The Nation Newspaper

Category: Insurance

  • PenCom begins pre-retirement workshops today

    The National Pension Commission (PenCom) has concluded plans to hold the Pre-Retirement workshops for staff of Ministries, Departments and Agencies(MDAs) who are due to retire between January and December 2020.

    A statement by the commission stated that the workshop is designed to educate the prospective retirees on the modalities for accessing retirement benefits under the Contributory Pension Scheme(CPS) and will hold between June 17 and  June25, 2019 at 15 centres across the six geo-political zones of the Federation and FCT.

    The commission said the centres scheduled for the exercise include, Abuja, Lagos, Kano, Port-Harcourt, Ilorin, Gombe, Bauchi. Others are Owerri, Sokoto, Enugu, Lokoja, Ibadan, Lafia and Benin.

    Intending participants are not required to come with any document and medically unfit employees are exempted from the exercise, it added.

  • Nigeria to host next AIO confab

    Nigeria is next in line to host the 47th edition of the conference following the conclusion of the 46th African Insurers Organisation (AIO) in Johannesburg, South Africa, at the weekend,

    The Chairman, Nigerian Insurers Association (NIA), Mr. Tope Smart, while speaking at the Annual General Meeting (AGM) of the AIO on the preparation of Nigeria to host the conference in 2020, said the hosting by Nigeria has the backing of the Federal Government.

    He stated that the conference would be taking place in Abuja from May 31 to June 3, 2020, adding that the theme of the conference would be: The African insurers: In The face of digital disruption.

    He said: “Activities are already in top gear to make the conference a huge success. The association is in discussion with relevant government agencies in the country to ensure that delegates have the best experience when they visit Nigeria.

    “Nigeria is populated by about 190 million people, with insurance penetration that is below one per cent. This shows enormous opportunities and potentials for insurance industry in the Africa’s most populous nation. The country is blessed with hospitable people, speaks over 250 languages with some attractive national monuments and heritage,” Smart told the delegates.

    To ensure that delegates do not have it difficult securing visa to attend the conference, the Chairman, Local Organising Committee(LOC) for the conference, Mr. Ganiyu Musa, said the committee has approached  and gotten the support of the Nigeria’s Foreign Ministry to make the visa process simple for more people to attend the conference.

    Musa, who is also the Managing Director/CEO, Cornerstone Insurance Plc, said, the theme is apt at a time African insurers are adopting technology to provide seamless services to numerous policyholders across the continent.

    He noted that the speakers at the conference would discuss various ways to use technology to offer the best services to the insured as well as ways of protecting customers’ information in the face of digital disruption.

    He said insurers were more than capable and ready to host their colleagues from about 60 countries across Africa and the world.

  • ‘Insurance policy as low as N5000’

    With only N5,000, an insurance policy can be purchased as it has been made affordable and easy to access, Chairman, Sub-Committee on Publicity and Communication, Insurers Committee, Mr Oye Hassan-Odukale has said.

    Hassan-Odukale, who is also the Managing Director, Leadway Assurance Ltd, made this known in a statement in Lagos.

    He said a marketing campaign project by all the insurance companies in Nigeria titled: Live with Freedom, was launched to showcase the advancements made in the insurance sector, and to encourage more Nigerians to take up insurance.

    He noted that educative and informative tools were deployed, with a goal to redefine narratives about insurance in Nigeria and project insurance as indispensable and desirable.

    According to him, two of the effective tools engaged were social media and blog posts. Since June 2018, several articles have been published on the website and shared across various social media platforms.

    He stated that these educative features span the benefits of insurance, easy ways to purchase insurance and the compulsory insurance policies recognised by law in Nigeria.

    He noted that there are seven insurance policies mandated by law in Nigeria, which the Federal Government made compulsory for every individual and corporate worker in the country to be protected by operating these policies, as applies to them.

    He said: “The compulsory insurance policies include Motor Third Party Insurance, Employee Group Life Insurance; Health Care Professional Indemnity; Insurance of Public Buildings; Insurance of Buildings under Construction; Aviation Third Party Insurance and Marine Insurance (Cargo)

    “The benefits of insurance cannot be over-emphasised. It serves as an anchor for both individuals and the economy. For the individual, insurance helps to safeguard treasured interests from loss and uncertainty, giving him/her the freedom to enjoy life to the fullest. Insurance ensures reduced risk of venture and provides succour during losses, hereby enabling businesses to thrive. It

    “Insurance drives the key sectors of the economy. The wealth of the economy and its human and material resources are fortified when they are insured. The “you are insured” platform has made it easy for users to access any insurance company of choice, with a simple click on their mobile devices. The platform also serves as a bank of knowledge and information for Nigerians, as relates to insurance matters. Simply put, it is insurance made easy – a one-stop resource centre for everything insurance in Nigeria. To read more about insurance policies and how you can easily purchase one, please visit the website.

