Category: Insurance

Tajudeen Adebanjo

 

Nigeria’s leading tyre, battery, lubricants, solar/renewable energy solutions and premium automobile accessories company, Infinity Group is offering its customers has commenced the annual December promo.

This, the company said, was in the spirit of the yuletide.

According to Infinity, the promo offers customers chance to experience quality automobile aftermarket products and get gifts nationwide with the annual Infinity “Value Drive.”

The 17th edition of the Value Drive will run between December 1 and 31.

Infinity Tyres Limited is the authorised importer and marketer of tyre brands such as Pirelli, Infinity, Ceat and Eternity.

The company also deals with battery brands namely Exide, Infinity, Nova and Eternity, Global Lubricant Brand, Motul, Eastman Brand of Renewable Energy Solutions as well as Eternity standby and traction battery range.

Mrs Moyo Ekiran of Infinity Tyres Limited, Ikeja Branch, said the management acknowledged the patronage of its customers across the country.

“We are of the firm belief that due to the loyalty of our customers and stakeholders, the management is indebted to its customers and therefore wishes to delight them with the promo,” she said.

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She elaborated that the singular reason for the success and consistent growth of Infinity Tyres was customer’s trust in the brands and superior service quality of the company.

According to her, the Nigerian market, though competitive is highly inclined in favour of companies that deliver products and services of highest quality.

Ms. Angela Nnedu of Infinity Tyres Limited, Lekki Branch thanked customers for their patronage.

She said the management of Infinity Tyres was aware that many Nigerians travel during the festive season, hence the promo.

The Group Managing Director, West African Reinsurance Corporation (WAICA Re), Mr. Abiola Ekundayo, has been inducted as a Fellow of the West African Insurance Institute.

The investiture, which took place at the 2019 Graduation ceremony of the Institute in Banjul, Gambia, at the weekend, was in recognition of Mr. Ekundayo’s leadership role in growing WAICA Re to its present status as well as its contribution to insurance growth and development of insurance, especially, West African countries.

Ekundayo started his insurance career in 1984 with a brokerage firm and later moved to WAPIC Insurance Company Limited, before joining Globe Reinsurance Plc in December 1989. He was appointed Executive Director in 2000 and was later confirmed as the Deputy Managing Director in 2001. In 2007, he became the Managing Director/CEO of the company.

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His experience as insurance practitioner covers large areas of the profession including brokerage, marketing, underwriting, reinsurance, investment and risk management. He piloted the company to the Francophone countries in the West Coast thus making Globe Re the first Nigerian Reinsurance Company to do business with the Francophone world, being a bilingual Executive.

 

 

Niger Insurance Plc has  paid over N1.4 billion claims to customers in  nine months, the new Managing Director, Mr Edwin Igbiti, has said.

Igbiti, who made this known during a media briefing in Lagos, said efforts were in top gear to settle all outstanding benefits soon.

He disclosed that the delay in the payment of the outstanding claims was due to the company’s large asset portfolio, which was skewed toward fixed assets.

He, however, assured the audience that the company’s assets are more than sufficient to settle all its liabilities and that it has made significant progress towards liquidating some fixed assets to unlock cash and pay down all outstanding obligations soon.

He appreciated the company’s customers for their patience, trust and understanding during the company’s challenging period and reaffirmed its renewed sense of responsibility and commitment to excellence.

He said Niger Insurance in its 57 years of existence has delivered good customer service through prompt claims payment for 55 years.

He believes the goodwill of the company will reposition it to surmount all challenges before it.

He added that the company’s shareholders had at the 49th annual general meeting approved its recapitalisation plan to meet the new regulatory capital requirements through an equity capital raise via rights issue and/or private placement; and a business combination by way of merger or acquisition, which must all be completed by 30 June, 2020.

He said: “Designed to reposition this well-known company for service excellence and competitiveness in a rapidly changing operating landscape, the company’s transformation blueprint over the next five years, between 2020 and 2024 focuses on operational and technological advancements in delivering bespoke Insurance solutions to businesses, institutions and the growing populace of Nigeria. The implementation of the transformation plan already began in the fourth quarter of 2019 following my appointment as MD.

“The need for Niger transformation is underscored by a combination of market and regulatory changes.

