The Nation Newspaper

Category: Insurance

  • Insurance agents not tapping from MDRI

    Over reliance on insurance companies, poor use of technology, poor knowledge, poor image and lack of professionalism are major challenges hindering insurance agents from tapping into the opportunities in the Market Development and Restructuring initiative of the Federal Government.

    The National President, Association of Registered Insurance Agents of Nigeria (ARIAN), Ademola Fagbayi, made this known on the sideline of the association annual conference held in Lagos.

    Consequently, he said the association would embark on series of training as they strongly believe that agents need to update their knowledge of technology.

    He said he hoped to increase the membership strength of the body’s 10,000 before leaving office just as he called on agents to explore the untapped opportunities in non-life insurance business.

    He said: “The National Insurance Commission (NAICOM) through MDRI has provided great opportunity for insurance agency practice in Nigeria. But the question is how well are we leveraging on it’? Insurance agency in Nigeria has not been able to achieve her full potential because of some major challenges.

    “According to NAICOM’s report, insurance density in terms of insurance premium as percentage of the gross domestic product (GDP) stands at 0.225 per cent. Total policy holders are about 1.5 million. Total premium in 2015 was $1.87 billion which ranked Nigeria at 64th in the world. Insurance penetration in Nigeria is 0.6 per cent, Kenya is 3.4 per cent, and South Africa is 15 per cent while Egypt an Islamic nation is about 13 per cent. The implication is that over 90 per cent of Nigerians don’t have any form of insurance.

    “Nigeria’s population stood at 173.6 million according to 2013 population Census. We may probably be between 180 to 200 million currently. Demography: 60 per cent of Nigeria’s population are below 65 years with over 105 million working class. Obviously Nigeria has massive potential for insurance business growth. No wonder some foreign insurance company are making inroad to Nigeria. The challenge that we have in the industry is how to transform the opportunity to business”, he added.

  • Sunu Assurances: Post five-year decline in financial result

    Sunu Assurances Nigeria Plc, a member of SUNU Group,has consistently recorded a decline in its financial results as shown in the 2014, 2015, 2016, 2017 and 2018 audited accounts.

    Except in 2017 when the company posted a PBT of N28.5 million and an increase in Gross Premium Written of N67 million and a financial asset of N2.9 billion, other indices in the financial years under review took a downward trend.

    Shareholders fund was not spared from the decline as it consistently decreased except in 2015.

    Extracts from the audited account obtained from the company’s website showed while the company recorded N161 million PBT in 2014, it recorded N717 million loss before taxation in 2015, N1.48 billion million loss in 2016, N28.5 million profit before tax in 2017 and N39.4 million loss in 2018.

    In the same vein, the company recorded a decline in its Gross Premium Written. While it recorded N3.4 billion in 2014, it recorded N2.4 billion in 2015, N2 billion in 2016, N2.67 billion in 2017 and N2.5 billion in 2018.

    In 2014, the company’s shareholder’s fund which stood at N3.4 billion, rose to N5.1 billion in 2015 but further declined to N4.9 billion in 2016, N3.8 billion in 2017 and N3.7 billion in 2018.

    Consequently, the company’s share price based on Stock Exchange Quotation Share showed decline from 50 kobo in 2017 to 20 kobo in 2018.

    According to a statement on the company’s website, the board and management have the vision to be a leading African insurance company.

    The statement read: “It is on a mission to be an insurance company recognised for excellent client services, using cutting edge technology, motivated workforce and good business ethics to meet stakeholders’ expectations. This will be driven by innovation in service delivery, products development, cost management, customers experience and ensuring proper balance in all dealings. SUNU Assurances Nigeria Plc preserves and multiplies value of shareholders and ultimately maintains a consistent dividend payment policy.”

    Company history

    “SUNU was incorporated as Equity Assurance Nigeria on December 13, 1984 and was licensed to underwrite all classes of general business. SUNU Assurances Nigeria Plc is the parent company of SUNU Assurances Limited, a Ghanaian subsidiary that started operations in Ghana in 2008. The company changed its name from Equity Assurance Plc to SUNU Assurances Nigeria Plc with due approval from the shareholders and its regulator, NAICOM.  The approval was dated  March 29, 2018 and a new licence as issued by NAICOM.

