The Nation Newspaper

Category: Insurance

  • ‘Digital disruption, recapitalisation to redefine insurance business’

    ‘Digital disruption, recapitalisation to redefine insurance business’

     

     

    Digital disruption, alliances and recapitalisation will redefine insurance business, grow the industry to prominence in the financial service sector space as well as increase insurance adoption and penetration in the country, Principal Manager, Leadway Assurance Company Limited, Akinyemi Alebiosu, has said.

    He spoke on outlook for insurance in teh year during a workshop organised for reporters by Leadway Assurannce in Lagos.

    He noted that incumbent underwriting firms can no longer rely on organic growth or internal innovations for survival in the face of digital disruption, saying, the winners would be those who can form strategic alliances with innovative startups.

    Alebiosu charged insurers to form ally with Insuretech and consolidate their peers.

    He said: “A rapidly changing industry will require unprecedented deal-making skills, such as; AXA and Jumia, Leadway and GTBank, among others.

    The disruption from new technologies is a given, as some technologies are gradually coming up to offer insurance services, thereby, displacing the services of the traditional operators and insurers need to know how to deploy the right technology for the right purpose or risk being left behind.

    Read Also: Banks urge customers to adopt digital channels

     

    “For instance, Autogenius and Lemonade who offer full online insurance services has come to show us that the era of loyalty to a brand is fast fading. Customers have no loyalty these days, what they are after is to get the services they want at the right time without any delay.

    “In the future, relationship or ability to pay claims will no longer be a selling point, as virtually all underwriters then will and can pay claims, but what will sell a brand is its ability and how easy for customers to buy a product and claims payment.”

    He noted that the ongoing recapitalisation in the industry, will ensure financial strong and competitive firms emerged post recapitalisation, which would give companies the financial strength to underwrite huge and lucrative risks, thereby, limiting risk flight abroad.

    This, will increase the chances of insurers to pay claims promptly, have the needed technical expertise to launch innovative products, while increasing insurance adoption and contribution of the industry to the Gross Domestic Product (GDP), he added.

  • NCRIB commiserates with Abule-Ado victims

    NCRIB commiserates with Abule-Ado victims

     

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has described as unfortunate the recent fire disaster that occurred at Abule Ado in Lagos State during which 21 lives were lost and properties worth billions of naira destroyed.

    Its President, Dr. Bola Onigbogi, in a statement in Lagos, stated: ‘’The heart of our council and the entire members go after those who lost their beloved families and valuables in the inferno’’.

    She said the incident also provided an opportunity to underscore the pivotal place of insurance in risk mitigation and control, particularly through insurance.

    She applauded the Governor Babajide Sanwo-Olu   for setting up a N2 billion relief fund to address emergency needs in the Abule-Ado Area.

    Read Alos: Sterling Bank, NGO partner on assistance to accident victims

     

    However, insurance is a business setup for other businesses to thrive. A payment of little premium to insurance industry could have taken off the burden from the state government, she said.

    According to Mrs Onigbogi, in other climes, insurance provide succour to people in the event of adversity occasioned by loss of lives and properties, such as the case at hand.  However, we are yet to embrace insurance and give it priority in our nation.

    She said: “It has often been the case that government will have to provide succour to victims of disasters, which actually should not have been if insurance was given its pride of place.

    “The council used this opportunity to canvas that deliberate efforts should be made on the part of government to encourage the embrace of insurance by the generality of the people for its enormous benefits to national economy and social stabilisation.

    “For instance, the humongous amounts often doled out as bailouts to victims of disasters could have been preserved and utilised by the government for other pressing needs in the society.’’

  • Why insurance penetration remains low

    Why insurance penetration remains low

    About 500 million are covered globally under a microinsurance policy, lower than an estimated potential of four billion. Omobola Tolu-Kusimo reports that the insurance industry needs to brace to catch up with the world to deepen insurance penetration.

     

    More than two years after the National Insurance Commission segregated micro insurance operations into Unit, State and National Microinsurers, insurance penetration still remains abysmally low.

    Insurance penetration remains at 0.3 per cent with only about 500,000 Nigerians using microinsurance products.

