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Tag: Insurance

  • H. Pierson Associates partners Dutch firm on insurance

    A leading Netherland-based company, Second Floor SA, is collaborating with one of Nigeria’s foremost management consulting firms, H. Pierson Associates, to leverage its risk practice to support the insurance sector on risk-based supervision compliance and initiation of solvency II.

    This is as the Nigeria Insurance Commission (NAICOM) prepares to roll out the regulatory requirement for insurance companies in Nigeria. Insurance sector is the most populous sector at the Nigerian stock market.

    The collaboration between the two firms, offers the Insurance sector Risk-based Supervisory Compliance Consulting, GRC and Capital Management Consulting, Own-Risk Self-Assessment (ORSA) Tools as well as GRC and Solvency II Tools.

    Second Floor SA is a leading governance risk and compliance (GRC) and Solvency II solutions provider in Europe. It serves about 20 per cent of the European insurance market and supports over 500 solo entities.

    Second Floor has great experience working for European Insurance regulatory authorities and operators in driving risk-based supervision and solvency II migration.

    1. Pierson, on the other hand, has spent a major part of its 28 years in providing Strategy, end-to-end risk management consulting, capacity building and risk-culture transforming solutions in the market.
    2. Pierson noted that the partnership’s tools offered to clients will be low priced model with free trial flexibility; this is believed to be key for Nigerian companies who are in a cost-conscious mode.

    Market analysts described the partnership as a welcome development which will change the face of the insurance industry.

    According to analysts, the partnership is a very welcome development as combining the joint expertise of H. Pierson and Second Floor will serve to further strengthen insurance companies, the regulatory landscape and the insurance sector in general.

     

  • Law Union & Rock Insurance

    Law Union & Rock Insurance

    …Solid as ever

    Of the 46 Non-Life Insurance Companies in Nigeria, Law Union & Rock (LUR) Plc certainly stands out as one of the strongest, most reliable and most customer-centric insurance companies.

    As one of the first generation insurance companies to open in Nigeria more than six decades ago, Law Union & Rock Plc has maintained its excellence in risk underwriting. With a rating of A- from Global Credit Rating of South Africa Plc., this implies that Law Union has high claims paying ability relative to other insurers in Nigeria.

    This rating from GCR also means that the company’s Capitalisation is likely to remain within a strong range over the rating horizon, supported by sound internal capital generation, strong liquidity profile and adequate claims cash coverage.

    Despite the harsh economic operating environment of 2017, Law Union & Rock Insurance Plc. against all odds recorded a premium of N4.25 billion for the year ended 31st December 2017.  The risk manager has maintained its consistent improvement since the new strategic plan of the company which was unveiled in 2016.

    The Managing Director, Mr Jide Orimolade said that through efficient underwriting practices yielding an Underwriting Profit of N1.06 billion, Law Union has been able to streamline operations to ensure prompt claims settlement and unpredicted customer service delivery.

    He disclosed that the company has Total Assets in excess of N10 billion and Shareholders’ Fund in excess of N6 billion, Cash at hand of about N4 billion, Investment Securities of approximately N2.4billion and Investment properties of roughly N1.4billion.

    In 2017, the company achieved a profit after tax of N848 million. This shows that the company is in strong financial position to meet any and all future financial obligations, he added.

     

    Our Products

    At LUR, the Customer always comes first. We are constantly looking for innovative ways to improve our service delivery and value propositions to our customers.

    Through our continuous product innovation Law Union & Rock has designed a bouquet of retail products which are tailored to meet the needs of the public and cut across all classes of Nigerians ranging from low to high income earners.

    Apart from the traditional insurance we have special e-products which are Home Guard and I-Care, Travel Card Insurance, Doctor-on-cover Insurance, i-Salute insurance and GPA-4-Schools Insurance. These products can be assessed through any of the company’s agency network and its website for ease of accessibility.

