The Nation Newspaper

Category: Insurance

  • 60 per cent of govt assets yet to be insured

    60 per cent of govt assets yet to be insured

    About 60 per cent of Federal, state and local  governments’ asset are uninsured, The Nation has learnt.

    The assets, which include government workers and properties, are unprotected and open to risks and losses.

    The disclosure is coming following the National Insurance Commission’s (NAICOM’s) efforts at  enforcing  compulsory insurances. The Insurance Act 2003 made five classes of insurance compulsory to protect the interest of third parties. For instance, Group Life Assurance, Health Professional Indemnity Insurance, Builders’ Liability Insurance, Occupiers’ Liability (Public Building) Insurance are necessary for the protection of government assets. Government assets fall under compulsory insurances.

    But the insurance regulator, NAICOM, affirmed that not all government assets are insured. It, however, said there has been improvements in the insurance of the assets.

    Commissioner for Insurance, Mohammed Kari, represented by the Deputy Commissioner, Technical, Sunday Thomas, while fielding questions from reporters, said the Commission will continue to engage the government until all its assets are insured.

    He said: “We know that the majority of Federal, state and local governments’ assets are uninsured and there is no running away from it. But the important thing is that we have shifted from where we were. For example, the issue of Group Life being one of the compulsory guidelines has established a lot of difference from what it used to be. The Pension Reform Act 2004, which was re-enacted in 2014, made Group Life to become so important and mandatory. If you are a business man and you want to get a business from government,  you have to show evidence and that is the extent to which this has gone,”he said.

    He continued:“We have carried out a lot of initiatives that will ensure government compliance. In October 2017, the Commission inaugurated a Technical Committee, consisting of representatives of NAICOM, the Federal Fire Service (FFS), states’ Fire Service (SFS) from the six geo-political zones and the Nigeria Insurers Association (NIA) that would drive the enforcement of public building insurance in the country.

    “We had a meeting with the Federal Fire Service and this is all towards compelling the government to take the lead in the insurances of public building and building under construction and I think it will help us a great deal.

    “The Commission signed agreements with several other agencies to facilitate compliance with compulsory insurance.  Such agencies included the Federal Road Safety Corps (FRSC), and the Vehicle Inspection Officers (VIO),among others.The Management team paid a courtesy visit to the Ogun, Gombe and Kaduna states governments where possible collaboration actions were discussed. The Commission is engaging the Governors’Forum to deploy the machinery of state governments in the enforcement of Compulsory Insurances.”

    According to him, the Commission plans to further improve the level of compliance of compulsory insurance through developing and implementing framework for co-ordinated enforcement of compulsory insurance; promoting  a policy to facilitate public access to insurance services nationwide.

    “Also in order to ensure that government provides adequate protection through insurance, we paid a courtesy visit to the Secretary to the Government of the Federation in 2015 to seek support towards ensuring compliance with insurance of government assets by MDAs. We set up an internal unit in 2016 to assist Ministries, Departments and Agencies (MDAs) structure their insurances, and ensure that all government’s assets are properly and adequately insured. We will continue to engage the government until all its assets are insured,”he said.

  • AXA Mansard empowers Corps members

    AXA Mansard empowers Corps members

    AXA Mansard, member of the AXA Group, one of the world leaders in insurance and asset management, has demonstrated its commitment towards empowering youths.

    Its Group Head, Strategy and Marketing, Kola Oni, in a statement, said the company achieved this through an awareness campaign to youths at the National Youth Service Corps (NYSC) camps on various solutions available for their financial security, health and  well-being.

    Earlier, he said the company officials had visited the Lagos, Abuja and Rivers NYSC Orientation camps to enlighten the 2017 Batch ‘B’ Orientation Course (Stream II) Corps members on solutions available from AXA Mansard, which include the right investment vehicles for them, insurance for their valuables and loved ones, pensions to start saving for their retirement and health insurance for access to quality healthcare.

    In addition to the awareness drive at the camps, AXA Mansard Health Insurance provided free basic medical services to Corps members, such as medical consultation, basic medical check-up, BMI and blood pressure.

    He said: “Youth empowerment is important to us because it affords us the opportunity to enable and propel youths to become effective drivers of change and societal transformation.

    “Nigeria’s total population in 2016 was projected to be 193,392,517. Youth population was estimated at 61,306,413 or 31.7 per cent of the total population. This is one of the highest percentages of youth in any country. In fact, Nigeria is said to have the largest youth population in the world within the framework of this definition.

