The Nation Newspaper

Category: Pension

  • ‘Our strategy to curtail virus spread’

    ‘Our strategy to curtail virus spread’

    By Omobola Tolu-Kusimo

     

    A MAJOR strategy of Sunu Assurance Plc is to contain the spread of the coronavirus (COVID-19) with Personal Protective Equipment (PPE),  the Managing Director, Sunu Health, Dr Patrick Korie, has said said.

    He stated this when the firm donated PPE to the Lagos State Teaching Hospital (LUTH).

    A representative of the Chief Medical Director of the teaching hospital, Dr Chris Bode/its Deputy Chairman, Medical Advisory Committee, Clinical Services, Dr Ayodeji Oluwole, at the presentation of the items, said they came at a time the hospital was almost running out of the equipment.

    He said in the last few weeks, they had about 100 of Covid-19 positive patients.

    He said while many were still on admission, they had delivered two Covid-19 positive pregnant women.

    “We are really running short of these supplies of PPE equipment and Sunu Group has just donated them to us at a very good time. I am sure the health workers will be praying for the company. The equipment are exactly what we need for the frontline workers.

    It’s very important because we have a block with four floors and 120 beds. We have about 100 patients, meaning you need about 100 workers. They all have to wear these and they go in to check on the patients like four to five times a day.

    “Before you know it, all these will be consumed between two and three weeks. It’s something you use and incinerate. So, it is a very timely donation and we are appreciative of it because this is what we really need. We are running short.’’

    We thought the pandemic was going to last for like four weeks but this is the second month. If you count February, this is the third month.

    So it’s something that we need more from well-meaning donors like Sunu Group,” he noted. The Managing Director, Sunu Assurance Plc, Mr. Samuel Ogbodu, said the company was happy to donate the consumables- masks, googles and overalls – that are  vital to health workers on the frontline of containing the disease.

     

  • Operators invest N7.77m micro pension in treasury bills, banks

    Operators invest N7.77m micro pension in treasury bills, banks

    By Omobola Tolu-Kusimo

     

    The  Pension Fund Administrators (PFAs) has invested N7.77 million contributed by micro pension subscribers in the Federal Government’s Treasury Bills and bank placements.

    According to the National Pension Commission’s (PenCom) monthly report,  N3.10 million was invested in Treasury Bills while N3.75 million went into bank placements.

    The Commission, which summarised pension fund assets, also categorised micro pension contributions into Retirement Savings Account (RSA) Fund IV.

    PenCom’s Acting Director-General, Mrs. Aisha Dahir-Umar, said the Micro Pension Plan (MPP) had recorded 28,000 subscribers as at last October.

    She said: “The Micro Pension Plan was designed to fit the peculiarities of the informal sector groups.

    “The product is flexible with respect to contribution amount and the channel of remittance of contributions to the pension accounts. Access to accumulated contributions is also flexible, seamless and facilitated by technology through varied payment system platforms.

    “A prospective Micro Pension contributor is required to open a Retirement Savings Account (RSA) by completing a physical or electronic registration form with a Pension Funds Administrator (PFA) of his/her choice, and the contributors may make contributions daily, weekly, monthly or as may be convenient to them.”

    She stated that every contribution would be divided into two, comprising 40 per cent for contingent withdrawal and the balance for retirement benefits.

    The contributor, she said, might also choose to convert the portion of the contributions to retirement benefits and the balance in the RSA  would be available to him on retirement or attaining 50 years.

    “Pursuant to its regulatory and supervisory mandate, the Commission had established a separate Department dedicated to the supervision of matters relating to Micro Pension Plan, including enforcement of compliance with the guidelines and customer complaint handling and resolution.

    Our objective is to ensure efficiency and effectiveness in service delivery as well as transparency and accountability in the administration of the product by licensed pension operators,” she said.

    She added that a minimum pension would be given, provided the contributor made contributions of not less than 120 months and the RSA balance at retirement shall not be less than N500,000.