    The organisation has also developed various E-payment platforms to enable clients pay easily and avoid the rigors previously associated with premium payments. Customers can either pay in any bank of their choice, through Quickteller, POS terminals or Webpay. In 2018, Law Union & Rock will become a major player in the Digital Marketing space by creating content to sensitise the public about the importance of Insurance. This is the Company’s way of giving back to the Insurance Industry to help improve the low penetration rate prevalent within the Insurance Industry.

    All this in line with the company’s strategic initiative to create value for stakeholders, improve customer intimacy and achieve operational excellence.

  • Showcasing leading insurance firms

    Showcasing leading insurance firms

    There is poor perception of the insurance sector by the public. Despite efforts made by practitioners to change the image of the industry, most Nigerians still don’t have confidence in the sector. Many people do not know the benefits of insurance or where the closest insurance company is located. In this Special Publication on the insurance sector, The Nation showcases some insurance firms that can be trusted based on their financial results, prompt claims payment, good customer service and tailor-made products suitable for corporate organisations, households and individuals. Omobola Tolu-Kusimo reports.

    Many Nigerians do not have confidence in insurance policies and the reason is not far-fetched. Once upon a time, insurers either failed to pay claims promptly or renege on their contract with their clients.

    For the corporate entities, aside from the issue of trust, the sector didn’t have enough skills and capacity to carry their risks. Hence, some resorted to seeking insurance cover outside the country, while others did not bother to insure their businesses or assets.

    True, the sector was faced with issues of trust among the populace. It also had the problems of low level of appreciation of insurance and infiltration by quacks. This led to apathy towards insurance. Out of the population of 180 million, only 1.5 million Nigerians have one form of insurance or the other. Of the few users of insurance, some still have the highest level of dissatisfaction with the providers of financial services. The overall result of low patronage is the sector’s low contribution to the Gross Domestic Product (GDP) at less than 0.48 per cent.

    But the story has changed as insurance practitioners have been working hard to redeem the image of the sector. They now take claims payment serious, simplify the claims process for insured and pay promptly. They have also worked to improve their services and offer tailor-made products.

    Amid the hardship of recession in 2016, insurers helped restore businesses and protect families of insured Nigerians through payment of claims for losses worth N119.5 billion.

    This was shown in a report by the Nigeria Insurers Association (NIA) made available to reporters in Lagos.

    The amount was paid by 58 insurance companies that are members of the association. They comprise 15 specialist life insurance companies, 29 non-life insurance companies, 15 composite insurance companies and two reinsurance companies.

    A breakdown of the report shows that the 29 insurance companies offering non-life business paid N57.7 billion claims in the year under review, while the life business companies paid N61.87 billion.It also showed that the claims paid by the non-life companies increased from N54.65 billion in 2015 to N57.7 billion in 2016, representing an increase of 5.69 per cent while the claims for life companies increased from 50.5 per cent in 2015 to N61.8 billion in 2016, representing an increase of 15.84 per cent.

    Meanwhile, the non-life and life companies recorded about N315.97 billion insurance premium income in 2016.

    NIA Chairman, Eddie Efekoha stated in the report that the economy was confirmed to have slipped into recession for the first time in over two decades.

    According to him, this reflected economic shocks, inconsistent economic policies, and worsening security problems across the country, particularly the Northeast and renewed attacks on oil installations in the Niger Delta regions.

    The year, he said, was very challenging for the sector as it battled with low patronage, fragmented payment from major schemes, including government, as the slide in crude oil price resulted in downturn in earnings.

    He said other factors that the sector contended with include high inflation rate culminating in increased expenses, unfavourable foreign exchange spell leading to high reinsurance premium paid and claims settled on relevant portfolios.

    The regulatory body, the National Insurance Commission (NAICOM), in another report, said the sector lost N90 billion worth of insurance policies between 2016 and third quarter of last year as a result of recession, but the insurers still paid claims to insured Nigerians.

