The Nation Newspaper

Category: Insurance

  • SCIB’s turnover hits N1.6b

    •Firm to mark 40th anniversary

    Scib Nigeria & Co Limited, one of the leading broking firms in the country, has achieved N1.6 billion as turnover in about 16 years, the Managing Director, Shola Tinubu has said.

    He made this known during a briefing on the celebration of the company’s 40th Anniversary.

    Tinubu, who said the firm has, in about 16 years, been achieving a turnover of about N120 million, stated that it has, since its establishment, been a successful company.

    He disclosed that the firm’s premium income is about N30 billion, representing five per cent of the industry premium.

    Tinubu, however, said the rate of exchange could be disheartening.

    He said: “Sometimes the rate of exchange can dishearten us as a country. It might be possible that we were doing as well as we were 40 years ago because the rate of exchange at that time was N1 to $2.

    “So, all you needed to make at the end of the year is N1 million in profit and what it means in exchange is that you have a $2 million profit. This is a challenge for many companies to achieve. So, in terms of history, we will dishearten ourselves if we look at exchange.’’

    He stressed that the firm has a proud conservative heritage like any other professional institution in the sector operating best practice standards.

    He explained that the firm has maintained a conservative outlook because of the advice of the management on other people’s risks and protection of their wealth.

    Looking at the journey so far, Tinubu said it was no news how challenging it is for businesses to survive in the environment over decades with the attendant challenges and inhibiting factors, with significant macro-economic upturns and recessions, political somersaults from military government to civilian rule then military and back to democratic rule.

    “Scib Nigeria & Co Limited has carved a niche on corporate virtues for itself in the insurance broking profession, both locally and internationally.The visioner and founder of the firm is Olola Olabode Ogunlana, having led as the first Nigerian CEO of companies like Great Nigeria InsuranceCompany and NICON Insurance Plc,” he said.

     

  • ‘Brokers are ailing’

    •NCRIB: problem not peculiar to us

    brokers are ailing and need healing, Commissioner for Insurance, National Insurance Commission (NAICOM), Mohammed Kari has said.

    He spoke at the  Nigerian Council of Registered Insurance Brokers’ (NCRIB) Chief Executive Officers’ Retreat in Uyo, the Akwa Ibom State capital.

    The event had:  “The future broker”as theme.

    Kari, who was the guest speaker,  said many brokers are untrained, adding that as a result, they lack  confidence  and adventurist spirit  of a professional.

    He added that because many brokers are not proud of their work, they allowed their profession to be hijacked by quacks.

    Noting that the theme was apt, he said it could lead to a rebirth  of the subsector.

    He said: “It is pertinent for me to advise that in discussing ‘The future broker’, it is imperative to, first and foremost, x-ray the past and present broker to ascertain his sound state of health. I say this because it is until you are able to diagnose the specific ailment inhibiting the good health of the broker, it might be difficult to give the accurate prescription and dosage for the future broker of your dream.

    “Suffice it to say then that the place of ‘The future broker’ in the  insurance sector is, without doubt, hinged on the successful and accurate diagnosis of the ailment of the broker and the administration of the right prescription or dosage, else your exercise here would be in futility. You should be able to honestly identify what must change in the prevailing structure and resolve to walk the talk.

    “From a regulatory perspective, I can give you a few diagnostic analysis which your retreat could find the real ailment for and then, hopefully, would prescribe the appropriate medication for an immediate cure.”

    Kari  noted that NAICOM’s approach to regulation had been interactive as the commission encouraged self-regulation where  possible, lamented that this was  misconstrued as a licence for statutory independence.

    “This is a misnomer in any clime; we urge the working together of all arms of our sector to ensure synergy; that too is ignored by the ‘we’ll do it alone’tendencies we observe in most market initiatives, especially from your council members. This is not healthy. The ‘future broker’ must address it and find a way to be part of the future market.

    “To address gaps in the regulation and supervision of the  sector, NAICOM would issue new and supplementary guidelines to plug such gaps. To this end and to supplement the tweakings in the distribution channels, we would very soon expose specific drafts of guidelines directed to each sector of the industry. When the brokers’ guideline is released, you would see our idea of ‘the future broker’. This, we believe, would complement the excellent effort of this retreat. We are sure there would be in it, prescriptions of the appropriate medication needed to cure some of the illnesses inhibiting a broker.  This would speed up the realisation of ‘the future broker’. It is crucial for stakeholders to evolve strategies for exploiting the retail end of the market. It is no gainsaying that the future of the industry will depend more on retail rather than corporate businesses.