    The product, which entails the protection of low-income earners against specific perils in exchange for regular premium, proportionate to the likelihood and cost of risk involved represents the most effective mechanism used to penetrate the retail market.

    But, according to a report by Agusto & Co Limited, micro insurance is still at its infancy in Africa. It is, however, prominent in Asia and Latin America as a means of protecting the poor, weak and vulnerable against adverse events.

    The rating agency said Asia and Oceania accounts for the largest subscription with about 200 million people covered. India dominates and accounts for over 60 per cent of persons covered. However, the Philippines has the highest coverage ratio of 25 per cent.

    Latin America and Caribbean region currently has about 60 million people, covered in 19 countries. Mexico and Brazil on the other hand collectively account for over 50 per cent of persons covered while Africa has about 50 million persons covered with South and East African countries dominating the microinsurance landscape.

    In view of this, the rating agency said for the industry to deepen penetration and achieve the financial inclusion strategy of the Federal Government, there must be clarity on target market, value proposition as product must meet actual needs of clients.

    The Head, Financial Institutions Ratings, Agusto&Co Nigeria, Ayokunle Olubunmi, speaking on Microinsurance; Driving the Nigerian insurance industry into the future and Beyond, added that there must also be customer-centric products, know your customer policy, more field work and product testing, affordability and flexibility of premium payment, innovative premium collection, strong customer protection and partnerships.

    He urged insurers to harness the enormous untapped opportunities in the micro insurance sector.

    Read Also: Compulsory insurance policies and their penalties

     

    He said: “The microinsurance operators must also learn to present insurance policies in clear, understandable and simple language. There must be customisation of products to meet the peculiarities of different client groups, while customer satisfaction is sacrosanct. There should be customer education, technology and efficient operations and prompt claims payment.

    “Microinsurance is expected to be one of the highlights of the Revised National Financial Inclusion Strategy of the Central Bank of Nigeria (CBN).

    There are three microinsurance companies approved by NAICOM. They are Goxi Microinsurance Company Limited, Casava Microinsurance Limited and CHI Microinsurance Limited. But up till now, partnership with non-insurance brokers and agents is still low.”

    He listed the challenges militating against achieving the desired results as low level of education, developing a low cost operating model, affordability of microinsurance products, availability of staff with the requisite skills, low awareness and trust issues, developing products that meet the customer needs, inadequate data, culture and religious beliefs and negative perception about insurance, along with bottlenecks in obtaining approval for needed partnerships.

    The Commissioner for Insurance, Mr. Sunday Olorundare Thomas  said the financial inclusion strategy has been central to the Federal Government developmental plan and the Commission has over the years invested hugely in the development of financial inclusion mechanisms which includes the introduction of Microinsurance and Takaful Insurance products.

    The introduction of these lines of insurance, he said, is intended to deepen the penetration of insurance in the country and bring into the fold majority of the populace that are hitherto excluded.

    So far, some milestones have been recorded in this regard with three standalone Microinsurance and four Takaful insurance companies already granted approvals, he added.

    He is optimistic that micro insurance and Takaful insurance policies would help to drive insurance penetration higher.

  • Ogun harps on clean environment

    Ogun harps on clean environment

    By Okwy Iroegbu-Chikezie

    The Ogun State Government has expressed its determination to collaborate  with the 20 local governments to achieve a clean and safe environment.

    Special Adviser to the Governor on the Environment, Mr. Ola Oresanya, stated this when he visited the Chairman of Caretaker Committee of Ijebu-Ode Local Government, Olugbenga Olugbile in Ijebu-Ode.

    He said the councils should synergise with the government on the sensitisation of their inhabitants, especially market leaders and traders, on the need to keep their environment and drainages clean.

    He advised them to employ  sweepers to clean the streets in their localities to complement the government’s efforts as well as support the Residential Refuse Collection Programme of the state government in eliminating illegal dumping of refuse

    The Special Adviser further urged the local governments to enact their own environmental by-laws to promote public hygiene, a component of the Sustainable Development Goals (SDGs).