    According to NAICOM, the sector recorded a Gross Written Premium of N325 billion in 2016, but the figure declined to N235 billion by the third quarter of last year.

    Commissioner for Insurance, Mohammed Kari said the sector’s contribution to Gross Domestic Product (GDP), which defines insurance penetration level, stands at 0.48 per cent.

     

     The leading insurance firms

    In a Summary Report on Insurance Companies 2016 Financial Result, NAICOM said the performance of insurance companies was analysed based on various indices to determine the ones that made impressive outing in the year under review.

    The Nation brings to you some of the companies with good performance, prompt claims payment, good customer service and tailor-made products suitable for corporate organisations, households and individuals.

    Leadway Assurance Co. Limited, AIICO Insurance Plc, NEM Insurance Plc, FBN Life Insurance Limited, Consolidated Hallmark Insurance Plc (CHI), Wapic Insurance Plc, Law Union and Rock Insurance Plc, and Anchor Insurance Plc, impressed in their performance.

    In the report, the Life Business Statistics shows that the sector’s total Gross Premium Income (GPI) was N124.56 billion while gross claims paid stood at N67.2 billion.

    Leadway Assurance Company Limited led the pack with N31.58 billion, a GPI representing 25 per cent market share followed by AIICO Insurance with N22.17 billion representing 17.75 per cent.

    FBN Life also came in the top-performing companies with a N9.91 billion, representing 7.95 per cent.

    The statistics further shows that the Life companies paid huge claims. AIICO led the subsector with payment of N11.47 billion, FBN Life paid N2.06 billion and Wapic N0.66 billion

    The General Business Statistics shows that the GPI for the same period under review was N201.55 billion. Leadway Assurance had N21.54 billion, representing 10.69 per cent, NEM Insurance N10.62, representing 5.27 per cent, AIICO got N7.33 billion, representing 3.64 per cent, CHI had N5.71 billion, representing 2.83 per cent, Wapic had N5.21 billion, representing 2.59 per cent, Law Union had N3.96 representing 1.96 per cent and Anchor N1.96 billion, representing 0.97 per cent.

    The Non-Life companies also paid claims. Leadway paid N13.56 billion, AIICO Insurance N4.44 billion, NEM N4.13 billion, Consolidated Hallmark paid N1.76 billion, Law Union paid N1.45 billion and Wapic 0.07 billion.

     

    ‘Insured Nigerians should demand claims from insurers’

    The Executive Director, Leadway Assurance Co. Limited, Ms. Adetola Adegbayi, has urged insured Nigerians to demand their  claims from their insurers whenever an insured risk occurs.

    Adegbayi, who stated this during a chat,  noted that most Nigerians who purchased insurance policies were ignorant on when and how to make claims, adding that instead of going to their insurers to make claims, they bear the financial burden themselves.

    She said as a result of the fact that some insured don’t make claims, some overambitious  operators have cashed on this loopholes to rate-cut policies to unreasonable price, with the assumption that the insured will not demand for compensation.

    Because of the low rate they demand on their policies, she said, they, in most cases, outbid their competitors for businesses because their rates are lower and consumers always want to go for policies with lower rates.

    In the event of claims, she said, these overzealous underwriters do default, since the premium charged is not the actual value of the products.

    To this end, Adegbayi stressed that rate-cutting could be fought by Nigerians, if they begin to request for claims on their insurance policies, adding that when this happens, underwriters would sit up and charge the normal rates that could sustain them when claims arise.

    Explaining that an insurance company would be heavily sanctioned, if it defaulted in claims obligations, she charged Nigerians to report defaulting underwriting firms to law-enforcement agents, promising that necessary steps would be taken to pay claims to the aggrieved insured.

    She said policy prizing was becoming lower and the lower the policy, the riskier the business becomes, adding: “But for the mass market products, as the volume increases, the price reduces.’’