    “For the ‘future broker’, it is imperative to note that the prospects for achieving your important objectives will be more than ever before, enhanced by technology and harmonisation of global best practices. To continue to remain relevant in the insurance value-chain, the ‘future broker’ must be prepared to change its old toga for a new one that is innovative and technology-driven.You must evolve new ways of accessing prospective insurance consumers while at the same time keeping and maintaining existing ones, ensuring their protection and satisfaction. This is a proven way to guarantee repeat businesses,” he said.

    NCRIB President, Shola Tinubu agreed no less with the NAICOM chief. He however said  it was not only brokers that were sick, but rather the entire industry.

    “Some of the things said about brokers in the industry are that brokers are ailing. But we should realise that anytime you talk about the Nigerian Police Force, Customs, insurers, etc, you can’t talk about them in a vacuum. “Many things in Nigeria in terms of structure have diminished. Therefore, there is no way the people that are in various sectors in the country would not have diminished with them.The question for us all is: how can we get the momentum to build the critical mass in a positive direction, such that generations to come will wonder why were we all talking about life so difficult?

    “In broking, many of the complaints are that it is an ailing industry. If you look at the turnover of the industry in the past few years, it has been flat, so who, then, is excelling? Who else is not ailing if everywhere is flat? The industry number has not grown very well over time. We are in the industry as well, so it is true that we are ailing.

    “But brokers are indeed agents of change. What we have done at the Council is to look at how we can empower over 500 of our members  with knowledge about their business to act as the engine that will take the industry forward,” he added.

  • WAICA Re to hold AGM in Nigeria

    Waica Reinsurance Corporation Plc owned by the West African Insurance Companies Association (WAICA) is set to hold its board meeting and 2017 Annual General Meeting (AGM) in Nigeria for the first time since its incorporation in 2011.

    A statement by the company’s Managing Director, Abiola Ekundayo stated that the board meeting is scheduled to hold on July 23 while AGM will hold the following day.

    According to Ekundayo, WAICA Re is a public limited liability company incorporated under the laws of Sierra Leone (Companies Act 2009) on  March 7, 2011.

    He said: “In the years following the creation of West African Insurance Companies Association (WAICA) in 1973, the founding fathers desired to establish a reinsurance organisation to help mitigate the effects of the lack of reinsurance capacity in West Africa. To fulfill this ambition, the founding fathers considered it prudent to start off by creating a reinsurance pool, which hopefully, will someday metamorphose into a fully-fledged reinsurance corporation. Today, the WAICA Reinsurance Pool has turned into WAICA Reinsurance Corporation Plc, a dream come true.

    “There is no gain in saying that there is lack of reinsurance capacity in the West African sub-region, which situation is compelling insurance companies to seek reinsurance protection in other parts of the world where the treaties offered are not competitive and/or affordable and the service sometimes almost non-existent. The WAICA Executive Council gives impetus to the development and realisation of the idea of establishing a fully-fledged reinsurance institution, then embarked on revitalising and implementing the WAICA Reinsurance Corporation (WAICA Re).

    ‘’To this end, the Executive Committee endorsed the age-old decision to locate the headquarters of WAICA Reinsurance Corporation (WAICA Re) in Freetown, Sierra Leone and to have major centres in Accra, Ghana and Lagos, Nigeria.’’

     

     

     

  • Old Mutual partners Ecobank on insurance penetration

    Old Mutual General Insurance Company and Old Mutual Nigeria Life Assurance Company have announced a Bancassurance partnership with Ecobank Nigeria, a subsidiary of Ecobank Transnational Incorporated, to offer insurance products and services to existing and prospective customers in Nigeria.

    Old Mutual General and Old Mutual Nigeria Life are subsidiaries of the Pan-African Insurance giant and leading global financial services group, Old Mutual Limited,

    Old Mutual Nigeria Managing Director, Keith Alford said the collaboration, known as the Bancassurance Referral Model, offers Old Mutual an extensive outlet to offer life and general insurance products to Nigerians across 62 Ecobank branches in Lagos, Port Harcourt, Abuja and Ibadan.