    Read Also: Ogun to upgrade state hospitals

    He announced that recycling plants would be sited in some local governments to provide employment opportunities for women and the youth, urging council chairmen to  implement the new waste management reforms in their localities.

    Responding, Olugbile thanked the  government for its new environmental sanitation initiative, pledging to key into all the programmes aimed at making the state clean.

  • AIICO harps on gender equality

    AIICO harps on gender equality

    By Omobola Tolu-Kusimo

    AIICO Insurance Plc has joined the world in promoting gender balance and equal opportunity for women.

    To mark the International Women’s Day, the company organised a women’s conference with the theme: Women’s visibility in the workplace, in Lagos.

    AIICO’s Head of Retail Life Operations, Mrs. Titilola Okunlola said the company is committed to promoting women’s visibility, and providing the enabling environment for women to thrive and be their very best.

    Also, the company’s Head, Corporate Responsibility and Sustainability, Mrs. Abimbola Shobanjo said: “Gender equality as one of the United Nation’s Sustainable Development Goals is a priority area for us at AIICO. Management provides necessary support for causes and initiatives that align with it.”

    The guest speaker, Dr. Glory Edozien, challenged women not to rest on their oars but accomplish more, break limits, showcase their skills and capabilities and to improve their career.

    She stated that speaking out is one of the ways to promote visibility.

    She advised women to pitch for opportunities, sell their value and network within and outside of the workplace.

  • NIA renovates Baptist School hall

    NIA renovates Baptist School hall

    By Omobola Tolu-Kusimo

    Worried by the dilapidated infrastructure in Baptist Junior Secondary School Obanikoro, Lagos, the Nigerian Insurers Association (NIA) has renovated the School Hall to improve the learning condition of pupils and provide a convivial environment for advancement of knowledge.

    Speaking duirng the inauguration of the project which was renovated by NIA as part of its Corporate Social Responsibility NIA in Lagos, NIA Chairman, Mr. Tope Smart expressed hope that the facility would the be put into good use.

    Smart, who tasks organisations on CSR, urged the school authorities and pupils to maintain the facility to encourage other corporate bodies to invest in similar projects in the school.

    The chairman said the association was moved by the inhuman learning condition in the school which is dotted by dilapidated classrooms, leaking roof and other decrepit facilities and made the intervention to assist the pupils fulfill their academic potential in a conducive learning environment even as he emphasised the need for a strong maintenance culture in Nigeria to protect the facility from decay.

    He educated the teachers on the need for insurance for individual and co-operate organisations, describing insurance as a restorer of hope.

    The outgoing principal of the school, Dr Adebisi Babatola thanked the association for uplifting the learning condition of the students by renovating the hall, adding that the association has challenged other corporate organisations on the need to embark on CSR initiatives within area of operations.

  • Expert seeks bailout for housing

    Expert seeks bailout for housing

    By Adeola Ogunlade

    Managing Director of Country Hill, a real estate firm, Adewale Oshinaike, has urged the Federal Government to provide bailout funds for the building of houses across the country to bridge the housing deficit.

    Citing the Nigerian Bureau of Statistics (NBS) in the PwC’s 2019 report, entitled: “National Housing Fund”,  he said it is estimated that Nigeria has a deficit of 17 million houses as at 2012 and that it requires 700,000 houses yearly compared to the less 100,000  being built to bridge the gap.

    He said those who would get the cash should be made to pay back.

    “In Dubai, the government gives private organisations funds to build houses or gives them land if they know that the company has money to build houses. Houses in Dubai are more than the people and they are still building. Such ideas attract investors, visitors and tourism,” he explained.

    Read Also: ‘Incentives will encourage development in housing

    He said the government should create policies that would allow foreigners to invest in real estate, saying that such investment would help reduce the housing deficit.

    Oshinaike said there has not been a major real estate company in Nigeria because of instability in the economy in the last four years.

    “I was in Dubai few weeks ago to speak with some investors. What they were asking for are what Nigeria banks cannot provide. They were saying that I should bring letters of credit, and guarantors. After that, the bank officials would ask for a certain percentage of the money your investors are bringing before you can get a loan. If I have that kind of money, why do I need investors?” he asked.

