Category: Insurance

THE Nigerian Council of Registered Insurance Brokers (NCRIB) has bemoaned the fire that ravaged Akesan Market (Oja Akesan) in Oyo town, where properties worth millions of naira were destroyed.

The council lauded Governor Seyi Makinde for his promise to assist the victims of the incident, as well as the promise to provide firefighting equipment to forestall a repeat of such ugly incidents

NCRIB President, Mrs Bola Onigbogi, who stated this, decried the spate of incessant fire disasters in the country, noting that such occurrences were preventable by the government than those often concerned.

She used the forum to underscore the pivotal place of insurance in disasters management in the country. According to her, risks are part of the inevitable circumstances of life which  effect could be better managed by engaging insurance as it is practised in advanced countries.

However, Onigbogi noted that to maximise the value of insurance, the best option for existing and potential clients was to engage insurance brokers who are in the position to advise clients on best possible type and rate of insurance as well as assist them to make their claims when a loss occurs.

She called on the government to embrace insurance for effective prudential management and to assist the citizens by shifting the burden of compensation to insurers when losses occur to them as against the government’s attitude of giving succour to the victims which in most cases may be inadequate.

The extension of the deadline for recapitalisation of insurance firms by the National Insurance (NAICOM) has a elicited reactions from stakeholders in the industry. They say it will give them opportunity to prepare adequately. Omobola Tolu-Kusimo reports.

 

THERE was excitement in the air last week when the National Insurance Commission (NAICOM) extended the the deadline for the ongoing recapitalisation of insurance firms from June 30, 2020 to December 31, 2020 .

Earlier, there was an uneasy calm among insurers, brokers, loss adjusters, and shareholders and others as the deadline drew near.

Insurers praised the commission under the Acting Commissioner for Insurance, Sunday Olorundare Thomas, for extending the deadline.

The extension, they said, would give them more time to achieve their plans. They said  they had more time to seal deals or partnerships, adding that non-extension of the deadline could have made them to ruch into mergers or acquisitions and faced some challenges.

Brokers, on the other hand, have over the years, decried the challenges of renewing their licences yearly. They claimed they had alot of bottlenecks to conten with.

Other issues that bothered the brokers is contending with huge fines and penalties for minor infractions, which made the Nigerian Council of Registered Insurance Brokers (NCRIB) to invent a mediatory platform to reduce the life-threatening policies towards its members.

Last week, the commission announced that the brokers could renew their licences every two years. The commission also said it was looking at other areas of concern.

Shareholders also did not hold back in a fight to finish with the regulator owing to recapitalisation as they dragged the regulator to court. At present, all seems to be well between the duo after series of engagement.

NAICOM workers also held the commission at the jugular, protesting against what they described as highhandedness and poor welfare.

The workers, who shut the commission on some occasions, also alleged corruption and lack of capacity building by the Kari-led administration.

But relative peace seems to have returned to the commission as workers and the management seem to have been engaging on how to settle worker’s welfare, which had led to agitations and strike.

The President, Nigerian Council of Registered Insurance Brokers (NCRIB), Mrs. Bola Onigbogi, said she was happy with the relationship between the broking sector and the insurance industry regulator.

She said the Acting Commissioner had assured of the council’s support, adding that she  is optimistic that all issues concerning them would be settled.

She lauded the commission for the duration of licence renewal, which had been extended by the regulator.

At a seminar entitled: Strategic focus of the commission in the year 2020: from compliance to development, the Acting Commissioner said the commission was shifting focus from compliance issues to emphasise more of its market developmental responsibility.

He said: “As 2020 continues to unfold, giant strides will be made by the commission in all aspects of its statutory responsibilities. This is the time to put the past behind us and look forward to a better and more vibrant sector. The task of building an insurance sector of our dreams is a collective one and thus, all hands must be on deck to ensure our dreams become realities. We recognise the impact of conducive work environment to effective and efficient regulatory system and this will always remain our priority.

“The second phase of the Market Development and Restructuring Initiative (MDRI) will soon be unveiled and it will mark out clear targets and tasks for all stakeholders in the industry. Going forward, we shall vigorously pursue the continued implementation of compulsory insurances in every nook and cranny of the country. We are certainly not unaware of the challenges inhibiting the successful implementation of these classes of insurance thus far hence, our resolve to work with relevant stakeholders to ensure a seamless drive.

“Indeed, the successful implementation of compulsory classes of insurance across the nation will ensure adequate protection of our strategic national assets. We will be working with the relevant security agencies to guarantee effective and efficient monitoring of compliance.”