  • ‘Linkage committed to claims payment’

    ‘Linkage committed to claims payment’

    By Omobola Tolu-Kusimo

     

    Linkage Assurance Plc has continued to meet its claims obligation to its clients despite the Covid-19 lockdown across the country, the Managing Director/Chief Executive Officer (CEO), Daniel Braie, has said.

    Braie, in a statement, said this had become possible following the implementation of the company’s business continuity plan, which has enabled them provide serve customers through digital channels, while the staff operate from remote locations.

    He said: “As a caring corporate organisation, we will continue to be with our customers and the insuring community, to ensure that the Covid-19 pandemic does not disrupt their businesses so badly.

    The company immediately before the lockdown activated her digital platforms that enable the collaboration of various workforce.

    Read Also: We can’t afford mass infection with eased lockdown, says FG

     

    This include underwriters, claims administrators, relationship managers, and customer services IT. We were able to work together and provide service to customers’ needs in these challenging times.

    “Our business continuity group has continued to work from remote sites and locations particularly with brokers to provide risk management services especially to corporate clients.

    The company continues to provide insurance services, particularly ensuring that claims are paid promptly.

    As a matter of fact, from the inception of the lockdown period we have paid millions of naira on claims to our clients that have filed claims for various losses.

    “We have also received 98 claims notifications on diverse types of losses from our customers, and where loss adjusters are needed, they have continued to relate with our underwriters who are working to ensure the claims are paid quickly.”

  • Nigerian insurance industry strategises to Delight consumers

    Nigerian insurance industry strategises to Delight consumers

    Bola Adegbaju

     

    “The game has changed”.

    This was an assurance from the new Commissioner for Insurance Mr. Olorundare Sunday Thomas to the industry players and consumers, in his address during the NAICOM/FITC Webinar on the 5th May 2020.

    He also stated that as part of his strategies to make the industry better, all outstanding claims will be looked into, as well as to ensure a good data base for the insurance industry, while he encouraged brokers and underwriters to collaborate.

    The insurance webinar organized by National Insurance Commission (NAICOM) and Financial Institutions Training centre (FITC) was internationally represented by four (4) continents consisting of eight (8) countries from Africa and nine (9) from other countries with a total of over 1000 participants.

    Representing the insurance industry Nigeria were speakers led by Sunday Thomas- Commissioner for Insurance, NAICOM and Ganiyu Musa –Chief Executive Officer Cornerstone Insurance Plc., Rashidat Adebisi -Executive Director AXA Mansard, Eddie Efekoha -CEO Consolidated Hallmark Insurance Plc & Chairman Nigerian Insurance Association, Sola Tinubu -CEO SCIB Insurance Brokers & past President Nigeria Council of Registered Insurance Brokers(NCRIB).

    The keynote speaker, Ganiyu Musa in his presentation, analysed the impact of COVID 19 on the insurance sector as well as the possible suggestions to meet their obligations to the consumers. According to him, some possible areas of improvement in insurance services to consumers are:

    • Speed
    • Technology
    • Innovation
    • New products development especially for logistics companies and internet service providers.

    The only female speaker, Rashidat Adebisi emphasized on the operators focusing on adding value and not pricing. She further stated that insurers must go beyond the norm and think out of the box and advised them to:

    • Look beyond insurance and develop an ecosystem
    • Embed themselves in customer’s journey.
    • Harness the power of data
    • Move from “detect and repair” to “predict and prevent”.
    • Improve workforce

    Sola Tinubu opined that the insurance services must be value-driven as he added from the insurance brokers’ point of view, the need to:

    • Increase transparency and empathy in claims settlement• Use automated support for claims from notification to settlement.
    • Develop high quality customer service both at the underwriting and claims level.
    • Develop new products that will address emerging risks
    • Be concise in policy wordings

    Mr. Eddie Efekoha the moderator of the webinar who is wearing a double cap as the CEO of Consolidated Hallmark Insurance Plc. and the Chairman o f Nigerian insurers Association (NIA-the umbrella body of all licenced  insurance companies in Nigeria),  in rounding up stated that, “the Nigerian Insurance Industry is set to delight the consumers” and truly “ the game has changed”.

