The Nation Newspaper

Tag: Insurance

  • Expert to govt: reposition crop insurance scheme

    The Federal Government has been urged to reposition the crop insurance scheme to ameliorate losses that farmers incur from flood, drought and plant diseases.

    An expert, Prof Ayo Ogunlela, gave the advice during an interview with The Nation.

    Ogunlela, who is a professor of Agricultural and Biosystems Engineering at the University of Ilorin, said significant changes in weather could increase drought and flood in some parts of the country, as such farmers need to be protected.

    According to him, excessive rainfall and fluctuating temperatures could offer lead to seedling diseases on the farms.

    He is concerned that rainfall extremes that only occur at most a few times yearly, could have very large impact, adding that agriculture and farmers should be the priority of the government as improving their condition is a must to strengthen the economy.

    For experts, like him during critical crop growth stages, too many days without rain can reduce yields or lead to crop failure, which can reverberate through the agriculture-dependent economy. Also, short periods of very heavy rainfall can create disasters.

    To spur agricultural growth, Ogunlela asked the government to launch a comprehensive plan to provide a ‘Soil health card’ to all farmers across the country. The card will carry crop-wise recommendations of nutrients/fertiliser required for farms, making it possible for farmers to improve productivity by wisely using input.

    He said there should be computerised systems in local agriculture science centres to keep data of ‘soil test’ results, adding that thess will make the easy collection of oil samples from small farms in remote villages.

    The system will allow farmers to download the card using ‘unique number’ allotted to each soil sample. This way, any change in ownership of the particular farm land, will not create any problem in getting such cards or getting it updated, he added.

    He further said the move would help farmers in identifying ‘health of the soil’ which will go a long way in improving productivity through judicious use of fertiliser and water.

    Since collecting ‘soil samples’ and uploading/updating the test results will be a mammoth exercise, states will deploy students of agriculture universities in doing this, he said.

    All soil samples will be tested in various soil testing labs across the country. Thereafter, experts will analyse the strength and weaknesses (micro-nutrients deficiency) of the soil and suggest measures to deal with it. The result and suggestion will be displayed in the cards.

  • ‘Protect your fine artwork with insurance’

    Rumour has it that casino mogul Steve Wynn once made a $50 million insurance claim on a painting that was damaged when he bumped it with his elbow and tore the canvas.

    According to Insur.com, most homeowners don’t own such pricey paintings but many do prize at least one valuable piece of artwork. For those who do, understanding how to protect their fine art can be a challenge. Purchasing adequate insurance coverage is a good place to start.

    Anything that damages a home can also damage the art inside. According to Jay M. Levin, an attorney at Reed Smith in Philadelphia, when Hurricane Sandy devastated lower Manhattan in 2012, it also led to the destruction of millions of dollars of artwork owned by individuals and businesses. Luckily, many of those pieces were covered by adequate insurance policies.

    Insurance claims for artwork”The most important thing homeowners can do is to tell their broker what they have, to make sure that it’s listed on a policy and to get a proper appraisal so that it’s insured for the right amount,” says Levin. “Then if disaster strikes, such as Superstorm Sandy or Hurricane Katrina, all is not lost.”

    What constitutes ‘art’?

    Insurable fine art can include two-dimensional works such as paintings, drawings, textiles and other framed pieces, and three-dimensional pieces such as sculptures, valuable porcelains, fine antique and contemporary furniture, according to Gordon A. Lewis, Jr., senior director and vice president at The Fine Arts Conservancy in West Palm Beach, Fla. These objects usually have some coverage under general household contents policies, but for high-end pieces, homeowners should purchase separate policies called “scheduled policies.”

    “Your overall homeowner contents policy covers the art as part of the contents. Then there are specific scheduled policies for works of art and these are generally appended to the underlying homeowner policy,” says Lewis.

    Ron Reitz, president of Quality Claims Management Corp. in San Diego, says that scheduling artwork also helps to confirm the value of the pieces by putting those values in writing in advance of any disasters.

     

     

    • Insur.com

     

    “The insured supplies a detailed list of the art and the value he or she wants it insured for. If there is a loss to the art, then the homeowner receives the amount they are insured for — or the amount it is ‘scheduled’ for. These policies are actually less expensive than homeowner contents policies and importantly, they do address the question of value if a loss does occur,” says Reitz.

