The Nation Newspaper

Tag: Insurance

  • ‘Insurance panacea for nation’s growth’

    Insurance plays a critical role in an economy’s savings for productive investment and growth, an octogenarian and industrial giant, Deacon Gamaliel Onosode, has said.

    He spoke at the yearly International Education Conference of the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.

    He said the insured, insurer and the nation would be better off if lives and properties are insured.

    The event has as theme: The nation in transformation: Repositioning the insurance industry.

    He called on the public to take advantage of insurance, urging insurers to ensure prompt payment of claims.

    If this is done, he said, insurance business would prosper while the nation would also gain from boost.

    Onosode, who was the Special Guest of Honour at the event, called on insurers to embrace discipline, adding that for an organisation to grow, there should be commitment to discipline.

    Prof. Pat Utomi, Founder and Chief Executive Officer (CEO) Centre for Values in Leadership (CVL), said using pooled risks to reduce uncertainties should be a major role insurers must play in the nation’s transformation.

    Speaking on the topic, Leadership and strategy governance challenges in a transforming economy, he said insurers should also play the role of developing venture capital in its investment and engage in risk and capital formation in the long term.

    He called on insurers to be more proactive and rise to the challenge of questioning whatever seems inimical to growth and development.

    Utomi said Nigeria has the potential to become great in the comity of nations if people contribute their best to it.

    Chairman, First Bank Capital, Mrs Ibukun Awosika, called on insurers to fashion new products that could support industries.

    Outgoing President of the institute, Dr. Wole Adetimehin, pointed out that Nigeria’s transformation is evidenced by activities in both public and private operations in the economy.

    He, however, noted that the conference contemplated the challenges of transforming financial services equation, with emphasis on issues in the financial and regulatory intermediation by the regulatory bodies such as the Central Bank of Nigeria (CBN) and the National Insurance Commission.

    He added that the conference’s theme was borne out of the institute’s commitment to the provision of platforms for continuous professional education and the need to engage its members in constructive revaluation of the business environment.

    “As professionals, our contributions to nation-building cannot be overemphasised. The on-going transformation process which our nation is passing through represents the most critical phase of nationhood and therefore requires our collective support as Insurance professionals, especially at a time when the most challenging and unprecedented developments continue to threaten our co-existence as citizens of one nation,” he said.

     

  • Five years after, enforcement of compulsory insurance shaky

    About five years into the implementation of five major compulsory insurance in the country by the regulatory authority, the National Insurance Commission’s (NAICOM) enforcement seems shaky.

    The compulsory insurance was introduced by the commission through its Market Development Initiative (MDRI) programme and made compulsory by law by the Insurance Act 2003 and other sister legislations.

    They include Group Life Insurance in line with the PenCom Act 2004; Motor Third party Insurance covered by Section 68 of the Insurance Act 2003; Buildings under Construction covered by Section 64 of the Insurance Act 2003; Occupiers Liability insurance covered by section 65 of the Insurance Act 2003 and Health Care Professional Indemnity Insurance under Section 45 of the NHIS Act 1999.

    The MDRI project, according to the Commissioner for Insurance, Mr Fola Daniel, is designed to be a medium-term project that would install the first phase of reforms in the areas of industry capacity, market efficiency and consumer protection in the country, adding that the project would be effective between 2009 and 2012.

    Daniel also said it is expected to expand the industry to generate a projected income of N1trillion gross premium last year, a figure he said is capable of significant contribution to the nation’s Gross Domestic Product (GDP).

    But, as at end of last year out of the projected N1trillion through the MDRI, only about N200million was generated.

    NAICOM appears to be suffering a major setback in enforcing the law against erring members of the public as it was discovered that the commission lacked the enforcement power like the National Pension Commission (PenCom) to carry out necessary actions following enforcement take-off plan which began in September 2011.

    Offenders in this case will be vehicle owners, landlords, builders and doctors, who do not have the necessary insurance to protect third party’s lives and properties.

    The Commission in 2011 began enforcing the law with a combined team of the Police, Federal Road Safety Commision (FRSC), Fire Service officers, the Insurance Consumers Association of Nigeria and NAICOM officials. At present, none of these officials were on ground to arrest and enforce these laws against erring persons.

