The Nation Newspaper

Category: Insurance

  • NSIA launches Health Insurance

    NSIA Insurance has launched its new International Health Insurance product, NSIA Health Insurance into the Nigerian market.

    The Managing Director of NSIA Insurance, Ebelechukwu Nwachukwu, in a statement made available to reporters in Lagos, said to deliver on all that is expected from an international health insurance offering, NSIA has partnered with Cigna and Hollard.

    Cigna is a Fortune 500 company in the USA and one of the world’s leading providers of health benefits enabled through its 41,000 employees serving over 90 million customers all over the world.

    Hollard on the other, is South Africa’s largest independent insurance company, with an ever-growing African footprint making it known throughout the continent for its innovative approach and customer-centric brand.

    She stated that NSIA Health Insurance provides a robust health plan to local companies who want to provide their staff with access to quality healthcare in Nigeria and beyond as well as multinationals operating in Nigeria who desire to harmonise their health insurance plan across Africa.

    She said: “The staff of these companies once enrolled, are able to access the finest quality healthcare available all over Africa and the rest of the world whenever they need such services.

    “NSIA Health Insurance is one of a kind. Companies that purchase the product are rest assured that their staff will easily access the best medical services, wherever they are in the world, when the need arises.  This is a promise that is already being fulfilled by our technical partners in Nigeria and other parts of the world where they operate.  Already, a number of leading multinationals in Nigeria have signed on to NSIA Health Insurance with many other prospects in the pipeline.

    “NSIA Health Insurance will take into consideration the different health insurance needs of organisations, whether they operate in one African country or many, or whether they are looking to cover key local staff or expatriates or both. The product offers a combination of health plans that provide optimised coverage that can be aligned to a company’s budget.”

    She said NSIA is excited about this addition to its portfolio of products, which affords it the opportunity to meet more of the insurance needs of its increasing customer base.

    The company is one of the most progressive composite insurance companies in Nigeria, with its head office located in Lagos, a strong regional presence in Abuja and large network in every strategic state. The Solvency Capital of NSIA Insurance stands at N10.7 billion as at 2017 and total asset base is N15.5 billion. NSIA Insurance is one of the most capitalised companies in the insurance industry, she noted.

  • AXA Mansard announces AXA partnership with Liverpool FC

    AXA Mansard, a member of the AXA Group, has announced that AXA is partnering Liverpool FC.

    According to statement made available to reporters in Lagos, AXA reignites its sponsorship strategy to join forces with one of the most famous names in sports.

    The multi-year deal with English Premier League legends Liverpool Football Club (“Liverpool FC”) sees AXA become the club’s Official Global Insurance Partner, the statement read.

    Commenting on the partnership,  AXA Chief Executive Officer (CEO), Thomas Burbel said: “I am delighted to announce this long-term partnership with Liverpool FC, which comes at a particularly exciting moment for AXA as the Best Global Brand Ranking, announced by Interbrand today, recognised AXA as the number one insurance brand for the 10th year in a row.

    “Building on shared values, AXA and Liverpool FC will create innovative experiences for clients, partners and fans around the world, as well as making meaningful contributions to the local communities in which they both operate. Working closely with Liverpool FC’s players, manager, coaches and health professionals, AXA will also create unique and relevant content that will help support the shared goal of promoting a healthy lifestyle, delivering on the AXA brand purpose of empowering people to live a better life.”

    AXA Mansard Insurance  Brand and Communications Head, Mrs Nkiru Umeh noted that it is their way of identifying with the passion and energy of football fans both in Nigeria and all over the world, that reflects their passion to consistently provide quality products and services to their customers.

  • Guinea challenges NAICOM over suspension

    Guinea Insurance Plc has debunked claims that the National Insurance Commission has suspended it from doing new insurance business.

    Its Chairman, Godson Ugochukwu in a statement, said contrary to reports by NAICOM that the company has been suspended from transacting new businesses, the company is still in business.

    He said the allegations levelled against the company by NAICOM as reasons for suspension are false.

    In the statement titled:’’Guinea Debunks News Item: NAICOM Suspends Guinea Insurance”, the chairman said: ‘’Our attention has been drawn to various newspaper publications wherein, it was expressly reported that Guinea has been suspended by the NAICOM from writing new businesses on Thursday, 31 January, 2019.

    According to the newspaper reports, “NAICOM, it was gathered, suspended the company because of its failure to appoint a substantive Managing Director, failure to secure reinsurance treaty, among others.