     

    Recipients of large insurance claims

    Insurance is an arrangement for protecting a person or entity from loss or risk. The aim is to restore the insured to his or her previous state only, not for profit or gain. The insurance contract should always be a contract of indemnity only and nothing more.

    According to the NIA 2016 Digest report, various insured organisations and individuals suffered losses in life and businesses, but were restored to their previous state.

    For instance, under the category of Motor Claims, AIICO Insurance paid Unity Bank/Ekiti Kete Mass Transit N17.72 million for five accidents, Dangote Cement Works-Ibese N4.15million for accident, Total Nigeria Plc N5.73million for Accident and Third Party Vehicle.

    AIICO also paid one Mr Asuquo N3.59 million for a Fire Incident, Animashaun Integrated Services N3.64 million for Accident, Christy Ndidiamaka N6.07 million for Theft, Rem-Bam Nigeria Limited N41.99 million for Accident and Theft.

    Julius Berger Nigeria Plc had an accidental damage and was paid N12.22 million by Law Union and Rock Insurance Plc. In addition, NEM Insurance Plc paid N21.80 million to Lanre Shittu Motors Nigeria Limited for Accident.

    Besides, NEM Insurance paid MP Infrastructure Limited N7.8 million for Accident, A.Y. Hussaini & Sons N6.17 million for Accident, Valentina Abuta N6.64 million for Theft, Isigwe Uzoagu N6.16 million for Accident and Ehido Nigeria Limited N5.23 million for Accident

    Under the individual life claims, FBN Life paid a family N18 million benefit for the death of one Mr. Mohammed.

    For the Group Life, FBN Life now FBNInsurance paid Prime Services FZE N4.16 million for death claims, Honeywell Flour Mills N11.43 million, Friesland Campina Wampco N10.51 million, Seplat Petroluem N4.034 million, Petroleum Technology Development Fund and Seplat Petroluem N4.27 million.

    Also under Fire Claims category, Law Union & Rock paid N4.04 million for Explosion, Harrow Park Mini Golf Course N4.5 million for Flood and Livesstock Feeds N4.84 million for Fire Incident.

     

  • Insurance is evolving, says NEM MD

    Insurance is evolving, says NEM MD

    The Managing Director of NEM, Tope Smart, speaks on the comapany, the industry and the economy. Excerpts:

    The negative perception of the insurance industry by Nigerians seems to persist. Is there any reason they should change their mind?

    Yes, there is every reason Nigerians should change their mindset about insurance. The sector has come of age, even though we are still evolving. The major challenge we have now is low awareness and because of the past image of the industry, people are a bit sentimental. In those days, companies were not paying claims, people were not responsive and we had to go through hell before we got your claims paid. These were the kind of things that happened in the past and it had affected the people. As I said earlier, insurance companies have come of age. You can do transactions with insurance companies and get your claims paid. The service delivery has greatly improved, and, so I think, people should have the habit of creating confidence in the insurance sector that we have today.

    NEM seems to be growing rapidly going by your financial results and your headquarters edifice. How did you get to where you are, despite the challenges in the sector?

    We have been able to achieve a lot, including putting up our edifice on Ikorodu Road, Obanikoro, Lagos. It is part of promoting the image of the industry. I recall that when I was in the university after the completion of my study of insurance, people used to look down on insurance. One of the things I said to myself was, as I join the insurance industry, I should be able to make a mark and change the poor perception of the public against the industry so that people can have respect for insurance practitioners and this is exactly what we have done at NEM. A number of people, including management of top banks, have come here. Some people who have been abroad and who saw the way insurance is doing there, came here and were wooed. They said insurance companies here can now be compared to those in abroad. For us, we are trying to prove a point that the industry has come to stay and is a force to reckon with in the economy.

    So, how genuine are insurers in claims payment?

    Yes, we are for real. We are willing and ready to pay claims. When a client has a legitimate claim, he or she, group or corporate organisations, will get the claims paid seamlessly without going facing any rudiments. But if a client has legitimate a claim and an  insurance company refuses to pay, you can report such a company to the regulator and they would ensure that you get your claim.