    “It is important for us to connect with the youth, empower, mentor and enable them become the key change agents for Nigeria’s development. They should be provided with opportunities to build and secure the future they desire. At AXA Mansard, we are passionate about empowering people to live a better life. One way to achieve that is to empower our youths on the importance of early planning to secure for their future, using solutions available within their reach,”he noted.

  • Zurich boss feels good with 2018, 2019 after earnings

    Zurich Insurance Chief Executive, Mario Greco, has a positive outlook for both the company and insurance industry as a whole after the insurer reported better-than-expected earnings for 2017.

    According to CNBC, Greco said the premiums are growing, they are back into developing and growing the relationship with their customers.

    He said they feel very good about it and “actually, we feel very good about 2018 and the following year”.

    He said: “We see traction and we see that the company has taken a different speed and we think this will continue and will further develop.

    “We reported better-than-expected earnings even as we dealt with a raft of natural catastrophe losses and a sluggish investment environment. We are riding a wave of transformation in the insurance industry.”

    The Swiss insurer said last year’s net profit fell six per cent to $3.00 billion, beating the average analyst estimate of $2.72 billion in a Reuters poll.

    Greco said the company was “very, very pleased” with the earnings.

    “These earnings are solid, they show an improvement along all the dimensions we promised we would be working on. It is visible in these results that the books we’re acquiring are books that are more profitable than ever in the past,” he added.

    Europe’s fifth-biggest insurer proposed a dividend of 18 Swiss francs per share, up from 17 francs a year earlier, the first time Zurich has raised its dividend in seven years.

    However, the high number of disasters weighed on Zurich’s general insurance combined ratio, which worsened to 100.9 per cent from 98.4 per cent in 2016. The combined ratio is a measure of profitability of the insurer’s underwriting business, with a level below 100, meaning the insurer takes in more in premiums than it pays out in claims.

  • ‘Mutual Benefits returns to profitability

    Mutual Benefits Assurance Plc has returned to profitability after a foreign loan denominated in dollar and obtained by the company plunged it into a loss, Chairman of the company, Akin Ogunbiyi,  has said.

    He spoke at the 22nd Annual Thanksgiving Service in Ikeja, Lagos. He promised to reward its shareholders soon.

    Ogunbiyi said the previous year was very tough for operators, but  despite this, the company was  able to return to profitability.

    He said despite the tough businness environment, the company would soon be among the first that will release its financial statement and from the figures, they are back to profitability.

    ‘’Twenty  years after, the company still stands,despite recapitalisation and tough operating environment. Last year was tough for everybody, but as tough as it was, we are able to return to profitability’’, he said.

    Mutual Benefits Managing Director, Segun Omosehin, said the company will soon reward shareholders.

    He stressed that the management of the company has been making efforts to increase its top line and bottom line, a feat that was achieved in the outgone year.

    He said though the insurer’s 2017 audited account was yet to be out, there were positive signs that there were  better days ahead for the shareholders  and customers.

    “We are hopeful that by the time our audited account is out, we will make our stakeholders smile, especially our shareholders who have stood by us for years, during the trying time. We will make them smile soon. The thanksgiving service was a day set aside by the organisation to thank God for his mercy in the lives of its customers, the management and the entire staff of the company in the outgone year”.

    He promised the customers as well as partnering broking firms better service delivery in the current year, stating that Mutual Benefits has lots of products and service to meet the needs of insurable Nigerians.

    Meanwhile, at the event, about 86 workers of Mutual Benefits Assurance PLC were rewarded for their dedication and loyalty. The beneficiaries who were given long service award, are staff woekers who have stayed between five and 20 years,  while 22 workers were retail award recipients.

    Speaking on this development, Omosehin said the award was to recognise committed colleagues who have worked with the company for between five and 20 years.

  • NAICOM fines insurance firms N1.4b for infractions

    The regulatory body of the insurance sector, the National Insurance Commission (NAICOM), has fined some insurance firms over $4 million (N1.46 billion) as penalties for various infractions.

    The Commissioner for Insurance, Mohammed Kari, who stated this  over the weekend at a two-day seminar for insurance correspondents  in Benin, the Edo State capital, said NAICOM will up its ante this year.

    Kari,  who was represented by the Deputy Commissioner, Technical, Thomas Sunday, said the Commission has stepped up its regulatory action and, saying there would be no sacred cows anymore in the sector.

    He pointed out that any operator that defaults, will be given opportunity to defend itself, but would be made to pay the price if found to have defaulted, stressing that adequate warnings have been given to the operators.

    Speaking on some areas where the Commission has issued warnings to operators, he said operators were in the past granting blind insurance covers to clients without having information, or data of the type of risks they were insuring, pointing out that the Commission is trying to eliminate blind covers that have caused the industry a lot of trouble.

