeside Oyetayo, on her part, noted that  the pandemic has disrupted life.

    She stressed that the need for  professionals to continue to offer humane and compassionate assistant to policyholders and customers necessitated the training.

  • FBN Holdings divests from fbn Insurance

    FBN Holdings divests from fbn Insurance

    By Omobola Tolu-Kusimo

     

    The FBN Holdings Plc (FBNH) has sold  its 65 per cent shares in FBN Insurance Limited to  Sanlam Emerging Markets (Proprietary) Limited (Sanlam).

    This confers the ownership of FBN Insurance (Life) and its subsidiary, FBN General Insurance Limited, on Sanlam.

    The deal, which was sealed via a Share Purchase Agreement (SPA), took effect from June 1.

    Group Managing Director, FBN Holdings Plc, U. K. Eke said: ‘’The divestment is in line with the Group’s medium to long-term strategic objectives. This will, ultimately, improve our shareholders’ well-being and deliver greater value to all the stakeholders.’’

    Also, Sanlam Chief Executive Officer, Mr Heinie Werth, said: “Over the years we have enjoyed a mutually beneficial partnership with FBNH, and we will continue to cooperate with them in the future.

    Sanlam exercised its pre-emptive right to acquire the remaining shareholding of FBNI and in line with our partnership philosophy that underpins our business model, we will introduce local shareholding at an appropriate time in the future.

    This transaction is evidence of our belief and confidence in the value and future of the business, as well as the skilled management team and staff. Moreover, we are committed to Nigeria and view it as a key market on the continent.”

    The divestment, however, has no impact on FBN Insurance Brokers Limited as it remains a subsidiary of FBN Holdings.

  • Insurance worth N450b, says Royal Exchange MD

    Insurance worth N450b, says Royal Exchange MD

    By Omobola Tolu-Kusimo

     

    The insurance industry is worth N450billion and has opportunities for growth, the Group Managing Director, Royal Exchange Plc, Olawale Banmore, has said.

    Banmore spoke at Babcock University Students Association (BUSA) Community Students Week in Ilishan, Ogun State.

    “In Nigeria, insurance is a N450 billon sector and has immense opportunities for growth as it should really be a trillion-naira sector and its getting there.

    Besides, it is a major employer, especially skilled insurance professionals, among other fields. It also supports the economy because without insurance.

    There would be fewer jobs, and even fewer businesses. It will be difficult for anyone to buy a car without insurance, or visit the hospital without health insurance. Insurance helps companies remain in business.

    “In the same vein, many interesting career paths, which cater to varied skill sets and interests abound in insurance.

    We have need for most of the professionals. The industry offers competitive compensation packages to enable us attract and retain the best talents.

    With opportunities for growth and professionalism via the Chartered Institute of Insurance of Nigeria (CIIN), the prospect to grow is limitless.

    Now is the time to get into the industry, bring your disruptive ideas, your innovations, unique skill-sets and expertise is what is required as we prepare for the next growth phase of the insurance industry in Nigeria,” he said.

    He wondered while making career choices,  fresh graduates take insurance as the last. He blamed the problem on insurers of yesteryears who portrayed the profession in negative light.

    He urged youths to make insurance as a career choice because the industry is stable, have multitude career paths, supports the economy, among others.

    He said the sky was the limit for a fresh graduate.

    He said: “We need millenials to bring your fresh ideas, innovation, different ways of looking at challenges and together, make the industry attractive.

    The insurance market is a resilient marketplace and as a result, it can be a solid bet if you are looking to enjoy a long and prosperous career.’’

     

  • ‘Our strategy to curtail virus spread’

    ‘Our strategy to curtail virus spread’

    By Omobola Tolu-Kusimo

     

    A MAJOR strategy of Sunu Assurance Plc is to contain the spread of the coronavirus (COVID-19) with Personal Protective Equipment (PPE),  the Managing Director, Sunu Health, Dr Patrick Korie, has said said.

    He stated this when the firm donated PPE to the Lagos State Teaching Hospital (LUTH).

