The Nation Newspaper

Tag: Insurance

  • Recession exit: Insurance sales improve, says CIIN

    Recession exit: Insurance sales improve, says CIIN

    There has ben substantial improvement in the purchase of insurance policies to reflect that the country is out of recession, the President, Chartered Insurance Institute of Nigeria (CIIN), Mrs. Funmi Babington-Ashaye, has said.

    She made this known in an interview with The Nation, noting that the improvement in sales surpassed what was made last year. According to her, although, people have not started feeling the impact of the economy being out of recession, there is hope that things will get better soon.

    She said: “I can see a lot of commercial activities and also a lot of improvement in terms of insurance purchase. If we compare the improvement to what we have last year, we can agree with the Federal Government that technically we are out of recession. But it will take some time before people start feeling the positive impact.”

    Babington-Ashaye, who will be six weeks in office as the president of the Institute, said she will during her tenure make insurance awareness and enlightenment a common issue to be driven by all stakeholders in their various domains.

    She said there is need for insurance operators to confront the lack of general awareness, which is the greatest challenge facing the profession.

    She said: “People lack knowledge about insurance and its importance in all human endeavours, including business undertakings. This manifests in poor patronage of insurance products by the public and the unwillingness to choose insurance as a course of study by the youths.

    “As an Institute, we must continue to take deliberate steps to address these issues with a view to repositioning the profession in the psyche of the people. We must build on the past efforts of our predecessors and the awareness drive of other stakeholders in the industry.

  • ‘Opportunities exist for insurance professionals’

    There are job opportunities for insurance graduates, especially those who have the Associateship (AIIN) of the Chartered Insurance Institute of Nigeria (CIIN), the  Institute’s Kaduna Chapter Chairman, Olugbenga Ogunsanya, has said.

    Ogunsanya, also the Managing Director, Shinning Light Insurance Brokers Ltd, Kaduna, made this known at the Insurance Awareness Day organised by the Insurance Students Association, Ahmadu Bello University, Zaria.

    Speaking on the ‘Importance and desirability of the attainment of associateship’, he said insurance stands tall among professions nationally and internationally due to its critical role to a nation’s economy.

    He said there is huge opportunity for anyone certified as a professional of the institute to fill the manpower gap in the industry, especially in the North.

    He hinted that with AIIN qualification, an individual could reach the zenith of the profession.

    He pointed out that the AIIN is recognised by the Chartered Insurance Institute of London and could, therefore, be used to get a job anywhere with little or no further certification requirement by other countries.

    He added that holders of AIIN could be offered admission for Master programmes in Insurance or related courses.

    ‘’An AIIN holder could also apply for the Associateship of The Nigerian Council of Registered Insurance Brokers (ACIB). AIIN is well- recognised in Nigeria and many African countries,’’ he added.

    Ogunsanya said: “Professional insurers with a minimum of AIIN qualification are greatly sought as managing directors/chief executives, executive directors, chief technical officers,  heads of divisions and directors of insurance companies, reinsurance companies, insurance broking firms and loss adjusting companies. These trend shall continue as the insurance industry continue to grow and expand its operations with the economy of the nation.

    “People who attain this professional qualification with constant upgrades of their skills, competence and knowledge are most likely to be the brides at all times in the industry. A qualified person can operate as an agents of  insurance companies and be allowed to use the companies franchise. He can also operate as loss assesors for clients; risk consultants/managers to organisations and goverments; Actuaries;  pension funds administrators/consultants; insurance brokers; consultants to national health insurance schemes; insurance officers in big organisations, group of companies and multinational organisations, among others.

    ‘’Insurance is a socio-economic system of managing financial risks whereby the bearers of the risks agree to transfer the risks in consideration of payments of certain small amount of money to another party who undertakes to indemnify or compensate any of the bearers who might suffer a financial loss on account of the occurrence of any of the specified risks.

     

  • Nigeria, Morocco collaborate on agric insurance

    Nigeria and Morocco have set up a steering committee to develop a sustainable crop insurance scheme for the country.

    The committee comprises representatives of the Nigerian Agricultural Insurance Corporation (NAIC), Bank of Agricultue (BOA), the Moroccan agricultural insurance company, MAMDA and MAMDA RE.

    In developing the insurance scheme, the committee is expected to use parametric products and leverage the Moroccan model for crops covering selected areas of between 5,000 and 10,000 hectares of land.