    “On the basis of this, we are constrained as a company to set the record straight by informing the  public, business associates, shareholders, prospective investors and policyholders that the report posits compelling stand for a rebuttal as the Board of Guinea had on February 15, 2018 appointed Mr. Babatunde Oshadiya as Managing Director/Chief Executive Officer of the company and the proposal for his appointment was submitted to NAICOM for approval.

    “The said notification captioned “Guinea Insurance appoints Oshadiya MD/CEO” was uploaded on Nigerian Stock Exchange (NSE) portal and also published in various media namely: Punch, Business Journal, The Authority Daily, Blueprint, Supernews, Newscorner, The Revealer, Businesstodayonline, Inspenonline etc between March 2 and 7, 2018   was published in a press statement.

    “Meanwhile, on the reinsurance treaty, there is available and incontrovertible evidence showing that Guinea Insurance PLC has a treaty backup for 2019 packaged by its Lead Reinsurance Broker – Glanvill Enthoven Reinsurance Brokers Limited. On December  17, 2018, Glanvill Enthoven Reinsurance Brokers Limited sent the Guinea Insurance PLC 2019 Reinsurance Treaty Cover Notes to the company; which documents have been duly delivered alongside all contracting signed slips as evident in the acknowledgement letter stamped as “received” by NAICOM on December 18, 2018.

    “The Board and Management of Guinea Insurance PLC is currently engaging NAICOM with a view to resolving all attendant issues to the said publication within the shortest possible time”, he added.

  • FBNInsurance projects 30% growth in 2019

    Fast-Growing insurance company, FBNInsurance Limited, has projected a 30 percent growth in its business in 2019, in spite of the uncertainty in an election year.

    Its Managing Director/Chief Executive Officer, Mr. Val Ojumah, made this known at a briefing in Lagos.

    He said the company grew by over 40 percent in 2018 and he is optimistic that this growth trajectory can be sustained this year.

    Specifically, he reiterated the company’s commitment to a customer-centric culture which ensures that FBNInsurance partners with its customers, individuals and businesses, in the mitigation of their risk. He also said that the company believes in creating value for its customers by providing excellent customer service.

    He added that the company has progressively delivered strong financial performance every year since it began operations in 2010.

    He said: “Based on unaudited 2018 financial reports, our revenue grew by over 40 percent relative to audited 2017 reports. This growth rate is well above the industry growth rate, estimated to be approximately 10 percent. As we launch into the 2019 financial year, we are confident that we would maintain this strong growth trajectory given our strategic focus on profitable market segments. Our track record over the years tells a consistent story of continuous business growth and expansion. For instance, our audited 2017 financial statements showed robust growth across various performance metrics such as profit before tax (PBT) which grew by 37 percent from N3.1 billion in 2016 to N4.3 billion in 2017 while gross premium written (GPW) grew from N9.9 billion in 2016 to N19.6 billion in 2017, representing a massive 98 percent growth. Giving the market potential of the life insurance industry in Nigeria, we expect an equally productive 2019.

    “Many have pondered about the strategy behind the swift rise to prominence of FBNInsurance within a few years. I believe there is no singular factor responsible for the company’s performance rather, the company’s success has been as a result of multiple factors and initiatives that have been coherently deployed. Our performance can be attributed to a combination of factors, including our continued penetration of the retail insurance space, the strength of our brand, a deliberate cost optimisation culture, a disciplined risk management philosophy, consistent improvements in service delivery across various customer touchpoints, the use of emerging distribution channels, a commitment to prompt settlement of claims and a well-motivated staff.’’

    Continuing he said: ‘’In addition, and probably most importantly, we adopt, a “You First” mindset, as a critical component of our business strategy. This mindset implies that we put our customers first in the process of carrying out our business operations. We understand the importance of being there for customers especially when they need us most such as during claims settlement.”

    FBNInsurance has been recognised for its outstanding and consistent performance over the years. Some of these recognitions include: Best Insurance Company in Africa by African Re (2018); Best Life Insurer in Nigeria by World Finance (2014, 2016 and 2017), Cup of Nations Award by Sanlam Emerging Markets (2014 and 2016) and A+ rating by Agusto & Co (2106 and 2018). These, among other recognitions, attest to the fact that FBNInsurance has indeed become one of the leading and exemplary insurance companies in Nigeria.

    FBNInsurance is an FBNHoldings company in association with the Sanlam Group, South Africa. FBNInsurance was incorporated in 2010 to transact life insurance business in Nigeria and currently operates out of three branches and over 40 sales outlets nationwide.

  • IICC moves to create awareness in Asaba

    The Insurance Industry Consultative Council is set to intensify efforts in promoting insurance awareness in Nigeria with the training on compulsory insurances scheduled for February 6, 2019 at the Sweet Spirit Hotel and Resort, Mardezok, Asaba, Delta State.

