The Nation Newspaper

Category: Insurance

  • Africa Re unveils $20,000 InsurTech challenge

    Africa Re is introducing InsurTech Challenge, an initiative aimed at identifying, promoting and rewarding technology companies, especially start-ups owned by Africans or built by individuals’ resident in Africa.

    The top three shortlisted companies will be offered a platform to meet the insurance industry.The winner will get a cash prize of $20,000.

    The reinsurance firm has asked interested participants to visit the website of the initiative. The window to submit applications is opened from February 18 to April 30.

    The Group Managing Director, Corneille Karekezi, said the initiative is also part of the current African Insurance Awards programme and its grand finale will hold at a gala dinner during the annual conference of the African Insurance Organisation (AIO) in Johannesburg, South Africa on June 10.

    According to him, technology is redefining the way we do business and the insurance industry is not left out of this disruptive change especially with the growth of InsurTech companies leveraging on best-in-class technologies to simplify the product life cycle for consumers,

    He said: “As part of our corporate mission to develop the industry, Africa Re is launching InsurTech Challenge, an initiative which aims at identifying, promoting and rewarding technology companies especially start-ups owned by Africans or built by individuals’ resident in Africa that are solving some of the identified challenges in the insurance value chain.

    “InsurTech Challenge is a new category of the African Insurance Awards. It is targeted at non-insurers that are collaborating with insurers to improve their customer service delivery, product development and overall innovation all around Africa,” he added.

  • Insurance crucial to economic development, say experts

    Governments at all levels, corporate entities and individuals need to embrace insurance for economic development, National Insurance Commission (NAICOM) Director, Rasaaq Salami, has said.

    He spoke during the launch of AXA Mansard Insurance Television Commercial (TVC) for Life Insurance products at the weekend in Lagos.

    The event titled: Role of insurance in economic development was attended by some experts.

    Stressing the important role of insurance in economic development, he cited recent incidents of collapsed buildings across the country.

    He said it was unfortunate that the three-storey building in Ita-Faji area of Lagos Island, that killed 20 people, including pupils of a school and other people was not insured.

    He pointed out that if the building was insured, insurance would have compensated all victims of the disaster.

    He added that this explains the important role of insurance in an economy.

    He, however, called on operators to do more in awareness creation that will spur people to embrace insurance, noting that this is the direction that the commission as the regulator is going.

    Lauding AXA Mansard, Salami said the commission is proud of the company’s TVC on life insurance policies because it is about customers getting benefits while still alive

    He said: “We need to start doing more in our plans to create awareness and that is the direction that the commission is going. We urge everybody to endeavour to take up an insurance policy.

    “The commission is impressed with the commercial because we believe this is the direction that we should be moving in the industry. We have always had adverts or creatives that talk about disasters and deaths. This has scared the people away from taking insurance. We are proud of this advert that gives benefits while the insured is alive.”

    AXA Mansard Chief Executive Officer Mr Kunle Ahmed said the company’s life insurance products gave cash-back, healthcare ‘checks and loyalty bonus on its life products.

    He said they believed that life products should not just  be about benefits after the death of an insured but benefits to an insured while alive.

    Ahmed stated that the TVC was designed in their quest to improve the well-being of Nigerians, improve the uptake of life insurance policies and deepen insurance penetration.

    “The TVC promotes the importance and benefits of life insurance, focusing on living benefits. We believe that the TVC will bring about a paradigm shift in people’s understanding of life insurance being the first of its kind in the insurance industry. The TVC is also a testament to our desire to seek solutions that will increase insurance uptake in the country. We did a lot of research and we believe that life insurance penetration is still very low in Nigeria.

    ‘’Many people would buy the general policies like motor, home insurance, etc and would rather not buy life insurance. We think that this may have to do with the way the life products are presented to the public. This is why we came up with the TVC we have today and we believe through this effort, the perception that people have about life products will change for the better.

    “AXA Mansard was incorporated in June 1989. Within the 30 years of our existence, the name of the company has changed but we have remained the best in service standard. The company is a member of AXA Group, a world leader in insurance and asset management with 166,000 employees, 107 million clients across 64 countries in the world.”

    Nigeria Insurers Association (NIA) Director-General Mrs Yetunde Ilori affirmed that there is low awareness for insurance, especially life policies.