On recapitalisation, he said the essence of the recapitalisation is a move to ensure that the industry becomes more robust in its technical competence and financial base, building confidence, trust and enhancing market value.

He stressed that this was aimed at repositioning the sector for growth and development.

He, however, maintained that the recapitalisation process is up and running in line with the roadmap and the commission will see to its logical conclusion on December 31, 2020.

“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 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. The commission shall continue to deploy more energy and resources in building public trust and confidence in insurance despite years of poor perception.

“The annuity business made headlines recently with a boost in the contribution of the business to the sector. The public is becoming more exposed and knowledgeable about the workings of annuity, this we expect will continue as the future is looking very bright for the business as we have witnessed. This has also shown a positive growth in trust and confidence in the sector.

“The commission is committed to ensuring financial soundness and viability of the insurers and the adequate protection of policyholders at all times. These will continue to be part of our regulatory priorities. We will continue to ensure that genuine claims are promptly paid while also ensuring a reasonable protection of investments of shareholders. In demonstrating its willingness to protect the policyholders, the Commission has further strengthened its Complaint Bureau Unit to respond to public complaints over claims settlement. Available statistics have shown that there has been great improvement in this area.

“Ensuring the right pricing of insurance products and effective deployment of technology for ease of transaction are among the key areas the commission will be emphasising this year. Digitalisation of insurance business is no longer an option, but an imperative which we all have to work towards its actualisation. As we may all be aware, the industry is lagging behind other financial services sectors in this area. The commission is working vigorously to see that all its operations are digitalised. The year 2020 is a year for us to turnaround the fortunes of the industry and this cannot be accomplished without digitalising our processes and encouraging the industry to imbibe same.”

Thomas also said the commission would introduce reforms and initiatives in line with international best practices.

 

 

Our Reporter

Consolidated Hallmark Insurance (CHI Plc) has received approval from the National Insurance Commission (NAICOM) to operate CHI Micro Insurance Limited, a new micro life assurance subsidiary.

With the approval by NAICOM, the Micro Insurance Life subsidiary is thus set for full operations.

In a statement in Lagos, the Managing Director, Eddie Efekoha, who doubles as the President of the Chartered Insurance Institute of Nigeria (CIIN), said the approval is a demonstration of confidence by NAICOM in CHI Plc to operate a Micro Life Assurance business, having delivered on its General Insurance business line.

He stated that the licence would further help in the effort to deepen the retail segment of the insurance market.

He said: “We are set to take off having put in place a robust network of retail and agency team that have contributed and continue to contribute immensely to the growth of the parent company. The future is in retail business and micro insurance if we are to reach the mass of the Nigerian people with quality, reliable and affordable insurance solutions. This low-income segment has remained largely untapped and we are ready to give it our best shot.

“The business office for the microinsurance company has since been acquired and ready for occupation by the new team. The business will leverage on technology and strategic partnerships to give its customers an exciting insurance services experience. Micro insurance is defined as the type of insurance developed for the low-income segment of the population. Such insurance is expected to be low valued with simple features, easy to understand and whose delivery/distribution channels must be efficient. The Insurance Industry Regulator, National Insurance Commission (NAICOM) had in 2018 released a set of Guidelines for Micro Insurance Operation in Nigeria. The document clearly set out various steps for registration of micro insurance operators, and their modus operandi.

“To ensure a more extensive reach the population especially at the grassroots level, the regulator classified the operators into three categories – unit (local) state and national operators. Minimum Capital Base for Micro Insurance Operators was pegged at N15million for Life operators at the Unit level and N25million for General Business operators while N200million and N400million minimum Capital Base was fixed for Life and General Business operators at the national level. These are part of efforts by NAICOM to boost insurance penetration through as many Micro Insurers as possible that are expected to operate in the over 700 local government areas of the country. With the ostensibly affordable capital requirement,  there is an envisaged departure from the current concentration of underwriters in a few urban areas with focus on big ticket transactions and move into the hinterlands.”

He noted that the maximum sum insured for any policy being underwritten by the micro insurance operators is pegged at N2 million while time limit for payment of fully documented claims is 48 hours, according to the guidelines.

He added that with the approval by NAICOM to begin operations, CHI Micro Insurance is set to deepen the insurance penetration by ensuring that those who had never considered themselves able to afford an insurance cover can now do so. The insurance premium can be as low as N1,000 to upwards of N5,000. The products will be tailored to meet the needs of the customers.

CHI Plc, the parent company, has already established itself as a company that delivers on its promises and pay claims promptly. This same high quality customer fulfilment will be extended through its new CHI Micro Insurance Limited, life assurance subsidiary, he added.

