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Tag: Insurance

  • ‘Embrace digital transformation for insurance penetration’

    ‘Embrace digital transformation for insurance penetration’

    Enterprise Life is leading the charge in advocating digital adoption across the insurance industry to enhance financial inclusion and education for Nigerians.

    In a virtual Q&A session themed “Digital Transformation in Africa Insurance,” the Managing Director/CEO of Enterprise Life Nigeria, Funmi Omo, highlighted the critical role of digital technologies in reshaping the insurance landscape.

    Omo explained how digital platforms, artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), data analytics, and blockchain technology are disrupting traditional insurance models.

    Addressing the specific needs of the African market, she underscored the importance of developing user-friendly insurance apps optimised for low-bandwidth connections and offline capabilities, offering flexible payment options, and providing 24/7 customer support.

    She emphasised the role of innovative products like AdvantageConnect, the company’s digital insurance platform leveraging geolocation technology to enhance customer interactions and efficiency. “Prospective and existing customers can connect with any of our LifePlanners closest to them, to access a range of services, and receive a tailored policy in less than five minutes,” Omo explained.

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    Omo also acknowledged the challenges traditional insurers face during digital transformation, such as integrating legacy systems, overcoming cultural resistance, securing the right talent, navigating regulatory hurdles, and ensuring data privacy and security.

    “Modernising legacy systems is complex and costly, but it is essential for a more efficient and responsive service,” she noted.

    Furthermore, Omo highlighted the transformative potential of AI and ML in expanding coverage to underserved segments by analysing alternative data sources and automating claims processing. She underscored the importance of upskilling employees and fostering a culture of innovation, suggesting the establishment of dedicated innovation labs and cross-functional teams to drive collaborative efforts.

    Despite regulatory challenges, Omo pointed out that the rise of insurtech has significantly boosted financial inclusion. She emphasised the significance of balancing innovation with trust to ensure customer confidence and compliance. “Insurers who can strike the right balance between innovation and trust will be well-positioned to thrive in the digital age,” Omo noted.

  • Best Auto Insurance Companies in Nigeria for 2024 Revealed

    Best Auto Insurance Companies in Nigeria for 2024 Revealed

    Are you in the market for a reliable Auto Insurance provider? Look no further! In this comprehensive guide, we’ll unveil the top best auto insurance companies in Nigeria for the year 2024. Whether you’re a seasoned driver or a recently licensed one, protecting your vehicle and your finances should be top priority. With so many options out there, choosing the right Auto Insurance company can be a daunting task. But fear not, we’ve done the research and compiled a list of the crème de la crème to help you make an informed decision.

    Why Auto Insurance Matters

    Before we dive into the top contenders, let’s take a moment to appreciate the importance of Auto Insurance. Driving on Nigerian roads can be unpredictable, and accidents can happen to even the most cautious drivers. Without adequate insurance coverage, you could find yourself facing exorbitant repair costs, legal fees, or worse – financial ruin.

    Auto insurance not only protects your vehicle but also provides liability coverage in case you’re involved in an accident that causes injury or damage to others. It’s a safety net that gives you peace of mind on the road, knowing that you’re prepared for the unexpected.

    Top Best Auto Insurance Companies in Nigeria for 2024

    After extensive research and analysis, we’ve compiled a list of the top best auto insurance companies in Nigeria for 2024. These companies have proven their commitment to providing exceptional coverage, competitive rates, and outstanding customer service.

    1. Leadway Assurance Company Limited

    At the top of our list is Leadway Assurance Company Limited, a trailblazer in the Nigerian insurance industry. With a reputation for reliability and customer-centric service, Leadway Assurance offers a wide range of auto insurance products tailored to meet the diverse needs of Nigerian drivers. They have the Comprehensive Auto Insurance, Third-party Auto Insurance, Third Party (Autobase) Insurance and Third Party (Fire and Theft) Insurance..

    2. AIICO Insurance Plc

    AIICO Insurance Plc has established itself as a formidable player in the auto insurance market. Known for their innovative product offerings and transparent pricing, AIICO has garnered a loyal customer base who appreciate their commitment to delivering value.

    3. Sovereign Trust Insurance Plc

    Sovereign Trust Insurance Plc is a name synonymous with excellence in the Nigerian insurance sector. Their auto insurance policies are designed to provide comprehensive coverage while remaining affordable, making them a popular choice among cost-conscious drivers.