 

 

Favour Obiemeka

 

As the Chartered Insurance Institute of Nigeria (CIIN) inducts 143 Associates and five Fellows into the Institute, the President, Mr Eddie Efekoha has warned professionals against unethical behaviour.

He spoke during the institute’s 2019 Graduation and Fellowship Awards Ceremony held in Lagos.

While presenting certificates to the newly inducted members, Efekoha said all certificates issued by the institute remain it’s property and could be withdrawn from the holders if the institute has good reasons to do so.

He noted that a further reason for such withdrawal of certificates could emanate from acts unexpected of a holder of the institute’s professional qualification and unethical behaviour.

This policy according to him, remains in force and hope that there will not be an occasion where the institute is required to withdraw certificates of any member.

He stated that the professional qualifications are a source of pride to the institute and all its members.

He said: “It is extremely important to point out that by attaining our professional qualification, you have become custodians of the ethics and codes of practice of our noble profession. The purpose of the institute’s code of ethics is to set forth the values, principles and standards that will guide the conduct of all insurance practitioners. The mantra of the institute remains focused around repositioning and reinforcing the integrity of our profession. As lifetime ambassadors of the insurance practice, I urge you to uphold this creed and replicate all that it represents in your endeavours. Who you are and the principles you uphold are some of the things that make you stand out as a leader and a truly successful professional.”

He said it is clear that the potential of the financial services sector which includes insurance is great.

“As professionals, the task before us is for creativity to drive our thoughts and equally refrain from wasting time trying to reinvent the wheel. Technology is creating more platforms and there is the need for creativity to lead in order to maximise these platforms and benefit from the gains that they hold. We  are aware of the ever changing demands of the dynamic business environment and I can assure you that considerable effort is being put in by the institute to remain relevant to the modern day professional as a leading light to insurance practitioners in the country and beyond it. Ultimately the goal is to ensure that practitioners retain the competitive edge that will see them perform at optimal levels in order to tackle the current challenges in the business landscape and to stand out successfully”, he added.

The Guest Speaker, Rector, College of Insurance, Dr. Mrs. Yeside Oyetayo, while speaking on the theme: Disruptive Insurance Professional, urged the new associates and fellows to create disruptive innovation in the industry.

She charged them to look at the insurance value chain to see the areas that needs disruption, which is to add value.

 

 

The disasters that befall the farmers have serious adverse effects on the financial position of the nation. Omobola Tolu-Kusimo writes on how African Reinsurance Corporation and International Finance Corporation (IFC) are working to curb the trend.

Agriculture remains the only means of ensuring food sufficiency in any country, Nigeria inclusive. But it has always been a risky business as it is subject to the vagaries of nature. This is why insurance is crucial to the success of agriculture business.

But majority of Nigeria farmers are not covered by any form of insurance. Low insurance penetration among farmers is on the rise with many losing their plantations daily.

According to the National Insurance Commission (NAICOM), only about 75,000 farmers are covered by any form of insurance in the country despite the large number of farmers which runs into millions.

Expert have, however, said that the insurance sector has been lagging behind in the coverage of agriculture insurance.

Determined to harness the immense potentials of the nation’s agriculture sector, African Reinsurance Corporation and International Finance Corporation (IFC) have started playing major role in capacity building for insurers underwriting agriculture business.

Last week, African Re and IFC organised a workshop in Lagos. According to them, the contents for the workshop were based on the market needs. The workshop provided an opportunity for insurers in attendance to be tutored on topics such as: Price Index; Digital Solutions in the Agriculture Insurance Space and Practical Crop Cuts Methodology which includes a physical farm visit.

The organisers expressed optimisim that with such workshop, within the next two years, the challenges facing the Nigerian insurance sector in the implementation of agriculture index insurance contracts to farmers will be a thing of the past.

The Deputy Managing Director/Chief Operating Officer, African Reinsurance Corporation, Ken Aghoghovbia while speaking at the ongoing event said that since the launch of the Nigeria Index Insurance programme, African Reinsurance Corporation in collaboration with IFC has initiated various activities in the market to achieve the key objectives of the programme.

