The Nation Newspaper

Category: Insurance

  • Inject fresh ideas, NCRIB advises Buhari

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has advised  President Muhammadu Buhari to inject fresh ideas into the running of the economy, besides sustaining  the tempo of his positive economic policies.

    NCRIB President Shola Tinubu gave the advice during the Council’s press conference and quarterly media briefing held at its office in Lagos.

    While expressing the council’s delight that the 2019 general elections have been held, throwing up new political office holders to steer the affairs of the nation for the next four years, he said it was quite heartwarming that the polity, has given new hope of stability.

    According to him, politics and economy are inextricably woven, as one negative or positive development in one would most assuredly affect the other, and vice versa.

    He observed that the stability of Nigerian political environment is an harbinger of a stable and progressive economy.

    Tinubu said: “As actors in the financial ecosystem, the NCRIB is using this platform to advise the government to inject fresh ideas into the running of the nation’s economy while at the same time sustaining the tempo of existing positive economic policies already put in place by the government. The reflation of the economy should be anchored on enhanced promotion of local capacity to reduce over dependence on foreign goods and services, and by so doing, reduce the strain on the nation’s currency vis- a-vis other foreign currencies.

    “Government must create an improved enabling environment for business and professional growth through initiation and tenacious pursuit of laws and regulatory prescriptions that would enhance economic growth.   In specific terms, urgent attention must be paid to reducing poverty, which has as its bye product, unemployment and poor standard of living.

    “While Nigerians are awaiting government to give more teeth to implementation of Oil and Gas reforms, power sector reforms and human capital development and redouble efforts in promoting agriculture, more attraction should also be given to the state of security in the country. Since insurance thrives more when the economy thrives, it is our belief that the industry will witness desired northward trend when the economy is on a sure sound footing.”

    Speaking on building collapse, he said: “In the light of recent building collapse in Lagos and Oyo states as well as other similar disasters, the NCRIB is quite touched. It is our belief that the unfortunate incidences are actually accentuated greatly by the lax of regulatory enforcement in the construction environment.

    “To combat this, government needs to be more proactive in implementing building laws. Also, they have to continually engage stakeholders in the construction built environment and related institutions to elicit their input for a long lasting solution to the malaise. While the council commiserates with the victims of the building collapse, we like to use this opportunity again to call on government to give more impetus to the implementation of the enforcement of compulsory building insurance as enshrined in Section 64 and Section 65 of Insurance Act 2003”, he added.

  • FBN General launches ClaimsAlert Service

    Many times, the insured do not know what to do or how to make claims from insurance companies when an accident or incident occurs.

    FBN General Insurance, a subsidiary of FBNInsurance and a member of the FBNHoldings Company has launched a new service called FBNGI ClaimsAlert Service to streamline claims process for its clients.

    The service will enable customers to get claims to the value of N50,000 and below resolved at the scene of the accident.

    The Managing Director, Bode Opadokun, made this known during the official launch of ClaimsAlert Service and Representatives held in Lagos.

    He stated that the ClaimsAlert Service is designed to provide a responsive service to all Comprehensive Auto Insurance policyholders of the company, who have been involved in an accident within the Lagos Metropolis where the service is currently active.

    The areas, he said, include Eti-Osa, Lagos Island, Lagos Mainland, Surulere, Kosofe, Shomolu and Ikeja.

    He added that the FBN General Insurance ClaimsAlert Service is a value-added service to all her Comprehensive Auto Insurance Policyholders only and this comes at no extra cost.

    He said: “The company has dedicated team of Claims Agents, Customer Support Staff and Auto Garages for prompt and quality repairs of vehicles. Customers will get claims to the value of N50,000 and below resolved at the scene of the accident.

    “The initiative involves the provision of a competent FBNGI Claims Representative (Biker) at the scene of an accident or incident to provide instant claim support to the identified segment of customers.

  • Insurance firms capital base may rise to N15b

    There are indications that the National Insurance Commission (NAICOM) may soon increase the capital base of insurance firms to about N15 billion, The Nation has learnt.

    At present, the minimum capital requirement of life insurance firms is N2 billion, non-life N3billion and composite N5 billion.

    Sources within the industry revealed that the commission may soon mandate insurance firms to recapitalise or merge to meet the new capital requirement.

    This time, the recapitalisation will be compulsory unlike the optional window introduced by the commission through the Tier-Based Minimum Solvency Capital (TBMSC) policy, which was rejected by the operators and later withdrawn by the commission.

    Although the Commissioner for Insurance, Mohammed Kari has been silent on the issue, sources said the commission was working underground to bring the new recapitalisation to fruition soon.

    Kari had, before the cancellation of the TBMSC, said there was the  need for insurance firms to recapitalise.