    “People only relate the policies to death but I think the AXA Mansard TVC, people will feel more excited to purchase insurance. On the part of NIA, we will use the media in sensitising the public on the benefits of insurance,” she added.

  • Pan African Re Awards winners honoured

    Continental Reinsurance Plc has announced winners of the Pan African Re/Insurance Journalism Awards at its sixth CEO Summit in Mauritius.

    Patrick Alushula, a Kenyan Business journalist from Nation Media Group bagged the Overall Award – Pan African Journalist of the Year.

    His article titled: Despite low uptake, funeral cover can’t be buried away, also emerged the Best Re/Insurance Print Article (English). In his article, Patrick explored how insurance cover can support bereaved families by helping them lessen financial burden associated with funerals.

    The Overall Award was selected from Best Re/Insurance Print Article, Best Re/Insurance Online Article and Best Re/Insurance French Article categories.

    Katya Stead, a South African Journalist, who writes for Commercial Risk Africa, won the Best Re/Insurance Online Article award (English). Her article ‘’Banking the change: How insurers in banking will change insurance too’’, looks at how African insurers like Discovery are taking on the banking sector and the ways in which this will change not only banking, but also Africa’s insurance narrative.

    Continental Reinsurance Group Managing Director/CEO,  Dr. Femi Oyetunji, said: ”I am proud to note that the quality of entries submitted improves in every edition. This is a demonstration that our efforts to encourage insurance reporting are bearing fruit.’’

  • Africa Re holds African Awards in June

    The African Reinsurance Corporation (Africa Re) is to hold its fifth African Insurance Awards to reward and celebrate innovation, good corporate management and good leadership in the African insurance industry.

    The company, in a statement, said this year’s edition would take place on Monday, June 10 in Johannesburg, South Africa.

    According to the statement, there are four categories of awards in this edition.

    The statement read: “There are four categories of awards in this year’s edition. They include, Insurance Company of the Year, CEO of the Year, Innovation of the Year and InsurTech Breakthrough. Insurance Company of the Year prize is open to all insurance companies registered in Africa and focusing on performance in the last two years.  CEO of the Year is a special award given to the CEO of a company, who has made an outstanding contribution over the past 12 months or more, either through the advancement of his or her company or the industry in Africa.’’

  • Fraudulent agents get jobs unhindered, says ARIAN

    Fraudulent insurance agents easily secure new jobs from insurance firms unhindered, Association of Registered Insurance Agents of Nigeria (ARIAN) President, Ademola Fagbayi has said.

    He spoke at the association’s  Annual National Conference, Investiture, Annual General Meeting (AGM) in Lagos.

    Fagbayi, who said the association is seeking collaboration with the Nigeria Insurers Association (NIA) to help end the menace and preserve the integrity of professional agents, called on insurance firms to cooperate with them by providing names and other information of any agent found guilty of committing a fraud.

    He said: “As professional agents, we are not happy that fraudulent agents are able to commit fraud and continue to tarnish our image. Our major challenge is the fact that they are able to move from one insurance company to another. They easily get new jobs because the companies are eager to recruit in recent times.

    “This is why we are calling on insurance companies to co-operate with us. We want to collaborate with the companies and NIA. The type of collaboration that we want from the companies is the type that they will send names of agents that commit fraud to us so that we can stop the renewal of license to such agent. This will put an end to fraudulent agent moving from one company to another.

    “This is because ARIAN certificate is one of the conditions for license by the regulatory authority, the National Insurance Commission (NAICOM). So that when they find it difficult to renew their license with us at the association, they will not be able to get their agency license from the commission and in turn, they won’t be able to get a job in the sector again.”

    Meanwhile, ARM Life Plc Managing Director, Steve Alangbo, who was the guest speaker at the event, in his paper titled: “Retail insurance & digital transformation” advised the agents to leverage technology to attract more policy holders into the insurance value chain.

    He urged the agents to take advantage of the social media platforms to reach out to the uninsured in the country, stressing that technology would help make the agents more relevant, engender huge premium generation and enhance service delivery.

    “As agents, you also need to help your offices initiate easy ways of paying premium and settling claims,” he added.

  • AXA Mansard sponsors Special Olympics Games in Abu Dhabi

    AXA Mansard, a member of the AXA Group, sponsored the just-concluded Special Olympics World Summer Games in Abu Dhabi, Chief Executive Officer, AXA Mansard Health Plc, Mr Tope Adeniyi has said.