    4. Cornerstone Insurance Plc

    Cornerstone Insurance Plc has carved a niche for itself by offering specialised auto insurance solutions for commercial and fleet vehicles. Their expertise in this domain has earned them a stellar reputation among businesses and transport companies across Nigeria.

    5. NEM Insurance Plc

    NEM Insurance Plc rounds out our list of the top best auto insurance companies in Nigeria for 2024. With a strong focus on customer satisfaction and efficient claims processing, NEM Insurance has consistently delivered on its promise of providing hassle-free auto insurance experiences.

    Choosing the Right Auto Insurance Company

    While our list highlights the top performers in the industry, it’s essential to understand that the “best” Auto Insurance company is subjective and depends on your specific needs and preferences. Here are some key factors to consider when making your choice:

    1. Coverage Options: Evaluate the range of coverage options offered by each company, including liability, collision, comprehensive, and any additional riders or endorsements that may be relevant to your situation.

    2. Pricing: Compare premium rates across multiple providers to find a balance between comprehensive coverage and affordability. Remember, the cheapest option may not always be the best choice in the long run.

    3. Customer Service: Stellar customer service can make all the difference when you need to file a claim or have questions about your policy. Look for companies with a proven track record of responsive and efficient service.

    4. Claims Process: Investigate each company’s claims process, including their turnaround times and reputation for fair and prompt settlements.

    5. Financial Stability: Ensure that the Auto Insurance company you choose has a strong financial standing and the ability to meet its obligations when claims arise.

    Get Started with the Best

    Now that you’re armed with the knowledge of the top best Auto Insurance companies in Nigeria for 2024, it’s time to take action and secure the protection you and your vehicle deserve. Reach out to the companies on our list, request quotes, and compare their offerings to find the perfect fit for your unique needs.

    Remember, Auto Insurance is an investment in your peace of mind and financial security. By choosing one of the top best auto insurance companies in Nigeria, you can hit the road with confidence, knowing that you’re prepared for whatever lies ahead.

  • ‘Re-pricing insurance necessary to retain value’

    ‘Re-pricing insurance necessary to retain value’

    With the devaluation of currency, most sum-insured have become grossly inadequate hence the need for an upward review of insurance premium, Chief Executive Officer, FBS Reinsurance, Mr. Fola Daniel, has said.

    He said the review will ensure that the insured pay adequate premium and receive adequate claims when it arises.

    He spoke on the sideline of a training programme on Fire Insurance & Reinsurance Accounting jointly organised by FBS Re & Munich Re in Lagos.

    He noted the need to upscale the values is in line with inflationary trends, noting that when this is done, the insurable interest will be higher and the premium derivable from it would also be high.

    He explained that a vehicle insured for N60 million last year cost about N200 million this year and so even if insurers pays him or her N60 million, he will still not have enough money to buy it.

    He stressed that insurance companies must earn commensurate premium to be in position to settle claims when it occurs.

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    He said: “There is a need to revise upward the sum insured. If you bought a vehicle for N80 million last year and you continue to insure it, may be with best valuation of 25 per cent and you insure for N60 million, it makes good sense. But insurance is about indemnity, placing you in the position you occupied before the loss.

    “So, a vehicle for N80 million last year with massive devaluation is selling for N200 million today. Meanwhile, the vehicle owner has insured for N65 million based on book devaluation, you can see that he virtually has no insurance because even if he is given N65 million, he would never be able to buy a car. This is one of the effects of the devaluation.

     “Let us relate this to building. As at April of last year, a bag of cement was probably N5000 but by April this year, cement was selling for N12,000. So, if you valued your property, looking at the factors of production – cement, labour and others and you said the building is worth N10 million. A N10 million indemnity today will not build a house”.

    He emphasized that the impact of increased premium will ensure adequate compensation.

  • Insurance industry pledges to propel Nigeria towards $1trillion economy by 2030

    Insurance industry pledges to propel Nigeria towards $1trillion economy by 2030

    The recently appointed Commissioner for Insurance, Olusegun Ayo Omosehin, has outlined a bold vision for the insurance industry that aligns with President Bola Tinubu’s goal of propelling Nigeria towards a $1 trillion economy by 2030.

