The Nation Newspaper

Tag: Group Life

  • ‘Group Life, other regulations best for insurers in 2018’

    The two major reforms introduced by the National Insurance Commission (NAICOM) on group life business and motor third party policies contributed to the industry’s growth in the outgoing year, Group Managing Director, Cornerstone Insurance Plc, Ganiyu Musa has said.

    He spoke with select reporters in Lagos.

    He said the regulatory interventions corrected the pricing of the products and enhanced operators’ compliance.

    Nusa said the market suffered huge losses caused by uncompetitive pricing of the products, adding that the intervention of NAICOM, which stabilised motor third party at N5, 000 and group life at six per mill, has helped firms garner resources to meet claims obligation.

    He noted that some operators had started to think of quitting because there is no need being in business when you cannot pay claims.

    He said: “Before this policy on group life, some life businesses were getting to stress level as a result of uncompetitive pricing, while claims kept coming. Today, majority of them are able to pay their claims because premium is right.”

    Speaking on the business environment in the outgoing year, the GMD said the year was very challenging as result of the overall social and political environment, which impacted on investor confidence.

    “The increasing insecurity in Northeast; delays in passage of the Petroleum Industry Bill increased regulatory militancy, across the sectors, which saw telecoms giant MTN fined twice heavily are among the issues that affected the business environment in 2018.

    “Even in our own industry, we also had a share of the regulatory downside, and all of these are impacting negatively on investor confidence. Other issues that affected insurance business in 2018 include the declining prices of products and premium war that has continued to affect growth of the industry.

    “I hope that the industry will cure itself of the price war that has characterised the business, and compete effectively in other fundamentals rather than price. This will support industry growth and performance in the coming year,’’ he said.

    For Cornerstone, Musa said 2018 was not bad in terms of numbers, as approved result up to last September showed a growth of over 30 per cent.

    He said the company also recorded huge profit having overcome the negative position it went through the previous year.

    He also said the firm’s N8 billion corporate head office which is almost at the level of completion is an investment and would start to impact on the company’s books at the end of this year,

  • Group Life: Beneficiaries to get death benefits from underwriters

    Beneficiaries of dead workers under the Contributory Pension Scheme (CPS) are to be paid by an underwriter in line with the provisions of insurance law.

    Death benefits, according to the law are no longer paid into Retirement Savings Account (RSAs). This is to eradicate the problems encountered by them in accessing benefits from Group Life Insurance. This will also apply to missing employees under under Section 8 of the Pension Reform Act (PRA),2014.

    Assistant General Manager, Benefits & Insurance Department, National Pension Commission, PenCom  Mohammed Umar,   made this known in a presentation at the 2018 Journalists Workshop in Uyo, Akwa Ibom.

    According to him, with a Letter of Administration confirming the beneficiaries and with the approval of the Commission, the PFA will release the amount in the RSA to personal representatives of the deceased.

    He said: “This will also be done by order of a Court of competent jurisdiction, in accordance with the terms of the Will or the personal law of the deceased employee.

    “Employers of deceased workers are, however, expected to report death or missing employees to the PFA and PenCom. Employers are to have representative on the Board of Enquiry constituted in the case of missing employee or retirement of employee on medical ground.”

    Speaking on the procedure for accessing RSA, he said some processes and documentations are required, adding that a RSA must notify PFA six months ahead of retirement and prrovide PFA with the documents for retirement.

    He said the documents include official notice/acceptance of retirement from employer; last pay slip as evidence of  Annual Total Emolument (ATE) & GL/Step; recent passport photograph; any other evidence of ATE; quotation from an insurance company for the purpose of annuity product, if desired; provide details of bank account; and provide contact address after retirement.

  • NIA lauds Fed Govt’s N14.69b vote for Group life, others

    NIA lauds Fed Govt’s N14.69b vote for Group life, others

    The Nigeria Insurers Association has commended the Federal Government for earmarking N14.69 billion insurance premium for Group Life Insurance for its workers and assets.

    NIA’s Director-General, Sunday Thomas in an interview said the government has done well, adding that there was need for more in terms of insurance of its assets and liabilities nationwide.

    The Federal Government voted the amount for Group life for its Ministries, Departments and Agencies (MDAs) of the Federal Government, including Department of State Security (DSS), Insurance of Sensitive Assets and Corps members in this year’s Appropriation Bill passed by the National Assembly on March 23.

    According to Thomas, the amount surpasses what previous government budgeted.

    He said: “The amount surpasses what it was in the previous years. I think it is quite substantial and it should be commended.

    “The government need to secure the 2016 budget with insurance because spending without protection or security will lead to a waste of in government resources.”

    He urged the government to ensure that insurance cover is obtained by the  MDAs for the execution of both capital and recurrent expenditure of the budget.

  • NAICOM seeks govt’s intervention in Group Life Assurance

    NAICOM seeks govt’s intervention in Group Life Assurance

    The National Insurance Commission (NAICOM) has appealed to the Office of the Head of Service of the Federation (OHOSF) to look into the challenges of Group Life Insurance scheme for federal workers and the insurance of Federal Government assets and properties.

    The Chairman of the Governing Board, Hon. Chibudom Nwuche, made the call during a courtesy call on the Head of Service of the Federation (HOS) Danladi Kifasi in his office in Abuja by the management of the Commission. Nwuche led the board to see how the company can partner with the government to enhance implementation of the compulsory Group Life Insurance cover for federal workers.

    Nwuche who expressed appreciation to the HOS for the success achieved so far in the implementation of the Pension Reform Act of 2014 as it relates to the Group Life Insurance scheme for federal workers, noted that the scheme has not operated without some challenges.

    These challenges, he said, range from availability of adequate data for proper administration, timely notification of claims and submission of supporting documents and appropriate pricing of the risk.

    He hoped these issues will be looked into by the HOS to ensure continued success of the scheme for the overall benefit of the federal workers.

    He also said that the insurance of public buildings and buildings under construction be made compulsory under the insurance Act of 2003. He said it is therefore, imperative that all government buildings which fall under public buildings are adequately insured to guard against loss of property and scarce financial resources in the event of any disaster.

    Nwuche requested the HOS to look into the issue noting that the insurance of public buildings under which government buildings fall, is compulsory under the insurance Act of 2003 and NAICOM Act of 1997.

    NAICOM Commissioner for Insurance, Fola Daniel, told the HOS that the insurance industry is prepared to undertake the training of scheduled staff of the OHOSF, especially the officers involved in the management of the scheme to ensure justification and realisation of the set objectives of the scheme.

    Daniel said the industry would also provide specific preventive health training for members on the scheme based on the outcome of the information gathered from the experience analysis of the data in the Commission’s possession and, the enlightenment of scheme members.

    These are members who are close to retirement and need financial planning like choosing annuity to ensure stream of income for the rest of their retirement’s life, he added.

    The HOS, Danladi Kifasi, stated the preparedness of his office to continue the collaboration with NAICOM to ensure continuing success of the scheme.

    He pledged to support the Commission in the enlightenment and education of both scheduled staff and scheme members especially in the area of financial planning.

    He thanked the management of NAICOM for the offer to provide training for scheduled staff and members of the scheme and promised that the OHOSF will remain transparent but strict in subsequent bidding and selection processes to appoint brokers and underwriters for the Group Life Insurance Scheme for federal workers.