    According to him, the industry witnessed the last recapitalisation between 2005  and 2007 and that since then, the operating environment had witnessed series of turbulence and uncertainties.

    He said immediately after the 2005 and 2007 exercises, the 2008 global financial crisis hit the sector with heavy consequences on insurers.

    He stated that this was followed by significant upward increase in risks arising from macro-economic environment, such as inflation rate, interest rate and devaluation of the currency.

    These, he said, led to an increase in the current value of insured assets and operating cost of insurers. Yet, the same regulatory capital continued to rule and no significant increase in shareholders’ funds of many insurers.

    He said: “As insurers continue to take too much risk with their little capital, coupled with the twin risks arising from impairment of certain assets and inappropriate pricing of insured risks, there has been an increasing inability of many insurers to honour contractual commitments to the insured and the shareholders.

    “Guided by the provisions of extant laws and international best practice, the Commission has identified underlying trends, some of which were enumerated above; and has accordingly, considered and hereby prescribed Tier-Based Minimum Solvency Capital for insurers on the basis of their respective risk profiles and their risk management systems.”

    Kari said recapitalisation would bost the soundness and profitability of insurers, support the stability of the financial system and increase insurance contribution to the nation’s Gross Domestic Product (GDP); and limit significant systemic risks and build confidence in the industry, THEREBY ensuring the stability of the insurance sector.

    He stressed that the commission’s goal is to ensure the safety and soundness of insurance institutions.

    “Our goal is also to facilitate the stability of the sector, secure protection of policyholders and public interest; promote optimal development of the insurance market; and engender public trust and confidence in the insurance system,” he added.

  • AXA Mansard unveils insurance education product

    In response to the growing needs of its customers and as part of its quest to ensure continuous access to quality education, AXA Mansard Insurance has launched its revamped education plan product.

    In a statement made to reporters, the firm’s Managing Director, Kunle Ahmed stated that the  plan was designed to reward customers for their loyalty and assist parents achieve their lofty goals for their children in terms of education.

    He said customers would have  access to a free yearly health check and receive three months’value of their premiums in the first five years of policy period.

    He said: “These rewards align with our continued focus on living benefits as well as promoting healthy living in our society. The plan gives parents and guardians the opportunity to ensure they have funds for educational expenses of their child(ren)/wards, especially when they reach university entry age.

    “It also ensures that their education is not derailed in the event of any unforeseen circumstance, such as death or permanent disablement of the parents/guardians.”

  • AIICO launches scheme

    AIICO Insurance Plc has launched a free Entrepreneurship Development Programme.

    In a statement, the firm’s Executive Director and Chief Operations Officer, Babatunde Fajemirokun, has said through the programme, the firm aims to empower Nigerians with the requisite knowledge and skills for entrepreneurship. It  also aimed at employment generation, poverty reduction and economic growth.

    He said the programme is open to individuals who desire to have the freedom to pursue their own vision, become bosses; have flexible lifestyle and potentials for alternate sources of income beyond salary.

    He stated that while entrepreneurial opportunities were low, not everyone is able to spot them and only few succeed in leveraging them.

    According to him, the programme helps beneficiaries to spot new business opportunities  and guides on dos and don’ts of succeeding. It is based on cutting edge information, tools and concepts of entrepreneurship.

    Fajemirokun added: “Nigerians with entrepreneurial potential and dreams of self-reliance can take advantage of the programme to gain momentum and become viable, irrespective of challenges.

    “We want to help them to see opportunities around them and equip them with the knowledge and skill to make the most of it, profitably. We have the manpower and have made adequate provisions to ensure the continuity of this programme. Interested individuals should visit our website to sign up. Certificates shall be issued to participants upon successful completion.’’

    AIICO, a leading composite insurer, started business in 1963.

  • FBNInsurance posts N6.3b profit

    FBNInsurance Limited has grown its Profit Before Tax (PBT) by 44 per cent from N4.26 billion in 2017 to N6.13 billion by December 31, 2018.

    The underwriting firm also recorded a 33 per cent growth in its Gross Premium Written (GPW) from N19.6 billion in 2017 to N26 billion in 2018.

    In a statement,FBNInsurance Managing Director/Chief Executive Officer, Val Ojumah said the firm released the financial report, after  it was approved by the regulator, National Insurance Commission (NAICOM).

    Ojumah, who said the firm witnessed growth across various measurement indices, attributed the performance of the company to their resilience in achieving the strategic aspiration of becoming the most profitable life insurance company in Nigeria.

    He said: “The 2018 result has not only moved us several steps towards this goal, it has also raised the bar for our performance in 2019. Given our track record of strong and sustainable growth, we are confident that FBNInsurance will wax stronger in 2019 despite the anticipated lull in economic activities due to political and electioneering activities.