    Omosehin made this known as he assumed office as the new commissioner for Insurance, succeeding Olorundare Sunday Thomas in Abuja on Friday, May 3.

    Addressing the pivotal role of the insurance sector in this monumental economic endeavour, Omosehin stated: “We are an integral part of that financial service sector that must make Nigeria a $1 trillion economy by 2030 happen and that puts on us a very heavy burden to deliver.”

    Omosehin stressed that President Tinubu wants Nigeria’s economy to reach $1 trillion by 2030, with a big part of that coming from the insurance industry.

    Acknowledging the challenges ahead, Omosehin reassured stakeholders of the commission’s unwavering commitment to upholding utmost probity in ensuring a safe, sound, and stable insurance sector.

    Quoting President Tinubu, he underscored the mandate entrusted to the commission, emphasizing his transition from operator to regulator.

    “We are committed to exercising utmost probity in ensuring a safe sound and stable insurance sector while protecting policyholders, and public interests as well as improving trust and confidence in the Nigerian insurance sector,” Omosehin affirmed.

    Furthermore, Mr. Omosehin called for collective optimism and dedication as the industry navigates this new chapter. He noted the importance of embracing innovation, leveraging technology, and fostering a culture of excellence to enhance processes and meet regulatory obligations effectively.

    Read Also: NDIC increases deposit insurance coverage for depositors

    Recognizing the pivotal role of the National Insurance Commission (NAICOM) in shaping the Nigerian insurance landscape and safeguarding policyholders’ interests, Mr. Omosehin stressed the social responsibility essential in the insurance business.

    He vowed to strengthen the industry’s social safety net to ensure its reliability and accessibility to all Nigerians.

    In his address, outgone Commissioner for Insurance, Olorundare Sunday Thomas highlighted the achievements during his tenure, including automation initiatives and strategic partnerships such as across Africa. He also lauded the establishment of the College of Insurance Supervisors, facilitating seamless interaction across West African borders and averting regulatory disputes.

    Under Thomas’s stewardship, NAICOM issued several guidelines and spearheaded initiatives to enhance regulatory compliance, notably in International Financial Reporting Standards (IFRS). Mr. Thomas commended the collaborative efforts that propelled Nigeria ahead in IFRS compliance within the African continent.

    As Nigeria stands at a pivotal juncture, poised for both growth opportunities and regulatory challenges, the new leadership of NAICOM under Omosehin pledges to listen, learn, and lead with integrity, transparency, and inclusivity.

    They welcome feedback and practical suggestions to propel NAICOM towards becoming a beacon of excellence in insurance regulation and a source of national pride.

  • Southwest generates highest insurance business

    Southwest generates highest insurance business

    • As Northeast records lowest

    The Northeast has emerged the least region where insurance is accepted as it generates the lowest Gross Premium Income (GPI) of N506.8 million out of N600.4 billion recorded in the insurance sector as at Quarter 4, 2022, The Nation has learnt.

    This was found in the Nigeria Insurance Digest 2022 newly released by Nigeria Insurers Association (NIIA) and exclusively obtained by the newspaper.

    The Southeast followed as the second least region with low sales generating N2.7 Gross Premium Income (GPI) in the period under review.

    On the other hand, the Southwest produced the highest premium income for the insurers standing at N289.6 billion out of the total income of N600.4 billion.

    Northcentral on its part produced N31 billion while Southsouth produced N10.6 billion and Northwest N6.6 billion.

    Analyses of the region showed that in the Southwest, Lagos State alone generated N282.1 billion, while Oyo generated N4.7 billion; Ogun N1billion; Ondo N936.7 million; Osun N627.3 million; and Ekiti N235.5 million.

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    In the Northcentral, Abuja led with N23.6 billion; followed by Kwara N4.6 billion; Plateau N387.6 million; Niger N81.9 million; Benue N50.3 million; Kogi N28.3 million; and Nasarawa N9.7 million.

    However, the Southsouth, Rivers produced premium income of N10.6 billion; Delta N1.4 billion; Edo N948.4 million; Bayelsa N432.4 million; Cross River N403.8 million; and Akwa Ibom N316.2 million.

    In the case of Northwest, Kano generated N3.5 billion; Kaduna N2.5 billion; and Sokoto N270.9 million.