He stated that in order to adequately address the pain points of stakeholders in the agriculture insurance space, Africa Re and its partner reached to clients individually to collate their needs, adding that one of it turned out to be the ongoing five-day technical workshop that kicked off since Monday.

He said: “The IFC/GIIF fund which Africa Re manages on behalf of the Nigerian agriculture industry stakeholders aligns with the founding mission in addressing the industry challenges. Africa Re supported by its partners will continue to work with IFC to provide solutions to the Nigerian agriculture industry by assisting in providing adequate reinsurance capacity, training, digital solutions and product development.

“The good news is that Nigeria still has immense economic potential and thanks to the Federal Government initiatives that triggered the 2012 Agricultural Transformation Agenda and set the ball rolling for the insurance industry to tap into this opportunity, through provision of affordable insurance products to farmers whilst at the same time guaranteeing food security.

“Since then, Africa Re’s role as the largest reinsurer in Africa has been put to test with the need to provide adequate reinsurance capacity to the Nigerian insurance industry, a feat that has seen the number of approved agriculture underwriters increase to 14 as of today. Initially, agriculture insurance products in Nigeria were provided on indemnity basis with the attendant high costs of administration and inherent risks of fraud. Thus Nigerian underwriters over the years have faced challenges in the implementation of indemnity based insurance contracts, a turn off to insurance penetration. In an attempt to address the challenges posed by indemnity products, underwriters sought to introduce index insurance in Nigeria,” he said.

Senior Financial Sector Specialist, International Finance Corporation (IFC), Shadreck Makumo, urged agric insurers not to promise farmers what they knew cannot be covered as this can lead to conflict when claim arises.

“Don’t promise what you cannot cover to your clients, so that, you don’t end up giving excuses at the point of claims payment. Such fake promise, if not fulfilled, could make the farmer nurse the belief that underwriters don’t pay claims and that, when such information is circulated among the people, it creates a negative image for the entire Insurance industry”.

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He urged agric insurers present at the conference to embrace best practices and avoid cutting corners, especially, in the area of product pricing, he foresees a great potential for agric Insurance in the Nigerian market.

He called on stakeholders in the agric space to work harmoniously, while urging farmers and insurers to abide by the tenets of utmost good faith by embracing total disclosure during buying and selling of agric insurance contract.

Delivering his paper on: ‘Risk Management & Insurance in the Agriculture Value Chain’, Erastus Ochieng of Africa Re, said 30 per cent of Nigerians directly depends on agriculture, although, there are more small and medium scale farmers, while large scale farmers are rare.

Stating that 90 per cent of Nigerian land is arable, he regretted that only 42 per cent of it is currently in use, calling on Nigerians to prioritise agriculture, especially, as the world is gradually transiting from oil, which is Nigeria’s main revenue generating avenue, to other alternatives.

“There is need for more investors to invest in large scale farming. The country has a lot of potentials in agriculture with about 48 per cent of its arable land yet to be used, while it has a consuming market of about 200 million people. Agriculture is a risky business and insurance remains the best risk coping mechanism that must be subscribed to by all farmers, either on subsistence or commercial basis.

“Agric insurers also need to leverage on technology to insure and pay claims to farmers. Agriculture insurance policy cushions the shock of disastrous losses by assuring farmers of paying claims when an insured risk occurs on their farms.”

 

With insurance penetration and contribution to the nation’s Gross Domestic Product (GDP) still at an abysmally low level, experts believe the only way out for operators to achieve growth is to ensure offering optimum customer satisfaction to the insuring public, OMOBOLA TOLU-KUSIMO and FAVOUR OBIEMEKA report

 

FINDING solution to low insurance penetration and poor premium generation of the insurance industry, arising from poor perception among the insuring populace, has remained germane to stakeholders in the industry, The Nation has learnt.

The Nigerian Insurance Digest 2017 published by the Nigeria Insurance Association (NIA) showed that the total industry premium income grew from N268 billion in 2013 to N294 billion 2014, N313 billion in 2015, N316 billion in 2016, and N365 billion in 2017. This translates to one per cent of the Nigerian population that have insurance policy, with an estimated 0.30 per cent contribution to Nigerian economy.

Experts said this performance is abysmally low compared to what is obtainable in other climes. Due to this poor performance, insurance operators and regulators seem to have agreed that creating and sustaining positive customers experience is key to insurance growth in Nigeria.