    He said: “For instance, insurers grant covers to government agencies and parastatals without knowing, or having the data of workers to be covered.’’

    He added: “But no company will dare do it again because we have issued circulars to them to stop such transactions from occurring again. They must not even insure the Ministry of Defence without having their information otherwise insurance cannot be granted.

    “There is no where in the world where blind covers are granted. We have step into it and have issued appropriate circulars warning the underwriters and we are sure they heard us very clearly.’’

  • Linkage, Niger Delta University partner on insurance talent

    LInkage Assurance Plc in collaboration with the Niger Delta University (NDU) has begun  moves to harness exceptional talents for the insurance industry.

    This is targeted at giving opportunities to students of insurance, actuarial and financial management as well as those in mathematics and engineering sciences to make career in insurance and actuarial.

    Linkage Assurance Plc Managing Director, Dr Pius Apere, who led management of the company on a career talk to the university community, said the industry is in serious need of actuarial professionals, more so that the sector is getting bigger with a lot of growth potentials.

    Apere, who was received by the Acting Vice Chancellor, Professor Samuel Edoumiekumo and the council members of the university at its main campus in Bayelsa State, underscored the commitment of Linkage Assurance to help exceptional students of the institution make career in the industry.

    Dr Pius Apere, who presented a paper  titled: Are You Fit To Be An Actuary,  said Linkage was instituting an award of N200,000 to the  best graduating student in insurance beginning from this academic session.

    Besides that, the company is also offering internship opportunity to 300 – 400 level students of insurance, and opportunity for absorption after graduation.

    According to him, Linkage plans to set up an Actuarial Unit in 2018, and best three candidates with Maths, Physics, Engineering or other strong quantitative degrees will be considered for immediate employment.

    Edoumiekumo thanked the company for the partnership, adding that his administration is committed to enhancing the relationship between the university and industries, in the different sectors of the economy, so that products of the university will have practical experience before they move into the labour market.

    Edoumiekumo expressed the determination of the university to provide the needed platforms that  will give students the opportunity to advance their career while still undergraduates, pointing that what Linkage has done was a long dream that has come true.

    Imo O. Imo, Head of Strategy of the company, explained the career opportunities in the industry to the university community, while urging the students to take advantage of this eye-opener to plan their career.

    He challenged them to start taking professional examinations while still in school, as that is the only way to make them competitive and candidates of choice in the labour market after graduation.

  • CEOs worry over revised microinsurance guidelines

    Some Chief Executive Officers have expressed worry over the revised guidelines introduced for microinsurance business by the National Insurance Commission (NAICOM) in the country.

    Part of the developments from the revised guidelines indicate that insurance companies already offering microinsurance products as window operators would need to get a fresh microinsurance licence to continue to sell their products.

    Also, apart from the fact that they would need to earmark a statutory deposit and capital base, they will have to set up new offices across the federation, recruit new staff and train them.

    A managing director of one of the affected companies, who spoke under a condition of anonymity, said the fallout of the revised guidelines would incur additional costs, at least, for now.

    He expressed worry over the motive behind the move to issue a separate licence for microinsurance.

    He said NAICOM should have used conventional insurers to sell microinsurance products instead of creating a new operational license, saying, this is unsettling the industry.

    Another CEO, who also spoke on condition of anonymity said, some of the insurance companies were already offering microinsurance products and services and that it would have been sensible to rejig the microinsurance guideline to empower operators by mandating them to offer the services instead of issuing fresh licences to microinsurance operators.

    He said: “There would be influx of investors initially, but will close shops with time, because they lack the expertise to run a successful microinsurance outfit. The existing operators offering microinsurance products would be put under serious financial threat, at a time the industry is also planning to recapitalise.

    “The companies are not ready and not in mood to insure this additional costs, at least, not now. I am not sure that NAICOM has the capacity to monitor these microinsurance companies, when it is even struggling to adequately supervise the existing conventional insurance companies.”

    The Commission’s Head, Corporate Affairs, Rasaaq Salami, said the commission has already taken into consideration, companies  offering microinsurance and is ready  to work with the companies based on their peculiarities.

    He said the guidelines are not final as they are only revised from the old guidelines introduced in 2003.

    He said: “As part of the Commission’s determination to improve financial inclusion in Nigeria, particularly to the underserved and excluded segment of the populace, the Commission has reviewed the Microinsurance Guidelines of 2013, and hereby releases a revised guideline.