    In addition to the bailout funds, Oshinaike wants government to provide enabling environment for the private sector to bring in foreign investors to invest in real estate in Nigeria, adding that there are many government policies that are hindering foreign investors in the real estate industry.

  • ARIAN elects new executives

    ARIAN elects new executives

     

    Members of Association of Registered Insurance Agents of Nigeria (ARIAN) have elected new executives to steer the association for the next two years.

    Mr Kunle Odewunmi of Mutual Benefits Assurance Plc is the new President while Mr  Jegede Kehinde of LASACO Assurance emerged as the Vice President.

    Mr. Itoya Moses of Leadway Assurance was elected General Secretary; Mr Sobande Tobi of LASACO Assurance is the Assistant General Secretary and Mrs. Ajayi Rebecca of Leadway Assurance as Treasurer.

    Constance Lawrence of AIICO Insurance became the Financial Secretary; Ademola Lookman of Mutual Benefits Assurance is the Social Secretary; Maduako Malachi of Standard Assurance Life is P.R.O; Adeyemi Catherine of Custodian Investment is the Auditor and Jane Alonge of Niger Insurance is the Legal Adviser.

  • AXA Mansard, REACH Technologies partner

    AXA Mansard, REACH Technologies partner

    By Omobola Tolu-Kusimo

    AXA Mansard Investments, has partnered REACH Technologies, a Pan-African transaction informatics company, on the distribution of its money market fund.

    A statement issued on the collaboration indicated that the partnership will see the two companies bring money market investments closer to the public and to make it easier to invest in.

    In addition to AXA Mansard’s MyAXA app, AXA Mansard’s money market fund, is now accessible through the REACH app.

    The partners maintained that the AXA Mansard Money Market Fund was identified as the ideal investment fund suitable for deployment on the REACH App, meaning that users of the REACH App, can now sign up to the money market fund within the application and access all services related to the fund, including account monitoring, making payments and initiating liquidation requests.

    The Chief Executive Officer of the investment company, Deji Tunde-Anjous, said developing a savings/investments culture is now much easier and achievable using the AXA Mansard Money Market Fund which is now accessible using the REACH app.

    He said: “The AXA Mansard Money Market Fund is a professionally managed fund which enables a subscriber to access a diversified portfolio of securities, and is also liquid – enabling a subscriber enter and exit conveniently.

    “REACH Technologies is a transaction informatics company that analyses and interprets Africa’s transaction data to make it valuable to individuals, communities, retailers and brands. Using the REACH app, individuals in Nigeria, Ghana, Kenya and Qatar can track their spending, budget smart, get personalised finance tips and obtain small hassle-free loans”, he noted.

  • FBNInsurance trains retail managers

    FBNInsurance trains retail managers

    By Omobola Tolu-Kusimo

    FBNInsurance Limited has trained its retail managers to improve sales knowledge and boost efficiency.

    The training, a quarterly Retail Managers Training Area Sales Managers, Senior Sales Managers and Retail Sales Managers, held in Uyo, the Akwa Ibom State.

    The company’s Managing Director/Chief Executive Officer, Mr. Val Ojumah who commended the efforts of the retail team said the team is the company’s potent sales force.

    He stated that the team which has over 3000 vibrant men and women from all over Nigeria has sold insurance under the sun and in the rain to ensure the company stays ahead in the retail space.

    He said: “The firm undertakes the quarterly exercise to serve two purposes. They are to continuously improve the sales knowledge and capacity of its Retail team, and also to align the sales team with the firm’s corporate strategy; a formula that has been working quite well for the company.

    “Every company that has set its eyes on being the best recognises the importance of having managers who can inspire their subordinates to be even more diligent; and that is yet another reason for the existence of the quarterly training. For us at FBNInsurance, we are aware that motivation is vital to the provision of exceptional service and its subsequent rewards.

    “To build our customer-centric positioning and enhance customer-management relationship, we recognise the need to always put the customer first, and at the heart of everything the company does.

    The Head, Marketing and Corporate Communications, Mrs. Elizabeth Agugoh, reaffirmed the company’s commitment to providing excellent service to its customers.