    Why should people insure?

    Insurance is the bedrock of any economy. It is very important for people to secure their assets so that in the unlikely event that you suffer one loss or the other, insurance will put you back in the position you were before the loss. Insurance companies are supposed to restore you to that position you were so that it is a seamless effort. It is very important for industries, companies and individuals. For instance, someone who has bought a car for N2 million and he insures it, the company will make sure that his standard does not fall below the level he was before the loss occurred. So, this is why I encourage everybody to protect his/her assets by buying an insurance product. By doing so, they are securing their future.

    At NEM, we have various products that you can use to secure your future. NEM is one of leading companies in the industry  because it has revolutionised insurance practice in Nigeria. NEM is the best in terms of service delivery, relationship and in all other parameter or indices.

  • Wapic redefines insurance business with service excellence

    Wapic redefines insurance business with service excellence

    With its rich history of impressive rating by A.M. Best, the world’s leading issuer of financial-strength ratings which measures insurance companies’ ability to pay claims, Wapic Insurance’s standing as a solid player in the insurance sector is incontrovertibly affirmed.

    However, the series of industry defining innovations emerging from the staple of the leading West African multi-line insurance company has made pigeon-holing the firm into the frame of its acclaimed solid financial power somewhat difficult. This is attributable to the rub-off effect of the company’s highly successful transformation programme on the insurance industry, which has refined service quality, brought innovation to product offerings and increased stakeholders’ confidence in the sector.

    In the last three years, Wapic Insurance has demonstrated that service is as important as financial ability to fulfill obligations to customers.

    In a recent chat, its Managing Director, Mrs. Adeyinka Adekoya, defined what the company is about, saying: “Wapic insurance is about service and providing options to customers.”

    Adekoya disclosed: “Claims turnaround time in the company does not exceed 48 hours upon execution of a discharge voucher because of its efficient claims management process. She also revealed that “through its wheel of innovation, Wapic Insurance has offered insurance customers in Nigeria options through its bouquet of exciting products developed to meet their needs.

    “Customers subscribe to the services of insurance firms because they do not want to experience any hiatus between when an incident occurs and when claims are paid. This means that they want immediate restoration, which is actually what we offer at Wapic Insurance,” hinted Mrs Adekoya.

    The company’s claims payment record corroborates this statement and signals Wapic Insurance’s uncommon understanding of the insurance market in Nigeria. In 2016 and 2017, total claims paid by the company were N2.8billion and N3.2billion. Similarly, gross written premium within the same periods surged by 13 per cent and 23 per cent to N8billion and N9.8billion.

    While these indicate the company’s ability to fulfill its obligations when due, the deeper insight gleaned from its recent financial report reveal that Wapic Insurance met these obligations at an impressive rate of 100 per cent. Beyond institutional commitment to exceptional service, Wapic Insurance’s value proposition is built upon a solid corporate governance and risk management framework that ensures delivery of exceptional service experiences and innovative product solutions to its clients.

    At the moment, Wapic Insurance maintains treaties with world-class reinsurance companies to bolster its claims management systems and maintain its market leadership through quick and efficient claims payment.

    As the leading multi-line insurance company in the West African region providing solutions covering life, general and special risks, the company seeks to underwrite the insurable risks exposures of corporate and individual customer. The company is also a lead underwriter in numerous big-ticket and highly technical transactions.

    Established in 1958 and listed on the Nigerian Stock Exchange since 1990, Wapic Insurance is on a mission to transform into a diversified financial services institution, delivering value in a sustainable manner to customers and stakeholders while playing a lead role in the transformation of the industry.

  • SPECIAL FOCUS ON INSURANCE SECTOR

    SPECIAL FOCUS ON INSURANCE SECTOR

    The Nation will publish a Special Pullout on the Insurance Sector on Monday, March 5, 2018.

