The Nation Newspaper

Tag: Insurance

  • ‘12 operators enough for insurance’

    ‘12 operators enough for insurance’

    President, Institute of Loss Adjusters of Nigeria (ILAN), Lebi Omoboyowa, has said the country does not need more than 12 insurance companies going by the poor performance of some of them.

    Omoboyowa spoke with The Nation at the institute’s Annual General Meeting (AGM) in Lagos.

    He said the N300billion premium income generated by the insurance industry since 2007 till date can be improved upon if NAICOM reduces the number of insurance companies in the country.

    According to him, the industry would thrive if there are few companies that are strong.

    He further said instead of insurers’ spending money on insurance awareness campaign, they should itemise their claim settlement to boost awareness.

    Speaking on the institute’s charter, Omoboyowa said it would soon be accomplished, adding that a bill on it is with the House of Representatives.

    On fees payment, he said: “We are not happy with fees paid to us by insurers and we have been discussing with them. We have also visited the Nigeria Insurers Association (NIA).

    “Although the council members have indicated their willingness to consider a review of the fee scale as soon as the Insurance Act 2003 is being implemented and yielding positive results, we are hopeful that loss adjuster business will get better in the country.

    “The International Federation of Adjusting Associations (IFAA) has made provisions for Associate membership with the existing fellow membership and this will enable ILAN associate member to apply through the institute to become an associate of the world adjusting body.”

  • Niger Insurance introduces Cash Plan policy

    Niger Insurance Plc has introduced Niger Cash Plan into the market to encourage people to plan.

    Managing Director of Niger Insurance, Kola Adedeji, explained that rather than just catering for people after they might have suffered misfortune, he believes people should be given the opportunity to project a financial earning for the future, while at the same time getting insurance value for them and their dependants.

    According to him, the new policy is designed to provide the holder with income in the form of cash payments at regular intervals, as well as cash benefits for protecting the holder or the family in the natural course of events like disability and accidental death.

    He said the plan, by virtue of its special structure, is an ideal policy for a progressive young persons.

    He said: “While the premium payable by the policyholder is competitive, the benefits are sufficiently attractive and among them are: regular cash payments on survival; lump sum cash payments at death, family protection; accidental death benefit; waiver or premium disability benefits and guaranteed insurance option.

    “The company is constantly striving to be more responsive to the needs and yearnings of customers in realisation of the fact that the organisation is primarily in business to satisfy its esteemed customers.” The company said it has also reviewed its information communication technology (ICT) application to business.

    “We are also working on other traditional products to make them more user-friendly because our focus now is on the customers. What we are trying to do is for them to always come back to make repeat purchase; we want to have satisfied customers, because here, the customer is king.”

     

     

     

     

     

  • We’ll return Insurance to Premier League — Oshiomhole

    We’ll return Insurance to Premier League — Oshiomhole

    Comrade Adams Oshiomhole of Edo State yesterday vowed to return Insurance Football Club of Benin to the elite division next season.

    Speaking on the governor’s behalf, Commissioner for Youth, Sports and Social Mobilisation, Omorede Osifo, said Oshiomhole had properly funded the club since she was appointed as a commissioner in Edo State.

    Osifo said all the match bonuses of the players had so far been cleared, while salaries are also being settled.

    The commissioner, who said Insurance FC had not lost any match both home and away since her appointment, promised to commence recruitment of players for next season.

    Responding, coaches and players of Insurance yesterday expressed gratitude to Lady Osifo for her commitment to their welfare.

    They said her interest in their plight helped to stabilise the team, and that they were committed to return the club to the Glo Premier League next season.

    Meanwhile, Hon. Osifo has reiterated government’s efforts towards youth development in the state.

    She said this while receiving young people trained in different skill acquisition programmes by the state government.

    The commissioner said governor Oshiomhole is proactive and highly committed to the development of the youth in the state, in spite of limited resources.

    She advised young people to take advantage of the opportunity provided by the state government to better their lives. Osifo also promised that the ministry would organise a graduation ceremony for them as well as empowering them to set up businesses.

    Leader of the delegation, Ekhosuehi Omoruti, said they were in her office to thank the state government for the opportunity given them to acquire different skills and to know when their empowerment and graduation ceremony would hold.

