The National Insurance Commission (NAICOM) has said the licence of Glanvills Enthoven Nigeria (GEN) has not been restored, but that it only re-licensed the company after meeting re-registration criteria.
NAICOM’s Head, Corporate Affairs, Rasaaq Salami who made this known, clarified that NAICOM re-licensed the company with its old name, Glanvills Enthoven so that it would be able to keep its old customers.
He noted that the lapsed licence of the company remained dead and could never be restored by the commission.
Salami noted that the commission decided to make clarification, following publication in some newspapers, that NAICOM made a u-turn by restoring the licence of Glanvills Enthoven Nigeria (GEN).
He recalled that the Commission in December 2015, published names of 108 insurance brokers for failing to meet regulatory requirements, especially, failure to renew their licence.
He said: “The majority of the erring firms were sanctioned for violating certain provisions of the insurance law, such as late submission of their returns to the regulatory body, while some did not even submit returns for several years, non-renewal of operating licences, among other offenses. The affected firms would not be allowed to renew their operating licences, while those who are still interested to continue operating in insurance industry would be asked to apply for a fresh licence.
“The commission, through a circular, said, an insurance broker whose licence has lapsed and wishes to re-register under the same name should submit a Letter of Appeal giving reasons the last licence lapsed and payment of non-refundable fee (N250,000) for processing of the appeal. Moreover, it charged the intending broker to equally submit application for re-registration, if appeal is sustained by the commission, adding that such interested broker must pay a payment of application fee of N250,000, submit Certified True Copy of CAC’s Forms C02 and C07, Evidence of payments of the fee and payment of all outstanding ISS levies due before the license lapsed.
“Other requirements listed in the circular include: Nomination of qualified CEO and Executive Management for NAICOM’s approval; submission of a Management Account/Statement of Account as at the last day of last month of the period since the last approved account and apply for NAICOM’s approval of the Members of the Board of Directors. NAICOM pointed out that there would be re-registration inspection of broker to determine non-violation of the Insurance Act and payment of penalties for identified violations/non-compliance, while the interested broker is to attend and be successful at the re-registration interview.
“According to the commission, interested brokers are requested to submit professional indemnity, sworn declarations, other declarations, tax clearance for the expired period of licence, certificate on oath from the external auditors and payment of licence fee of N2,250,000, after which the licence would be issued to those that fulfill all the listed requirements,” he added.
Tag: NAICOM
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NAICOM denies restoring Glanvills Enthoven licence
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Naicom restores Glanvill Enthoven’s licences
Te National Insurance Commission (NAICOM) has restored the operational licences of Glanvill Enthoven, a firm of incorporated insurance brokers.
Its Managing Director, Supo Falana in a statement in Lagos announced the development.
With the retoration of the licences, he said the company is authorised to operate general insurance, life and pensions business as well as reinsurance brokerage services.
He stated that the company is a member of Nigeria Council of Registered Insurance Brokers (NCRIB) and has reputation for professionalism.
He said: “It maintains a Professional Indemnity cost of N750 million and owned by the five Southwestern states including Lagos State (Odua Investment Company Limited).
“Established in 1957, it has become a leader in the provision of efficient and innovative insurance broking and related services through a well-motivated and proactive professional workforce whilst satisfying the aspirations of stakeholders.
Falana has 25 years of professional experience in rated insurance institutions including Goldlink Insurance Plc and Law Union & Rock Insurance where he was the Chief Technical and Business Officer.
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NAICOM approves Guinea’s 2015 accounts
Guinea Insurance Plc has got the nod of the regulatory body, the National Insurance Commission (NAICOM) on its 2015 annual financial reports and accounts.
This was made known in a statement in Lagos by Guinea’s Team Lead, Corporate Communications, Ufot Hanson.
According to the statement, the company will soon host the 58th edition of the company’s Annual General Meeting (AGM), following the approval.
It stated that in spite of the daunting challenges in the operating environment, it has remained focused and true to its ideals of becoming an insurer of first choice.
It reads: “We are alive to our responsibilities of consolidating and strategically growing market share through decisive long-term investments and customer engagement initiatives.
“We will determinedly build capacity, explore opportunities within the industry and strategically set our internal processes on the path of returning to profitability.”
The company further reassured stakeholders that the newly appointed crop of eminent Nigerians and professionals as members of the Board of Directors will set a growth agenda aimed at positioning the company on a higher pedestal to further propel confidence, equitable service delivery and offer gratifying returns on investments to stakeholders.
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Local Content Policy: NAICOM to sanction negligent insurers
The National Insurance Commission (NAICOM) will henceforth punish insurers who act against the local content policy.
The regulator has discovered that some operators either fail or refuse to consider country capacities of insurance and reinsurance institutions, such as pools, reinsurers and other locally recognised capacities, prior to applying for approval to cede certain proportion of some risks offshore.
The Commission broke the news in a circular titled: “Utilisation of In-country Capacities of Nigerian Insurers, Reinsurers and Pools Prior to Foreign Facultative Reinsurance” released to operators and signed by the Commissioner for Insurance, Mohammed Kari.