    Further analysis showed top insurance product sellers in the regions as Leadway Assurance Co. Limited followed by Custodian and Allied Ins. Limited; AXA Mansard Ins. Plc; NEM Ins. Plc; AIICO Insurance Plc; Mutual Benefits Ass. Plc; Zenith General Ins. Co. Limited; Cornerstone Ins. Plc; Royal Exchange General Ins. Co. Limited; Sovereign Trust Ins. Plc; and Linkage Assurance Plc.

    These companies who sold the highest generated the highest premium income and are more present in the regions.

  • Experts chart new path for insurance

    Experts chart new path for insurance

    Experts have charted new growth narratives for the insurance sector, identifying low insurance awareness, education and penetration as its bane.

    They canvassed a strong need for insurance operators to think innovations, leveraging technology to chart new distribution channels for insurance products and services.

    The experts spoke at the maiden Insurance Summit of The Independent tagged: “Inclusive insurance: navigating the new narratives for sectorial growth” in Lagos.

    The event attracted insurance  chieftains, regulators, Lagos State Police Command, students of higher institutions, analysts and women entrepreneurs, among others.

    In his keynote address, the immediate past Commissioner for Insurance, National Insurance Commission (NAICOM), Olorundare Sunday Thomas, represented by Ajibola Bankole, a Deputy Director at NAICOM, noted the progressive trend of the sector occasioned by positive market performance at the close of 2023 fourth quarter.

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    According to him, the industry has sustained its progressive trend of positive market performance recording a milestone growth to close at N1.003trillion, representing about 27per cent growth compared to the N790 billion recorded in 2022.

    He stressed that despite this achievements, Nigeria’s insurance sector is still largely underexplored, with the industry’s penetration at less than 1per cent of gross domestic product (GDP).

    Group Chief Executive Officer, Consolidated Hallmark Holdings Plc, Eddie Efekoha noted that since NAICOM came up with an insurance bill in 2003, the public understanding of insurance, particularly among the retail service, has gradually improved while its penetration rate has increased.

    He stressed the need for the sector to create awareness through partnership and initiatives.

    Managing Director/Chief Executive Officer, Royal Exchange General Insurance Company Limited, Ebelechukwu Nwachukwu, believes that the industry has evolved in the past 10 years.

    She stated that the industry has come a long way from a focus to serve the corporate market to focusing, very significantly, on serving the retail market and the other side of the economy with a shift agriculture insurance.

    Nwachukwu acknowledge that technology and digitalisation havehelped their inclusion journey significantly.

    She urged operators and other stakeholders in the industry to collaborate with the regulators, the banking sector, entertainment industry as well as agriculture and other sectors, noting that by so doing the insurance sector will drive the desired change.

    Lead Strategist at Avalon Media Group and panelist, Ayodele Adio called for a policy action by the insurance operators to ensure strategic marketing and campaign that would reposition the industry for its desired growth.

  • Insurance coach praises Players

    Insurance coach praises Players

    Assistant coach of Bendel Insurance Greg Ikhenoba has praised the patience of his players who came back from a goal down to beat Kano Pillars in Benin City.

    The coach nonetheless decried the gamesmanship of their opponents, Sai Masu Gida who deployed delay tactics just to ensure they hold on to their 1-0 advantage.

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    “I must commend the boys, they reacted well in the second half and got rewarded with two goals, Ikhenoba, who was the Golden Eaglets goalkeeper to Japan 1993 FIFA Under 17 World Cup which Nigeria won, said.

    “You could see the antics of our opponents as they started delaying the bane after their first-half lead goal.

    “I’m happy that we were able to come back into the game and win”, he said.

  • Institute urges businesses to embrace insurance

    Institute urges businesses to embrace insurance

    The Chartered Insurance Institute of Nigeria (CIIN) Abuja Chapter has admonished individuals and businesses to embrace insurance for risk mitigation and financial stability.

    President-Chairman of the Council, Edwin Igbiti CIIN said this during the investiture of Owolabi Abbas as the Chairman of the CIIN Abuja Chapter.

    He said the ceremony underscored the pivotal role of insurance in the current economic landscape.

    Igbiti highlighted the importance of insurance in mitigating various risks faced by individuals and businesses, emphasising its role as a catalyst for economic development by providing a safety net for investors and entrepreneurs, thereby encouraging investment and entrepreneurial activities.