Cornerstone Insurance Plc has risen to exceed the N18 billion new minimum capital requirement by the National Insurance Commission (NAICOM).

After hitting a low point on huge claims payment in its 2016 and 2017 financial year, the composite insurer is also back to profitability.

The company came out from its loss position of N1.7 billion in 2017 to N1.8 billion profit in 2018.

Following rumours that the company is troubled and has sold its newly built property and company’s head office, along Lekki axis, Lagos, the company clarified that the sale has further increased the liquidity of the company to meet and surpass expectations.

Speaking to reporters at the company’s head office in Victoria Island, Lagos, the Group Managing director, Mr. Ganiyu Musa, said the company is in a comfortable financial situation to scale through the recapitalisation.

He said: “The sale of our new property along Lekki axis has further increased the liquidity of the company to meet and surpass expectations. The company would have loved to keep the property for the long run, but we were challenged with the fact that real estate investment is not admissible in the ongoing recapitalisation.

Read Also: Saham now Unitrust Insurance

“This necessitated the sale of the building for a handsome amount that covers the cost of the building project and still left with profit. At present, we are in a stronger financial position to scale through the exercise as our balance sheet is stronger and healthy”.

Aside this, he said, there were preliminary discussions with two or three underwriting firms on consolidation to make Cornerstone brand a stronger one, post-recapitalisation.

He believes consolidation makes better economic sense during recapitaIisation rather than throwing in capital, adding that consolidation nurtures expertise, improved technical capacity aside the financial strengthening it brings to the adopting company.

“The company came out from its loss position of N1.7 billion in 2017 to N1.8 billion profit in 2018, even as the 2019 profit outlook is showing sign of higher profit from that of the previous year, judging from its 2019 third quarter report.

 

 

 

 

NEM Insurance Plc will not merge or acquire any insurance company but stand firm on its own during this recapitalisation, the company’s Group Managing Director, Tope Smart has said.

He made this known during the company’s Christmas Carol Concert held at the company’s head office in Lagos.

He revealed that the company is comfortable and has already met the new capital requirement of N10 billion for Non-Life business.

Smart, who revealed that some companies have approached him for acquisition talks, said the company took the decision to preserve its image.

He said the process of acquisition is cumbersome as many do not disclose their real liabilities.

He said: “A number of companies have approached us to acquire them. But we have taken a decision not to acquire or merge with anybody because of the kind of experience, we had so far.

Read Also: Saham now Unitrust Insurance

“One thing I have discover so far is that integrity is very scare in this part of world. People will tell you they have N2 or N3. But by the time you dig deep into their books, you will find huge liabilities. And to preserve the image and value of our company, we have decided not to merge or acquire so that we can be very focused.

“We want to do our business the way we understand it. We don’t want distractions or anything that will soil our name and brands that we have labored so much to build.”

He said so far, the board, management and staff of the company have been able to explore vision and initiatives.

He assured customers of better service than they had been enjoying, while they strive as a service company to value to stakeholders.

 

By Favour Obiemeka

Saham Unitrust Insurance Nigeria Limited has changed its name to Unitrust Insurance Company Limited.

A statement from the company said this notification became necessary, having met all regulatory requirements.

Unitrust Insurance stated that all past correspondence, licences, documents and title issued under the former name remain valid.

The underwriting firm was established and licensed in 1986 as Unitrust Insurance Company Limited, and has remained as one of the major underwriters of non-life insurance services in Nigeria.

It underwrites motor, marine, aviation, engineering, bonds, fire and special perils, burglary, money, goods in transit, personal/group personal accident, employers’ liability, fidelity guarantee, including oil and gas insurance and is a major player in travel insurance.

Its name was changed to Saham Unitrust Insurance Nigeria Limited after the investment of Saham Finances in the company, before its current change of name.

Its Managing Director, Mr. John Ijerheime, reiterated the company’s passion for excellent service delivery to its customers.

Read Also: Sovereign Trust Insurance lists 4.17b rights shares

He assured that the company has set in plans to ensure that it meets the recapitalisation requirements of the regulatory body, the National Insurance Commission, before the deadline given to the industry to recapitalisation.

He stated that as part of its promise to honour all genuine claims, the company will continue to ensure prompt claims settlement to its claimants.

He further assured the public that the company would continue to deploy cutting-edge technology to provide the best services in the insurance industry.

He said the group’s gross written premium (GWP) rose by 27 per cent to N3.168 billion at the end of December 2018 from N2.486 billion at the end of December 2017.

The profit before tax stood at N806.18 million at the end of 2018 from N818.04 million at the end of 2017, while its profit after tax rose to N759.96 million from N427.68 million.

