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Tag: NAICOM

  • NAICOM, save me from IGI

    NAICOM, save me from IGI

    Sir: I am writing this to the National Insurance Commission (NAICOM) as the regulatory body overseeing insurance companies and their processes because I am a victim of injustice. This injustice is meted out to me by IGI Insurance Company. This will be my 11th email on this matter.

    I paid a premium of N10,005 from 2006 for 15 years to IGI. My policy matured in May 2021. I am meant to receive the sum of N2,945,385.00 (Two Million, Nine Hundred and Forty-Five Thousand, Three Hundred and Eighty-Five Naira.) which has been processed since June 30, 2021.

    Up till now, September 2023, I am yet to get a dime from IGI. This month will make it two years and five months I have been writing IGI to pay me but they kept ignoring my emails.

    Read Also:NAICOM, Reps differ over investment in housing sector

    I am writing this to NAICOM as my hope of getting IGI to do the right thing by paying me. I paid my premium judiciously for 15 years. This sort of attitude is what has made a lot of people lose faith in the insurance industry.  Please help me so that I will not die of depression.

    I am writing to let everyone know what I am going through and also know that I tried my best and did what I was supposed to do as an insurance injustice victim by writing NAICOM so if I die of depression it would be known that I asked for help from NAICOM and all concerned.

    • Paul Ezema, <nkemezema@yahoo.com>
  • NAICOM, Reps differ over investment in housing sector

    NAICOM, Reps differ over investment in housing sector

    • Reps threaten to subpoena banks CEOs

    National Insurance Commission (NAICOM) has said insurance companies are not statutorily required to contribute percentages of their insurance funds to the housing sector.

    The insurance industry regulator was reacting to the House of Representatives Ad hoc Committee investigating non-remittance of workers contribution to the National Housing Fund (NHF) and utilization of the funds from 2011.

    The committee had alleged  that insurance companies had over time failed to remit about N267 billion to the Federal Mortgage Bank for the National Housing Fund since 2019.

    Chairman of the committee, Hon. Dachung Musa Bagos, had said “insurance companies are statutorily required to contribute 20 per cent of their non-life and 40 per cent of their life fund to the housing sector, but the management of the Federal Mortgage Bank said this contribution had not been forth coming”.

    Reacting to the legislators, an official of NAICOM told The Nation that “the Insurance Act only authorizes general insurance companies to invest not more than 20 per cent of their insurance fund and not more than 40 per cent for life insurance companies.

    Read Also: UPDATED: APGA, ADP, NRM presidential candidates, others lobby Tinubu for inclusion

    “These investments are sourced from the premium paid by policy holders and must be accounted for. Any insurance company that invests more than the law stipulates will be sanctioned,” he said.

    He however said making such investments is entirely at the discretion of the insurance company that wants to do so. “It is an investment decision”.

    The NAICOM official agreed that individual insurance companies were mandated by law to make contributions on behalf of their staff to the NHF, however, “there is no law mandating insurance companies to invest in the housing sector”.

    “Life companies can allocate as much as 40 percent of insurance funds to this asset class, whereas non-life companies have a limit of 20 percent”.

    The Committee also yesterday threatened that chief executive officers of banks who failed to honour its invitation, will be subpoenaed.

    Bagos frowned at the attitude of the bank executives who he said pretend to travel out of the country whenever they are invited by the parliament.

    The panel gave the defaulting banks Thursday next week to appear with all the required information.

    Bagos had earlier asked the insurance regulatory body to come along with evidence of their remittances to FMBN, adding that they should also provide evidence of sanctions to those who had defaulted.

    According to him, in 2019 alone 54 insurance companies did not remit N267 billion. “They need to tell us where the money is. This figure does not include 2020 to 2023,” Bagos said.

    “We have the law, but we are not working with the law rather we complain on a daily basis,” he said.

  • NAICOM, Reps differ over investment in housing sector

    NAICOM, Reps differ over investment in housing sector

    The National Insurance Commission (NAICOM) said insurance companies are not statutorily required to contribute percentages of their insurance funds to the housing sector.

    The insurance industry regulator was reacting to the House of Representatives Ad hoc Committee investigating non-remittance of workers contribution to the National Housing Fund (NHF) and utilisation of the funds from 2011.

    The House of Representative Ad hoc Committee lamented that insurance companies had over time failed to remit about N267 billion to the Federal Mortgage Bank for the National Housing Fund since 2019.