    The Bancassurance partnership, according to him, is expected to  extend to 200 branches across Nigeria by 2019.

    He said the partnership, which commenced on June 4, 2018, enjoys the approval of the related industry regulators, the National Insurance Commission (NAICOM) and the Central Bank of Nigeria (CBN), for the sale of insurance products in banks through the Bancassurance Referral Model.

    He said:“The Old Mutual-Ecobank Bancassurance Partnership already exists across eight African countries with Nigeria projected to be the most robust in reach and spread. Having been in partnership with Ecobank on other fronts of our business over the years, this Bancassurance partnership further strengthens the capacity of both financial institutions to offer multiple access points for our various products and services to customers across Nigeria and indeed, Africa.

    “This is very unique and strategic. Through this partnership, Old Mutual will leverage Ecobank’s existing customer base and wide distribution to promote financial inclusion and insurance penetration, while pushing our brand offerings to customers of Ecobank. Customers and corporates with multiple footprints across African markets now have a one stop shop for all their Bancassurance services within the continent.

    Executive Director, Consumer Banking, Ecobank Nigeria, Mrs Carol Oyedeji, who also commented on the partnership, said the bank is delighted to be consolidating its longstanding partnership with Old Mutual in Nigeria.

    She described it as an alliance of brands, whose pan-African agenda and customer delivery objectives align perfectly.

     

     

     

  • Stanbic IBTC enlightens contributors on Multi Fund structure

    The pension industry multi fund investment structure, which took effect from July 1 dominated discussion at a pre-retirement seminar organised by Stanbic IBTC Pension Managers Limited in Lagos.

    Stanbicibtc IBTC Pension, one of the leading Pension Fund Administrator (PFA) in the country, provided deeper insights into the workings of the scheme.

    Its Chief Executive Officer, Eric Fajemisin, who spoke at the event, said the new structure has replaced the previous “one-size-fits-all” arrangement, which put all active contributors into one Retirement Savings Account (RSA) Fund for purposes of investment.

    He said the new structure would resolve the challenge of asset-liability risk management faced by the operators.

    By aligning the age and risk profile of RSA holders to match the four funds under the scheme, contributors, he noted, would have a better chance to earn improved returns on their investments in proportion to their risk appetites.

    The different categories of the multifunds structure are Fund 1, Fund 2, Fund 3 and Fund 4.

    He explained that Fund I is targeted at people of 49 years and below, who in the quest for higher returns are willing to take more risks.

    Fund 2, he said, is aimed at people, who are aged 49 years and below and still working, but are satisfied with moderate returns and levels of risks, while Fund 3 targets people of 50 years and above, but still working and have very low risk appetite. In Fund 4 are retirees, who have the lowest risk profile of all categories.

     

    He said: “Although an individual may be retired, his or her money should continue to work for the person. As today’s people live much longer and enjoy healthier lives, meaning that the time spent in retirement is much longer, there is the need to plan for a comfortable life in retirement.

    “Planning for retirement, he said, should commence from the first day an individual starts working. This decision may seem disheartening at the onset, but with the help of an experienced pension professional, the process is made easy. As retirement approaches, the individual will not encounter the usual apprehension associated with retirement from work.

     

  • Multi Fund structure investment begins

    • Contributors, retirees kick

    The National Pension Commission (PenCom) on  July 1 started the implementation of Multi Fund investment structure, a new investment regulation that allows pension contributors to make choices on how they want their pension fund invested based on their risk appetite.

    The new initiative, according to PenCom would help improve returns on pension funds.

    Sadly, the contributors, also known as Retirement Savings Account (RSAs) holders under the Contributory Pension Scheme (CPS), are not aware of the new development.

    Findings by The Nation showed that there is low awareness and inadequate communication to the contributors, especially on the part of Pension Fund Administrators (PFAs).

    Going by the new scheme, the PFAs are required to provide contributors with information on the benefits and risks of the various funds, prior to approving any change.

    The Commission and the PFAs were to embark on public enlightenment and sensitisation campaign prior to the commencement date. The Multi-Fund introduction for RSAs funds is also expected to address the varying risk appetite of contributors as the different funds are tailored to fit the ages and risk profiles of contributors.

    A contributor who simply identified himself Mr Uguwanyi said he is not aware of the new investment pattern. “I do not know anything about Multi Fund Structure and my PFA has not reached out to me on it,” he said.