    It will focus on leading insurance companies, their products, services and claims payment.

    Insurance practitioners are expected to take advantage of the special pullout to address pertinent issues raised by their customers.

    The Pullout will also serve as a platform to boost customer confidence, raise awareness and increase revenue.

    For  enquiries, contact Tolu-Kusimo Omobola on 08117340360, 07080735854 or email: omobola_me@yahoo.com

  • Ensure Insurance campaign winner gets cheque

    After two years of the inception of the Ensure Insurance Cash Back Season campaign, Mrs. Abimbola Jinadu has emerged its first winner.

    The Ensure Insurance Cash Back is perhaps one of the most innovative and revolutionary incentive package for customers in the industry explained Sunkanmi Adekeye, Managing Director, Ensure Insurance Plc. He said the scheme gives cash back of 15 per cent of the premium paid by the policy holder that has made no claim within 24 months of buying the motor insurance policy.

    According its Group Head, Marketing & Corporate Communications, Tonte Ikiriko, the campaign which has been on for two years, is in line with the company’s objective of delivering innovative insurance products that work for the customer.

    “Ensure Insurance is changing the way insurance works for Nigerians. Ensure Cash Back is innovatively designed with the meticulous customers in mind. They are rewarded with 15 per cent cash back for their safety consciousness and painstaking efforts to ensure accidents do not occur,”he said.

    According tohim, the company is elated to have its first winner in the scheme and also “very happy to walk the talk as we presented her with a cheque amounting to 15percent of her total premium paid over the last 24 months”.

    While receiving the cash back reward, praised Ensure Insurance Plc for the innovative scheme, an elated Mrs Jinadu thanked the company. The scheme has the potency of further inculcating good driving habits among Nigerian drivers, which would also lead to safety for Nigerians road users.

  • Ecobank unlocks investment opportunities in insurance

    Ecobank Nigeria Limited is taking strategic steps to unlock investment opportunities in the insurance sector, Managing Director, Ecobank Development Company (EDC) Fund Management, Ibukun Oyedeji, said yesterday.

    Speaking yesterday at the ‘Insurance Roundtable’ organised by Ecobank Nigeria/Securities, Wealth & Asset Management (SWAM), Ecobank Capital, she said the lender woudcontinue to take steps that promote insurance penetration in the country.

    She disclosed that Nigerian insurance industry has huge potentials that are largely untapped.

    According to her, the insurance roundtable was set up to be a forum that would bring all insurance companies together to discuss the market and pertinent issues in the industry.

    “One of the things we know in Nigeria is that the insurance industry has lots of potentials, but has always remained in the infantry stage where the development of the market has struggled over time. So, at Ecobank Nigeria, we saw this as opportunity for them to discuss,” she said.

    Speaking further, she said: “There is need for more collaboration between the insurance and banks. Although the regulator has advised on the Bancassurance, one of the things we think is the way outside the regulator’s imposed collaboration is that  practitioners need to make sure that the collaboration comes as improved synergy to see how well we can cover the entire Nigeria, especially the masses. If you look at the demography of Nigeria, 50 per cent of Nigerians are working class and they need to be insured against loss of life, critical illnesses, among others,” she said.

    Continuing, she said that: “If a merger happens in the market, which I think needs to happen, I think in the long term, insurance would be a buy for me. I think a lot of time, what has happened in the industry is the mis-selling by the agents. A lot of agents in order to meet their targets, sell the wrong insurance and you don’t know. You keep paying for that insurance until when it is time to claim the insurance”.

    Also speaking, the bank’s Executive Director, Corporate Banking, Akin Dada, said tapping the opportunities in the insurance sector is good for the economy.

    He said there is need for the bank to work with the insurance companies to break the barriers of insurance penetration.