    The Chairman of the committee, Hon. Dachung Musa Bagos, had alleged that “insurance companies are statutorily required to contribute 20 per cent of their non-life and 40 per cent of their life fund to the housing sector, but the management of the Federal Mortgage Bank said this contribution had not been forth coming”.

    Reacting to this remark, an official of the NAICOM told The Nation that “the insurance Act only authorises general insurance companies to invest not more than 20 percent of their insurance fund and not more than 40 percent for life insurance companies.

    Read Also: Niger coup: Military option will be the last choice for ECOWAS – Tinubu

    “These investments he said are sourced from the premium paid by policy holders and must be accounted for. Any insurance company that invests more than the law stipulates he said will be sanctioned” he said.

    Making such investments he said is entirely at the discretion of the insurance company that wants to do so. “It is an investment decision”.

    The NAICOM official agreed that individual insurance companies were mandated by law to make contributions on behalf of their staff to the NHF, however, “there is no law mandating insurance companies to invest in the housing sector”.

    “Life companies can allocate as much as 40 percent of insurance funds to this asset class, whereas non-life companies have a limit of 20 percent”.

     Bagos had asked the insurance regulatory body to come along with evidence of their remittances to FMBN, adding that they should also provide evidence of sanctions to those who had defaulted.

    According to him, in 2019 alone 54 insurance companies did not remit N267 billion. “They need to tell us where the money is. This figure does not include 2020 to 2023,’’ Bagos said.

    “We have the law, but we are not working with the law rather we complain on a daily basis,” he said.

  • NAICOM, Reps differ over contribution to NHF

    NAICOM, Reps differ over contribution to NHF

    The National Insurance Commission (NAICOM) says insurance companies are not under any compulsion to contribute to the National Housing Fund (NHF).

    The spokesman of NAICOM, Rasak Salami told The Nation that there is no law compelling insurance companies to contribute to the NHF.

    He said the Insurance Act only authorises insurance companies engaging in general insurance to invest not more than 20 percent of their insurance fund and not more than 40 percent for insurance companies engaging in life insurance.

    These investments he said are sourced from the premium paid by policyholders and must be accounted for, saying that any insurance company that invests more than the law stipulates he said will be sanctioned.

    Making such investments, he said, is entirely at the discretion of the insurance company that wants to do so.

    He noted: “It is an investment decision. It is not compulsory for insurance companies to contribute to the NHF.”

    Read Also: More directors retire at NAICOM

    Salami noted that the House of Representatives ad-hoc committee investigating the non-remittance of workers’ contributions to the National Housing Fund (NHF) and utilization of the funds from 2011 was wrong to believe that insurance companies must contribute to the NHF.

    The NAICOM spokesman agreed that individual insurance companies were at liberty to make contributions on behalf of their staff to the NHF, however, “there is no law mandating insurance companies to contribute to the National Housing Fund (NHF).

    “Life companies can allocate as much as 40 percent of insurance funds to this asset class, whereas non-life companies have a limit of 20 percent.”

    The House of Representatives ad-hoc committee investigating the non-remittance of workers’ contributions to the National Housing Fund (NHF) and utilization of the funds from 2011 said insurance companies had over time failed to remit about N267 billion to the Federal Mortgage Bank for the National Housing Fund since 2019.

    The chairman of the committee, Dachung Musa Bagos, had alleged that insurance companies are statutorily required to contribute 20 percent of their non-life and 40 percent of their life fund to the housing sector, but the management of the Federal Mortgage Bank said this contribution had not been forthcoming.

    He asked the insurance regulatory body to come along with evidence of their remittances to FMBN, adding that they should also provide evidence of sanctions to those who had defaulted.

    According to him, in 2019 alone 54 insurance companies did not remit N267 billion.

    Bagos said: “They need to tell us where the money is. This figure does not include 2020 to 2023. We have the law, but we are not working with the law, rather we complain on a daily basis.”

  • More directors retire at NAICOM

    More directors retire at NAICOM

    The Director, National Insurance Commission (NAICOM), Inspectorate Directorate, Pius Agboola, and his  Administration and Human Resources counterpart,  Habila Amos, have retired.

    Recently, the commission’s Director, Finance and Accounts (DFA), Barineka Thompson, also retired in line with the Federal Government’s new tenure policy.