    “The name change was necessitated as a result of SUNU Group’s recent acquisition of majority stake in Equity Assurance Plc. With operations in 14 African countries and 23 office locations spanning West and Central Africa, SUNU Assurances Nigeria Plc. is positioned to leverage SUNU Group’s vast network of knowledge capital, financial strength and technical resources in our quest to differentiate our offerings and service standards in the Nigerian marketplace.

    ‘’In addition to strengthening the company’s balance sheet, this strategic investment and name change also provides SUNU Assurances Nigeria Plc. with critical organisational capabilities & competencies which will be harnessed to create and deliver value to our esteemed brokers and clients. This new name reflects its pan African presence as a full-fledged member of the SUNU Group. The company will continue to operate in its current structure, and our phone contacts remain unchanged. Other than the name change, there is no change in management and we will be providing tailored-made products and better service on which SUNU Group has built its reputation across Africa’’.

    Mr. Bukar is currently the Chairman of NESG and former MD CSCS while Mr. Samuel Ogbodu is a chartered insurer and a member of the Society of Fellows of the Chartered Insurance Institute of Nigeria.

    The only Executive Director of the company is Mr. Karim-Franck Dione who was appointed in 2015. Dione is a Business Professional with over 10 years work experience in Canada and France.  He currently serves as Director, Management Accounting & Financial Management in Sunu Participations Holding (France) and is also a board member.

  • Michael van der Straaten is CEO of Qatar Re

    Qatar Re has confirmed Michael Vander Straaten as the Chief Executive Officer.  Partner Dr. Schanz, Alms & Company, Henner Alms made this known in a press statement made available to The Nation in Lagos.

    According to the statement, Vander Straaten had earlier this year, been appointed acting CEO of Qatar Re.

    Qatar Re also announced the appointment of Pantelis Koulovasilopoulos as CUO – Long Tail & Specialty Classes.

    He formerly served as Qatar Re’s deputy CUO – Long Tail & Specialty Classes.

    Sunil Talwar, Chairman of the Board of Directors of Qatar Re, said: “We are pleased to announce that Qatar Re has decided to appoint Michael van der Straaten as CEO. Mike has fitted seamlessly into the position, building on his achievements as our former chief underwriter for Long Tail and Specialty Classes. We are convinced that Mike will bring Qatar Re’s ongoing transition to a business model based on lower volatility and more reliable profitability to a successful conclusion.”

    Michael van der Straaten, CEO of Qatar Re, commented: “I am excited to take the helm at Qatar Re at a time when our company is increasingly generating its own business from market segments that we understand thoroughly. We embarked on this course more than two years ago and are starting to reap the benefits. Our expertise in these areas is obviously a major boon for us against the backdrop of stubbornly tough trading conditions in global (re)insurance. I am looking forward to working with the Qatar Re team towards positioning our firm as a profitable enabler of innovative and entrepreneurial business models in insurance.”

  • AXA Mansard partners Uber

    AXA Mansard, a member of AXA Group, one of the global leaders in insurance and asset management, collaborated with Uber in conducting a safety workshop for Uber drivers. It was to make rides safer and more secure for driver-partners and riders as a form of value-added service to Uber partner drivers.

    The workshop which held in Lagos and Abuja respectively, was part of Uber’s week-long Safety-Week initiative aimed at amplifying and restating its ‘Safety Never Stops’ narrative of making rides safer and more secure.

    Commenting on the event, Mrs Latifah Aliu, Head, Partnerships Group, AXA Mansard Insurance said, “We at AXA Mansard are excited to be a part of the initiative that seeks to enlighten Uber partner drivers on safety measures and principles. We seek to reinforce our commitment to our partners, especially as we seek to drive our “Payer to Partner” initiative. We hold our customers’ interest at heart always and conducting this safety workshop is a means of expressing our dedication towards ensuring a safer lifestyle for all our customers.