    Another contributor, Mrs. Remi Adeleke, also claimed ignorance of the investment pattern. “I am not aware of any Multi Fund structure, but I know there is a lot of money in the pension fund. Many people have asked that the fund be used for mass housing. But nothing is accruable to me.

    “My company is not even remitting my pension to my PFA and no regulator is asking them questions. I don’t even know if they have a regulator and if they do, the regulator should please investigate some of these employers.

    “I know it is a criminal offence for an employer to deduct money from my salary and not remit same to my PFA. It is unfair to deduct my money and keep. I know it is a contributory pension scheme that the country is operating, but the regulator should make it work the way it ought to. I am losing interest that should be accruable to me,” he said.

    Head, Investment Supervision Department, PenCom, Ohioma Ehimeme, said the main objective of the RSA multi fund is to resolve the challenge of asset-liability risk management experienced by pension funds.

    He said this would be achieved by better aligning the risk and return expectations of contributors, better matching of pension assets and liabilities, as well as diversification of pension fund portfolios as minimum limits are set for aggregate investments in variable income securities for each fund.

    He said: “The multi fund structure comprises four funds, which differ from one another based on overall exposure to variable income instruments. Fund One is for young contributors based on choice; Fund Two is for young and middle-aged contributors , ages 49 years and below; Fund Three is for pre-retirees, ages 50 years and above; while Fund Four is for retirees.

    “The different fund’s portfolio mix is designed to fit the ages and risk profiles of contributors. All active contributors will default to Fund Two and Fund Three on this date. Contributors that wish to move to a different fund (within the allowable active choices) would be required to make a formal request by completing the necessary form to be provided by the PFA.”

    Reacting to the low awareness on the investment structure, PenCom’s Head of Corporate Communications, Peter Aghahowa, said the new structure commenced on July 1.

    He also affirmed that there is low awareness as a result of low sensitisation of the public on the part of the PFAs.

    He said PenCom, on its part, has been creating awareness on the new structure on radio, television and newspapers.

    He noted that from July 2, PFAs would have automatically moved contributors into the fund, adding that the PFAs are meant to communicate with their contributors and make them fill forms on their choices.

    “Yes, awareness level is low. PFAs are expected to do a lot. Since Monday, they have automatically moved people in the fund. But they suppose to ask them to make their choices.

    “But we are on their case. We are having a meeting with them and educating them on what they need to do. It appears they are all having different plans and they have assured us that they will do the needful. But if they don’t, the Commission will sanction them accordingly,” he said.

    The Managing Director of one of the PFAs, who spoke on condition of anonymity, said maybe they are just being too careful and avoiding sanctions. He noted that this seems to have affected them from rolling out their plans.

    He said there is low awareness on pension modalities generally  not to talk about multi fund structure.

     

  • OAK’s profit rises by 65%

    OAK Pensions Limited’s profit rose by 65.8 per cent from N230.88 million in 2016 to N382.8 million in 2017 financial period, its Chairman, Dr. Awa Ibraheem, has said.

    He disclosed this during the company’s 12th Annual General Meeting (AGM) in Lagos.

    While expressing the firm’s commitment to serving its contributors and retirees, he said it will continue to give them better returns on their investment.

    He said the duty of the company, a Pension Fund Administrator (PFA), is to manage the funds on behalf of its retirees and ensure that the funds grow so that when they retire, they benefit more than what they contributed.

    He said the retirees were happy with the firm with the rate of return on investment.

    He said: “It is a different thing for the rates on return to be very high, and another thing for the risk to be minimised. We try to balance the return with the risk by making sure that the interest of its retirees is well protected and balance the high returns with low risk.

    To get closer to its stakeholders, the company has extended its call centres so that its interaction with retirees will be more efficient and effective. “We have also gone far by improving on our ICT and have completely computerised, and on the feedback we are getting from retirees, it is much easier for them to be served than in the past,” he said.

    He also said the firm was motivating its workers, and that the company had been able to retain the best hands in the industry, who are also doing well to cater for the contributors.

     

     

     

  • Osinbajo, others for 2018 IICC confab

    The Vice President, Professor Yemi Osinbajo is set to join insurance operators and stakeholders to X-ray the challenges and prospects of the insurance industry.