    Agboola and Amos were served their compulsory retirement letters recently by NAICOM, along with Thompson, in line with the recent Public Service Circular on eight-year tenure for Federal directors.

    Read Also: Nigeria’s claims ratio among lowest globally, says NAICOM

    The Head of Service of the Federation, Folashade Yemi-Esan, while unveiling the revised public service rules during the civil service rule, had said tenure policy –2021 Revised Edition’ of Public Service Rule (PSR), which took effect from July 27, 2023, stated that Directors (SGL 17), who have spent eight years and above on a post are directed to submit their notice of retirement in line with Section 020909 of the revised PSR.

    Yemi-Esan added that with the policy, about 512 directors in the civil service who have spent eight years on the directorate cadre might be forced out of the service.

    The PSR, which was launched by the Office of Head of Civil Service of the Federation on July 28, this year, in Abuja, also introduced a tenure policy for permanent secretaries who are required to spend four years in office which is renewable subject to performance.

    She noted that the implementation would commence immediately and the rules were revised under the administration of former President Muhammadu Buhari, but the launch was delayed until President Bola Tinubu took over in line with the ‘Renewed Hope’ Agenda.

  • Capital base to determine insurers’ categories soon, says NAICOM

    Capital base to determine insurers’ categories soon, says NAICOM

    The issue of minimum required capital base for insurers will soon be settled with the adoption of risk-based capital (RBC) regulatory framework by the industry.

    Commissioner for Insurance, National Insurance Commission (NAICOM), Mr. Sunday Thomas, made this known at the just-concluded  insurance seminar for reporters at Ibom ICON Resort, Uyo, the Akwa Ibom State capital.

    He said though the issue of recapitalisation was in court following suits by shareholders seeking to stop the recapitalisation of insurance companies, the commission has not given up on the plan.

    According to him, the Consolidated Insurance Bill at the National Assembly, when passed to law, will settle the matter.

    Read Also: NAICOM: only 3m Nigerians insured

    Specifically, he noted that the implementation of risk-based capital will settle the issues related to increasing capital of insurance companies.

    He stated that the commission will no longer dictate capital to individual company as they will sort themselves by what is called ‘own-risk assessment’.

    “We haven’t given up on recapitalisation. In one of my engagements with insurers on RBC, I mentioned that two things will happen. We are looking forward to the Insurance Consolidated Bill to become an Act. Once it becomes law, there is a definite section on RBC and so it will take care of issue of recapitalisation and we don’t need to fight ourselves.

    “However, I can even tell you that companies are willingly writing to us to increase their capital on their own. They are writing to us giving us evidence of increase in capital. But the moment the bill becomes an Act and we are implementing with a minimum regulatory capital, it will be the end to issues relation to recapitalisation.

    “What we will be left with is the individual company’s capital needs for transaction which will be independent of the risk that the individual company is carrying. At that point, if you are heavy in aviation and oil and gas business, you cannot be expected to have the same capital as somebody who is transacting motor business.

    “You can also not be expected to have the same capital as those who are heavy on annuity business that have  70 per cent of their portfolio as annuity funds. So, these are risk-related capital. It will not just be the commission dictating capital to individual company. There is what is called own-risk assessment, whereby you will access it by you. All we need to give you is a standard that you will work with.”

    Meanwhile, the Commissioner also said NAICOM will soon carry out its naming and shaming plan on insurers with unpaid claims.

    He said they have mandated  insurance companies to commence publications of outstanding claims.

    “The Commission has written the operators and given them enough time to sort out outstanding claims and begin publications in national dailies.There would be consequences for not adhering to the mandate. As a regulator, we have done a lot to ensure companies live up to their responsibility as regard payment of claims.’’

    Speaking on the impact of foreign exchange and inflation on insurance, Thomas said the current foreign exchange crisis and the inflationary trend have impacted on insurance sector just as it is being experienced in other sectors of the economy.

    He expressed optimism that the negative impacts will elapse as the federal government strives to stabilize the economy through various initiatives.

    He advised the insured to adjust the value their assets in order to derive maximum benefits because when the value is increased, it means more premiums to pay.

    “Under the present circumstance, those who are wise need to adjust the value their assets in order to derive maximum benefits because when the value is increased, it means more premium to pay. When we have this less level of exchange rate, assets replacement becomes an issue, and when you get to the position where assets that were acquired at a particular amount, especially assets that are foreign exchange dependent, people are not quick to revalue there assets.”