    “The workshop included various sessions facilitated by different law enforcement agencies highlighting different topics ranging from partner driver’s duties and responsibilities on the road to how and where to obtain legitimate documents to the use of the Uber’s in-app safety featsures. We also had some doctors and nurses train participants on healthy living and stress management, while a health check was held for partner drivers. We remain resolute to seeing an accident-free Nigeria even as we empower our customers to maintain a safety lifestyle always”, she added.

  • NCRIB admits Oyetola, Kari, 15 others into Fellows

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has admitted the Executive Governor of Osun State, Mr. Gboyega Oyetola into the Society of Fellows of the council.

    Also admitted into the society include the Commissioner for Insurance, Alhaji Mohammed Kari; NCRIB Vice President and Honourary Treasurer, Barrister Rotimi Edu and Mrs. Ekeoma Ezeibe respectively.

    The admission of 17 new members brings the total number to 94 members. The Society of Fellows is the Committee of all Fellows of the Council, including some notable net worth individuals in the country and overseas

    The admission was ratified at the Board meeting of the Council held in Lagos after the successful candidates scaled the hurdle for admission as stated in Section 6 Subsection 4a of the NCRIB Act No. 21 of 2003.

    Read also: Oyetola best for Osun at this time, says ex-NLC president

    President of the Council, Mr. Shola Tinubu disclosed that the new Fellows would be required to demonstrate high level of professionalism and assist in taking the broking profession to higher heights.

    He urged the new members to see their new status as opportunity to shun unethical practice and uphold the tenets of the profession at all time.

    A former Deputy Governor of Central Bank, Dr Tunde Lemo delivered the Fellows Day’s lecture entitled:After Fellowship, What Next.

    Mr. Tinubu in his welcome speech explained that the choice of Dr. Lemo was informed by the impeccable image and reputation he has earned for himself, both within and outside the shores of Nigeria as an economist.

  • NIA urges vehicle owners to verify policy on USSD code

    The Nigerian Insurers Association (NIA) has called on Nigerians to confirm the authenticity of their motor insurance policy on the Nigerian Insurance Industry Database Portal through the association’s Unstructured Supplementary Service Data (USSD) code *565*11# on their phone.

    NIA Director-General, Mrs Yetunde Ilori, who made the call at a media parley with newsmen in Lagos, said it is necessary for vehicle owners not to get caught by the authorities.

    She urged vehicle owners, who buy either third party or comprehensive insurance, to ask the insurer to upload the policy on the NIID platform.

    She, however, said the association has been moving from one insurance company to another to drum into operators the need to upload their sold motor policies on the NIID.

    The association, she said has fined some insurance companies who do not upload motor policies sold on the platform, adding that the NIID remains one of the best ways to curb fake motor insurance policy.

    She said: “The NIID remains one of the best ways to curb fake motor insurance policy. In a bid to help vehicle owners to easily verify the genuineness of their policies, the insurance industry introduced the USSD code *565*11#. The awareness on usage of USSD code *565*11# is really gaining more ground as people daily rely on it to settle issues bothering on genuineness of their policies.

    “The NIID portal is the only central record of all insured vehicles in Nigeria. As one of the most important tools to ensure that only insured vehicles are driven on our roads, the ASKNIID is used by authorised law enforcement agencies to enforce motor vehicle insurance law.

    “Vehicle owners, especially in Lagos State, where law enforcement agencies have come up with automated ways of checking whether your particulars are genuine, is where many people need to verify the genuineness of the insurance certificate before they get caught by the authorities for carrying fake insurance. When you take up your insurance, check the industry platform where insurance companies are supposed to upload whatever motor insurance they sell whether third party, comprehensive or whatever. So at the point of purchase, there is a question every vehicle owner that has bought insurance should be asking: Is my insurance already uploaded?”

    She continued: “I appeal to everyone not to wait until the camera picks you and a letter is sent to your home to pay fine. There are some people, who just send their drivers or third party to renew their vehicle license particulars for them and they end up buying a fake insurance certificate. This is why the industry has come up with a way by which you can verify the genuineness of your policy. Don’t just hold the paper, be sure the paper you are holding is being underwritten by a licensed insurance company.”