Stakeholders at the 2019 Insurance Consumers Forum organised by Almond Productions Limited in Lagos, however, reiterated the need for operators and regulators to satisfy customers not just by meeting their needs but by taking them to a place of delight.

Insurance and Health Management Consultant, Dr. Sarafadeen Adebayo Raji, who was a guest speaker at the forum while speaking on the theme: Creating and Sustaining Positive Customers Experience Is The Key To Insurance Growth In Nigeria, said insurance is relevant in our society today as it plays vital role in the management of individual, household, organisation and government risk exposures.

He stated that the Nigeria insurance sector is an important component of the Nigerian economy as it provides covers to the insuring public. He noted that although the premium income shows a progressive increase in the industry’s total premium income from 2013 to 2017, only an estimated policyholder of between 1.5 million to two million were insured out of a population of about 200 million people in the country.

He pointed out that the Nigerian insurance market is one of the largest not only in sub-Sahara Africa but Africa as a whole. He said: “With only an estimated policyholder of between 1.5 million to two million, translating to one per cent of the Nigerian population with insurance policies. Also it is estimated that Nigerian insurance industry contributes 0.30 per cent to the Nigerian economy, which is abysmally low compared to what is obtainable in other climes. Equally, growth in the industry is mainly driven by inflation while the industry struggles to gain only marginal expansion in real terms. This crawling growth requires urgent attention of the stakeholders in insurance especially in the area of achieving appreciable growth in real terms in the years ahead by creating and sustaining positive customer experience as a critical factor for insurance growth in Nigeria.

“In today’s rapidly changing environment, the most successful companies are those that put their customers at the centre of their strategy and treat the experiences being delivered as a critical business function. Organisations with leading customer experiences decline less in the downturns and bounce back faster when the economic cycle improves. By defining the ideal customer experience, building a sustainable process and leveraging new technologies, companies can differentiate themselves from their competitors and position them for growth”.

He added that while concerted efforts at creating and sustaining positive customer experience in order to increase insurance growth in Nigeria is commendable, other factors can be co-joined to further improve the industry growth.

“Other factors that can be co-joined to further improve the industry growth include the establishment of insurance industry based research and development centre; implementation of compulsory insurance policies; regulatory intervention; and government interest in insurance.

“The aim of sustaining positive customer experience is to optimise the customer experience through gaining the loyalty of the current customers in a multi-channel environment and ensure they are completely satisfied. Furthermore, to also create advocates of their current customers with potential customers as a word of mouth form of marketing.

The chairman of the event and Managing Director/CEO, Integrated Resources, Mr. GUS Wiggle, added that insurance currently contributes less to the nation’s GDP. He said operators in the industry would need to move faster to fully adopt and change to the digital world. He urged consumers to insist on good service and getting value for their money.

Managing Director, FBN General Insurance Limited, Bode Opadokun, said insurance is beneficial to the economy. He said that currently the level of penetration is on the increase, noting that they have realised the need to design products that meet the need of customers and have been doing so.

He urged his colleagues to continue to listen to customers as they remain king.

 

 

CONSOLIDATED Hallmark Insurance (CHI) has secured shareholders’ approval to raise N4.5 billion additional capital to raise its minimum paid-up capital to N10 billion, ahead of June 30, 2020 recapitalisation deadline.

The National Insurance Commission (NAICOM) had earlier announced over 200 per cent increase in capital from N3 billion to N10 billion for underwriters operating in the general business category like CHI.

The shareholders at the Extra-Ordinary General Meeting (EGM) of the company in Lagos also approved that the company’s authorised share capital be increased from N7.5 billion divided into 15 billion Ordinary shares of 50 Kobo each to N10 billion divided into 20 billion ordinary shares of 50 Kobo each with the creation of additional 5 billion Ordinary shares of 50 Kobo each.