    “The company’s Return on Equity (RoE) rose to 45 per cent up from 34 per cent in 2017 and achieved a post-tax Return on Assets (RoA) of 8 per cent. The firm has been growing very fast. Last year, we won the 2018 Africa Re/AIO Insurance Company of the Year and was also assigned an “A+” rating by Agusto & Co”, he added.

    FBNInsurance is a member of the FBNHoldings of the Sanlam Group SA. It was incorporated in 2010 and has over 40 sales outlets and three branches nationwide.

  • Old Mutual highlights need for insurance coverage of critical illness

    Over 800 million people worldwide spend at least 10 per cent of their household budgets on health care, experts have said.

    It was learnt that in sub-Saharan countries like Nigeria, medical expenses are often made through out-of-pocket payments with little coming from the government or private healthcare management initiatives.

    In the case of terminal illness, many sufferers have lost their jobs and their source of income significantly affected. Based on this, families have been driven into poverty in a bid to raise money for the treatment of loved ones.

    It is against this backdrop that Old Mutual Nigeria Life Assurance Company reiterated the need for Nigerians to plan with insurance policies specially designed to provide protection from the financial burdens of terminal illnesses.

    Old Mutual Managing Director Mr. Keith Alford called on Nigerians to choose life and take up insurance as a protection against the financial burden of terminal illnesses.

    He spoke during a media parley in Lagos in commemoration of the World Health Day, themed “Universal health coverage: Everyone, Everywhere”.

    He stated that the firm, a subsidiary of Pan-African insurance giant and one of the member of the leading global financial services group, Old Mutual, celebrated the World Health Day with a commitment to insurance coverage of critical illness.

    He announced Old Mutual’s partnership with Roche, a global research-driven healthcare and pharmaceutical firm to develop an innovative insurance plan for terminal illness, tagged the “Old Mutual Critical Illness Plan.

    He disclosed that the underwriting firm also entered into a deal with Hygeia HMO to help them expand its services and coverage.

    Highlighting the importance of healthcare coverage, he stated that with the Universal Health Coverage, everyone could obtain the right  medical care they needed and in due time, without suffering financial hardship.

    He noted that the financial hardship becomes heightened in terminal illnesses, due to their prolonged costly treatment and deadly impact.

    Roche Products Limited Country Manager Dr. Ladi Hameed said Roche will deplore its over eight years’ experience on handling of critical illness in the partnership, adding that the initiative will help in early diagnosis and support.

    He noted that with the product, individuals who, suffer critical illness, would no longer seek financial help from the public.

    Old Mutual Retail Mass Market Head Kayode Odetola noted that the product provides an optional 10 per cent cash back, plus the option to renew at the end of the term.

    He identified features the product to include a minimum entry age of 18; maximum entry age of 67; ceasing age of 70; and policy term of three to 15. The maximum sum assured is N30 million and minimum sum assured is over N500,000.

  • NAICOM reiterates insurers’ role in adopting IFRS 9

    As insurers grapple with preparing their 2018 financial results in compliance with the new account standard, the International Financial Reporting Standard (IFRS) 9, the National Insurance Commission (NAICOM) has continued to senstitise them on how to have a seamless transition.

    The commission made this known during a media session on IFRS 9 with reporters in Lagos.

    The Director, Inspectorate, NAICOM, Mr. Barineka Thompson, said the key aspects of IFRS 9 is that it is a forward looking impairment assessment model for financial assets.

    He said it is also a simpler and clearer classification, recognition and measurement rule while hedge accounting will be linked to the entity’s risk management framework.

    He added that changes in own credit risk are to be recognised in other comprehensive income, reducing volatility in the profit or loss account.

    He pointed out that for the operators to have a seamless transition, they need to embark on awareness training for senior management and members of the board of directors.

    He said: “They need to develop roadmap for adoption and follow follow-up action; develop policies, procedures and governance structure for implementation; and perform an impact assessment to determine the high level implications of applying the new C&M requirements, including potential accounting mismatches and resulting volatility of IFRS 9and 17. They need to carry predominance test and present result to the board of directors for decision on choice of option; classification and measurement (‘C&M’) of financial assets assets– changes to IAS IAS39 categories with new tests/criteria tests/criteria to be met; develop, test, apply and validate new impairment model based on expected credit losses rather than incurred losses; appraise new hedge accounting criteria, expected to be of limited interest to insurers.

    “Furthermore, we expect them to address organisational responsibilities aligning actuaries, risk and accounting identify, shared risk and actuarial data; conduct parallel testing and pilot phases for increased efficiency; IT architecture and infrastructure harmonisation for valuations and impairment calculations; new presentation and disclosure requirement. They also have to consider interpretation of new requirements and assess implications of having to apply new impairment rules to all financial assets other than equities.