    Investigations by The Nation reveal that many landlords are not aware of the Occupiers Liability insurance or Buildings under Construction insurance while some are non-chalant.

    A landlord in Lagos, Alhaji Wasiu Oladele, who does not want his address stated, simply said he has heard about the law, but he does not have it.

    Another landlord, who also spoke on condition of anonymity, said he was not aware of the law and as such did not insure his property.

    Head, Corporate Affairs of NAICOM, Rasaaq Salami, told The Nation explained the commission’s challenges and constraints.

    He said: “Enforcement is not only when you go out to raid people and arrest them but having the powers to execute the law.

    “If you go and arrest and you don’t have the powers to execute, the police cannot detain them for more than 48 hours before they are released.”

    Salami, however, disclosed that the commission was working on guidelines that would address the challenges.

    Leadway Assurance Ms. Adetoun Adetona said the implementation and enforcement lie with the government at state and federal levels while insurers can only build awareness.

    She pointed out that the motor insurance, which is an initiative of the Nigeria Insurers Association (NIA), is making progress, noting that builders’ liability is suppose to be supported by the Fire Service in terms of enforcement.

    “While NIA is working on the NIID—for the success of the motor insurance, we expect the Fire Service to enforce builders’ liability effectively because the police cannot be going into buildings to inspect if they have the necessary insurances.

    “There is need for the industry to engage the Fire Services to enforce the law on building liability just like the NIA that is taking care of third party motor insurance”, she said.

  • Niger Insurance assures of efficient services

    Policyholders of Niger Insurance PLC have been assured of full compensation should the need arise.

    In a statement, its Managing Director Mr Kola Adedeji, stated that the firm’s primary business is to satisfy its customers.

    Adedeji, who acknowledged that the level of disposable income in the country was low, pointed out that with the population of the country in excess of 160 million, there exists huge insurance potential.

    He stressed the company’s resolve to ensure prompt payment of benefits to policyholders, the reason for opening a dedicated account for claims and commission payment to prevent undue delays in claims administration and settlement.

    He said the underwriting company was being reengineered for better services and more innovative products, which would better meet the needs of the insuring public and endear insurance to them.

    He noted that though the organisation has ensured that its customers were properly catered for, it focuses more on the need for customers to know their specific needs, meet those needs and surpass clients’ expectation.

    He said: “The company is striving to ensure that more members of the public embraced insurance culture while concerted efforts are being made to enlighten them so they would know what they stand to benefit by patronising the insurance industry.

    “A building was devoted to the agency operations of the company so that people can have access to insurance products and services offered by the insurance firm wherever they might be in the country.”

     

    In order to ensure financial stability and exude confidence in its services to customers, the firm has also put in place reinsurance treaties with local and foreign reinsurance companies led by Swiss Re, he said.

    Established in 1962, Niger Insurance is fully computerised with the most advanced software technology, the statement added.

  • ‘No premium, no cover policy boosts insurance’

    ‘No premium, no cover policy boosts insurance’

    Liquidity has improved in the industry following the enforcement of ‘no premium, no cover’ policy by the regulator, the National Insurance Commission (NAICOM).

    Managing Director of Sovereign Trust Insurance Plc (STI), Mr Wale Onaolapo, told The Nation that he was excited over the enforcement of the policy.

    He said: “STI is reaping bountifully from the enforcement as business is moving and customers are warming up to the development.

    “Business is moving, liquidity has improved, renewals are being done and the development is positive.”

    Chairman, Ibadan Chapter, Chartered Insurance Institute of Nigeria, Mr Gbenga Falade, said the policy has been enforced such that no insurer was ready to offer cover on credit.

    Falade added that the financial report of the industry could be accurate as premiums are collected upfront.

    “The industry is very serious about the no premium, no cover policy. No insurer is ready to pay heavy sanctions imposed by NAICOM. Brokers have also come to terms with the fact that the policy has come to stay,” he said.

    From January 1, this year, NAICOM said it was ready to enforce the law, which states that all insurance services shall be provided on ‘no premium no cover’ basis.