    In a statement, Adeniyi said the  the Special Olympics World Games are held every two years.

    He said Austria hosted the Winter Games in 2017, where 22 athletes represented Nigeria, winning 12 Gold and 10 Silver medals.

    According to him, the Special Olympics World Summer Games  were the largest sports and humanitarian event in the world this year.

    He said: “The need to show our concern and support towards children and young adults that are physically challenged cannot be over-emphasised seeing they have very little opportunity to participate in organised athletic events. Sponsoring the iconic event is our way of ultimately contributing towards the mental and physical wellness of these children.

    “While the games serve to promote the concept of involvement in physical activity and other opportunities for people with intellectual disabilities, it also gives an opportunity for children and young adults all over the world to bond and create memories that will last a lifetime, while inspiring them to push beyond the barrier of intellectual disabilities.

    “At AXA Mansard, we remain resolute in making the world a healthier place, as such, we throw our weight behind initiatives that promotes mental and physical wellness in the society.”

  • Sanwo-Olu urged to focus on insurance

    Lagos State Governor-elect, Mr. Babajide Sanwo-Olu, has been urged to encourage the insurance of public and government properties in reducing or eliminating the menace of collapsed buildings in the state.

    Cosmic Insurance Brokers Managing Director, Dr Teslim Sanusi, made the call when he paid a congratulatory visit to the governor-elect in Lagos.

    Sanusi, a former Nigerian Council of Registered Insurance Brokers president, appealed to the governor-elect to pay premium attention to use of insurance as a recipe for disaster management as well as risk management strategy.

    Lamenting the increasing spate of collapsed buildings with it attendant calamitous effect on the people, Sanusi advised the government to undertake surveys and risk audits of public buildings through recommendations from professionals and ensure that insurance firms insist on such risk improvement reports before accepting such risks.

    He seized the opportunity of the visit to commiserate with the government on the loss of lives from the building that collapsed recently.

    He appealed to the public to embrace insurance to cushion losses to lives and property in the event of an occurrence.

  • STACO unveils three products

    STACO Insurance Plc has strengthened its retail business portfolio with renewed vigour by adding three customised retail Insurance products.

    In a statement by the company’s Head, Corporate Communications, Dr. Tunde Odeyemi, it is in a bid to fulfil the strategic objectives by retaining and enhancing clients’ base, add real and genuine value to customers’ needs and extend existing products and services penetration.

    The products are  STACO Personal Protection Plan (PPP), STACO Home Owners Insurance and STACO Travel Policy.

    He said: “STACO Personal Protection Plan (PPP) protects its holders against accidental death, permanent or temporary disability and medical expenses, arising from all forms of accidents. STACO Home Owners Insurance, however, seeks to protect its holders from loss or damage to their precious assets or properties at home, arising from theft, fire, lightning and explosion, damage caused by bursting or overflowing of water tanks apparatus or pipes among others.

    “STACO Travel Policy on the other hand is designed to provide compensation for accidental death, permanent disability or partial disability, loss of luggage up to a specified amount and medical expenses, following accidents. The Travel Insurance policy covers all the travels embarked upon by the subscriber through any means of transportation on both local and international travels.

    “The customised Insurance policies have been designed to bring comfort to their holders and improve their well-being at a very affordable price. STACO Insurance is known for its passion for high standards and its customer centered service delivery. The Company is committed to putting smiles on the faces of its teaming clientele by developing and offering flexible, top-notch quality and customer friendly insurance products at all times.

    “STACO is one of the leading Insurance companies in Nigeria, a product of a well thought out acquisition carried out on Alpha Insurance Plc. The Company which commenced operations in 1994 specialises in General Insurance and Special Risks businesses,” he added.

  • Leadway launches funeral benefit insurance plan

    Leadway Assurance has launched a funeral benefit insurance product, Family Benefit Plan Plus (FBPP).

    The event held at the firm’s  Corporate Office in Lagos.

    Leadway Assurance Life Retail Business Head, Bolorunduro Saliu said the FBPP has been enhanced to create unmatched value for customers, who now stand to gain from the multi-life policy.

    He said the core offering of the product, provides those covered under the policy with the benefit of having Leadway meet the heavy burden of specified funeral expenses for their loved ones covered under the policy.