    However, the technical expertise put together to make the insurance webinar a great success by the host (FITC) headed by Chizor Malize, is highly a commendable one and the operators look forward to more from the organisers.

     

    Bola Adegbaju

    Independent Insurance & Pensions Consultant

    Vicba2005@gmail.com

  • Thomas is NAICOM CEO

    Thomas is NAICOM CEO

    By Omobola Toolu-Kusimo

     

    President Muhammadu Buhari has approved the appointment of Sunday Thomas as the substantive Commissioner for Insurance/Chief Executive Officer (CEO), National Insurance Commission (NAICOM).

    This was made known in a statement dated May 2 and signed by the Special Adviser, Media and Communications to the Minister of Finance, Budget and National Planning, Yunusa Tanko Abdullahi.

    Thomas replaced Mohammed Kari, who has been Acting Commissioner since July, last year

    Thomas, who has over 30 years’ experience in the industry as an operator and regulator, was appointed Deputy Commissioner, Technical by President Buhari in April 2017.

    He was the former Director-General (DG) of the Nigerian Insurers Association (NIA) in 2010.

    Meanwhile, operators in the insurance industry have clarified that the N11 billion insurance benefit provided for frontline health workers fighting Covid-19 by the industry recently, is an additional benefit to the mandatory Group Life Insurance Cover secured for employees by their employers.

    This follows concerns by some people who think the cover is not  enough for the frontline workers.

    Director-General, Nigeria Insurers Association, Mrs Yetunde Ilori in a statement said the policy is complimentary to existing benefits.

    Read Also: NAICOM places Niger Insurance under regulatory watch

     

    She explained that the industry paid a premium of N112.5 million to secure the life insurance policy document, “COVID-19 Intervention Team Life Insurance Cover” for the workers.

    She said: “We are ready to cover 5000 health workers in all, out of which 1000 are doctors, 1500 nurses and pharmacies while 2500 are other workers and volunteers, including drivers, cook, cleaners, and gatemen.

    “The policy covers Covid-19 centres under the Nigerian Centre for Disease Control (NCDC) across the country and other accredited centres by the NCDC. Anybody we are paying has to come under NCDC because our support is for the Federal Government,” she added.

    Shortly before his appointment, Thomas had stated that the first port of call for stakeholders in the industry was to look at their business and see areas where they could support the government.

    Thomas, who reiterated that the industry policy for health workers on the frontline is an  additional benefit, added that the health workers have an existing insurance policy mandated by the Pension Reform Act 2014 (PRA).

    He said the Federal Government, the employer of the health workers on the frontline, had paid for the Group Life Policy.

    He said states were meant to have in place the Group Life Policy for the workers.

  • Retirees: we’ve not been paid benefits

    Retirees: we’ve not been paid benefits

     By Omobola Tolu-Kusimo

    Federal Government retirees who left service in January, last year under the Contributory Pension Scheme (CPS) to date have continued to lament their unpaid pension benefits.

    The retirees are unhappy that the government abandoned them, adding that they were not even given palliatives.

    President, Contributory Pensioners Union of Nigeria, Comrade Mathew Shittu, reiterated that those who retired since last year were yet to receive their benefits last month as against the objective of the CPS which is to ensure that every retiree receives his retirement benefits promptly.

    He said: Payment of retirees benefits is being subjected to the dictate of bureaucratic budgetary control in spite of the trillions of naira allegedly build up scheme, thereby returning pension administration and management to the era of old scheme which has defeated the purpose for which the new scheme was established in the first place.

    “In view of all that we have stated, members are worried about the payment of the 15 per cent and 33 per cent increases to members as been planned for our colleagues under the old scheme. The meeting concluded on the hope that Federal Government would have to rescue members by reviewing the CPS policy  to come up with better modalities for ensuring the payment of retirement benefits to retirees as and when due.

    “If this is not done, members suggest a possible return to the old scheme which guarantees the payment of retirement benefits to retirees in their old age”, the retirees posited,” he added.