    She noted that a policy ought to be loaded on the platform within 24 hours, adding that a vehicle owner needs not have internet facility on his or her phone to verify a policy on the platform, but can do so on any phone through the USSD code.

    In terms of usage of the code, she said many people are using it, but the association is trying to create more awareness to get everybody on board.

  • FBN General Insurance achieves N615.6m profit in 2018

    FBN General Insurance Limited has released its financial report for the year ended 31 December 2018 as approved by the National Insurance Commission (NAICOM).

    Its Gross Premium Written (GPW) for the year closed at N4.63 billion, achieving a Year-On-Year (YOY) growth of 32 per cent from the corresponding performance of N3.51 billion recorded in 2017.

    Its Profit Before Tax (PBT) peaked at N615.6 million, with a marked YoY growth of 91 per cent from the N322.8 million realised the same period in 2017.

    Over the same period, the company grew its total assets YoY by 31 per cent from N7.24 billion in 2017 to N9.45 billion in 2018, achieving a significant improvement in capital efficiency as it nurtures robust liquidity and solvency margin above the required benchmark.

    Commenting on the company’s performance, FBN General Insurance Managing Director, Bode Opadokun, attributed the performance to the underwriting firm’s commitment in putting its clients first and resilience in achieving remarkable milestones.

    “The business gained momentum in 2018 as results across key performance metrics clearly validated FBN General Insurance’s commitment to the delivery of profitable growth and unwavering dedication to our clients, communities and stakeholders,” he stated.

    FBN General Insurance was acquired in 2014 by FBNInsurance Limited, an FBNHoldings Company associated with the Sanlam Group (SA) and was incorporated to transact general insurance business in Nigeria and currently operates out of several outlets nationwide.

    Last year, the underwriting firm won the Best Customer Service Award (Insurance Category), at the 2018 Nigeria Brand Award in Lagos.

  • Qatar Re confirms Michael van der Straaten as CEO

    Qatar Re has, over the weekend, confirmed Michael Van der Straaten as the Company’s Chief Executive Officer.

    Partner Dr. Schanz, Alms & Company, Henner Alms made this known in a press statement made available to The Nation in Lagos.

    According to the statement, Vander Straaten had earlier in the year been appointed acting CEO of Qatar Re.

    The firm also announced the appointment of Pantelis Koulovasilopoulos as Chief Underwriter Office (CUO) Long Tail & Specialty Classes after serving as  deputy CUO – Long Tail & Specialty Classes.

    Sunil Talwar, Chairman of the Board of Directors of Qatar Re, said: “We are pleased to announce that Qatar Re has decided to appoint Michael van der Straaten as CEO. Mike has fitted seamlessly into the position, building on his achievements as our former chief underwriter for Long Tail and Specialty Classes. We are convinced that Mike will bring Qatar Re’s ongoing transition to a business model based on lower volatility and more reliable profitability to a successful conclusion.”

    Michael van der Straaten while commenting said: “I am excited to take the helm at Qatar Re at a time when our company is increasingly generating its own business from market segments that we understand thoroughly. We embarked on this course more than two years ago and we are starting to reap the benefits. Our expertise in these areas is obviously a major boom for us against the backdrop of stubbornly tough trading conditions in global (re)insurance. I am looking forward to working with the Qatar Re team towards positioning our firm as a profitable enabler of innovative and entrepreneurial business models in insurance.”

    Michael van der Straaten joined Qatar Re in late 2016. In February 2017, he was appointed CUO Long Tail & Speciality Classes and joined Qatar Re’s Executive Management Committee. He started his career at Lloyd’s as a Box Manager and Non-Marine Property Treaty Underwriter. He joined Qatar Re from ACE Tempest Re, where he held the role of Deputy Head of London and Head of Casualty, overseeing the development of their international casualty and motor business. Prior to this, van der Straaten has held various underwriting positions with a primary focus on casualty lines alongside wider management responsibilities.

    Koulovasilopoulos joined Qatar Re in May 2017 as Deputy Chief Underwriting Officer Long Tail & Specialty Classes. He has over 27 years of experience in insurance and reinsurance.