    Managing Partner, Alder Consulting added that in its first three months, the you are insured campaign recorded a following from 0 to nearly 20,000 followers and a reach of about 8.8 million, across its social media platforms.

    He said materials were consistently deployed on digital media including animated videos, graphics, written testimonials, and themed video series. A total of 171 videos and graphics have been deployed thus far.

    “The campaign ensured that the seven compulsory insurance policies in Nigeria were emphasised and reinforced amongst Nigerians. The populace were also adequately sensitised on the appropriate process for resolving claims.

    “Although digital media has been a major tool for deployment, impactful activities were also being reinforced offline. For example, a total  of 1,694 radio spots of radio skits were aired in the second phase of the campaign, an increment from 1,415 skits aired in the first phase,’’ he said.

  • Developing partnerships with govts to offer agric insurance

    The International Labour Organisation (ILO) has said six out of 10 Kenyans depend on farming, livestock or fishing for a living, and a majority are smallholder farmers.

    According to a report by the organisation, these farmers are particularly vulnerable to climate risks.

    The report stated that since 2008, the Kenyan government, the private sector and development partners have collaborated and experimented to develop the agricultural insurance market.

    The report read: “Usually, public-private insurance schemes are promoted by a government through subsidised premiums and by signing up designated population groups. Insurance companies are invited to bid to provide insurance in specific regions of the country. While this has worked in other countries, the Kenyan insurance market was inexperienced in agricultural risks and too fragmented for one insurance company to insure a large group or the entire area.

    “The formation of a consortium of insurance companies that pooled the risks was a necessary, yet unprecedented step in 2015. APA Insurance, one of the largest agricultural insurance companies in Kenya, took lead role in the consortium. Bringing together so many players inevitably came with challenges, such as different expectations and corporate cultures. The consortium established a clear organisational structure for better coordination as well as a management board with CEOs from all members to develop a strategy. The consortium also allowed for insurance companies to take on more responsibilities (such as client sign-up and claims delivery) than would normally happen in a public-private insurance scheme.

  • African insurers, others brainstorm in South Africa

    The 46th African Insurance Conference (AIO) has begun with about 1000 delegates from the industry across the world in Johannesburg, South Africa to brainstorm on the way forward for the African Continent.

    The conference with the theme: Insurance penetration in Africa: Insuring the uninsured, would end on Thursday.

    Chief Operating Officer (COO), Allianz Africa  and Deputy President, AIO 2019, Delphine Maidou said the conference is an African Insurance Exchange yearly convention.

    According to the organising committee, speakers and panelist have been lined-up for the convention.

    There will be five sessions, plus the welcome address, on the Monday and Tuesday of the convention. These will be interspersed with various committee meetings and forums, as well as the AIO General Assembly on Wednesday, June 12.

    Meanwhile, the Insurance Commissioner, Mohammed Kari and the Executive Director, Leadway Assurance, Ms Adetola Adegbayi, are part of the speakers lined-up for the event.

  • Nigerians urged to imbibe insurance culture

    It has become imperative for Nigerians to imbibe insurance as a lifestyle and not as a regulatory necessity, the Vice Chairman, Sub-Committee on Publicity and Communications, Insurers Committee, Mrs Ebelechukwu Nwachukwu, has said.

    Mrs Nwachukwu, who spoke with reporters in Lagos, said this narrative necessitated the rebranding of the industry.

    She stated that the Insurer’s Committee, comprising of CEOs of all insurance companies in the country, engaged Alder Consulting, Nigeria’s leading creative intelligence firm    which began a brand marketing programme in 2018 .The firm had a mandate –  to rebrand the industry and make it better understood by Nigerians.

    She disclosed that the initiative was borne out of the need to redefine the narrative about insurance and to educate Nigerians on its importance.

    She said: “The campaign was also designed to change the perception of the sector and increase the market penetration on insurance in Nigeria. Considering that less than 1 per cent of the Nigerian adult population was insured. About 80 per cent of those insured are 35 and above. Millennials below 35 years who form over 70 per cent of Nigeria’s population, or about 138.6 million, form a large part of the uninsured.

    “In line with the foregoing, the project was designed to showcase the advancements made in the insurance sector and to encourage more Nigerians to take up insurance. It would also highlight real customer testimonials of insurance. At the end of the day, insurance would be positioned as desirable and not just a regulatory necessity.”

    Managing Partner, Alder Consulting, Mr. Leke Alder on his part, explained that the campaign will span an initial period of three years, in three months respectively.

    He added that instead of pushing a message of fear and tragedy, the campaign focuses on the fulfillment of hopes and dreams, when insurance serves as a safety net in life. Hence, the phrase “Live with Freedom” was adopted as the theme for the campaign.