    He inflation rate such as it is presently has affected life insurance business, noting that it is worst hit.

    “But you see what we are going through as nation; I believe that it is temporary. Two things had happened, the issue of subsidy removal and the issue of consolidation of the exchange rate. All these are at the point of policy change and there are bound to be push back. So, what we are experiencing now is all push back; push back is bound to affect every sector of the economy. If you look at what is happening now, the exchange rate is adjusting itself downwards. However, there are things still being done and by the time, the entire initiatives materialize, definitely it will find its level”, he submitted.

  • NAICOM: only 3m Nigerians insured

    NAICOM: only 3m Nigerians insured

    Three million Nigerians have insurance policies as of end of last year, National Insurance Commission (NAICOM) has said.

     It urged insurance companies to invest in advertisement to create awareness, and ensure policy holders were paid their claims promptly.

     Speaking at a retreat in Akwa Ibom, Assistant Director of Corporate Strategy and Special Duties at NAICOM, Dr. Usman Jankara, said: “Concerning the number of those insured, it is put at three million. As at last year when the figure was taken, Nigeria is assumed to be 200 million.

    “From 2015 till date, when you look at Gross Premium Income of the industry, we were at N282 billion in 2015, and today it is N736 billion, representing average growth of 15 per cent.

    Read Also: Only three million Nigerians have insurance policies, says NAICOM

    “That is not to say the industry couldn’t have done better, but to point to the fact that things are not as bad as they were today. There has been no economy that has grown 15 per cent over a 10-year period. None of the sub-sectors have done that.

    “As of 2015, assets grew from N917 billion to N2.32 trillion in 2022, an exceptional growth of about 60 per cent.

     “Our insurance penetration rate, that is insurance to Gross Domestic Product (GDP) is 0.4 per cent, and the insurance density, that is, how many Nigerians are insured, is 1.5 per cent. Life insurance grew from N86 billion in 2015 to N309.1 billion in 2022. Also, non-life insurance grew from N198.3 billion in 2015 to N417.3 billion in 2022.”

     Insurance Commisioner, Sunday Thomas, hoped the re-introduced 2020 Consolidated Insurance Bill will be passed by the National Assembly.

  • Only three million Nigerians have insurance policies, says NAICOM

    Only three million Nigerians have insurance policies, says NAICOM

    Three million Nigerians have insurance policies as of the end of last year, according to the National Insurance Commission (NAICOM).

    The Commission, while stating that there is a need to ramp up coverage for more Nigerians, urged insurance companies to invest more in advertisement to create more awareness, and ensure that the policyholders that have written for their claims are duly documented and paid promptly.

    Speaking during a retreat for insurance journalists in Akwa Ibom, the Assistant Director, Corporate Strategy and Special Duties of NAICOM, Usman Jankara, in his presentation said, “Concerning the total number of those that are insured, as we speak, it is put at about 3 million of the population and when this figure was taken last year, it was assumed that the population of Nigeria was 200 million.

    “From 2015 till date, when you look at the Gross Premium Income of the Insurance Industry, we were at N282 billion in 2015, and today the industry is around N736 billion, representing an average annual growth of 15 per cent. 

    “That is not to say the industry couldn’t have done better but to point to the fact that things are not as bad as they were today. There has been no economy that has grown 15 per cent over a ten-year period. None of the sub-sectors have done that.

    “As of 2015, the assets of the industry actually grew from N917 billion to about N2.32 trillion in 2022. That is an exceptional growth in assets, which is about 60 per cent of the assets.

    “Our insurance penetration rate, that is, insurance to Gross Domestic Product (GDP) is around 0.4 per cent, and the insurance density, that is, how many Nigerians are insured, is around 1.5 per cent. Life insurance grew from N86 billion in 2015 to N309.1 billion in 2022. Also, non-life insurance grew from N198.3 billion in 2015 to N417.3 billion in 2022.”

    Read Also: Nigeria’s claims ratio among lowest globally, says NAICOM

    The commissioner for Insurance, Sunday Olorundare Thomas, in his remarks expressed optimism that the re-introduced 2020 Consolidated Insurance Bill will be passed by the 10th National Assembly.