    Insurance claims and restoration

    As a public insurance adjuster, Matthew Blumkin, a partner and executive general adjuster at the Greenspan Co./Adjusters International in Encino, Calif., has seen numerous home insurance claims on the West Coast relating to fine arts.

    “A lot of times, fire damage is the cause for art claims whether it’s a statue or a sculpture or a painting, but water damage such as flooding can also cause humidity and other contaminants to impact the artwork,” says Blumkin.

    After a disaster, insurance companies will work with you to determine if the artwork can be repaired. If so, Levin notes that finding a qualified conservation professional is crucial.

    “The care with which restoration effort has to be made is really important. You should not just go to the yellow pages and look for an art restorer. You need someone who is really, really skilled and experienced and also respected, so that when it’s done — a painting, for example—it will still be worth as much as possible,” says Levin.

    The American Institute for Conservation of Art offers an online directory of conservators that can be helpful in finding a qualified art conservation professional. Local art museums may also be willing to provide referrals.

    If your insurance company (after conferring with a conservator) determines that the piece cannot be repaired, then you’ll be compensated according to the value established in your policy.

    This is what makes a current appraisal of the piece so important. Lewis and Levin recommend that you have your artwork professionally appraised every three years in order to ensure that you’re purchasing an adequate insurance policy. It is also important to know that a standard home insurance policy will pay for restoration but not for loss in value; a scheduled policy will pay for both.

    Lewis says that the art market is moving very quickly, so the art you bought a few years ago could be worth much more today. “In order to keep insurance up to date and be certain that they receive a fair and just compensation, consumers really need to have their appraisals updated frequently,” says Lewis. “A little advanced planning can help you prevent a big financial loss down the road.”

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  • Varsity holds session on health insurance

    Varsity holds session on health insurance

    Students of the Federal University, Lokoja, in Kogi State have been exposed to the benefits of Tertiary Institutions Social Health Insurance Programme (TI-SHIP) of the National Health Insurance Scheme (NHIS).

    At an interactive session with management of the scheme at the University Auditorium, the students were able to clear their doubts about the sincerity of the government initiative, which is being managed by Healthstone, one of the licensed Health Management organisation (HMO) in the country.

    The Dean, Students Affairs, Dr Mohammed Audu, presented two students who were treated of serious ailments under the scheme earlier in the academic session.

    He explained that all the students N3, 000 contributed to the scheme at the start of the session was pooled to save the lives of the duo.

    The Desk Officer of NHIS at the university, Mal Abubakar Abdul told them the steps to take in getting a refund in case they paid for a medical service at any accredited health providers. He said that all the Health Centres across the 21 Local Government Areas of Kogi State are known to Healthstone and NHIS. He explained that the scheme has no service limits except if the service is not under a medical field and it covers only an individual.

    Dr Magnus Ogaraku, a medical officer at the University Health Centre implored the students to visit to discuss their health challenges.

  • Insurance sector targets N1trn for market development

    Mr Akin Ogunbiyi, the Managing Director of Mutual Benefits Assurance, says recent returns from micro insurance products can raise the industry’s MDRI target to N1 trillion.

    Ogunbiyi told the News Agency of Nigeria (NAN) in an interview on Friday in Lagos that operators in the informal sector held the key to the realisation of the N1trillion target.

    Market Development and Re-structuring Initiative (MDRI) is the framework of the National Insurance Commission (NAICOM) for measuring the industry’s growth.

    NAICOM had proposed to hit the target in 2012, but failed.

    Ogunbiyi said that the sector was becoming more vibrant in line with the objective of Vision 20:2020.

    He said that premium in the sector was easy to collect, while its claim report was low and easy to verify.

    “Having invested much in the micro insurance business, we are now reaping the benefit.

    “We are collecting close to N1billion monthly on our various micro insurance products.

    “We have also boosted employment nationwide with almost 7, 000 insurance foot soldiers who sell various products.

    “Imagine what will happen if all insurance companies come on board,” he said.

    Ogunbiyi said that there were still many areas to explore as the operators could leverage on the over 160 million population.

    He, however, said that companies should expect to make some sacrifices at the take off stage due to investments on infrastructure.