    NAIC Managing Director Mrs. Folashade Joseph made this known at the inauguration of the committee in Abuja.

    Mrs. Joseph said the committee was another step by the government to boost agriculture as an alternative revenue earner for the country.

    With the challenges posed to agriculture by climate change, Mrs. Joseph said there was a need for farmers to accept climate-smart agriculture and embrace agricultural risk management.

    She said NAIC would continue to collaborate with international partners to develop and deploy insurance products that would help in managing emerging risks.

    The NAIC chief traced the new initiative to the visit of King Mohammed VI of Morocco to Nigeria last December, during which he and President Muhammadu Buhari signed 15 bilateral agreements on trade, agriculture and oil and gas.

    As a follow-up to that, she said NAIC last month visied MAMDA RE in Morocco to further activate the terms of the agreement and to understudy the Moroccan experience in the development and deployment of Area Yield Index Insurance products.

    Mrs. Joseph said the BOA had been NAIC’s strongest partner for over 30 years and assured the bank of NAIC’s continued support in the provision of risk management services to agricultural investors and farmers financed by BOA.

    She also assured BOA of prompt payment of claims to farmers on its insurance platform as well as the development of new insurance products and services to manage the peculiar risks of the agricultural sector.

    BOA Managing Director, Alhaji Kabiru Mohammed, said though his bank and NAIC had enjoyed a good relationship over a long time, there were new developments that made it important for them to strengthen the partnership to facilitate the realisation of the objections of the Federal Government in repositioning agriculture.

    Mohammed said emerging realities in the country had made it an imperative to change the mindset of farmers from the thinking that farming was no more than a traditional occupation.

    He said there was big money in agriculture but that those engaged in it must do it properly and strategically if they want to make profit.

    The BOA MD said there was need for his bank and NAIC to partner in collective marketing and information sharing.

    He said the bank was already looking beyond government intervention and was discussing with international development partners and investors as a way of boosting agriculture in the country.

    Mohammed said the inauguration of the committee was part of the effort towards internationalising the existing collaboration among the stakeholders in the sector.

  • ‘Insurance negligible contribution to GDP worrisome’

    The negligible contribution of insurance to the nation’s Gross Domestic Product (GDP) should be of concern to all practitioners in the insurance industry, Chairman, Lagos Chamber of Commerce and Industry (LCCI),Mrs. Onikepo Akande has said.

    She made this known at an event organised by the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.

    She said the practitioners would have to do more to create a better and acceptable image for the industry in Nigeria.

    She said the repositioning of the industry was necessary bearing in mind its importance to businesses in the country.

    Mrs Akande said: “There is need to reposition the industry and change the attitude of the Nigerian populace to insurance as a business. More would have to be done by insurance practitioners to create a better and acceptable image for the industry in Nigeria.

    “I look forward to an industry that will earn the respect insurance business enjoys in European countries and a few other countries in Africa. It saddens my heart that insurance does not enjoy the patronage it deserves in Nigeria. Similarly the negligible contribution to the nations GDP should be a thing of concern to all Insurance practitioners. This is food for thought and I am sure it will be taken in good faith from my sincere self.”

    She noted that the Nigerian business environment is faced with so many challenges all of which have made it so difficult for business to thrive.

    “Business owners and managers are faced with the herculean task of sustaining their businesses for profit.

    “While we appreciate the efforts of governments at various levels to turn around the economy, much is still expected to make life better for all and sundry. My appeal to everyone is to put our country first in all that we do. The country needs us as much as we need the country. The difficult situation is not insurmountable if we all resolve to make the country a better place,” she added.

  • Oyo Exco members, others register for health insurance scheme

    Members of Oyo State Executive (Exco), the Speaker of the House of Assembly, political appointees and senior government officials are among the over 3,000 people who have enrolled for the recently launched Oyo State Health Insurance Scheme (OYSHIA).

    Commissioner for Information, Culture and Tourism, Mr. Toye Arulogun, spoke yesterday in Ibadan, the state capital, on the need for the residents to register under the scheme.

    The commissioner urged the public to take advantage of the registration for the scheme at the nearest government and accredited hospitals around them to benefit from what he called a cheap, affordable, accessible and unique health insurance programme.

    Arulogun said the Exco members were led for the registration by Deputy Governor Moses Adeyemo in demonstrating the commitment of the government to quality health care and health insurance scheme.