  • Journalists urged to embrace life insurance scheme

    The Cross River State Council of the Nigeria Union of Journalists (NUJ) has urged journalists to embrace the NUJ Life Insurance Scheme.

    It said this would come in handy in case of an eventualities.

    In a statement by the union’s Chairman, Mr Ndoma Akpet, and Secretary Nsa Gill, the NUJ condoled with the families of the three journalists who died in a motor accident last Friday in Osun State.

    It prayed for quick recovery of those who injured in the accident.

    The union advised its members to observe the seven days of mourning, which ends on August 9, and wear black ribbons to mourn their departed colleagues.

     

     

     

     

     

     

     

     

  • Small business property insurance

    Property insurance can be purchased based on the property’s actual cash value (the replacement cost minus depreciation), its replacement value (the cost of replacing an item without deducting for depreciation) or an agreed-upon amount (commonly used for art objects and other unique items).

    Basic property insurance will cover your losses in the event of a problem such as a fire or a lightning strike, and will pay the cost of removing property to protect it from further loss. Additionally, a standard small business policy will usually cover losses from windstorm, hail, explosion, theft, and damage caused by aircraft, automobiles or vandalism. Optional coverage can insure against earthquakes, floods, building collapse and glass breakage. Property insurance can be categorised by what is insured and by the events leading to a loss.

     

    Taking stock of your business property

    You should take a complete inventory of all your business property, determine its value and decide what’s worth insuring. Make sure the items you want to cover are provided for in the basic policy; if not, buy more coverage.

    If your business rents space, your lease might require you to carry certain types of insurance coverage. However, just because the building owner carries all the necessary insurance on the building doesn’t mean it will cover any of your equipment, furniture or other business property.

    “Named-peril policies” will cover certain losses resulting only from the perils that the policy names; “all-risk policies” offer coverage for all perils except those specifically named in the policy. A business owner may choose a named-peril policy if his business is located in an area that is frequently hit by natural disasters such as flood, hurricanes. Insurance experts recommend that the average small business purchase an all-risk policy.

     

    Find an insurer specialising in small-business insurance

    Some insurance companies specialise in small-business insurance coverage. Their policy offers additional optional coverage’s for small business owners who also own their own buildings.

    It pays out if your building is destroyed and it costs more to demolish and rebuild it to code than its previous value; it provides full glass coverage and full sign coverage; it provides additional coverage for damaged landscaping; and it extends coverage limits for newly acquired buildings. So, when you shop around, keep in mind that this coverage’s are not standard.

    If your company has a variable growth pattern, you may want to adjust your coverage annually.

    Other coverage that you can buy through riders include: accounts receivable coverage from $25,000 up to $250,000; coverage for loss of stock; protection against counterfeit money orders or currency; employee-dishonesty protection; sewer and drain back-up coverage; and valuable papers coverage.

    Deductibles for property insurance can be calculated on a per-claim or on an aggregate basis. The out-of-pocket cost for per-claim deductibles is often lower, so if you’re in a business that has a relatively low chance of filing a claim, you might consider this. Companies with a lot of claims would do well to consider calculations on an aggregate basis.

     

    •Culled from insure.com.

  • Can you hide smoking from life insurance companies?

    Can you hide smoking from life insurance companies?

    How much smoking does it take to be considered a “smoker,” and what if you fudged your answer about smoking on your life insurance application?

    Life insurance companies want an accurate picture of activities that could affect your longevity. Questions about whether you’ve used nicotine in the past few years go along with questions about whether you pilot a private plane or plan to travel to dangerous countries.

    Who is considered a nicotine user?

    Life insurance companies generally use three broad rate classifications for pricing policies: standard, preferred or preferred plus. Then there are the rates for nicotine users, who pay significantly higher premiums within their classes. The definition of a “nicotine user” is someone who uses any form of nicotine delivery, including cigarettes, cigars, chewing tobacco, a nicotine patch and nicotine gum. The look back period will vary by insurer. Some will judge you to be a nicotine user if you’ve used a nicotine product in the past five years.

    Many life insurance companies will allow the “celebratory” or “occasional” cigar smoker to still qualify for non-smoking rates. Insurers generally define “occasional” as smoking 12 cigars or less per year. Of course, the urine sample you provide for your life insurance medical exam must be nicotine-free, too.

    If you’re a regular smoker, it’s not a good idea to lie on your application in order to escape detection to get a lower rate.