While the shareholders authorised the company to raise additional capital of up to N1.056 billion through a Right Issue of 2.032 billion units to the ratio of 1:4 at N0.52 per share, they equally approved consent to the plan of the company to raise N4.5 billion, whether by way of private/public, special offering, right issue or a combination or other methods the company deemed fit. N4,500,000,000 or its equivalent whether locally or internationally or a combination of both, through the issuance of shares, long term debt, preference shares (redeemable or irredeemable), convertible and non-convertible securities or depository receipts or any other instrument(s), whether as a standalone transaction, or a combination which may be determined by the Directors for such consideration and upon such terms and conditions as the Directors may deem fit; subject to obtaining the approvals of relevant regulatory authorities.

The Chairman, Obinna Ekezie, said the company has series of plans to ensure full recapitalisation of the company ahead of the stipulated deadline of June, 2020.

He revealed that the company hopes to commence operations of Micro-Life Insurance early next year having paid the statutory deposit and licence application fee to the Central Bank of Nigeria (CBN) and National Insurance Commission (NAICOM) respectively.

He is optimistic that with continued support of the shareholders, the company will emerge a stronger and more formidable player in the sector, adequately equipped to meet the growing needs of their rapidly expanding clientele and with the ability to retain a higher proportion of risks hitherto ceded.

The Managing Director/CEO of the firm, Eddie Efekoha on his part, said stated that the company recorded Profit-After-Tax (PAT) of N519.6 million during the third quarter as against the N355.9 million recorded in the corresponding period of 2018, representing a 46 per cent rise.

The result, he said, also revealed significant improvements in other indices, adding that Gross Premium Written for the period grew by 23.7 per cent to N6.687 billion from N5.404 billion reported in September 2018 and Total Assets of the Group rose to N11.159 billion from N10.821 billion during the corresponding period.

He stressed that the recapitilisation exercise will make CHI stronger to absorb more risks while giving better returns on investment to shareholders.

 

 

COLLEGE of Insurance and Financial Management (CIFM), a full-fledged college set up by the Chartered Insurance Institute of Nigeria (CIIN) has received a boost in infrastructure development with the flag-off of the construction of the school’s auditorium.

The about 1,650-capacity multi-purpose hall, estimated to cost about N310 million on completion, is expected to boost the ambience of the college to accommodate bigger events and ceremonies like public lectures and public – academic ceremonies.

CIIN President, Eddie Efekoha who spoke at Sod Turning Ceremony at the college premises, handed over the project to Acropolis Contractors who says the project will be completed in 18 months.

He said that the institute would continue to invest in manpower development which is its core mandate to upgrade insurance practice and industry in Nigeria to meet up with global standard.

He urged the contractors to cooperate with the college during the course of the construction, to ensure timely completion of the project.

The Rector, CIFM, Mrs. Yeside Oyetayo said CIFM provides in-depth training in insurance, financial management, marketing and other related fields.

She added that the main objective for which the college was established is to provide long lasting solutions to manpower training and development problems of the insurance industry in Nigeria.

GUINEA Insurance Plc is set to raise N8b additional capital ahead of recapitalisation deadline, the newly appointed Chairman, Board of Directors, Barrister Godson Ugochukwu has said.

In a statement made available to journalists, the Chairman stated that consequent to the June 30th, 2020 deadline given by National Insurance Commission (NAICOM) for firms to comply with its new capital regime, shareholders of the underwriting firm at its 61st Annual General Meeting held recently in Uyo, Akwa Ibom State embraced its recapitalisation plan to increase its capital base to N12 billion.

He stated that with the approval, the firm hopes to increase its authorised share capital from N4 billion to N12 billion by the addition of the sum of N8 billion divided into 16,000,000,000 billion ordinary shares of 50 kobo each ranking in all respect pari-pasu with the existing shares of the Company.

He said: “Options available to us to recapitalise are either to: approach the capital market by way of a public offer, private placements, rights issue, book building process or other methods; inject funds into the company or consider the possibility of a merger with another company operating in the general insurance business portfolio. In any case, the board had engaged the services of professional parties and advisors to provide matter-of-fact counsel that will engender accuracy and timely decision making especially, as we are materially mindful of the stipulated time frame given by the regulator”.

“Shareholders of the firm however re-elected me as the Chairman, Board of Directors; Samuel Onukwue and Simon Bolaji as Non-Executive Directors. In like manner, Ademola Abidogun’s appointment as Managing Director/Chief Executive Officer was unanimously ratified by shareholders of the Company”, he noted.