    “The Revised Microinsurance Guidelines will become effective from January 1, 2018. The guideline is part of the financial inclusion strategy to stimulate growth in the sector especially the retail end of the market, drive insurance penetration and service the lower income earners who hitherto have been excluded from insurance”, he added.

    The guidelines, which come to effect on January 1, 2018 establishes uniform set of rules, regulations and standards for conduct of microinsurance business.

    The high points from the revised guidelines are from Sections 2, 3 and 4 as against the previous guidelines released in 2013 when business was established in the country.

    “Section 2 explains the  Microinsurance Market Structure and states the classification of microinsurance underwriters as Unit Microinsurer, State Microinsurer and National Microinsurer. Section 3 explains Registration Requirements states the minimum capital requirement for Unit Microinsurer as N40 million; State Microinsurer as N100 million and National Microinsurer as N600 million.

    “Section 4 explains Prudential Standards and states that any microinsurer intending to commence microinsurance business shall have a minimum capital as stipulated in Section 3 or as may be issued by the Commission from time to time.

    “Similarly, a microinsurer shall maintain with the Central Bank of Nigeria (CBN) a statutory deposit of 10 per cent of the minimum capital requirement.A Unit Microinsurer shall, in respect of its insurance business in Nigeria, maintain at all times a 50 per cent Liquidity Margin being the excess of the value of its admissible current assets in Nigeria over its current liabilities in Nigeria.

    “A state microinsurer shall, in respect of its Insurance business in Nigeria, maintain at all times a 35per cent Liquidity Margin being the excess of the value of its admissible current assets in Nigeria over its current liabilities in Nigeria, while a National Microinsurer shall, in respect of its insurance business in Nigeria, maintain at all times a 25 per cent liquidity margin being the excess of the value of its admissible current assets in Nigeria over its current liabilities in Nigeria”.

  • ‘LCCI received N30m claims for fire incident’

    • NCRIB collaborates with LCCI, NGBA

    The insurance industry through insurance brokers paid the Lagos Chamber of Commerce and Industry (LCCI) a claim of N30 million  after a fire incident consumed one its apartments, Director -General, LCCI, Muda Yusuf has said.

    He spoke while receiving the Nigerian Council of Registered Insurance Brokers (NCRIB) delegation at the chambers in Lagos.

    He said that he appreciated the value of insurance coverage when the fire incident occurred.

    Muda, who urged the industry to upscale rate of awareness campaign especially, among the low level income earners, stated that the rate of awareness is still very low in Nigeria.

    Meanwhile, the NCRIB said the council has begun discussions with the LCCI and Nigerian-German Business Association (NGBA) on the possibilities of leveraging on the membership of both institutions to further deepen insurance penetration in Nigeria.

    Executive Secretary, NCRIB, Fatai Adegbenro who led NCRIB delegations to LCCI office, said that the council is poised to assist chamber’s members to remain in business through risk management.

    He maintained that the proposed partnership will encourage members of the two bodies to have insurance cover especially for their businesses against any peril, and other forms of unforeseen events capable of threatening further existence of their trade.

    Bearing in mind the challenging business environment where members of the chamber operate, he noted that insurance remains the best instrument to mitigate any loss to business.

    He stressed the need to patronise only registered insurance brokers under the aegis of NCRIB.

    Adegbenro, who also led the council’s delegation on a courtesy visit to Nigerian-German Business Association, highlighted the benefits of engaging insurance brokers as a go between for insurance transaction.

    He noted that finding the right level of insurance cover can be a time-consuming and expensive task for members of the association, hence, the need to engage.

    He pointed out that using a broker does not cost more as Brokers are paid a commission by the insurance provider for selling their products.

    Reacting to the council, Yusuf said that public enlightenment and sensitisations on the need for insurance and the use of insurance brokers should be the first step on collaboration.

    He, however, pledged the commitment of the Chamber to collaborate with the council especially on the need to raise the level of insurance awareness, further urged the council to fish out unregistered insurance brokers practising unethically.

  • Royal Exchange Prudential Life strategises on performance

    Royal Exchange Prudential Life Assurance (REPLA) will focus on customer service excellence and other major initiatives to enhance its financial performance in the next three years, Group Managing Director, Royal Exchange Plc, Alhaji Auwalu Muktari has said.

    Muktari, who spoke during a strategy and budget retreat session of the company held in Lagos, said they plan to lead the insurance market and enhance the company’s status as a dominant player in the life business.

    Alhaji Muktari urged the staff of company, especially those in customer-facing departments, to make service excellence their watchword and guiding principle in their operations with clients of the company.