    According to him, once the foundation is laid and the companies win the trust of potential buyers, consumers will come willingly with their own ideas and needs.

    Ogunbiyi said that Mutual Benefits Assurance had registered over 1,000 cooperative societies to market its micro insurance products.

  • Canada pension enters insurance business with Wilton Re

    Canada Pension Plan Investment Board, the nation’s largest pension fund manager, agreed to buy Wilton Re Holdings Ltd. for $1.8 billion to expand into the life insurance business.

    The reinsurer is being acquired from investors including Stone Point Capital, Kelso & Co. and Vestar Capital Partners Inc., the Toronto-based fund manager said today in a statement. The purchase is Canada Pension’s first direct investment in the insurance sector. Wilton Re is “an ideal platform through which CPPIB can deploy significant follow-on capital at scale in the U.S. life insurance sector,” Andre Bourbonnais, senior vice president of private investments at the pension fund, said in the statement.

    Reinsurance is attractive for pension funds as they seek long-term cash to match their liabilities. Reinsurers such as Bermuda-based Wilton Re have found opportunities in recent years by taking on business from primary carriers that are seeking to simplify operations or limit risks.

    Wilton Re struck deals this year to assume liabilities from CNO Financial Group Inc. and CNA Financial Corp., the insurer controlled by Loews Corp. Wilton Re, run by ex-Swiss Re Ltd. executive Chris Stroup, won backing in 2004 from investors including insurance broker Marsh & McLennan Cos., and Vestar. Since its creation in 2005, Wilton Re has invested at least $1.7 billion in acquisitions and risk-transfer deals, according to the statement.

    Canada Pension favors investments in closed blocks of coverage, in which insurers collect revenue and pay claims on policies issued in prior years, without seeking new clients. Such business accounts for about 40 percent of premiums written in the U.S. and U.K., according to a July 2012 report by research and consulting firm Celent.

    Stone Point, which counts former Goldman Sachs Group Inc. director Stephen Friedman as chairman, has backed insurers before, including Enstar Group Ltd. (ESGR) and Harbor Point Ltd. Kelso also invests in the industry and worked with billionaire hedge-fund manager Dan Loeb to establish Third Point Reinsurance Ltd., which had an initial public offering last year.

    Reinsurance Group of America Inc., which also backs life policies, gained 2.5 per cent to $81.02 in New York, the most since January 31 and the highest since the company was listed in 1993. Enstar Group rose 1.5 per cent to $140.39.

    This is Canada Pension’s largest public acquisition since it led a consortium to purchase Neiman Marcus Group Ltd. last year. Canada Pension manages C$201.5 billion ($179 billion) for 18 million Canadians excluding the province of Quebec.

     

  • Health insurance firms partner IRS

    With just two weeks to go before the March 31 deadline for applying for health insurance on a government-run exchange, more than five million people have signed up for the new plans.

    It is expected that approximately 30 million previously uninsured Americans are expected to have health insurance, either through a government exchange, employer or Medicaid.

    So, following that logic, the health insurers behind these plans should be raking in profits from millions of new customers, which, even at reduced rates, should allow them to reap huge rewards.

    Along with the influx of new customers, the Affordable Care Act (ACA) is bringing health insurance companies new IRS obligations that could have a major impact on their profitability. While not all of these obligations are outright taxes, the ACA has effectively turned the IRS into a monitoring and enforcement mechanism for many of the health law’s administrative provisions. The cost of meeting these requirements will act as a tax of sorts.

     

    Insurance excise tax

    Chief among these is an $8 billion fee, which, effective this past January, is levied on all health insurers based on their total market share of net premiums written for different health risk pools. As the recent Thomson Reuters Checkpoint special report Tax Changes in Health Care Reform Legislation explains, this fee will be allocated based on the risk pools each insurer covers. Those who take on more customers with higher levels of health risk will pay less, while those who take on primarily low-risk new customers will pay more.

    This fee is essentially structured as an excise tax on insurance companies. The flat fee for the industry starts at $8 billion this year and will increase to $14.3 billion by 2018. To put that in perspective, the widely derided medical device tax, which imposes a 2.3per cent excise tax on several medical technologies, is only expected to generate about $2.9 billion in tax revenue per year.

