The Nation Newspaper

Tag: Ayodapo Shoderu

  • NCRIB: Over regulation may stunt growth

    NCRIB: Over regulation may stunt growth

    Businesses in Nigeria are subjected to many unnecessary complex and inflexible rules, foisted on them by the government and regulatory institutions, some of which are difficult to reconcile with public interest goals, the President, Nigerian Council of Registered Insurance Brokers (NCRIB), Ayodapo Shoderu, has said.

    Shoderu said in view of the situation, the Council is advocating reduction of institutional rules and regulations in order to incentivise business and professional growth in the country.

    The NCRIB president spoke at the National Seminar for Federal Regulatory and Intervention Agencies organised by the Institute of Directors (IoD) in Abuja.

    He said that several rules and regulations, which most professionals and business operations are being subjected to may stunt their growth on the long run.

    He noted that cumbersome local regulations concerning financial, health and safety standards, technical procedures, labour development and administrative set up can constrain corporate operations, while overlapping jurisdictions within the three tiers of government have continued to clog the growth of business in the country.

    He said: “The Council advised that Nigeria could borrow a leaf from the United Kingdom (UK) Government, which in 1985, through the department of trade and industry, carried out an inter-department scrutiny of regulatory burdens on particularly small businesses.

    “It was found that compliance with government requirements had imposed significant additional cost on business and this led to the white paper, which spelt out the implications of over regulation.

    “We advised that the nation’s business laws should be constantly reviewed in order to attune them to reality of contemporary development and challenges. It is unfortunate that most of the laws, including business laws in Nigeria are archaic and in dire need of review. Many of the laws carrying infractions or financial punishments for infringements are ridiculously meager, predisposing some unethical players to circumvent the laws, bearing in mind that the penalty for such is inconsequential, compared to cost of compliance.”

    Shoderu added that the Council is suggesting a more inter-agency collaboration as an incentive to business operations. He noted that whether at states or federal levels, institutions rendering similar services must harmonise their operations, bearing in mind that duplication of those agencies contribute more to the misery of business owners and corporate entities.

    We commend the recent integration of NAICOM into the Board of Nigeria Pensions Commission (PENCOM), under the new Pension Reform Act 2014. The step will buoy the development of pension administration in Nigeria as it has brought into central focus the contributions of the insurance industry, which has pension as one of its core mandates, he said.

  • NCRIB, NIA unite to enforce ethics

    NCRIB, NIA unite to enforce ethics

    Brokers and underwriters have resolved to reverse the trend of unethical practices that has plummeted the fortunes and image of the industry.

    The resolution was made during a meeting between delegation of the Nigerian Council of Registered Insurance Brokers (NCRIB) and the Nigerian Insurers Association (NIA) in Lagos

    The two bodies were of the view that the jettisoning of basic insurance principles had robbed the industry of its expected place in the scheme of the nation’s economy.

    Taking a retrospective look at the industry in the 70s towards mid-80s, the operators noted that the players were united and cohesive on issues relating to market ethics and practices, making operational environment inclement for unethical players.

    NCRIB President, Ayodapo Shoderu said insurance brokers and underwriters were like Siamese twins that must always work together for the progress of the industry.

    He said that operators must eschew unethical practices that are inimical to professionalism in order for the industry to gain its lost grounds.

    NIA Chairman, Mr Godswill Wiggle said the two bodies needed to revive their technical joint committees where issues bordering on the operation of the two parties could be resolved before they smear the image of the industry before the public.

    Meanwhile, the two bodies hailed the administration of Governor BabatundeFashola for its strong belief in insurance.

    They applauded the Lagos State government for its effective risk management and patronage of insurance services, noting that the industry would soon put in place a programme to appreciate and celebrate the government.

  • NCRIB trains brokers on IFRS

    NCRIB trains brokers on IFRS

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has commenced training of its members on the International Financial Reporting Standards (IFRS), its President, Mr. Ayodapo Shoderu has said.

    According to him, the training will be carried out in tranches, begining in Lagos then moving to Abuja and Enugu.

    While declaring open the pilot training in Lagos, Shoderu disclosed that the IFRS was designed as a common global language for business affairs so that companies’ accounts are understandable and comparable across international boundaries.

    According to him, IFRS is a consequence of growing international shareholding and trade and is important for companies that have, or angling to have dealings in several countries.

    He said: “The IFRS behoves on accountants in broking firms to maintain books of accounts which are comparable, understandable and relevant. The scheme required that operators be more transparent and meticulous in their financial accounting formats.

    “We are all aware that the global environment in which we operate has posed greater challenges to us to be more ethical and eschew unprofessional conducts if we want to remain in business,” he said.

    He said the Council has engaged the services of leading IFRS consultants under its shared services scheme to reduce the cost burden on individual operators.

    He enjoined its members to check the website of the Council for their names to know when it will be their turn to attend the training.

    Commissioner for Insurance, Mr. Fola Daniel, represented by an Assistant Director of the National Insurance Commission, Mr. Egwu Kenneth, commended NCRIB for being the first insurance group in the country to take the initiative of shared services scheme under which its members are being trained for the IFRS.