    If you’ve lied on your application about nicotine use and then nicotine turns up in your medical exam tests, you’ll be issued your policy at the smoking rate.

    Look at the worst case scenario. Say you die of a heart attack and it comes to light that you’ve been a smoker all your life. The insurance company could justifiably deny the claim. That’s not a position in which you want to put your beneficiaries. It’s better to pay the extra premium and know your beneficiaries will eventually collect the benefit.

    Perhaps you’ve made an application and don’t like the nicotine rate you’ve been given. Don’t try to apply with a different company and lie to get nonsmoker rates; your previous medical exam results will sit in a database operated by MIB Group for seven years. When the insurer checks your new application against the MIB database, which is used to detect fraud, your history will be revealed.

     

    •Tips by insure.com

  • Life policy leads motor, others in insurance

    Life business accounted for 25.05 per cent of the industry’s total gross premium of N217.7 billion in 2011, a report has said.

    But the premium leadership dominance of the motor insurance class of business in the past 10 years fell from 22.63 per cent in 2010 to 20.51 per cent in 2011.

    According the Nigeria Insurers Association (NIA), the improvement is a good development for the market.

    A breakdown of the report showed that total contribution of other classes like Fire, general accident, marine and aviation, workmen’s compensation, oil and gas and miscellaneous to the gross premium income of the market, fell from 55.96 per cent in 2010, to 54.44 per cent, in 2011.

    The industry witnessed a growth in the volume of business written 2011 with a recorded premium of N217.7billion compared to N185.7billion in 2010, representing a growth rate of 17.24 per cent.

    In the last 10 years, the industry had an average growth rate of 21.01 per cent with life insurance premium income growing at the rate of 25.61 per cent and non-life insurance premium income at 20.69 per cent.

    A further analysis of the report revealed that a total of N54.5billion was recorded as gross premium income on life business in 2011 as against the N39.7billion in 2010 while N44.6billon was recorded as gross premium income on Motor business in 2011 against the NN42billion in 2010.

    It, however, noted that the challenging operational environment in 2011 which include high cost of doing business due to inadequate infrastructural facilities, rapidly changing technology, the increasing demand to meet regulatory requirements and other policy issues weighed heavily on the ability of insurance sector in Nigeria to fully explore its potential for expected growth.

    NIA was formed in 1971 as an umbrella organisation for all insurance companies in Nigeria. It has, since then, offered its members a forum to speak to one another and for all of them to speak with one voice to the government, its agencies and other parties, on matters affecting their business.

     

  • Life policy leads motor, others in insurance

    Life business accounted for 25.05 per cent of the industry’s total gross premium of N217.7 billion in 2011, a report has said.

    But the premium leadership dominance of the motor insurance class of business in the past 10 years fell from 22.63 per cent in 2010 to 20.51 per cent in 2011.

    According the Nigeria Insurers Association (NIA), the improvement is a good development for the market.

    A breakdown of the report showed that total contribution of other classes like Fire, general accident, marine and aviation, workmen’s compensation, oil and gas and miscellaneous to the gross premium income of the market, fell from 55.96 per cent in 2010, to 54.44 per cent, in 2011.

    The industry witnessed a growth in the volume of business written 2011 with a recorded premium of N217.7billion compared to N185.7billion in 2010, representing a growth rate of 17.24 per cent.

    In the last 10 years, the industry had an average growth rate of 21.01 per cent with life insurance premium income growing at the rate of 25.61 per cent and non-life insurance premium income at 20.69 per cent.

    A further analysis of the report revealed that a total of N54.5billion was recorded as gross premium income on life business in 2011 as against the N39.7billion in 2010 while N44.6billon was recorded as gross premium income on Motor business in 2011 against the NN42billion in 2010.

    It, however, noted that the challenging operational environment in 2011 which include high cost of doing business due to inadequate infrastructural facilities, rapidly changing technology, the increasing demand to meet regulatory requirements and other policy issues weighed heavily on the ability of insurance sector in Nigeria to fully explore its potential for expected growth.

    NIA was formed in 1971 as an umbrella organisation for all insurance companies in Nigeria. It has, since then, offered its members a forum to speak to one another and for all of them to speak with one voice to the government, its agencies and other parties, on matters affecting their business.