    Participants for the programme have been drawn from government parastatals in Delta  State and the private sector.

    The training will afford them deep insight into liability/compulsory insurance, assessment and rating of Compulsory Insurances and Insurance Claims Administration.

    Insurance Industry Consultative Council Chairman, Mr. Eddie Efekoha, said the council has focused on promoting insurance growth and training is one of the platforms the IICC was leveraging.

    He said: “This training further serves to reiterate the commitment of the IICC to achieving  its’ laid down objectives and promote insurance awareness in Nigeria.

    “With insurance, you have the ultimate keys to live and work with freedom. A lot of Insurance products and offerings are not being patronised and enforced because of inadequate understanding of insurance laws. We are passing across invaluable knowledge to the participants at the seminar that will aid the dissemination of their duties,” he said.

  • Firm celebrates 23rd anniversary

    The board and management of Mutual Benefits Assurance Plc has celebrated its 23rd Anniversary of the company.

    The Group Chairman, Akin Ogunbiyi, while addressing guests at the company’s thanksgiving service and award ceremony attributed the firm’s success to act of thanksgiving to God. According to him, it is the grace of God that has sustained the company till date.

    Ogunbiyi, who spoke on the long service award, noted that all awardees have in the time past distinguished themselves in the company, urging other members of staff against jumping from one place to another.

    He said: “For you to remain in the company means you are productive. We have a policy in Mutual Benefit. If you don’t get promoted from one level to another within three years, we just give you one-year grace then we booth you out.

    “The company is set to be the most profitable company in Nigeria, a preferred insurance company operating on basis of professionalism, ethical practice with the fear of God.

  • Old Mutual advises Nigerians to embrace calculated risks

    The management of Old Mutual General Insurance Company, a subsidiary of the Pan-African insurance giant and leading global financial services provider, has advised Nigerians to embrace insurance as means of mitigating all forms of risks in their lives and businesses.

    Its Executive Director, Technical,  Japhet Duru, in a statement said by embracing insurance, Nigerians can protect their finances in spite of the risk that abound.

    Nigerians’ perception and affinity towards insurance, he said, has remained low in spite of Nigeria’s huge population, adding that

    The importance of insurance as a risk management tool, he said, cannot be underestimated, noting that despite the critical realities, current trends show that Nigerians are yet to truly embrace insurance as a tool for risk management. At 0.3 per cent, Nigeria has a staggering low insurance penetration in comparison to counterpart markets in Africa – South Africa has 14.7 per cent; Kenya 2.8 per cent and Angola 0.8 per cent penetration rate.

    He stressed that with an estimated population of over 196 million people and a growing middle class, the National Insurance Commission (NAICOM) reports that “only 1.8 million of our over 96 million adult population have any form of insurance”.

    He added that in recent years, there has been an increase in incidence of natural disasters, terrorism, financial crisis and disease outbreaks that have affected the quality of lives. “In fact, as people venture into life’s daily routine at work, on the road and at home, their lives and properties are exposed to risks in various forms. Families have to deal with loss of loved ones, health emergencies caused by accidents or illnesses; home and property owners face the risk of burglary, flooding, fire attacks and building collapse; business owners have to deal with the risk of damage and theft to their business premises and assets. Vehicle owners are also faced with risks of motor accidents, aggravated theft and third party liabilities. Apart from the grief experienced with these risks, the resultant financial loss can be more destabilising.

  • Govt to partner Allianz on insurance business

    The Federal Government will partner Allianz, the global insurance group to promote insurance business in Nigeria, Vice President Yemi Osinbajo, has said.

    He spoke at the launch of Allianz Nigeria Insurance Plc in Lagos.

    While assuring investors of the Federal Government’s support, Osinbanjo, represented by Dipe Olu welcomed Allianz to the country.

    He urged promoters of the company to deploy their wealth of experience in promoting insurance business in the country.

    Insurance, he said, has a serious role to play in the country, noting that Nigeria has great potentials for the insurance industry.

    Regional Chief Executive Officer, Allianz Africa and board member, Coenraad Vrolijk, said the company is strongly committed to its business in Africa, where it has presence in 17 countries.

    He said: “The company is dedicated to deploying its considerable technical skills resources and innovations in strengthening business for clients. Allianz Group views Africa as one of the important future growth market.” He added that in 2017, over 140,000 employees in more than 70 countries achieved total revenue of 126 billion euros and an operating profit of 11 billion euros for the group.

    “Allianz is one of the world’s largest investors, managing over 650 billion euros on behalf of its insurance customers, while their asset managers, Allianz Global Investors and PIMCO, manage an additional 1.4 trillion euros of third-party assets,” he added.