    A representative of the Chief Medical Director of the teaching hospital, Dr Chris Bode/its Deputy Chairman, Medical Advisory Committee, Clinical Services, Dr Ayodeji Oluwole, at the presentation of the items, said they came at a time the hospital was almost running out of the equipment.

    He said in the last few weeks, they had about 100 of Covid-19 positive patients.

    He said while many were still on admission, they had delivered two Covid-19 positive pregnant women.

    “We are really running short of these supplies of PPE equipment and Sunu Group has just donated them to us at a very good time. I am sure the health workers will be praying for the company. The equipment are exactly what we need for the frontline workers.

    It’s very important because we have a block with four floors and 120 beds. We have about 100 patients, meaning you need about 100 workers. They all have to wear these and they go in to check on the patients like four to five times a day.

    “Before you know it, all these will be consumed between two and three weeks. It’s something you use and incinerate. So, it is a very timely donation and we are appreciative of it because this is what we really need. We are running short.’’

    We thought the pandemic was going to last for like four weeks but this is the second month. If you count February, this is the third month.

    So it’s something that we need more from well-meaning donors like Sunu Group,” he noted. The Managing Director, Sunu Assurance Plc, Mr. Samuel Ogbodu, said the company was happy to donate the consumables- masks, googles and overalls – that are  vital to health workers on the frontline of containing the disease.

     

  • Operators invest N7.77m micro pension in treasury bills, banks

    Operators invest N7.77m micro pension in treasury bills, banks

    By Omobola Tolu-Kusimo

     

    The  Pension Fund Administrators (PFAs) has invested N7.77 million contributed by micro pension subscribers in the Federal Government’s Treasury Bills and bank placements.

    According to the National Pension Commission’s (PenCom) monthly report,  N3.10 million was invested in Treasury Bills while N3.75 million went into bank placements.

    The Commission, which summarised pension fund assets, also categorised micro pension contributions into Retirement Savings Account (RSA) Fund IV.

    PenCom’s Acting Director-General, Mrs. Aisha Dahir-Umar, said the Micro Pension Plan (MPP) had recorded 28,000 subscribers as at last October.

    She said: “The Micro Pension Plan was designed to fit the peculiarities of the informal sector groups.

    “The product is flexible with respect to contribution amount and the channel of remittance of contributions to the pension accounts. Access to accumulated contributions is also flexible, seamless and facilitated by technology through varied payment system platforms.

    “A prospective Micro Pension contributor is required to open a Retirement Savings Account (RSA) by completing a physical or electronic registration form with a Pension Funds Administrator (PFA) of his/her choice, and the contributors may make contributions daily, weekly, monthly or as may be convenient to them.”

    She stated that every contribution would be divided into two, comprising 40 per cent for contingent withdrawal and the balance for retirement benefits.

    The contributor, she said, might also choose to convert the portion of the contributions to retirement benefits and the balance in the RSA  would be available to him on retirement or attaining 50 years.

    “Pursuant to its regulatory and supervisory mandate, the Commission had established a separate Department dedicated to the supervision of matters relating to Micro Pension Plan, including enforcement of compliance with the guidelines and customer complaint handling and resolution.

    Our objective is to ensure efficiency and effectiveness in service delivery as well as transparency and accountability in the administration of the product by licensed pension operators,” she said.

    She added that a minimum pension would be given, provided the contributor made contributions of not less than 120 months and the RSA balance at retirement shall not be less than N500,000.

  • More Nigerians embrace insurance amid COVID-19

    More Nigerians embrace insurance amid COVID-19

    By Omobola Tolu-Kusimo

    More Nigerians are embracing insurance to mitigate risks as coronavirus (Covid-19)  is affecting the economy globally, The Nation has learnt.

    This is just as operators embark on full digital sales and remote operations.

    Also, in line with the directives of the Lagos State Government and the health authorities, insurance firms put measures in place to ensure a safe and healthy work environment for their staff and customers.

    The Managing Director, Cornerstone Insurance Plc, Mr. Ganiyu Musa, said while the lockdown lasted, the company ensured that its customers continued to be served.