    The registration of Exco members was done at the Executive Chamber of the Governor’s Office.

    The commissioner said Speaker Michael Adeyemo registered when the House of Assembly team visited the Assembly complex.

    Ajimobi had registered at the formal launch of the scheme, as part of the sixth anniversary of his administration.

    Executive Secretary of OYSHIA, Dr Sola Akande, noted that the residents had  embraced the scheme, following the enquiries and warm reception for its team.

    He advised the residents  to register under the scheme, which he called the of first of its kind by any state government.

    Arulogun said the scheme covers almost all ailments, adding that it is free for expectant mothers  and children between the ages of one and five years.

    He added that the insurance scheme was carefully designed for the rich and the less privileged in the state.

  • NIA: Only eight million vehicles have genuine insurance

    NIA: Only eight million vehicles have genuine insurance

    •Underwriting hits N380b  

    The Nigerian Insurance Industry Database (NIID), a platform floated by the Nigerian Insurers Association (NIA) six years ago to capture genuine insurance policies in the country, has issued over eight million motor insurance certificates.

    Also, the industry’s estimated volume of business underwritten rose to N380 billion in 2016 as against N311 billion in 2015.

    NIA’s ts Chairman, Eddie Efekoha, broke the news at the 46th Annual General Meeting (AGM) in Lagos.

    Its Chairman, Eddie Efekoha, said the price of crude oil, epileptic power supply, cut throat inflation, internal conflicts between herdsmen and farmers; a near comatose economy and the prolonged recession had serious consequences on the operations of insurance companies.

    He said the association was working on the establishment of a common platform for the sale of third party motor insurance policies.

    He said: “The estimated volume of business underwritten by the industry in 2016 was estimated at N380 billion as against N311 billion underwritten in 2015. The price of crude oil, epileptic power supply, cut throat inflation, internal conflicts between herdsmen and farmers a near comatose economy and the prolonged recession had serious consequences on the operations of insurance companies.

    “In spite of the challenges posed by the economy, the suspension of the Federal Reporting Council Code of Corporate Governance, implementation and improved compliance with no premium no cover, especially by the federal parastatals and ministries’ departments and agencies, the improved Anti-Money Laundering mechanism, full implementation of the International Financial Reporting Standard (IFRS), improved enforcement of the compulsory insurances, renewed vigour by the government to improve the Ease of Doing Business and other efforts, the  industry has continued to be the preferred investment destination for reputable players in the global insurance.”

    He said the platform was demonstrated at the last association’s retreat for chief executive officers of member-companies last March, adding that the association and the service provider would ensure that all the issues raised at the presentation were addressed and NSICOM’s buy-in was obtained before the proposed launch date of July 1.

    He said in the association’s desire to extend the NIID’s coverage to other states, it encountered  network coverage and Internet connectivity challenges.

    He stressed that the association would solve the problems through the deployment of Unstructured Supplementary Service Data (USSD) code.

    He noted that the marine module had been running and member-companies were uploading on the platform, adding that at the end of last May, 33 member-companies had  uploaded 65,000 marine policies into it.

    He called on members to continue to upload their policies, adding that plans were afoot to bring other stakeholders in.

    NIA Acting Director-General, Mrs Lawunmi Idowu, said the NIID has been hitch-free in the last 12 months.

    She said the motor module has  changed the face of insurance in the country as incidences of fake motor insurance certificates have reduced.

    “The system features are constantly being enhanced to meet user’s requirements and expectations,’’ she said, stressing that in the period under review, more features, such as upload of short term policies, SMS alert of claims upload, mobile app of ask NIID and enhanced reporting facility were added.

    She said the marine module is being  embraced by member-companies pending its full utilisation by relevant agencies.

    “In years to come, the association’s expectation is that the NIID platform will fully integrate with all government agencies portals for real-time verification and thereby become an indispensable tool in carrying out their statutory functions and process,’’ Mrs Idowu added.

  • Association mentors pupils on insurance

    The Professional Insurance Ladies Association (PILA) has designed a mentoring programme for secondary school pupils to guide them through their career path as they pitch tent with insurance, its President, Mrs Jocelyn Ogbuokiri has said.

    She made this known at the  Career Talk for Secondary School Students organised by the Association in Lagos.