    He joined from Chubb Tempest Re International, where he was the Chief Actuary. He was previously Group Chief Pricing Actuary for Aspen and Chief Pricing Actuary at Zurich Global Corporate UK.

  • Custodian pays 45 kobo dividend

    Custodian Plc has paid out 45 kobo as total dividend during the 2018 financial year, having paid interim dividend of 10 kobo in September 2018 and final dividend of 35 kobo

    Shareholders of the company,  a leading non-bank financial institution quoted on the Nigerian Stock Exchange (NSE) with investments in life and non-life insurance, pension fund administration, trusteeship and property holding businesses, during its annual general meeting (AGM) in Lagos commended the board and management  for paying dividend consistently.

    National Co-ordinator Emeritus, Independent Shareholders Association of Nigeria (ISAN), Sunny Nwosu, said the company’s dividend paying ability at a time when its peers are struggling to remain afloat is laudable.

    Another shareholder, Bayo Adeleke while commending the board and management for their dividend policy, said Custodian from its former brand name has paid dividend consistently for 11 years.

    Custodian Plc Chairman, Omobola Johnson said the board recognises the importance of dividend to shareholders and therefore, sustained the company’s practice of regular dividend payment by rewarding shareholders.

    She said: “Despite the moderate macro-economic growth on the domestic front, the company was able to post strong financial performance across all of its business lines and from the subsidiaries. Our overall strong performance underscores the resilience of our business model and tenacity of our management team and staff.

    “Our gross revenue for the year grew by 16.6 per cent to N50.2 billion from N43.1 billion reported in 2017. This is as profit before tax rose to N9.5 billion from N8.9 billion posted in 2017.

    “The total asset base remained strong at N98.1billion from N80.57 billion in 2017, showing a 21.8 per cent growth, while shareholders fund sustained similar trend, closing at N40.5billion with year-on-year growths 13.2 per cent.”

    Speaking on the future of the company, she said in spite of the uncertainty that usually accompanies electioneering cycles in Nigeria, she  believes the management is well positioned and adept enough to weather the storm and continue to take the company to greater heights.

    Its Managing Director, Wole Oshin expressed satisfaction with the result, considering the 2018 operational headwinds, adding that he is optimistic that the company will continue to thrive in all sectors where it operates as it will be guided by its vision to always exceed stakeholders’ expectations in the delivery of services to its esteemed clients, observance of high corporate governance standards and the recruitment and retention of highly skilled personnel while leveraging innovation and bespoke technology for excellence.

  • Efekoha mulls paperless insurance firms

    After leading a delegate of insurance professionals to an International Executive Programme in the United States, the President of the Chartered Insurance Institute of Nigeria (CIIN), Mr. Eddie Efekoha, has called on insurance firms to consider running a paperless organisation for effective and efficient service to the insuring public.

    Efekoha, who spoke with reporters in Lagos, said he led a delegation of chief executive officers and some directors to Houston, Texas being a major insurance market in the United States few weeks ago to acquire knowledge.

    He explained that the institute had in the past visited countries that had a more advanced insurance market than Nigeria under an exchange programme.

    He said they decided to change the name of the exchange programme to International Executive Programme because there has never been an exchange, rather they go to the countries to gather knowledge.

    He stated that this year, they had presentations and visitations to insurance firms in Houston.

    He disclosed that the structure of Houston market is a little different but developed and advanced, noting that technology is advance in terms  that they use it to drive the business.

    He said: “We decide to go to Houston being a major insurance market in the US and also the centre for oil insurance, knowing that a lot of oil activities take  place in Houston.

    “We undertook the trip on two grounds. One is that as an institute, we are in for knowledge acquisition or capacity building. Many of us learn by listening to lecture, through reading or by observation because when you get so senior, the strength is not as when you were young.

    “We visited companies that are paperless in Houston insurance market and in fact, since we came back with that mindset, we are looking at changing things. When you see somebody in Nigeria with just a laptop, an ipad and his phone, you ask why. But over there a staff has more than three monitors that he can work on and with this they are able to carry out an efficient system. We learnt other couple of things that they do as well. The takeaways for us will vary with individuals but it has broadened us and our network”, he noted.