     

  • Rate cutting: Insurers accept N3000 on third party motor insurance

    Rate cutting: Insurers accept N3000 on third party motor insurance

    Insurers charge as low as N3000 premium for third party motor insurance as against a flat premium of N5000, investigations by The Nation have revealed.

    This is despite measures by the National Insurance Commission, to stem rate cutting in the industry.

    Third Party Motor Insurance is mandatory for vehicle owners and is fixed at a flat premium of N5000.

    Sources said rate cutting has eaten deep among insurers and brokers and has continued to affect the industry negatively.

    One of the sources, an insurer, alleged that insurers are engrossed in bad competition and are accepting rates that are not commensurate with claims that may occur in future.

    “It is saddening that some insurers are accepting as low as N3000 premium on third party motor insurance that is fixed at N5000,” he lamented.

    He added that the same rate cut applies to other types of insurance cover, stressing insurers are killing the industry’s growth by their unprofessional act.

    “This is part of the reasons the industry has not been able to achieve the set premium target of N1 trillion,” he added.

    A broker, who admitted the problem has become a menace that may not leave the industry soon, blamed insurers.

    She said insurers are the ones promoting rate cutting because they accept these terrible rates from the brokers.

    “If insurance companies ensure they do not go below a particular premium rate, the brokers too will be forced to accept the right rates from the market.

    “They are accepting rates contrary to what their reinsurer ask them to collect. I believe things can be better if insurance companies can be ethical, professional and stick to a fixed rate or not cut it below what they can use to pay claim,” she said.

    Two weeks ago, the Nigerian Insurers Association (NIA) set up a rating committee to determine minimum rates for some risks in the industry. The move was to stem rate cutting and establish uniform standard in the pricing of risks in the industry.

    Managing Director, Sovereign Trust Insurance Plc and member of NIA council, Mr Wale Onaolapo, who heads the committee, is to determine the minimum rates on motor insurance, group life, industrial all risk, money and fidelity guarantee for banks.

    Before now, the association had advocated the enforcement of minimum rates in the market because of the inability of insurance companies to charge economic rates in business underwriting, which weakened their financial capability to meet obligations to stakeholders in the market.

     

  • Micro insurance: African insurers mull ILO initiative

    The Managing Director, Custodian Life Insurance, Mr Larry Ademeso, has said insurance companies in Africa have started moves to take advantage of the International Labour Organisation (ILO) Micro Insurance Innovative Facility to develop micro insurance.

    Ademeso, who is also a member of the African Insurance Organisation (AIO) Committee, said the focus of the project being driven by the Micro Insurance Committee of the AIO, is to leverage on the facility’s experience, innovation, human resources, training, exchange, products and other supports to develop micro insurance among African countries.

    Speaking on the just concluded African Insurance Organisation (AIO) Conference in Cairo, Egypt, Ademeso said the committee members, who had some teleconferences ahead of the event, met in Cairo to review its work and set agenda for Africa that would enable it access the ILO Micro Insurance programmes.

    He said the resolution of the meeting was that some African countries were putting their houses to develop their micro insurance market. “I see Nigeria playing key role in the arrangement, given our population and the fact that our penetration level is still very insignificant,” he said.

    The Nigerian Deputy Commissioner for Insurance, Ibrahim Hassan, who was at the Committee Meeting spoke on what the National Insurance Commission (NAICOM) was doing on regulation to ensure the effective take-off of micro insurance in Nigeria, he said.

    “I can tell you that everyone at the meeting agreed that Nigeria was doing quite a lot to explore this opportunity,” Ademeso said.

    “We will continue to interact and one of the highlights of that meeting too was sharing experience among the members. So, we interacted with some of the members from more micro insurance developed markets, especially Kenya in East Africa, Zimbabwe in the Southern Africa.”

    For instance, a lady from Zimbabwe demonstrated how insurance industry in Zimbabwe have been able to sell their life insurance products through the churches, and what that tells me is that we can actually expand our distribution channels to reach more of our population’” he added.

    Based at the International Labour Organisation’s Social Finance Programme, the Microinsurance Innovation Facility seeks to increase the availability of quality insurance for developing world’s low-income families to help them guard against risk and overcome poverty.

    The facility was launched in 2008 with support from the Bill & Melinda Gates Foundation to promote the extension of better insurance to the poor. Additional funding came from several donors, including the Z Zurich Foundation and AusAID.