    She said the year’s theme, “Empowering the next generation of insurance practitioners” was carefully thought out to reflect their passion to adequately equip the young generation with the requisite knowledge and counselling that will enable them effectively take charge of the industry in Nigeria in their time.

    She said: “Deepening insurance awareness, appreciation and understanding among the young generation is one of the cardinal objectives of PILA. The Career Talk is one of the ways we aim at achieving this purpose.

    “Besides providing avenue for better appreciation of the workings of insurance as a life tool, the Career Talk also provides a very good boost for the upcoming generation to decide for insurance as a career having had the opportunity of interacting first hand with very successful professionals.

    “We hope that you will appreciate insurance as a profession in addition to the practical mentoring opportunity available beyond this career talk event.’’

  • Africa to increase insurance penetration, financial inclusion

    Insurance operators and regulators at the just-concluded General Assembly of the 44th African Insurance Organisation Conference, have passed a resolution to work on six common goals to advance the US$64 billion market.

    In the resolution, the stakeholders agreed to invest in partnerships that are wider, including non-insurance actors, and deepen within the industry areas that are critical to the agenda of increasing insurance penetration and realisation of financial inclusion.

    The resolution was read by Chief Executive Officer, Uganda Insurers Association, Ms Miriam Miriam Magala. Other resolutions at the conference include adoption of a range of technologies to collect data, design and deliver insurance products, provide educational information to the public, and manage the threats of cybercrimes.

    They also agreed to invest in capacity building across the entire industry including insurance companies, regulators, associations, and institutes; pursue the financial inclusion agenda through development of insurance value chains that cut across several stakeholders/actors within and outside the traditional insurance sector.

    Others are adoption of appropriate laws and regulation that allow for innovation and minimal compliance costs; and pursuit of a diversified strategy for consumer education that embraces the various strands of building capabilities of consumers to make the right decisions with full knowledge of the benefits and obligations and access.

    They also unanimously agreed that to reach the bottom of the income pyramid, products have to be delivered effectively and at an affordable price, which calls for leveraging capacities that exist within and outside the industry.

    They observed that as is the case with the industry, which enters into upward partnerships through re-insurance to deal with big risks, insurance actors have to do downward partnerships to better manage diversified small risks at the bottom of the income pyramid.

    The conference noted that increasing penetration of the smallholder farmers requires a lot of data to design and evaluate products, as well as make decisions regarding responses to emerging risk positing that technology will help to provide products and information as well as enable premium collections and claims payments.

    A specialised pool of knowledge for research, product development and regulatory reviews is required in a centralised place that serves the entire industry, such as , training institutes/associations.

    “We have resolved to work with government, regulators, insurance and re-insurance companies, local/regional/global associations and development agencies, such as the World Bank. He urged the Insurance Initiative, International Association of Insurance Supervisors (IAIS) to invest in developing the required capacities.

    In the case of agricultural insurance, the actors include farmers, agro-dealers, financial institutions, agents and insurers, among others. All the stakeholders  must be duly prepared for their roles as they are part of the chain in a world where “insurance is not bought but sold’’.

    “Regulation should be responsive to the African context, albeit within a framework that allows for appropriate harmonisation-based on best international practices, industry involvement and regional fora.

    ‘’Regulations should reflect local needs and conditions, while the strands should essentially address business and financial management, among others,  to reduce business risks.”

  • Firm begin insurance awareness campaign in North East

    Firm begin insurance awareness campaign in North East

    FBN General Insurance says it has commenced awareness programmes in the north eastern part of the country to sensitise residents to take insurance cover to mitigate future unexpected losses.

    Mr Bode Opadokun, Managing Director of the company made the disclosure while speaking with the News Agency of Nigeria (NAN) on Thursday in Lagos.

    Opadokun said the campaign, which included a door-to-door campaign, was to sell the essence of insurance and ensure its penetration in the area.

    “We will not be deterred by fears of insurgency, cultural beliefs and other factors that might have stunted insurance growth in the region.

    “We intend to re-orientate the indigenes on insurance products not only in that region but also in some interiors in the west because some believe that the Almighty insures.

    “Some citizens also associate insurance with fraud, believing that the first issue is survival before they consider insurance. This attitude must change,’’ he said.

    The insurance chief said the company, through the awareness campaign, would tackle such perceptions in the region.

    He pleaded with Nigerians to change their negative perception of insurance and support the growth of the industry.