    Musa, who doubles as the Vice Chairman, Nigeria Insurers Association (NIA), also said while they were aware of the reduction in business due to cancellation, premium refunds, short period covers, among others, the period  witnessed increased requests for insurance cover from some opportunities and markets.

    Cornerstone MD, Ganiyu Musa
    Cornerstone MD, Ganiyu Musa

    He noted that the new opportunities had been created by the pandemic as people seek to either renew existing policies or take up new ones that can mitigate disruptions in their business operations.

    NIA Director-General Mrs. Yetunde Ilori said the ease on lockdown was good for the industry as people used the opportunity to renew their  expired policies.

    She said this had been happening because of the uncertainty on whether or not the Federal or Lagos State governments would restore the  lockdown.

    Read Also: Abiodun’s Insurance package to boost health workers

    She added that their sales were more in the area of renewals, especially from the corporate entities.

    She said: ‘’They have come to appreciate that they are expose to risk. Underwriters and policyholders are putting the lessons learnt from the lockdown to good use.

    ‘’They are enabling staff to work remotely because the face-to-face transaction is no longer there. They are doing digital selling and clearing everything remotely.’’

    Also, the Managing Director, Sunu Assurance Plc, Mr. Samuel Ogbodu, affirmed that the pandemic brought into limelight the importance of health and life insurance in the early weeks of the outbreak in country.

    Also, he said the ripple effects of the lockdown, which led to several fire outbreaks in various parts of the country, later drew attention to general business insurance, mostly among small and scale medium enterprises (SMEs).

    These, he pointed out, had led to a slight increase in insurance sales for SMEs, but with structured premium payments plans due to liquidity challenges.

    He added that the company too has been running virtual operation throughout the lockdown.

  • ‘How to reopen businesses after lockdown’

    ‘How to reopen businesses after lockdown’

    By Omobola Tolu-Kusimo

    AS some businesses still warm up for reopening after the lockdown to curtail the spread of  coronavirus (COVID-19), Allianz Global Corporate & Specialty (AGCS) has listed some steps for companies to take.

    Its Global Technical & Expertise Manager for Property Risk Consulting, Stephen Clark said: “There may be a reduction in workforce available to operate and maintain production equipment safely or to respond to emergencies.

    Also, lapses in maintenance of buildings, equipment and fire protection systems may create hazardous conditions.

    “Businesses should pay particular attention to the condition of electrical equipment and installations, as around 20 per cent to 30 per cent of AGCS fire claims are related to these.

    Insurers have also seen a number of claims from fires resulting from technical defects or operational error after machinery has been restarted or cleaned in preparation for reopening of facilities, which has then caused further disruption to operations.”

    AGCS’analysis of the industry, however, shows that fires already account for almost a quarter of damages.

    It showed 24 per cent of the value of insurance claims in the last  five years; faulty workmanship and maintenance took eight per cent and machinery damage of five per cent rank as the third and seventh top causes of claims.

    According to the AGCS bulletin Coronavirus: Property, loss prevention measures for restarting businesses after a temporary closure another essential action for businesses to consider before restarting operations is restoring site security.

    A self-inspection of the site, including all buildings and equipment, to detect and correct any unsafe or abnormal conditions, such as damage, maintenance issues, improper housekeeping or storage, and signs of vandalism should also be considered.

    Read Also: We can’t afford mass infection with eased lockdown, says FG

     

    Businesses should also complete and reinstate any inspection, testing and maintenance that may have lapsed since the shutdown.

    When restarting idle machinery, Clark said operators should follow standard guidelines for bringing shutdown equipment or processes back online.

    In addition, facilities introducing alcohol-based (flammable) disinfectants, such as hand sanitisers, should implement proper fire safety precautions.

    This should include keeping them away from ignition sources, such as open flames, encouraging employees to rub their hands dry to allow vapors to safely dissipate, disposing of all waste rags in approved, normally closed containers, and storing flammables in designated cutoff rooms or approved cabinets.

    “Prior to restarting operations is the ideal time to review the effectiveness of your business continuity plan,” says Clark.