    Allianz Nigeria Insurance Plc Managing Director, Sunkanmi Adekeye on his part said the company will deploy four key resources namely, skill, technology, product development and investment in driving its operations.

    “The coming of Allianz to Nigeria, will enable it contribute to offering the best products and services to Nigerian customers in both personal and commercial lines. I am optimistic about the limitless potential of Nigeria’s growing insurance market.

    “Allianz currently offers micro-insurance solution to 500,000 low-income households on the continent. This is a business opportunity the firm looks forward to exploring fully and that attention will also be focused closely on cyber liability insurance coverage,” he said.

  • Why N1tr premium target failed, by NAICOM

    The N1 trillion premium income projected target for the industry has not been successful because insurance operators failed to behave rationally, Deputy Commissioner for Insurance, Technical, Sunday Thomas has said.

    Thomas, who spoke at a forum in Lagos, stated that the commission proposed N1 trillion for the market, under certain circumstances and with a lot of assumptions, stressing that part of the assumptions was the effective enforcement of compulsory insurances, assuming that operators would behave rationally.

    He said the operators aborted the target through reduction of statutory premium.

    He reiterated the issue of some insurance companies selling third party motor insurance of N5000 for as low as N1000, leading to the market producing N200 million premium income.

    He accused operators of violating laws to hurt their business, as against their counterparts in the banking sector that would do same to promote their business.

    He said: “If they decide to charge N5000, what is the market likely to produce? I am just telling you why we are not at N1 trillion. I did a comparative analysis between the banking sector and the insurance sector. The Central Bank of Nigeria will put a cap on interest rate for certain sector. The banks would violate this rate, not by reducing the rate, but by increasing the rate, using other terminology like administrative fee. If CBN for instance says the rate should not be more than nine per cent, the banks would charge 12 per cent.

    “There was a time that CBN also gave a directive to the banks to have branches, even at rural areas. The banks would violate such directive and pay the penalties for not having branches in those areas because they consider these areas as not being viable.

    “In my industry, we also commit the same offence by violating the law. But rather than do it to their own advantage, the operators would reduce it, I just don’t get it. There was a point in this market when 10 per cent for comprehensive insurance was sacrosanct, but later, it came down to five per cent and that became the standard. But you and I also know that there was a point that some operators were charging as low as 1 per cent,” he said.

    He noted that there is no way the regulator can go after all operators, stressing that it beats his imagination why anyone would want to cut himself, whilst doing his business.

    He said NAICOM is committed to taking the industry to lofty heights, adding that the commission has always reminded government agencies that if they want insurance operators to pay their claims, they need to pay the right premium.

    He added that on their part at the commission, they have been ensuring that the Federal Government comply with industry rates and others.

    “The Federal Government through the office of Head of Service reach out to the commission. They told us to be considerate, that the budget has been passed, we insisted that we will not change our position and that is why you find today that government pay the rate the commission has stated,” he added.

  • Reps seek confidential information of RSAs, retirees, others

    The pension industry, which has recorded steady growth since the establishment of the Contributory Pension Scheme (CPS) by the Pension Reform Act 2004, is going through difficult times with the House of Representatives, The Nation has learnt.

    Insider sources and stakeholders, who revealed the development, said the House of Representatives Ad-hoc Committee in a recent summon of the National Pension Commission (PenCom) is asking the commission to provide vital and sensitive information of the operations of the CPS.

    They warned against releasing sensitive information on workers, retirees and Pension Fund Administrators (PFAs) to the public through the Ad-hoc Committee.

    Basically, the committee is asking for vital information of Retirement Savings Account (RSAs) holders, retirees and Pension Fund Administrators (PFAs) that are considered confidential under the PRA 2004 as repealed by PRA 2014.

    The commission has, however, informed the Ad-hoc Committee that it will be unable to do so, explaining that it is prohibited by the provisions of some sections of the PRA 2014 from disclosing such information.

    In a letter signed by the Chairman of the Ad-hoc Committee, Hon E. Agbonayinina dated January 11, 2019 (PenCom/DG/CSLD/2019/TR11) and titled, “Request for Information-Request for Clarifications, said they have mandate to investigate the commission.

    He requested the commission to furnish them with the Net Assets Values of the contributory pension funds; Details of supervisions and regulations of Pension Funds Administrators, their key instructions and performances, compliances and default.