    “They must assess need to collect, verify and store credit data not currently used. Insurers should already have prepared themselves for IFRS 9 before January 1, 2018 against year-end financial statements and if relevant, have performed and concluded all testing and disclosure requirements. The tax impact of any accounting decisions, judgements and transitional adjustments arising from IFRS 9 will need to be understood and assessed alongside those arising from IFRS 17 to fully understand the overall impact, including on tax profile and volatility while they also file relevant report with the regulator for review and assessment”, he noted.

  • Old Mutual launches 2-in-1 savings plan

    Old Mutual has launched its 2-in-1 Savings Plan for customers in Nigeria, especially young professionals and families.

    With a minimum monthly contribution of N5,000, customers can save up to five or 10 years to fund their financial goals.

    The plan also gives the customer the opportunity to access a part of the savings for immediate needs during the savings period, should the need arise, thereby providing financial security.

    Another critical component of the plan is the protection on the savings, so that in the event the policyholder passes away in the course of the savings plan, the assigned beneficiaries will receive the originally targeted sum as assured in the plan.

    The Executive Head, Marketing and Customer Experience, Old Mutual, Alero Ladipo, in a statement said: ”We understand that life is filled with a constant juggling of our priorities. Trying to excel in our career, expand our businesses, get another degree, start a family, raise the children, provide education for them; yet take care of our siblings and parents, all on an income is a stretch for many.

    ‘’At Old Mutual, we realise that entrenching a savings culture will help individuals realise dreams that day- to-day life tries to take away from them. We know as a business with over 170 years of wealth creation and management that smart financial planning is the answer to a future of financial security.

    “It is on the back of these insights that we enhanced the 2-in-1 Savings Plan to allow you save towards your life goals over a period of at least five years and with the added benefit of insurance protection, so that if life’s uncertainty happens in the course of saving for your future dreams, a chosen beneficiary will still receive the targeted sum. In other words, if you have set out to save for your child’s education and death unfortunately occurs, the 2-in-1 Savings Plan protects that dream from falling apart and ensure that the child gets the targeted sum”, she added.

    Old Mutual General Insurance Company and Old Mutual Nigeria Life Assurance Company are part of Old Mutual Limited which provides protection, savings, investment and lending services to 11.3 million customers in 17 countries across Africa, Asia and Latin America.

    Having acquired the majority stake in Oceanic Life Assurance Company, Old Mutual has been operating in Nigeria since March 2013. In January 2014, it also acquired a majority stake in Oceanic General Insurance Limited, thereby offering both life and general insurance solutions tailored to meet unique individual and corporate client’s needs.

  • Allianz Nigeria workers to get accreditation

    To strenghten competencies of employees, over a dozen staff members of Allianz Nigeria have been accreditted by the Allianz Underwriting Academy, Executive Director (ED), Allianz Nigeria, Mr. Owolabi Salami has said.

    The ED in a statement in Lagos, stated that the technical team members at Allianz Nigeria have been admitted into the prestigious Academy in what will be the first phase of a progressive up-skilling programme following the integration of the local operating entity into the group.

    He said: “The Academy established in 2001, aims to fast-track staff of the global insurance giant – the Allianz Group towards gaining insurance qualifications.

    The Academy’s CII prior learning accreditation award made it the first in-house training programme within the insurance industry to achieve this status at Advanced Diploma Level.

    “The accreditation means that, for the first time, staff passing specific personal lines or commercial (motor, property and casualty) academy modules can earn (up to a maximum of 60) credits within the CII qualification structure.

    ‘’This encourages and enables employees to become qualified and adds value to the internal training programme.”

    Head of Data Analytics & Reporting at Allianz Nigeria, Adekunle Giwa who passed all his papers in the first cycle beamed: “The exams were as rigorous as they were rewarding. I am proud to be a student of the academy and look forward to the accreditation award from the prestigious CII UK.”

    “The programme provides a framework which enables individuals to build the skills required to fulfil career aspirations, achieve professional qualifications through study support and the Chartered Insurance Institute (CII) accreditation and to meet the requirements for Continuing Professional Development (CPD) as required by the CII.

    Salami further explained that prior to the commencement  of the programme, Allianz Nigeria boasted a competent and sound technical team. “Still the exams were rigorous even for my very experienced colleagues. This is proof that the best can be made better. Our risk assessment, pricing and coverage will keep getting better. We are very proud that Allianz is the first insurer to achieve this level of accreditation from the CII. Our clear goal is to have the most technically-skilled underwriters within the industry and this affirms our commitment to achieving this objective”, he emphatically submitted.

    The Allianz Group is one of the world’s leading insurers and asset managers with more than 92 million retail and corporate customers.