    This is a big number that will have a material impact on insurance company cash flows starting this year. In fact, the Congressional Budget Office has said that it expects the tax to result in an overall increase in premiums as the insurance companies pass along the increased costs to their members. Consultancy Oliver Wyman has taken the estimate one step further, suggesting that the tax will result in an increase in insurance premiums of $500 per covered worker by 2020.

    Another significant tax hurdle for insurance companies isn’t really a tax at all, but rather a new tax form called the 1095-B, which is required for all covered lives, starting in tax year 2015. Essentially, because the Affordable Care Act requires all U.S. citizens to have some form of insurance, the burden of proof of coverage now falls on the insurance providers who must file this new form with the IRS each year to document that each of their members has insurance.

    That sounds reasonable enough, until you factor the herculean challenge of having to mail a copy of the IRS tax forms to policyholders, totaling 317 million Americans. As of December 2013, the two largest health insurers in the U.S., United Healthcare and WellPoint WLP +0.06per cent, had a combined 106 million members.

     

  • Staco Insurance staff member is Miss Insurance

    Staco Insurance staff member is Miss Insurance

    Staco Insurance Plc staff member by Sarah Ogunsola has emerged the Miss Insurance for the year.

    The beauty queen emerged among other seven contestants from AIICO Insurance Plc; Guinea Insurance Plc; Equity Assurance Plc, African Alliance Plc and Scrib Insurance Brokers Limited during the yearly pageant organised by the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.

    The second runner up position went to Miss AdeosunMotoyosi of AIICO Insurance Plc, while Miss Mogaha Joy, still of AIICO Insurance Plc emerged the first runner.

    Filled with joy after the keenly contested competition, Ogunsola said she was elated to have emerged as the industry’s queen, adding that she was prepared for the task associated with the crown.

    She said her programme would be released soon.

    The queen won a brand new Kia Picanto Car, donated by Sovereign Trust Insurance Plc.

    The Special Guest of Honour at the event, LanreLaoshe, urged the queen to be a good ambassador of the industry, urging her to take insurance literacy campaign to secondary schools across Nigeria.

    He promised to support efforts geared towards making insurance part of human existence, stressing that it was high time the industry operators began to do what would make the public give them recognition.

    The immediate past Miss Insurance, Sefiyat Sadit of Staco Insurance urged the new queen to be determined, humble and be focused in the pursuit of her objectives.

    She said her tenure was eventful, through the support of operators and her family members.

    She appreciated all the people who supported her during her reign.

  • Insurgence, others raise army insurance claims to N1.5b in six months

    Insurgence, others raise army insurance claims to N1.5b in six months

    INSURERS are paying more claims – no thanks to the insurgency in the Northeast. Over N1.5 billion has been paid to the families of military personnel who died in the anti-terrorism war. This is besides those who died from other causes between January 1 and June 30, last year.

    More casualties are being recorded, raising fears of higher claims, bolstered by police and state security personnel casaulties.

    The Nation stumbled on a letter, titled: ‘Group Life Assurance Scheme for the Nigeria Police Force 2013 Assurance Year’, from the Inspector-General of Police ‘A’ Department (Insurance Unit) to the Office of Head of Service of the Federation (OHOSF).

    The letter shows that the N1.5 billion is classified as uninsured losses as a result of the inability of the Federal Government to facilitate premium payment on the Group Life Assurance Scheme (GLAS) to the assurers, following the military, security operatives and the police exit from the Contributory pension scheme (CPS) in April 2011.

    It is unclear how the government intends to settle the claims of the security personnel as the ‘No Premium, No Cover’ policy bars operators from providing cover without premium payment.

    The National Insurance Commission (NAICOM) from January 1, last year, started the enforcement of sanctions against operators who issue policies, or grant covers in violation of Section 50 (1) of the Insurance Act 2003.

    According to documents obtained by The Nation, titled: “Report of meeting held between Director, Inspectorate, NAICOM and Director, Expenditure, Federal Ministry of Finance on GLAS for Federal Government Employees 2013”, the problem started with the administration of the Group Life Insurance Policy (GLIP) of the security personnel when the Appropriation Acts 2012 and 2013 made separate allocations to GLAS of MDAs, Nigerian Police Force and Armed Forces.