    “Insurance users can live life to the fullest because they are confident that no matter what happens, they are insured. To ensure that the campaign was continuous and sustainable, a dedicated website (www.insuranceandyou.ng) was developed. Social media pages – @insuranceandyou (Facebook, Instagram, and Twitter) – were also set-up to ensure that the campaign drilled down to the retail market space.

    “According to a poll of 1,500 individuals in Lagos, Abuja, Enugu, Port Harcourt, Kaduna, Asaba and Ibadan conducted by Brand Sampling International, “since the beginning of the project, 66% of those who have heard the campaign are changing their perception of insurance”.

    He further said during the first phase, key milestones included using a new narrative to begin repositioning insurance; educating Nigerians on the importance of insurance; communicating innovative advancements in the insurance industry; showcasing testimonials from satisfied customers; and highlighting compulsory insurance categories required by the Federal Government. “Materials were deployed across print, radio and social media. A brand activation event also held at the Ikeja City Mall in Lagos. 1,415 radio jingles were aired and 28 radio interviews were conducted. 121 videos, graphics and blog posts were posted across digital media platforms reaching a combined 8.8 million people,” he noted.

  • ‘Shipping losses plummet from 207 to 46’

    The maritime industry saw the number of total shipping losses of vessels over 100GT plummet during 2018 to 46 from 207 total losses reported in 2000, the lowest total this century, an annual report by Allianz Global Corporate & Specialty (AGCS) has shown.

    According to the report, “Safety and Shipping Review 2019” which also contains shipping loss and incident statistics from the past 10 years, the international shipping industry is responsible for around 90 per cent of world trade.

    It stated that there are around 60,000 merchant ships, transporting every kind of cargo. The report further showed that the world fleet is registered in over 150 nations, and manned by over a million seafarers, meaning the safety of vessels is critical.

    The report read: “Shipping losses declined by a record level of more than 50 per cent year-on-year from 98 in 2017, driven by a significant fall in hotspots around the world and weather-related losses halving after a quieter year of hurricane and typhoon activity. The 2018 loss year is exceptional compared with the rolling 10-year loss average of 104, down by 55 per cent.

    Meanwhile, over the past decade, shipping losses have declined by 65 per cent. Improved ship design and technology, stepped-up regulation and advances in risk management and safety are driving the sector’s long-term loss improvement. More robust safety management systems and procedures on vessels is also a factor in preventing breakdowns, accidents and other mistakes from escalating into total losses.

    “The South China, Indochina, Indonesia and Philippines maritime region remains the major loss location over the past decade. More than a quarter (26 per cent) of all losses over the past year globally occurred there. However, this represents a significant fall year-on-year and is the first time the region has seen losses decline in four years, reflecting the fact that Asia-based international shipping operations are typically well run and have claims frequency rates on a par with European counterparts. Newer infrastructure, better port operations and more up-to-date charts will also help to address safety challenges in the region, such as an overall increase in the frequency and cost of collision, grounding and fire incidents in some locations. The East Mediterranean and Black Sea region is the second most frequent loss location.

    “Fifteen cargo vessels were involved in a third of losses during 2018, driven by activity in the top loss hotspots globally. Foundering or sinking has been the cause of over half of all vessel losses of about 53 per cent over the past decade and was the primary cause of 65 per cent of 30 losses in 2018. Analysis of more than 230,000 marine insurance industry claims with a value of almost $10b between July 2013 and July 2018 by AGCS shows that ship sinking/ collision incidents are the most expensive cause of loss for insurers, accounting for 16 percent of the value of all claims – equivalent to more than $1.5 billion.

    “While the number of losses has fallen significantly over the past year in particular, the number of 2,698 shipping casualties or incidents remains challenging, declining by less than one per cent. The East Mediterranean and Black Sea is the top incident hotspot, accounting for one in five incidents globally. Activity is up in this region year-on-year, driven by machinery damage/failure incidents, which is also the top cause of shipping incidents globally, accounting for 40 per cent or 1, 079 of incidents in 2018. Of the 26,000 plus reported shipping incidents over the past decade, more than a third or 8,862 have been caused by machinery damage or failure – over twice as many as the next highest cause.

  • 10 insurance firms may hit new funds mark

    With the ongoing recapitalisation in the insurance industry, only 10 insurance companies may remain standing, of the 57 operating now, The Nation has learnt.

    This will occur as majority may be unable to meet the new capital requirement.

    The newspaper learnt that while some will lose their operational licence, others may be acquired or form a merger.

    NAICOM had on May 20, 2019 given insurance companies a 13-month ultimatum to recapitalise or lose their licences.

    The ultimatum raised the minimum paid-up share capital of a Life insurance company from N2 billion to N8 billion; Non-Life insurance from N3 billion to N10 billion and Composite insurance from N5 billion to N18 billion. Re-insurance companies on their part, were directed to raise their capital base from N10 billion to N20 billion.