    The letter read further: “The Ad-hoc Committee following mandate for an investigation is pleased to clearly state that your Commission should furnish it with the Annual pension operations of all the Pension Funds Administrators. For instance, details of amount collected from contributors and amount being paid out to retirees, from April, 2017 till date. Details of investment percentages and profits from the investment of pension funds; Details of the Federal Government contributions to the Federal Government bond; Contributions of retirement savings account holders to Pension Funds Administrators; Details of payments from PenCom into the Treasury Single Accounts (TSA) and bank account details operated by the Commission.

    “Details of the amount sent in by Ministry Department and Agencies (MDAs) to PenCom through the Treasury Single Accounts between April, 2017 till date, before it is distributed to the PFAs through their Pension Custodians by Central Banks of Nigeria (CBN). Your Commission Is also expected to avail the committee any other hand over note prepared by your different department, as this will aide investigation.”

    Hon. Agbonayinina directed the commission in the letter to forward all documents in 20 hard copies and one soft copy to Office No 1.27, First floor, House of Representatives New Building, National Assembly Complex, Abuja 011 or before 10am on Thursday, 24, January, 2019, bearing in mind that the Ad-hoc Committee will be interacting with all the Pension Funds Administrators on this matter’’.

    But PenCom in its reaction to the Ad-hoc Committee in a letter dated January 23. 2019, titled, “Request for Information – Request for Clarifications” stated that the Commission has noted the Ad-hoc Committee request for documents/information in respect of the request listed in the letter under reference. However, the Commission would like to respectfully bring the following to the attention of the Ad-hoc Committee.

    “Details of supervisions and regulations of Pension Fund Administrators and their key instructions and performances, compliances and default: We are unable to decipher the Ad-hoc Committee’s specific request on the subject because these are general statements on the statutory functions of the Commission. We, therefore, request for further clarifications on the specific requirements of the Committee. Annual pension operations of all the Pension Fund Administrators. For example, details of amount collected from contributors and amount being paid out to retirees from April. 2017 till date:  This information is confidential to RSA holders under the CPS Accordingly, members of the, Board, officers, employees and agents or other persons engaged by the Commission are prohibited by the provisions of Section 113(3) of the Pension Reform Act (PRA) 2014 from disclosing such information.

    “Details of the Federal Government contributions to the Federal Government bonds. The Commission requests for clarification on whether reference is being made to the amount disbursed by the Federal Government for payment of accrued pension rights or bonds issued by the Debt Management Office, which Pension Funds invest into from time to time. Contributions of RSA holders to Pension Fund Administrators: The Commission is also unable to provide the information based on it because it will constitute a breach of the provisions of Section 113(3) of the PRA 2014. Details of payment from PenCom into the Treasury Single Accounts (TSA) and bank accounts details operated by the Commission: The Commission had explained in its earlier correspondence to the Committee that it maintains a TSA account in the Central Bank of Nigeria (CBN) in line with the Federal Government’s policy on same. Accordingly, the Commission would like to request for further clarifications on this request of the Ad-hoc Committee.

    “Details of the amount sent in by MDAs to PenCom through the Treasury Single Accounts between April 2017 till date, before it is distributed to the PFAs through their Pension Custodians by the CBN: The Commission requests for clarification on this in view of the fact that pension contributions for employees of Treasury Funded MDAs are deducted at source by the Accountant General of the Federation and remitted directly to the Retirement Savings Accounts (RSAs) of FGN employees on IPPIS Platform. The contributions of employees of MDAs not on IPPIS are remitted to the Contributory Pension Account maintained with the CBN for onward transfer to their RSAs.”

    On the invitation to an investigative hearing by the committee, the commission requested that the investigative hearing be deferred until the issue of the documents and information necessary to the hearing are sorted out.

    “You would recall that the commission had, vide a letter referenced PenCom/DG/CSLD12019/ of January 23, 2019 subsequently sought further necessary clarifications in respect of most items listed in your letter of request under reference. We believe that the further clarifications are necessary to enable the commission furnish the required information to facilitate the Committee’s work.

    “In the light of the foregoing and in order to facilitate the Committee’s work in a meaningful and productive manner the Commission requests that the investigative hearing be deferred until the issue of the documents/information necessary to the hearing are sorted out. In the meantime, the commission is collating the information on those requests that are clear, and which would take a while in view of the volume of information required by the committee. This further necessitates the need to fix a future date for the hearing in order to have a productive session”, the commission said.

    A major stakeholder who spoke on condition of anonymity, said the request by the committee of confidential information of the CPS is capable of jeopardising the safety of the accumulated N8.5 trillion pension fund.

    He wondered the rationale behind attempts to probe the commission at every slightest opportunity.

    He called on workers and retirees under the scheme to reject the committee by ensuring that the commission does not reveal information that can endanger their future.

    He urged lawmakers to help maintain the sanity of the industry and not work to destroy it.