Our Reporter

Sovereign Trust Insurance (STI) Plc. has listed additional 4,170,411,648 billion of its ordinary shares on the Daily Official List, 944 ordinary shares.

According to the underwriting firm, the listing was communicated through a letter, signed by the Head, Listings Regulation Department, of the Nigerian Stock Exchange (NSE).

With the new listing, the total issued and fully paid up shares of the firm has now increased from 8,340,823,296 to 12,511,234NSE, Godstime Iwenekhai.

The NSE said the additional shares listed, arose from the Company’s Rights Issue of 4,170,411,648 ordinary shares of 50 kobo each at N0.50 per share based on one new ordinary share for every two ordinary shares held as at 15 January 2019.

It noted that at the close of the Offer Period, the Rights Issue was 72.50 per cent subscribed and the additional ordinary shares thus listed have been registered by the Securities and Exchange Commission (SEC).

Read Also: Stock Exchange begins implementation of new free float rules

Its Managing Director, Mr. Olaotan Soyinka said the company has set a growth agenda, which is aimed at positioning the insurance firm as one of the top players in the industry, particularly in the oil and gas sector where it has developed very unique expertise and professionalism over the years.

He said the actualisation of the set objectives of the growth agenda of the company remains sacrosanct. He reiterated the company’s committed to creating exceptional value to all its shareholders.

“In achieving the huge tasks that have been placed before us, we have identified that a very robust capital base is critical to the success of the set agenda,” he added.

 

Following request by operators and other stakeholders to the National Insurance Commission (NAICOM) for extension of recapitalisation deadline, the Commission is reviewing whether to extend the deadline or not, Omobola Tolu-Kusimo reports.

 

The National Insurance Commission (NAICOM) has said it is looking into the pleas of  operators to extend the June 2020 deadline on the recapitalisation of the industry.

Its Deputy Director/Spokesman, Rasaq Salami, in an interview with The Nation, however, said this was not to say the Commission is having a rethink about the recapitalisation.

He explained that the industry asked for an extension of the June 2020 date but has promised to get back to the operators.

He said it is not all operators that were asking for the extension as some have already gone far in the recapitalisation bid.

He said just as some are complaining, others are completing their processes, noting that a handful of the companies have completed their process.

At the last Insurers Committee Meeting in Lagos earlier this month, the Chairman, Brand and Publicity Sub-committee of Insurers Committee, Mrs. Ebelechukwu Nwachukwu, affirmed that there’s  was a proposal to NAICOM for the deadline extension.

Mrs Nwachukwu, who is also the Managing Director/CEO, NSIA Insurance Limited, said the regulator had promised to review its proposal before deciding on whether to extend the deadline or not.

She said: “At the meeting, operators proposed to NAICOM to extend the recapitalisation deadline to give operators more time to raise the needed capital and the commission has asked us to articulate our request and forward them to it for deliberation.”

Asked whether his insurance firm could meet the deadline set by NAICOM or not, the Managing Director/CEO, Niger Insurance Plc, Mr. Edwin Igbiti, said the regulator has set the deadline, ‘’We, as operators, have no option but to work towards meeting it’’.

The National President, Constance Shareholders Association of Nigeria, Shehu Mikail,  said there was need for an extension of the deadline, as it does not look feasible due to the economic challenges.

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“The directive can be implemented when the economy improves. While the initiative is laudable, there can be problems with the implementation. The present time-frame and procedure could affect the growth of the insurance companies.

“I think it is good to have the recapitalisation to enable us have stronger insurance companies. But because the economy is not friendly at this period, most of the insurance companies would face more problems as nobody is ready to invest money.”

Meanwhile, the Commission has said it has set in motion measures to combat post-recapitalisation challenges.

Its Director, Policy and Regulation Directorate, Mr Pius Agboola said the Commission is committed to driving the industry after the exercise.

Agboola, who spoke in Lagos, sai there was no doubt that the growth potential of insurance was huge, hence, NAICOM has decided to put more emphasis on market development to enable investors get value for their investment.

He maintained that as a stakeholder in ensuring that investors get value for their money, NAICOM has made commitment to develop and deploy appropriate framework for enforcement of compulsory insurances, information technology deployment in the insurance sector and Risk-Based Supervision (RBS).

Others, according to him, included appropriate and relevant distribution model; improvement in insurance awareness; better corporate governance oversight and effective collaboration with relevant sectors.

He said to achieve the objective, other prudential issues and market conduct and practice would be given more attention to put companies on track for the achievement of shareholders’expectation.