    He said, “Though we are not going to start again from the beginning, the National Assembly is now looking at it. The bill has now gone through the first reading and we are following up to see that it is concluded as soon as possible.

    “The industry had a very high hope that the last administration was going to conclude on the bill, but that didn’t happen. We have not given up on our hope, knowing that the bill is a game changer because of a lot that is in it and its importance to the sector.”

  • Insurer faults NAICOM on recapitalisation

    By Omobola Tolu-Kusimo

    The Group Chairman, Mutual Benefits Assurance Plc, Dr. Akin Ogunbiyi, has faulted insurance industry regulator, the National Insurance Commission (NAICOM) on its decison to recapitalise the industry.

    He said it was wrong for the regulator to think the only way to develop the risk-bearing industry was through recapitalisation.

    Ogunbiyi who has always opposed the recapitalisation move of the Commission, said instead of recapitalisation, the Commission ought to have collaborated with the National Assembly to enforce the compulsory insurance.

    He however said Mutual Benefits Assurance Plc is expected to increase its capital from N5 billion to N18 billion.

    He spoke in an interview with The Nation at the weekend.

    He said while he is confident that his company will pull through, he lamented that the Commission as a Federal Government agency has not given any support to the industry despite the business enabling environment that the government has created to help businesses thrive.

    He said it is hard to operate insurance business with N18 billion when banks that would not labour as hard as insurers operate with only N25 billion.

    He said: “I must still say that it is a misnomer that NAICOM thinks that the only way to develop the sector is just to be increasing capital year in, year out. Currently we are not able to return profit on the amount of capital we are working with. Insurance is totally undeveloped; I don’t know where the market is. The capital market is almost gone on its knees. Insurance is the least priority of the corporate world in Nigeria. Less than one per cent of our population carry one form of insurance or the other.

    “Nigeria banks operate with N25 billion. Even if government passes N10 trillion budget, all the money goes through the banks. I cannot see any economic sense in asking us to recapitalise to the tune of N18 billion. Why would I put N18 billion in an insurance industry that is crawling and undeveloped when I can put N18 billion without lifting a pin and get 14 per cent return from government bond?”

    He said the regulator has not given any support to the industry but would be so obsessed with recapitalisation beleiving that liquidity is the only challenge of the industry.

    He said: “I don’t know why the regulator will only be thinking that it is only capital that is needed to develop the industry. They have not followed up or given any support to the industry with all the enabling environment that the government has created to support us.

    “For instance, the government took pension from us and gave it to another medium. Today, we are talking of over N6 trillion pension fund. If NAICOM follow through on compulsory insurance of vehicles, fire insurance, construction insurance, marine insurance among others, the sector would have been better.

    “We expect them to work with the National Assembly and various agencies of government to make these insurances compulsory and ensure that the business are available for us just like the banks are doing. Whether the banks or pension operator lift a pin or not, they will make money. This is what the Commission should be thinking and working on.

    He argued that the  recapitalisation gambit is a total distraction to the operation of insurance in Nigeria.

    “I know Mutual Benefit will pull through but unfortunately it is a negative signal,” he said.

  • 49 firms submit recap plans to NAICOM

    THE National Insurance Commission (NAICOM) has received the recapitalisation plans of 47 insurers and two reinsurers.

    This is coming following the circular issued by the Commission directing the risk bearing companies to submit their recapitalisation plans by August 20, 2019.

    Head, Commissioner for Insurance’ Directorate, Rasaaq Salami, explained that the Commission, in keeping with the recapitalisation road map, has concluded review of the submissions of plans of insurers and reinsurers and have communicated individual companies on their positions.

    He said: “26 companies have been granted “No Objection” to proceed with their plans, and the plans of 17 companies were corrected and have been advised to resubmit their new plans using paid-up capital and not shareholders fund.”

    He further explained that four companies do not have the requisite 2018 financial statements and are thus, advised to review their plans of using Initial Public Offering (IPO) and one company has litigation issues and has been advised to resolve them as soon as possible to enable its progress.

    Read Also: ‘NAICOM’ll prosecute recapitalisation’

    “One company’s submission was noted to have met the necessary requirements; the review of submissions from two companies is ongoing while three companies are yet to submit their recapitalisation plans,” he added.

    He therefore reassured all stakeholders of the Commission’s resolve to adhere to the recapitalisation roadmap towards achieving its desired objectives in their best interest.