    He added: “Revise the plan as needed based on lessons learned during the temporary shutdown to keep your emergency planning up-to-date.”

     

  • NCRIB donates N2m relief materials to community

    NCRIB donates N2m relief materials to community

    By Omobola Tolu-Kusimo

     

    IT was a moment of joy for members of the Moleye Community in Yaba, Lagos State when they received bags of rice and other relief materials from the Nigerian Council of Registered Insurance Brokers (NCRIB) as palliatives to cushion the pains of COVID-19 pandemic on them.

    The palliatives worth over N2 million, NCRIB said, were part of the council’s Corporate Social Responsibility (CSR) to the vulnerable and poor citizens to some communities and neighbours around its Lagos office who were affected by the government’s  lockdown to curtail the spread of coronavirus.

    NCRIB President, Mrs. Bola Onigbogi, who was represented by the Council’s Deputy President, Rotimi Edu, at the distribution, stressed that the council has continued to be a responsible  institution.

    Read Also: Badagry residents get relief materials

     

    He said the council was delighted that aside from rallying members to support the industry’s initiatives to the Federal Government as being coordinated by the National Insurance Commission (NAICOM)

    He added: ‘’We are also supporting our immediate neighbourhood with this little support to cushion the effect of the pandemic on the people.’’

    The Chairman, Moleye Community Development Association, Yaba, Alhaji Taiwo Alade Bangbala, appreciated the council’s generosity, stressing that the support would cushion the effect of the pandemic on the community.

  • ‘Linkage committed to claims payment’

    ‘Linkage committed to claims payment’

    By Omobola Tolu-Kusimo

     

    Linkage Assurance Plc has continued to meet its claims obligation to its clients despite the Covid-19 lockdown across the country, the Managing Director/Chief Executive Officer (CEO), Daniel Braie, has said.

    Braie, in a statement, said this had become possible following the implementation of the company’s business continuity plan, which has enabled them provide serve customers through digital channels, while the staff operate from remote locations.

    He said: “As a caring corporate organisation, we will continue to be with our customers and the insuring community, to ensure that the Covid-19 pandemic does not disrupt their businesses so badly.

    The company immediately before the lockdown activated her digital platforms that enable the collaboration of various workforce.

    Read Also: We can’t afford mass infection with eased lockdown, says FG

     

    This include underwriters, claims administrators, relationship managers, and customer services IT. We were able to work together and provide service to customers’ needs in these challenging times.

    “Our business continuity group has continued to work from remote sites and locations particularly with brokers to provide risk management services especially to corporate clients.

    The company continues to provide insurance services, particularly ensuring that claims are paid promptly.

    As a matter of fact, from the inception of the lockdown period we have paid millions of naira on claims to our clients that have filed claims for various losses.

    “We have also received 98 claims notifications on diverse types of losses from our customers, and where loss adjusters are needed, they have continued to relate with our underwriters who are working to ensure the claims are paid quickly.”

  • AXA Mansard offers access to health care

    AXA Mansard offers access to health care

    Our Reporter

     

    AXA Mansard Insurance Plc  has offered its customers access to its healthcare services.

    In a statement, its Chief Client Officer AXA Mansard, Mrs Rashidat Adebisi, said its Telemedicine service allows its customers to virtually visit the hospital and see a doctor from  their homes through their phones, laptops or tablets.

    She said the app enables  customers  to access a platform that connects them with doctors who they could consult on medical conditions and treatments.

    On primary care drugs, she said following any consultation via the telemedicine service, the customers would be eligible to collect primary care medication, subject to limits at any of their partner pharmacy, thereby ensuring they are not burdened with the financial requirements of accessing good primary care drugs.

    Read Also: AXA Mansard plans N100m life

     

    She noted thathe firm’s customers could receive psychological assessment and support via over the phone.

    This is to address the stress generated throughout the country during this time of crisis. She said: “We have introduced these services to ensure our customers are better equipped to scale through the challenges of the current crisis. We will continue to create sustainable and innovative solutions to cater for our customers’ healthcare.’’