    “Insurance penetration has always been a major barrier. We are working with the insurance companies to see how we can unlock the opportunities in the sector. Tax incentive will enhance awareness in the sector and will help to boost insurance penetration in the country,” he said.

  • Dangote seeks Pan African insurance policies

    Dangote seeks Pan African insurance policies

    Major insurance consumers have demanded for efficient service delivery, prompt claims settlement, robust information technology deployment, engagement of qualified personnel and ethical practices from insurance operators.

    The consumers at an Insurance Consumer forum organised by the National Insurance Commission (NAICOM) in Lagos, bore their minds when the Commissioner for Insurance, Muhammed Kari, who presided over the event, urged them to state their issues and challenges without reservations.

    At the bare all session, President/Chief Executive, Dangote Group, Aliko Dangote, represented by the Group Chief Risk & Insurance Officer/Group Chief Procurement Officer, Dangote Industries Limited, Dr. Adenike Fajemirokun, disclosed that insurance companies have no representative in other Pan African countries to protect Nigerian businesses and issue Pan Afican policies.

    According to Dangote, there is the need for the operators to expand insurance coverage to the Pan African countries through partnership with other insurers in these countries.

    He said the lack of representative of insurance companies abroad is frustrating businesses abroad.

    Dangote, he said, started business as a commodity trading company more than 30 years ago. And transformed from a bulk commodity trading company to a manufacturing concern through import substitution strategy along the Group’s traditional business lines.

    He said: “The company has diversified into infrastructure,  agriculture, fertilizer, petrochemicals, steel and oil & gas. Today, we have expanded our cement footprints in Nigeria and across Africa. We need proper insurance coverage for all of our business.

    “As an insurance consumer, we are limited to where we see that there is no expansion of Nigerian insurance companies into the Pan African countries where we have businesses. We are insuring our business not because of compulsory insurance or regulation, but an internal principle to ensure that any risk that is within or not within our appetite is transferred. For us, the main transfer mechanism is insurance and I believe this is the case for many consumers.”

    He added that he expected insurers to have mastery  of insurance and deep understanding  of the sectors we operate  in.

    “They must have full  understanding  of our business, emerging  trends  in  the  local  and international  insurance  markets and emerging  trends  in  the  local, regional  and  global  economy. We expect insurers to continue to add value to our business. But how well do insurers understand our business? What do they know about cement, oil and gas amongst others? Part of our class of insurance are in commercial  vehicles, goods in transit, group  life  assurance, group  personal  accident, industrial  all  risks, private  motor, marine,  open  cover plantation and fire boiler marine

    Corps Marshal, Federal Road Safety Commission (FRSC), Boboye Oyeyemi, on his part urged the operators to develop innovative products, services and experience, have appropriate pricing of risks and prompt payment of associated premium and encourage good road safety practices.

    He also tasked the operators to embrace robust digital technology, have continuous improving customers experience, robust clients enlightenments, policy information dissemination and feedback, timely claims payment and other unique virtues.

    The Inspector-General of  Police (IGP), Ibrahim Idris, represented by Deputy Commissioner of Police(DCP) in charge of Administration, Elkanah Ayuba, urged insurance operators to be prompt in settlement of claims, especially to Police personnel and engage in sensitisation of police rank and file, not just focusing on the officers at the Police Headquarters.

    The Nigerian National Petroleum Corporation (NNPC) representative   urged insurance practitioners to liaise with organisations to ensure that their insurance departments are manned by insurance professionals.

    Consumers Protection Council (CPC) Director-General,  Babatunde Irukera, urged operators to improve their image through efficient service delivery and prompt claims settlement.

    Kari further informed stakeholders that the Commission will continue to engage them, maintaining that the Commission intends to hold the engagement bi-annually to foster a mutual relationship among the Commission, the insured and the insurers. “We believe such regular interface will afford us the opportunity to listen to your ideas and contributions towards making the industry as consumer friendly as possible.