    Addressing newsmen in Abuja at the 2024 investiture, Igbiti stated that the event featured insightful discussions on Nigeria’s economic development and the crucial role insurance professionals play in fostering growth and prosperity.

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    The new Chairman of the CIIN Abuja Chapter, Abass said insurance play crucial roles by supporting small and medium-sized enterprises (SMEs) and enhancing their financial stability.

    He noted that insurance coverage acts as a crucial factor for lenders, increasing their willingness to extend credit to businesses.

    Abass stated that the investiture ceremony and inauguration of the chapter executives served as a platform to underscore the indispensable contribution of insurance professionals to Nigeria’s economic development.

    He said: “The CIIN Abuja Chapter expressed its commitment to promoting awareness and understanding of insurance to drive positive economic change in the region.”

  • NEC mulls insurance against natural disasters for Nigerians

    NEC mulls insurance against natural disasters for Nigerians

    In a bid to shield Nigeria from unanticipated natural disasters like earthquakes and floods, the National Economic Council (NEC) is considering insuring Nigerians.

    The NEC which is currently being chaired by Vice-President Kashim Shettima, rectified the decision to insure Nigerians against natural disaster during its council meeting on Thursday.

    NEC is the statutory body that advises the president on economic issues and policies.

    Speaking at the end of the meeting, the Minister of Budget and Economic Planning,  Atiku Bagudu, disclosed that African Reinsurance will be saddled with the responsibility of providing insurance against natural disasters for Nigerians.

    Bagudu said the decision to consider African Reinsurance was informed by the company’s “support to Morocco” during the devastating earthquake that struck the north African nation in September.

    “Among other items, the National Economic Council under the chairmanship of His Excellency Vice President, Kashim Shetima considered, was a presentation by the Chief Executive Officer of African Reinsurance which is the leading insurance company in Africa,” Bagudu said.

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    “They made a two-fold presentation; one on natural catastrophe insurance that can be utilised to protect the nation against natural catastrophes like flooding and other disasters.

    “This is particularly so, as observed by the vice president, that Morocco recently had a devastating earthquake and Africa Reinsurance, leading other insurance outfits, provided over $270 million support for those who were affected because they were insured.

    “And His Excellency felt this is an opportunity for Nigeria to also introduce natural catastrophe insurance with the likelihood the Nigerian government will provide the support in that regard.”

    The minister added that the proposed policy would also benefit small-scale holders, pastoralists, and Nigerian farmers.

  • ‘Adopt Heirs Insurance Group digital framework’

    ‘Adopt Heirs Insurance Group digital framework’

    The Managing Director/CEO, Heirs Life Assurance, Niyi Onifade, has urged insurance regulators to adopt Heirs Insurance Group’s digital framework as the minimum standard to drive insurance accessibility and service quality. 

    Onifade made the call at the second United Capital Securities’ Insurance CEO Breakfast Forum in Lagos.

    The Commissioner for Insurance, Mr. Sunday Thomas commended Heirs Insurance Group for their immense contributions to the   industry.

    He said: “The commission is committed to supporting every initiative that will increase insurance adoption in the country.’’

     He also  said the commission is focused not only on compliance, but also on a wider process that would transform the entire insurance market.

    Onifade emphasised the important role technology plays in bringing customers closer to insurance.

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    He said: “We realised that we must be digital from day one and, thus, we embraced digital tools from the start and drove insurance education heavily through our social media platforms and other digital channels.”   

    He cited the deliberate steps the companies within Heirs Insurance Group have taken to lay a strong digital and technology foundation for its service. Onifade further outlined how the infusion of technology has been pivotal in revolutionising the overall customer experience at Heirs Insurance Group saying, “we have championed digital transformation to ensure our customers not only find insurance accessible but also experience a level of service that aligns with their expectations.”   

    Themed “Technology as a critical driver of growth and transformation in the Nigerian insurance landscape,” the forum had in attendance the Commissioner for Insurance, Mr. Sunday Thomas; Group MD/CEO, United Capital plc, Peter Ashade; MD/CEO, Heirs General Insurance, Wole Fayemi; Professor Olayinka David-West, and other executives from the Nigerian financial industry.