  • ‘Don’t spend pension fund on COVID-19 palliatives’

    ‘Don’t spend pension fund on COVID-19 palliatives’

    By Omobola Tolu-Kusimo

    THE Nigeria Labour Congress (NLC) has warned the Federal Government against borrowing from the N10.2 trillion pension fund to cushion the effects of Covid-19 pandemic.

    Its President, Comrade Ayuba Wabba gave the warning during the Joint National Briefing of the Presidential Task Force on COVID-19 in Abuja.

    Ayuba stressed that the over N10 trillion pension fund is money that belongs to pensioners, which is in pensioner’s retirement savings accounts.

    He explained that the fund is structured in such a way that a pensioner draws from it throughout his life.

    He noted that there was the need to protect the fund and ensure that pensioners or the workers contributing the money would have something to rely on.

    He maintained that the money should not be used for COVID-19 palliatives.

    The Secretary to the Government of the Federation and Chairman of the Presentational Task Force (PTF) on COVID-19, Boss Mustapha, assured that the Federal Government would not borrow from Fund to provide palliatives to cushion the effect of COVID-19 lockdown.

    He said: “We had looked at the issue of pension funds. As a matter of fact, we even got the Minister of State of Education to do us a position paper and our conclusion is that the time is not even right for us to go there because the entire world order in terms of our economy and in terms of our health system has been disrupted by COVID-19 and the consequences nobody can imagine until the dust is settled.”

  • Insurance business after Covid-19 :DRBC strategies

    Insurance business after Covid-19 :DRBC strategies

    Bola Adegbaju

     

    Pestilence is so common. There have been as many plagues in the world as there have been wars, yet plagues and wars always find people equally unprepared. When war breaks out people say ‘It won’t last’. It’s too stupid” wrote Albert Camus in his book “La Peste” (The Plague).

    We expect that the COVID-19 threat will eventually fade, just as Ebola and Zika did.

    However, the social-economic impact will be felt long after the virus fades.

    If there is any take away from the current crises that has impacted businesses over the whole world, it is the importance of having a clear and well understood Disaster Recovery and Business Continuity (DRBC) strategy in place.

    Many would think that DRBC only comes in place when natural disasters like earthquakes, floods, or storms occur but the truth is that a virus like COVID-19 can be as disruptive and destructive as any of these natural disasters, if not more.

    This should start with awareness, then a dedicated team which is supported by standard operating Procedures (SOPs) and telecommunication infrastructure to maintain the business information flow and provide access to corporate information to all employees anywhere and at anytime.

    What is DRBC?

    DRBC simply means Disaster Recovery and Business Continuity.

    A Disaster Recovery (DR) plan is a documented set of actions to be taken before, during, and after a disaster that may destroy part or all of the resources of a business, including IT equipment, data records and physical space of an organization.

    Organisations cannot always avoid disasters but having DRP and preventive measures are essential for minimizing potential damage, getting things back on time and continue business.

    Business Continuity (BC) Plan is the process involved in creating a system of prevention and recovery from potential threats to a company. The plan ensures that the personnel and assets are protected and are able to function quickly in the event of a disaster.

    It is generally conceived in advance and involves the input from key stakeholders and personnel.

    While DRP is concerned with restoring normal business operations after a disaster takes place, BCP is concerned with keeping business operations running.

    It is therefore important for Insurance companies, Brokers and industry players who want to continue in business to have a sound DRBC plan in place.

    Note:

    In order for a business continuity plan to be successful, all employees, even those who are not in the continuity team must be aware of the plan.

    Finally, as the practitioners in insurance sector plan for business continuity after the COVID-19 pandemic, my advice is that the following possible future challenges in the insurance sector should be put into consideration.

    • Loss of existing customers
    • Loss of other sources of income
    • Death claims from COVID-19 victims
    • Cyber insecurity
    • Recapitalization
  • Allianz Nigeria, Custodian & Allied to lead underwriters in NNPC insurance cover

    Allianz Nigeria, Custodian & Allied to lead underwriters in NNPC insurance cover

    By Omobola Tolu-Kusimo

     

    The Nigerian National Petroleum Corporation (NNPC) has appointed Allianz Nigeria, and Custodian & Allied as lead underwriters for its insurance cover in the 2020/2021 business year.