    Similarly, the Lead Consultant of Netherwood Consulting, Mr. Adeyemi Adetunji said the new tempo of global accounting standards required that all business operators make their accounting and financial reporting transparent. He said it is imperative for insurance professionals to imbibe the new reporting format, considering the nature of insurance as  a global business.

  • British, Nigerian brokers partner on capacity building

    British, Nigerian brokers partner on capacity building

    THE British Insurance Brokers Association (BIBA) has promised to assist the Nigerian Council of Registered Insurance Brokers (NCRIB) in building the capacity of its members for effective insurance brokerage service delivery and growth in the country.

    Speaking during a courtesy visit to BIBA’ office in London, NCRIB President, Mr Ayodapo Shoderu, attributed part of the problems that have made the contribution of the sector insignificant in spite of the enormous potentials in Nigeria is low capacity of the existing professionals and poor image of the industry.

    To this end, he said his administration aims at creating and leveraging on a robust relationship with the BIBA for better insurance brokerage delivery in Nigeria. He said this is imperative because BIBA is a frontline global insurance intermediary institution.

    He said, among other things, the NCRIB is soliciting the support of BIBA in the provision of market information, continued and constant working relationship and regular exchange of ideas by the two bodies.

    He disclosed that his tenure would be devoted to initiating strategic working relationship with notable institutions and network individuals across the world and at home, in order to break down the barrier of ignorance about the insurance broking profession, and by so doing creating more opportunities for its members.

    Chief Executive of BIBA, Steve White said the association had continually initiated strong interactive platforms through its several events and publications, for the engagement of government, customers and the general public on the value of insurance broking services.

    As part of its support to NCRIB, White said BIBA will assist the c2ouncil to facilitate its membership with the World Federation of Insurance Institutions (WFII) as well as feature its activities in editions of its annual publication,’The Broker’

    He added that BIBA will continually avail the NCRIB with relevant advice and strategies on how it could effectively engage its crucial segments, notably government and other relevant stakeholders, as being effectively done by the association in the UK.

    BIBA was formed in 1977 and is the UK leading general insurance intermediary organisation.

     

  • NCRIB seeks NAICOM’s help on unethical practices

    The problem of rate cutting between underwriters and brokers in the insurance industry is deteriorating with the Nigerian Council of Registered Insurance Brokers (NCRIB) accusing underwriters of unethical practices.

    President of the Council, Mr. Ayodapo Shoderu, called on the National Insurance Commission and Nigerian Insurance Association (NIA) to investigate the matter and sanction those found guilty.

    Shoderu, who made this known in Lagos while speaking with journalists, frowned at some insurance firms for undermining brokers on existing accounts by using a broker to poach clients, noting that such unethical act could stall the progress of the industry.

    According to him, some underwriters also poach existing businesses from broker’s client offering the clients reduced premium. He said the Council has decided to challenge the unwholesome practice which it perceived as a threat to the brokers, adding that it will affect their contributions to economy.

     

    Stressing that brokers occupy pivotal place, Shoderu noted that their wealth of experience is usually brought to bear in assisting clients to get the best possible terms, as well as assist them in claims collection when a loss arises.

    He said the exclusion of brokers from insurance accounts leaves the clients with no advantage of competitiveness in services of companies, in terms of the kind of insurance policy being offered, premium charged and fairness in claims settlement.

     

  • NCRIB seeks prompt claims’ settlement’

    NCRIB seeks prompt claims’ settlement’

    The National Insurance Commission (NAICOM) must enforce prompt settlement of claims on underwriting firms, President, the Nigerian Council of Registered Insurance Brokers (NCRIB)Ayodapo Shoderu has said. He spoke at the NCRIB members’ evening hosted by WAPIC Insurance Group, in Lagos.

    He said the directive became necessary because of the importance of claims in the business.

    He urged the regulator to be stringent on its stand on prompt settlement of claims, adding that claims payment remains the best advertorial to boost the industry’s image.

    He said: “One of the areas of interest of our council is the need for underwriters to always pay claims expeditiously. While many underwriters are striving to strictly to the time limits for claims payment to clients, some still do err in this regard.

    “Considering the place of claims payment in insurance’s image and acceptance, the Council under my leadership has taken up the matter with NAICOM during my recent visit to the Commission. We urged NAICOM to consider a directive to underwriting companies on the need for them to be prompt in the settlement of claims to clients.

    “Since the sustenance of any insurance industry is its ability to pay claims promptly, our opinion is that the Commission should be more stringent on its stand or directive to insurers on claims payment, the same way the Commission frowns at brokers with regards to remission of premium.”

    He said NCRIB and NAICOM would continue to partner in enforcing ethical practice, urging operators to play according to rules.

    Acting Managing Director WAPIC Insurance Group, Ashish Desai, said the firm has been repositioned. He called on stakeholders to join hands to enable the industry takes its position in the economy.