    With the directive, the capital injection requirement rose by 400 per cent (Life); 333.33 per cent (Non-Life); 360 per cent (Composite) and 200 per cent (Re-Insurance).

    Presently, Chief Executive Officers and other Board members are full of regrets, anguish and sorrow following the announcement of the order of recapitalisation by NAICOM.

    Read Also: Insurance firms capital base may rise to N15b

    They regret turning down the Tier Based Minimum Solvency Capital (TBMSC) policy meant to recapitalise and reclassify insurance company’s policy, offered to them by the regulator.

    Unlike the order for paid-up share capital, the tier-based plan would have allowed the companies to carry out businesses that they have capacity to underwrite.

    But some operators and shareholders resisted the offer and dragged the regulator to court, leading the regulator to withdraw the policy. They claimed the policy was not backed by law.

    Some of the chieftains in the industry who spoke with The Nation on condition of anonymity, condemned the actions of the CEOs, boards and shareholders.

    One of the chieftains lamented that after the commission was forced to cancel the Tier Based policy, operators and other stakeholders went to sleep without trying to reach out to the regulator on the way forward.

    He said the operators are now crying foul praying that the regulator should bring back the Tier Based policy which they initially shot down.

    He pointed out that the operators too did not engage themselves, which he said they would have done under the auspices of their umbrella body, the Nigeria Insurers Association (NIA).

    He said: “After NAICOM was forced to cancel the Tier Based, we did not bother to engage ourselves, neither did we engage NAICOM. Although the Commission too did not talk to us, we ought to seek their audience and make them to talk to us.

    “After the shareholders sponsored by some operators drag the commission to court, we should have known better that we cannot fight our regulator and expect nothing to give way.”

    Another CEO said: “As it is now, many companies will not survive with the increase in paid-up share capital unlike the Tier Based, that would have allowed companies operate the business based  on the risk they can carry.’’

  • FBNInsurance pays N4.8b claims, declares dividend

    FBNInsurance Limited, one of the leading life insurance companies in Nigeria has closed the year with positive results and also made prompt claims payments to customers despite the unpredictable economic situation in the country occasioned by preparation for the just- concluded general election, the Managing Director, FBNInsurance Limited, Mr Val Ojumah has said.

    He spoke while presenting the company’s annual report to shareholders at the Annual General Meeting (AGM) which held in Lagos.

    He said the company also announced a dividend of 65 kobo per share, representing 81 per cent increase from 36 kobo that was declared for 2017.

    Reviewing the year, Ojumah said the company’s Gross Premium Written (GPW) grew by 33 per cent to N26 billion in 2018 from N19.6 billion in 2017, while Profit Before Tax (PBT) appreciated by 44 per cent from N4.2 billion in 2017 to N6.13 billion in 2018.

    The performance, he said, was driven by the company’s sustained growth and penetration into the retail segment of the industry.

    He said: “Over the same period, as a responsive and responsible organisation, we promptly paid claims to our clients to the tune of N4.8 billion which is a 66 per cent increase from N2.9 billion in 2017. Our strategy remains to provide financial security to our customers.

    “We are keen to attain uncontested leadership status in the life insurance sub-sector as well as aggressively exceed our customers and shareholders’ expectations”.

    Commenting on the company’s financial returns, the Chairperson of the Board of Directors, FBNInsurance Limited attributed the growth and performance of the company in 2018 to its commitment in putting its clients first and resilience in achieving remarkable milestones.

    “Ours is a business of trust and as part of our efforts geared towards maintaining indisputable leadership in the life insurance sub-sector, we have built a solid foundation where our clients can insure their trust because of our reputation over the years of paying claims promptly” she said.

    FBNInsurance is an FBNHoldings company associated with the Sanlam Group of South Africa.

  • STACO simplifies premium payment

    STACO Insurance Plc has embarked on a strategic partnership with Paystack, an online payment high-tech company in her quest to delight her numerous customers and make payment for business transaction easier.

    Staco is an underwriting firm licensed to provide general insurance and special risks. Paystack on the other hand is a technology outfit solving payment problem for ambitious business ventures with a mission to help business become more profitable while making it easy for business to accept secure payments from multiple online channels.  The Head, Corporate Communications, Dr. Tunde Odeyemi, in a statement made available to reporters, explained that the strategic alliance with Paystack will enable STACO Insurance numerous customers to transact business and pay for insurance premium at the comfort of their homes or offices. According to him, this is a testament to STACO’s strategic objectives of adding real value to customers’ needs particularly in the area of payment and extending the penetration of insurance services so as to enhance the fulfilment of the of the company’s vision of providing a world-class insurance.

    He pointed out that STACO had before now, secured the approval of National Insurance Commission to deploy e-platform portal for the purchase of third party Motor and Personal Protection Plan (PPP) Insurance policies.