    After that date, any insurer, who grants cover without receiving premium or premium receipt notification from the relevant insurance broker, shall be liable to a fine of N50, 000 on each cover so granted.

    “All insurance covers shall be provided on ‘no premium no cover’ basis. Consequently, only cover for which payment has being received, directly by the underwriter or indirectly through duly licensed insurance brokers, shall be recognisable as income in the books of the insurer.

    “Cover may be granted on annual or time-on-risk basis. Irrespective of the period of insurance, underwriters should ensure that at any point in time, they have received directly or indirectly, through the insurance broker, the premium for the cover being granted.”

     

  • ‘SMEs need credit insurance’

    Nigeria needs a flexible credit insurance regime to boost its small and medium scale enterprises (SMEs), the Executive Secretary, Nigerian Association of Small and Medium Enterprises (NASME), Mr Eke Ubiji, has said.

    He said the scheme would assist the growth of trade, assure businesses of financial security and give confidence to banks as they would be more comfortable in funding companies, which have their receivables covered by credit insurance against payment defaults.

    He emphasised that the SMEs would need“strong insurance schemes”from their home base as businesses expand.

    Also, Chuke Nwude of Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Enugu, said the government should execute pragmatic programmes, including an insolvency component which have firms.

    He urged the government to pursue a reform agenda geared towards productivity gains with the ultimate goal of fostering growth.

    The Director-General,Kaduna Business School, Dr Dahiru Sani, said SMEs play a vital role in the economy, adding that they experience constraints when accessing formal sector finance.

    He said this is because of the high risk perception of small firms and inadequate collateral.

    This, he noted, justifies a compelling need for a flexible credit guarantee scheme.

    He said SMEs face constraints when accessing formal sector credit and this prevents them from achieving their full potential.

    Sani called for a review of the financial system, including corporate governance and local capital markets.

    The system, he explained, should help struggling companies.

     

     

     

  • Insurance policies yet to reach one million mark

    TEN years to its centenial anniversary in the country, the insurance industry has not been able to issue up to one million individual policies – in its motor, life or householders’ policies, the Group Managing Director Akin Ogunbiyi, Mutual Benefits Insurance, has said.

    His firm, he said, issued only 250,00 policies in three years.

    He assured of its firm’s preparedness to contribute to the development of the nation and the industry.

    He said the new goal of the company is to boost the economy, adding that the firm has through its micro finance bank reached-out to the uninsured at the grassroots.

    He said: “Mutual Micro Finance Bank today is into micro insurance and we have devised products and services that the common Nigerian people can actually buy. We have products for as low as N50.

    “Our products are affordable and they meet the needs of the people; that was why when we approached the National Insurance Commission (NAICOM), we made a presentation to them as to the objective we want to achieve using micro finance banks to drive micro insurance. As God will have it, they gave us the approval to invest in the bank.”

     

  • A & G Insurance holds road show

    A& G Insurance Plc has embarked on a road show to boost insurance awareness in the country.

    According to the company’s Director of Business Development and Strategy, Mr Dotun Onipede, the purpose of the show was to create awareness for insurance business.

    “With the various developments taking place all over the world, including Nigeria, the relevance of insurance cannot be ignored. Nigerians must know that insurance is important. They cannot do without it,” he said.

    Onipede added: “At such a time like this that it has become imperative for insurance companies to create awareness for insurance, A & G Insurance Plc is leaving no stone unturned in the campaign.”

    The show tagged: ‘Insurance and You’ covered major streets in the ever-busy Lagos Island.

  • NIA: Vehicle insurance policies hit 1.5m

    About 1.5 million vehicle insurance policies have been uploaded into the industry’s database platform, the Director-General (DG), Nigerian Insurers Association (NIA), Sunday Thomas, has said.

    He disclosed this during a session with reporters in Lagos, adding that operators are still uploading data of new policies they registered.

    He said the association has procured 1,000 motor insurance electronic readers, out of which 25 units have been given to Ogun State Vehicle Inspection Officers (VIO), adding that the units have helped the agency to spot genuine policies.

    Thomas said the association was discussing with the Lagos State Government and that a date for the deployment of the devices in the state would be fixed soon. He said the association was planning to take the units to Abuja, the federal capital and the northern states.