    This will be done at the 2018 Insurance Industry Consultative Council (IICC) Conference, holding from Sunday, July 8-10 this year at the Congress Hall of the Transcorp Hilton, Abuja.

    Chairman, Planning Committee for the 2018 National Insurance Conference, Alhaji Femi Hassan made this known during a press briefing in Lagos.

    According to him, the conference is the fourth in the series to be held since its conception by the IICC, which is the umbrella organisation for all insurance institutions in Nigeria.

    The IICC, he said, is being organised to further underscore Nigerian Insurance Industry’s commitment   to continually upscale the knowledge of insurance operators, other professionals in the financial services sector as well as other stakeholders about contemporary dynamics in the economic development of the country.

    He said the Conference would also highlight the enabling roles of the insurance industry in achieving financial inclusion and by so doing, accelerate its contributions to Nigeria’s Gross Domestic Product (GDP).

    He said: “It is a delight to note that the Vice President, Prof. Yemi Osinbajo is expected to declare the event open while the Minister of Finance, Mrs. Kemi Adeosun will give a Keynote address, with the Commissioner for Insurance, Alhaji Mohammed Kari as the Chief Host.

    “Suffice it to state that the Planning Committee of the Conference is parading an array of highly resourceful speakers to do justice to the subject of discourse at the event. With the choice of Mr. Jim Ovia, Founder/Chairman of Zenith Bank Plc discussing the theme paper.

    “In view of the topical nature of the theme, the Deputy Governor Financial System Stability, Central Bank of Nigeria (CBN), Miss Aishah Ahmad,  is expected to be the Chairman of session while a team of seasoned discussants, notably Mrs. Temitope Akin-Fadeyi, Head, Financial Inclusion Secretariat, Central Bank of Nigeria, and Mr. Olu Okunnu of Old Mutual and Dr. Ndubisi Chinedu will speak at the event. Similarly, the sub theme: “Leveraging Technology for Financial Inclusion”, will be most rewarding.

     

  • Ensure gets new product

    Ensure Insurance has designed products that will change the way insurance works for Nigerians, Executive Director, Owolabi Salami, has said.

    Owolabi, who spoke with The Nation said the firm is fast, responsive and flexible, and helps customers to get back on track when life takes unpredictable turns.

    The firm’s primary objective, he said, is to deliver innovative insurance products that work for every customer.

    “From life insurance, education plans, motor insurance to home insurance, we’ve got you covered,” he said.

    He stressed that the firm settles all car insurance claims promptly and gives 15 per cent cashback on car insurance premiums if any customer makes no claims after 24 months.

    He said female drivers receive an additional 15 per cent discount on their car insurance policies while male premium car insurance plan members over 45 enjoy a 15 per cent discount.

    The firm also offers free towing of customer’s car, replacement car and dedicated personal car insurance claims relationship.

  • LASACO records N6.6b premium

    LASACO Assurance Plc has recorded a Gross Premium Income of N6.6 billion for the year, representing 10 per cent growth over the premium recorded in 2016.

    The net underwriting income of the firm increased by a record 105 per cent from N1.9 billion in 2016 to 3.9 billion in 2017, largely due to a decrease in the unearned premium income and reinsurance cost.

    Similarly, the underwriting profit increased by N1 billion from N235 million achieved in 2016 to N1.2 billion in 2017.

    Operating expenses for the year reduced by 28 per cent from N2.4 billion in 2016 to N1.7 billion in 2017 while profit before tax for the year reduced by 25 per cent from N1.1 billion achieved in 2016 to N854 million in 2017.

    Chairman of the firm, Mrs. Aderinola Disu, who spoke at the firm’s 38th Annual General Meeting in Lagos said this was due to the 80 per cent reduction in assets from N19 billion in 2016 to N18 billion in 2017 while the shareholders’ fund increased by 300 million from N7.85 billion in 2016 to N8.15 billion in 2017.

    She stated that the firm will sustain its proactive steps to shore up its identity and improve its positioning in the market.

    She said: “Our emphasis on the ease of doing business will increase as we continue to focus on the critical market. We are strategically repositioning in new products development to harness the newly identified market potentials. This is expected to increase our market share and enable us operate more efficiently and profitably.

     

     

    “Our digital revolution has enhanced our reach to our customers, and made it easier to provide personalised services in a cost-effective and measurable manner. Mobile customers can now efficiently access our products,” she added