    He stressed that it is very important to keep customers satisfied to remain in business, noting that if the customer is treated well, he or she stays with you, but if they receive shabby and unsatisfactory treatment, they will take their business elsewhere.

    Managing Director of the company, Wale Banmore stated that in addition to service excellence, his company’s focus is also on the deployment and upgrade of a robust retail marketing strategy to take insurance to the grassroots, as well as training and upgrading of the marketing personnel, in line with current realities.

    He said: “The future of insurance in Nigeria is the life business, which has not been fully tapped. For Royal Exchange Prudential to seek market leadership, an effective and efficient policy of customer service, loyalty and retention must be in place in the organisation.

    “The attainment of these goals, amongst others in the current financial year, will impact positively on the fortunes of the company, increase profitability in the years ahead, improve service delivery to our existing clientele, enable the company to win new retail and corporate accounts and at the same time, boost our premium income and market share.

    “Management believes strongly in the Royal Exchange brand and its people. It’s most important resource are more than capable of delivering outstanding service to existing and potential clients, nationwide”, Banmore added.

    Mr. Banmore further praised all staff of Royal Exchange Prudential, for their drive and resourcefulness, which has resulted in ‘winning ways’ for the company. He further challenged them to “work even harder in the years ahead, in order to achieve our objective of becoming a world class company by within the next three years”.

    The two-day strategy and budget session had in attendance, all the executive management staff of the company, including the regional and branch managers from the over 20 branches of the company.

    Royal Exchange Prudential Life Assurance Company is one of the leading life insurance companies operating in Nigeria, regulated by the Nigerian Insurance Commission (NAICOM) and has consistently maintained all regulations and minimum reporting requirements set by the regulators.

    Royal Exchange Prudential Life Assurance Company is a wholly owned subsidiary of Royal Exchange Plc, licensed by the National Insurance Commission to offer the full range of life and endowment insurance products. With years of experience in the Nigerian insurance market, Royal Exchange Prudential Life Assurance has an enviable reputation for reliability, integrity, professionalism, technical competence and financial strength.

  • NAICOM issues revised micro insurance guideline

    •To serve low income earners, others

    The National Insurance Commission (NAICOM) has released a revised microinsurance guideline for the underserved and excluded segment of the populace.

    The commission said the guideline was also introduced as part of the financial inclusion strategy to stimulate growth in the insurance subsector especially the retail end of the market and drive insurance penetration.

    The guideline, which comes to effect on January 1, 2018, establishes uniform set of rules, regulations and standards for conduct of microinsurance business.

    The guideline was made available to reporters by the Commission’s Head, Corporate Affairs, Rasaaq Salami in Lagos.

    The high points from the revised guideline are from Section 2, 3 and 4 as against the previous guidelines released in 2013 when business as established in the country.

    “Section 2 explains the  Microinsurance Market Structure and states the classification of microinsurance underwriters as Unit Microinsurer, State Microinsurer and National Microinsurer.

    “Section 3 explains Registration Requirements states the minimum capital requirement for Unit Microinsurer as N40 million; State Microinsurer as N100 million and National Microinsurer as N600 million.

    “Section 4 explains Prudential Standards and states that any microinsurer intending to commence microinsurance business shall have a minimum capital as stipulated in Section 3 or as may be issued by the Commission from time to time.”

    The guidelines also showed that: “On statutory deposit, a microinsurer shall maintain with the Central Bank of Nigeria (CBN) a statutory deposit of 10 per cent of the minimum capital requirement.

    “As regards liquidity status, a Unit Microinsurer shall, in respect of its insurance business in Nigeria, maintain at all times a 50 per cent Liquidity Margin being the excess of the value of its admissible current assets in Nigeria over its current liabilities in Nigeria.

    “A State Microinsurer shall, in respect of its insurance business in Nigeria, maintain at all times a 35% Liquidity Margin being the excess of the value of its admissible current assets in Nigeria over its current liabilities in Nigeria, while a National Microinsurer shall, in respect of its insurance business in Nigeria, maintain at all times a 25 per cent liquidity margin being the excess of the value of its admissible current assets in Nigeria over its current liabilities in Nigeria”, it read.

    In a statement also made available by Salami, the Commission stated that: “As part of the commission’s determination to improve financial inclusion in Nigeria, particularly to the underserved and excluded segment of the populace, the commission has reviewed the Microinsurance Guidelines of 2013, and hereby releases a revised guidelines.

    “The Revised Microinsurance Guidelines will become effective from January 1, 2018. The guideline is part of the financial inclusion strategy to stimulate growth in the sector especially the retail end of the market, drive insurance penetration and service the lower income earners who hitherto have been excluded from insurance”.