    According to him, the essence of insurance is to help people recoup and survive unexpected losses.

    He called on other insurance firms to pay claims promptly to hasten insurance penetration, so as to entice more people to take insurance cover.

    Opadokun said the campaign to make people accept insurance would not go far if claims were not paid as at when due.

    According to Opadokun, there is no appropriate time to take insurance policies than in a period of economic recession because there is limited cash in circulation.

    He urged individuals who had comprehensive insurance not to abandon it for third party insurance in spite of the country’s economic challenges.

    Speaking on the company’s performance in 2016, Opadokun said a total of N270 million was paid as insurance claims in 2016 as against the N205 million it paid in 2015.

    According to him, the company’s gross premium grew to N2.2 billion in 2016 from N1.8 billion in 2015, indicating an increase of 17.4 per cent.

    The Insurance chief said the company’s total assets also rose to N6.1 billion, an increase of 11.9 per cent from the N5.3 billion it had in 2015.

    “That we paid more claims in the year under review than previous years shows that our customers trust us more and are willing to allow us to bear more of the risks they would normally bear themselves.

    “This lends credence to the fact that a responsible insurer must learn to settle claims promptly to show policyholders that it is committed,” the FBN chief said.

  • ‘Poor perception, enforcement bane of insurance’

    Nigeria’s low insurance penetration rate of 0.4 per cent is due to poor public perception, monitoring and enforcement of mandatory policies, PriceWaterHouseCoopers (PwC), has said.
    PwC also said there is absence of innovative products and distribution channels, coupled with complex, lengthy policy and claims processes in the industry.
    Chief Economist and Strategist, PwC, Dr. Andrew Nevin, made this known at a Public Lecture organised by Consolidated Hallmark Insurance (CHI) at the Muson Centre, Lagos, to commemorate the 10th Anniversary of the company.
    Nevin stated that Nigeria’s insurance penetration rate of 0.4 per cent remained low compared to other countries with similar demographics.
    For instance, South Africa’s insurance penetration stood at 14.4 per cent, India’s is 3.3 per cent, Brazil 5.1 per cent, Namibia 7.4 per cent, Russia 3.1 per cent, Indonesia 1.4 per cent, Kenya 2.9 per cent.
    Nevin warned that except insurers begin to meet changing customer needs with new offerings, enhance interactions and build trusted relationship and form strategic alliances, the penetration level may drop from the 0.4 per cent where it stands currently.
    He outlined the strategies to increase insurance penetration rate in Nigeria to include customising insurance solutions, removing large, entrenched bureaucracies and offering seamless customer experience.
    Others are use of new technologies and services to increase access to information that can empower consumer decisions; partnerships between intermediaries, service providers and reinsurers. He said these are good ways to augment existing capabilities and establish symbiotic relationships.
    Earlier in his opening remarks, Commissioner for Insurance, National Insurance Commission (NAICOM), Mr. Mohammed Kari, congratulated the company’s management, board and other stakeholders for the 10-year anniversary celebration.
    He said: “What we are celebrating today is that of many businesses combining to become one, in this case Consolidated, Hallmark and General Insurance.
    “It is general knowledge that many businesses that started up new or through combinations have life span of three to five years.
    ‘’Consolidated Hallmark Insurance has not only passed through the injury periods, but is waxing stronger and better 10 years after. The board and management of the company need to be commended for the success and progress so far.”
    Kari, however, reminded the company that as it celebrates its success, it should be aware that getting bigger in size and performance comes with higher expectations, adherence to corporate governance, and sustainability of growth among others.
    The Commissioner therefore, advised the board to put in place strong corporate governance structure to guide the company’s future activities.
    He said this was imperative in view of the transition from compliance based to principle based (risk based) capital and supervision in the insurance industry.
    Kari regretted that many hitherto regarded major players in the industry had many corporate governance issues, leading to poor performance and regulatory concerns, which posed systematic risk to stakeholders.
    Chairman, Custodian and Allied Insurance, (CHI), Mr. Obinna Ekezie, said a lecture of this nature was absolutely necessary, especially against the backdrop of various challenges that have bedevilled the development of the local economy. He said the sector has a key role to play in offering practical solutions to the challenges.
    His words: “Insurance is a tool, which absorbs risks from individuals and corporates while at the same time helping to underpin stability and stimulate economic growth. Insurance is, therefore, more relevant today than ever before.”