    He noted that with the success achieved from the deployment of motor insurance data, the association would intensify efforts to ensure that before the end of the year, marine data would be deployed followed by property and other classes of insurance.

    NIA said it decided to start the deployment of electronic devices to Abeokuta, because historically, insurance in the country is traceable to the city, adding that the state also was one of the states to indicate interest in the project.

    The industry’s database project, which was conceived in 2010, to help develop robust information on insured vehicles, was launched in June, last year. It is an information technology-based system that will facilitate easy collation and dissemination of statistical and other information relating to insurance and help check activities of fake documents.

    The NIA promised to deploy over 500,000 electronic card readers to security agencies to verify genuine vehicle insurance licences.

    The project, according to NIA, would, among other things eradicate fake insurances and minimise instances of fraudulent claims, provide real time information that would address issues raised by stakeholders: insuring public, market players, law enforcement agents and regulators as well as serve as source of historical data for analysis and benchmarking, thereby providing qualitative analysis of industry performance.

    The initiative will enhance transparency and accountability and restore confidence in the insuring public, create the basis for scientific management of operations in the industry and it will enable the tracking of transactions in the industry.

    Assessing the first quarter operations in the industry, the NIA DG said reports received so far are consistent with expectations. He said the No premium No Cover policy introduced by the industry regulator, the National Insurance Commission (NAICOM) has worked very well for its members as shown by the reports sent in by insurers.

    Thomas said many of the insurers have been able to record very high level of payments which is good for the system.

    “Ordinarily when premiums are calculated, it is with the intention that they will be collected as at when due and invested so that when claims arise the insurer will be able to pay. He said with the current situation, the industry is actually moving from what used to be the order to what should be,” he said.

    Thomas said in 2011, about 28 per cent of the total premium that arose from transactions remained as outstanding premium. He said the situation would not arise this year because of the No premium No cover policy.

    ”The first quarter has been good though not in terms of volume but in terms of real business, that is transacting the business and collecting the premium,” he said.

  • Ibinabo steps up Health Insurance Scheme for colleagues

    Ibinabo steps up Health Insurance Scheme for colleagues

    EX-BEAUTY queen and President of the Actors Guild of Nigeria (AGN), Ibinabo Fiberesima, is about to deliver on the promise she made when she assumed office in 2012.

    Ibinabo is set to make the poor health of members a thing of the past as she has intensified efforts in making members of the Guild to embrace the health insurance scheme she promised during her inauguration.

    Before assuming office as the boss of AGN, many veterans had problems with their health which caused them to solicit for help from the government and kind-hearted Nigerians.

    As a way of changing the situation, Ibinabo initiated a health insurance scheme to handle actors’ health challenges. She has also embarked on a tour of some South-South states in a bid to enlighten members on why they should embrace the idea.

    Already, she has visited Bayelsa, Cross River, Rivers and Akwa-Ibom States for the programme.

  • Standard Alliance girl wins Miss Insurance pageant

    A staff member of Standard Alliance General Insurance, Miss Sadiq Sefiya, has won this year’s Miss Insurance pageant organised by the Chartered Insurance Institute of Nigeria (CIIN).

    The pageant, which held in Lagos, was keenly contested by 12 ladies from different underwriting firms.

    Miss Cole Oluwayemisi of Anchor Insurance emerged the First Runner-Up and Ogunkoya Tolulope of AIICO Insurance was the Second Runner-Up.

    Miss Sefiya, who was excited, said she never gave the contest a thought when it was announced, adding that she made up her mind to participate at the last minutes.

    She said her boss and family members encouraged her to participate in the contest.

    The insurance Queen went home with the Star Prize is a Kia Picanto Car sponsored by Unity Kapital assurance Plc, while the First Runner-up and Second runner-up took prizes sponsored by Standard Alliance Life and African Alliance Insurance Plc.

    The President CIIN, Dr. Wole Adetimehin, said the pageant is organised to harness the potential of young ladies in the industry and by extension deepen insurance awareness.

    He urged the Queen to live up to the expectations, adding that the standard set by former queens has to be sustained.