    While Custodian & Allied will lead the oil assets and liabilities cover for the period, Allianz Nigeria will lead the non–oil assets cover for the corporation.

    The appointment, which takes effect from April 1, will last for one year.

    Worldmark Insurance Brokers and Hogg Robinson Nigeria were retained as brokers for the oil corporation insurance risks.

    The appointment followed the submission of bids by various underwriters and brokers, since last November 12.

    Custodian, a leading firm in the oil and gas underwriting, has at various times led the consortium.

    Feelers from other industry practitioners allude to the fact that this year’s NNPC bid was adjudged the best.

    NNPC had said selection of brokers and insurance firms for coverage of its assets and non-assets risks for the 2020/2021 business year would be based on track record and service excellence.

    The Group Managing Director of NNPC, Mele Kyari, said the evaluation would be transparent in keeping with the corporation’s Transparency, Accountability, and Performance Excellence (TAPE) agenda.

    Read Also: Oil production still on despite price decline – NNPC

     

    He pledged a level- playing field for the bidders to guarantee the emergence of the best among them based on their track record and commitment to excellence.

    He stated that NNPC was desirous of engaging reputable and competent brokers that could provide exceptional valuation and insurance services to sustain its drive for excellence service delivery.

    He called on the brokerage firms that bidded to be wary of anyone who would promise to help them win as the corporation does not operate in such a shady manner.

    A total of 251 firms, including brokers and underwriters, were said to have submitted bids for oil assets while 253 firm submitted bids for non-oil assets.

    Attempts to reach Custodian and Allied Insurance Managing Director, Toye Odunsi, to comment on the development proved abortive.

    Also, Allianz Nigeria officials could not also be reached for confirmation.

  • Sanlam donates $2.3m to fight Coronavirus

    Sanlam donates $2.3m to fight Coronavirus

    By Omobola Tolu-Kusimo

     

    Sanlam Emerging Markets (SEM) has thrown its weight behind the fight against the spread of the Coronavirus in all the markets that mirror its business footprint both in Africa and other international markets where it operates.

    A statement made available by Petra Steenkamp of Sanlam Group Communications stated that Sanlam is donating R45 million (about USD2.3 million) to support various initiatives to fight the pandemic in Africa and other territories where SEM has a business presence.

    Sanlam, which owns stakes in FBNInsurance, also owns stakes in financial services companies in Namibia, Botswana, Swaziland, Lesotho, Zimbabwe, Mozambique, Mauritius, Malawi, Zambia, Tanzania, Rwanda, Uganda, Kenya, Burundi, among others.

    SEM Chief Executive Officer, Mr Heinie Werth said there are over 11,000 reported cases of Coronavirus infections in Africa, and over 500 COVID-19 related deaths reported according to the World Health Organisation (WHO).

    He stated that the funds are aimed at assisting efforts in ‘flattening the curve’ and to support various initiatives to combat the spread and the impact of the virus and will be used for personal protective equipment (PPEs), contributions to national solidarity funds, food relief and assist schools with e-learning.

    Read Also: 350 commuters arrested for overloading in Kano

     

    He added that each of the 32 countries in Africa as well as other markets Sanlam operates in will be allocated funds for use at the discretion of Sanlam subsidiaries and associate companies in those countries to support initiatives to fight the Coronavirus.

    He said: “We believe this effort will contribute not only towards the fight against the coronavirus, but also towards securing a sustainable future for all the communities where we do business across the continent.  In addition, the country operations may contribute additional funds from their respective businesses to relief efforts.

    “The scale and impact of this pandemic on both Africa’s people and economies can be dire, but if we act in solidarity and collectively, we can contribute to the ongoing efforts to attenuate the impact of COVID-19.

    “As a leading Pan-African financial services company with a rich history of ‘doing well by doing good’ and good corporate citizenship, we are proactively taking responsibility to support the countries in which we operate to fight COVID-19,” said Werth.