    “Above all, we are optimistic that after this interaction, we shall witness improvement in service delivery to consumers by insurance entities. There is no doubt that our competitive environment and the changes in the world economy as a result of globalisation, deregulation, privatisation, financial meltdown, and the modern advancement in technology give insurers the opportunity to transform their business operations and realigned with customers by understanding the needs of the consumers and ensuring an enhanced and efficient delivery of products and services. We are aware that the satisfaction of consumers of product and services plays a vital role in the sustenance of any business.

    “The difference between great and poor customer service has always been clear and businesses on the wrong end of this spectrum usually pay a price. This is as true for insurance as it is for any other customer-facing business. Today, the consequences of subpar service are amplified by the speed and reach of social media. One poorly handled claim, one mistake captured on a smart phone could escalate quickly into a brand-damaging crisis. This is why we believe that it has become imperative that insurance firms increased their focus on providing great customer experience.

    “My task here is not to give a lengthy speech or lecture but to welcome you to this session and perhaps set the tone for our discussion. However, permit me to quickly advise insurance operators that providing a strong customer experience is not just about reducing the risk of customer service mishaps. It is increasingly a way for companies in competitive markets to distinguish their brands. Delivering a superior customer experience takes more than developing a mobile app or adding a call centre staff. It requires significant investments, relentless improvements, and collaboration across customer channels and business functions, from distribution and underwriting to claims handling.”

    According to him, understanding what customers want is paramount in building a better customer experience. “However, the Commission in recent time have noticed certain behaviours and actions of consumers that are not in sync with this believe, which is detrimental and dangerous to the insurance industry in Nigeria,”he said.

    He continued:”We have seen situations where the insured (consumer) in connivance with insurance brokers, allot proportion of risks to local underwriters without due cognisance of the insurers’ capacity; preferring to place risk abroad even when the local market is not saturated. Some consumers also in alliance with intermediaries chose to exclude some underwriters from participation in underwriting certain risks without cogent tenable justification.”

    The Commission, he said, frowns at these practices and want to use the medium to inform such consumers to desist from the practices “as they run counter to our regulations”. “Where we have noticed such practices, we have rejected applications from operators for approval to cede such risks abroad. This action of the consumer/broker sometime leads to delays in placement of the risk even when the insured has paid its premium to the intermediary. While the Commission is not averse to ceding of risk offshore, it must be done only when the local market has taken the much its capacity would allow,”he said.

  • Anchor Insurance gets acting managing director

    Anchor Insurance Limited has announced the appointment of Nsimah Jeremiah as the Acting Managing Director/ Chief Executive Officer with effect from December 15, 2017.

    A statement by Head, Brand and Corporate Communications, Jamiu Osoba said the appointment is in line with the company’s approved succession plan.

    He stated that the appointment also follows the retirement of the former Managing Director of the company, Mayowa Adeduro who served for the maximum of 10 years and in compliance with the code of corporate governance directives of the National Insurance Commission (NAICOM).

    He said: “Prior to the appointment of Jeremiah as the Acting Managing Director, he was the Executive Director; Technical of the company. He holds a Masters Degree in Business Administration from Ambrose Alli University and a Postgraduate Diploma (PGD) from the Nigeria Institute of Journalism, Lagos.

    “Nsimah Jeremiah is also a Fellow of the Chartered Insurance Institute of Nigeria (FCIIN), Fellow of the Institute of Credit Administration and Associate Member of Nigeria Institute of Management (Chartered). He started his Insurance career with Manilla Insurance Company Limited in Calabar, Cross River State and later joined Nigeria Reinsurance Corporation in 1990; and worked in various technical departments for over 17 years including management of WAICA Reinsurance Pool.

    “While in Nigeria Reinsurance Corporation, he was extensively exposed to the rudiments of global Insurance and Reinsurance practice including Africa, Asia and Middle East.

    Mr. Jeremiah has presented several papers and he is a resource person for the development of Insurance professionals in Nigeria”, he added.