    He said: “Leadway pays the specified funeral expenses in the event of the demise of the policy-holder or any of the additional assured lives if their death precedes that of the policy holder ensuring that concerned loved ones can meet the immediate needs of the family without the fear of falling into financial strain. It also allows a policyholder to access a bouquet of benefits, which include but not limited to funeral expenses for the policyholder or their spouse, the parents, and/or parents’ in-law that are named in the policy.

    “As part of efforts to inform the public about the benefits of the new product, the company kicked off a week long teaser tagged: “See-Finish”, heralding the product launch.  The teaser mirrored the reality of young Nigerians, who are left in financial distress when aged family members pass away, especially, parents and in-laws to mention but a few. It is at this difficult time the grieving ones are often left at the mercy of sometimes merciless benefactors.

    “The campaign showcased a desperate character “Mr. John” reaching out to celebrities on social media, to beg for financial assistance to meet the funeral expenses of his father in-law’s burial.

    Also, the campaign was taken to  Lagos streets with “pseudo Johns” situated at strategic locations around Lagos, carrying the campaign message, urging Nigerians to “avoid the shame of See Finish” and take up Leadway FBPP as a comfort to create wealth for their dependents.”

    Head, Corporate Affairs, Mrs Bunmi Adeleye, on her part said the new Leadway FBPP is now designed to provide more than just the funeral benefits upon the death of any of the assured lives. With some additional benefits built into it as compensation package for the surviving and grieving loved family members of the policyholder.

    She disclosed that the sum assured on the plan for the policyholder and spouse is unlimited and can be specified in accordance with their preferences, for parents and in-laws the sum assured up to maximum limit of N5million.

    “This Leadway FBPP plan has other unique benefits including; payment of a sizable amount for entertainment expense in the event of any of the assured life named in the policy and additional monthly payment for six months in form of family income in the event of death of the policyholder only. The plan also has a waiting period before any claim can be made, for policy holder and spouse its six months, while for parents and parents-in-law is nine months”.

    “A policyholder and the spouse must be less than 65 years old to get enrolled on the plan while the maximum entry age for Parent/Parent-in Law on the policy is 75 years old. The policy runs as long as the Assured lives are alive and subject to the policyholder being alive,” she added.

  • NAICOM introduces IFRS 9

    The National Insurance Commission (NAICOM) has introduced International Financial Reporting Standards (IFRS) 9, The Nation has learnt.

    The model is an accounting standard that would compel insurance companies to measure their liability in a way that the insuring public can determine their claims payment capability through their financial statements.

    Simply put, depending on how the liability is measured based on required standard, a company’s balance sheet can be reduced to zero.

    Findings by the newspaper shows that the development is unsettling many operators putting them on a race for survival.

    IFRS are standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB) to provide a common global language for business affairs so that company accounts are understandable and comparable across international boundaries.

    Further investigation showed that in July 2014, the International Accounting Standards Board (the Board) issued the completed version of IFRS 9 Financial Instruments. IFRS 9 sets out the requirements for recognising and measuring financial assets and financial liabilities. It replaces IAS 39 Financial Instruments, with the recognition and measurement effective date set at January 1, 2018.

    IFRS 9 provides significantly improved information because it introduces a structured approach to the classification and measurement of financial assets that reflects the business model in which they are managed and their cash flow characteristics; provides for more timely recognition of loan losses as it uses a forward-looking expected credit loss model; and has an improved hedge accounting model that better links the economics of risk management with its accounting treatment.

    With the introduction of the IFRS 9 this year by NAICOM, many insurance companies may not be able to submit their 2018 financial results to the commission and other regulatory agencies on or before the April 30, deadline for submission.

    It was also learnt that NAICOM is in talks with other regulatory agencies including the Nigerian Stock Exchange (NSE) to get a forbearance for the insurance companies that will not be able to submit their account before the April 30 deadline.

    This, it appears, the commission has been able to get. There seems to have gotten a one-month grace period for the companies.

    One of the operators in an exclusive interview spoke on condition of anonymity.

    He stated: ‘’NAICOM has replaced the IFRS 9 with IFRS 4 which has been their accounting standard before 2018. It is expected to begin this year but there is an option for us in complying with the new standard.

    He said: “What it means is that we have to access our liability. It is just like loan. You have to quantify it in your books to know if it has gone up or not. So going forward, a client can determine that it wants to know whether you can pay claims when necessary.’’