    A consortium of insurance firms and brokers was appointed as underwriters and brokers on the GLAS. The appointments were to cover January 1 to December 31, last year. Having secured the approval to start the disbursements of premium to the firms in September, last year, the OHOCSF’s attention was drawn to the cover policy.

    However, the scheme, which is funded from the budget, was not passed until April, last year by the National Assembly, thereby delaying contracts awards in January when the scheme ought to have taken off.

    The OHOSF, who did not want to violate the law on premium payments, sought the advice of NAICOM.

    Recommendations were made to the commission through its Director of Inspectorate, Mr. Barry Thompson, who said last year’s premium should start on October 1, last year and end on September 30.

    In his response on September 23, last year, Thompson advised that as the premium was not yet paid, cover could not start, because of its security implications.

    Thompson said: “Since the premium is yet unpaid, this liability may be borne by the government possibly through another budgetary allocation in 2014 to pay these uninsured losses.”

    Under the Pension Reform Act, 2004, by virtue of section 9, subsection 3; employers are required to maintain Life Insurance Benefit Scheme of three times the annual total emolument for their employees.

    Following the military, police and the SSS exit from the CPS and in line with Pension Reform (Amendment) Act 2011 and the 2013 Appropriation Act, they have since reverted to a benefit scheme managed by them internally.

  • Traders, artisans, others still averse to insurance

    SOME Nigerians’ attitude to insurance seems not to be changing.

    Some traders, artisans and organisations that spoke with The Nation said they do not understand what benefit taking an insurance policy will provide for them.

    A motor spare parts retailer, Benjamin Oladele, said he had no cover on his wares because it is a waste of money to buy insurance.

    He said: “Why would I buy insurance when they find it difficult to pay claims as at when due. They bring minor excuses to cover up and at the end, they all go free. I don’t think I want to risk that.”

    A banker, Mrs. Adeboyega, said initially, she had a comprehensive insurance cover on her car but did not renew it after paying premium several times and receiving nothing in return.

    Another businessman on Lagos Islandwho identified himself simply as Emeka, said he believes insurance is just a trick deplored to collect money from people.

    In spite of the negative opinions held by Emeka and others about insurance, some people still see insurance as a blessing.

    Mr. Goodness Johnson, who owns a furniture store, said insurance has been a blessing to him as he has benefitted from it.

    He urged Nigerians to embrace insurance through taking covers. “Insurance is no threat to us. It was established to serve us. It brings relief when something unexpected occurs. I can proudly tell anyone that all my properties are insured,” he said.

    Oladimeji Babalola, an accountant, said Nigerians should see insurance as a priority.

    The industry has made things easier by organising micro-insurance for the low-income earners, he said.

    Mrs. Funmi Aderibigbe, a business woman, added that insurance has made positive impact in developed countries and Nigeria should not be an exception.

    She said: ”I have life insurance and other policies and I do not see why people should still claim ignorance of insurance. The insurance companies that I have had encounter with have improved over the years and so is the industry generally. It is no longer difficult to have access to genuine insurance. With a click on your mobile phone, you can easily get insured.”

  • 3SC clinch insurance deal

    3SC clinch insurance deal

    Oyo State ministry of youth and sports has signed an agreement with an insurance company, Capital Express Assurance, on behalf of Shooting Stars Sports Club (3SC).

    The signing was done in the office of Oyo State commissioner for youth and sports, Umar Farouk Alao.

    The commissioner said there was a need for the year-long deal. He said: “The ministry did this for 3SC ahead of their National League campaign to assure the squad that we are behind them and they should give their best on the field of play.

    “This deal will assure our players and officials to perform knowing the state is solidly behind them even when they are injured or involved in any accident, but God forbid. This is first of its kind in Oyo State to insure our players and I’m sure we are not going to regret this insha Allah.”

    Meanwhile, the regional director (South West) of the insurance company, Steve Akadiri, commended the commissioner for approving their proposal to partner with the state in the area of sports.

    “We have been promoting sports across the country and to partner with Shooting stars would not be a mistake as some of other clubs like Abubakar Bukola Saraki (ABS), Delta State are associated with us.”

    Present at the presentation were the Special Assistant to the governor on Youth and Sports, Godwin Obode and the Director of Sports (administration), Bisi Adegoke, among others.