He said the Commission will not only impose regulatory actions against erring institutions, but will also decline, or reject such requests.
Kari pointed out that in some situations where the pools, insurers or reinsurers were offered participation, the institutions were either offered minimal proportion below their capacity, or informally restricted and, or compelled to accept lower than their respective capacities for the purpose of justifying cession of the risks offshore.
He said this unethical practice which undermines “our collective resolve to ensure full utilisation of available in-country capacity in line with domestication and the local content policy, contravenes extant insurance laws and regulations, and shall not be tolerated henceforth.”
He said: “Additionally, the Commission has observed that some insurance institutions have inappropriately arrogated to themselves the authority to unilaterally exclude some insurers over alleged outstanding claims.
“It has, therefore, become imperative to remind all insurance institutions that they are required to report any alleged non-settlement of claims to the statutory grievance/complaint redress mechanisms for appropriate action prior to determination of their participation.
“Accordingly, we hereby restate that all institutions are required to ensure that Nigerian insurers, reinsurers and pools in the Commission’s records, must be offered and allowed to willingly decide the proportion of the risk they wish to accept subject to their respective capacities, before any application for approval for offshore placement of the excess; all recognised reinsurance treaties and arrangements and additional capacities offered by local reinsurers and pools must be fully utilised before excess consideration for offshore placements.”
He said all ‘off-the-system’ or informal directives to coinsurers, local reinsurers and pools to accept lower than their desired available capacities are hereby prohibited,” and calling for strict compliance.
Kari warned that NAICOM “will not tolerate any breach of these directives. Failure to do so will henceforth result in the imposition of appropriate regulatory actions as well as declinature or rejection of such requests.”
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NAICOM to engage stockbrokers as referral partners/agents
The National Insurance Commission (NAICOM), in collaboration with the Securities and Exchange Commission (SEC), has commenced the process of engaging stockbrokers as referral agents in the distribution channel.
NAICOM Deputy Director, Authorisation and Policy, Leonard Akah, who made this known in a statement by Head, Corporate Affairs, Rasaaq Salami, in Lagos, said the initiative was a continuous effort at deepening insurance penetration in the country.
He said the Commission paid a working visit to the Director-General of SEC, Mr. Munir Gwarzo, to intimate him of the need to engage the stockbrokers.
According to him, the Commission outlined the role of stockbrokers in the sales of insurance products as being limited to referral partners/agents to the insurance companies without being exposed to any risk.
In return, he said stockbrokers would earn a percentage commission on any business they are able to generate for the insurance company.
He said: “This initiative is expected to create opportunities for the stockbrokers that are interested without distracting them from carrying out their core functions. The draft guidelines to ensure seamless operation of this initiative will be sent to SEC for input before the final exposure.
“In the bid to deepen insurance penetration NAICOM has identified various other professionals for consideration in the referral agency model. These include accountants, lawyers and a host of others
Responding, the Director-General, represented by Head, Monitoring Department, Mr. Isyaku Bala Tilde, thanked NAICOM for the initiative and promised to collaborate with the Commission to ensure its smooth execution,” he said.
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NAICOM creates distribution channels
The National Insurance Commission (NAICOM) has created new distribution agencies to be known as “Referral Partners/Agents” to deepen insurance penetration in Nigeria.
The “Referral Partners/Agents” according to the Commission will be operated by individuals and regulated corporate entities.
NAICOM’s Head, Corporate Affairs Rasaaq Salami said inadequate insurance distribution channels has been identified as one of the major challenges of deepening insurance penetration in the country and the Commission believes that expanding the channels of distribution will go a long way in bridging the gap of insurance awareness and penetration in the country.
He said the Commission will be meeting with relevant regulatory agencies and professional bodies to discuss the modus operandi and benefits inherent in this new initiative.
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NAICOM: Sanitising the insurance sector
IR: Cleaning the Augean stable in any society, sector, domain or country is an arduous task. This is so, because in most cases, corruption usually fights back and when it fights back, it fights vigorously in a bloody manner such that the reputation and good name of whoever is involved is not given the slightest thought.
As Commissioner of Insurance, National Insurance Commission (NAICOM) Kari has not rested on his oars to sanitise the insurance industry. As the Deputy Commissioner in NAICOM, one recalls that his first task was to sign the memo to prohibit illegal payments hitherto seen in the sector. Ever since his appointment as Commissioner in July 30, 2015, he has aligned with change mantra of President Muhammadu Buhari. He believes that the industry cannot be left behind in the scheme of things.
While urging operators and other stakeholders to adhere strictly to the observance of the industry’s codes of conduct and ethics for a healthy practice of the insurance profession, he promised that NAICOM as a regulator will remain committed to high standard of professionalism and ethical behaviour so as to regain the confidence of policyholders and increase insurance contribution to the GDP. He believes that the industry must win the public apathy to the business of insurance, desist from unwholesome practices in the discharge of itsa responsibilities to the insured by playing as true professionals.
The commission under him has since increased its oversight on the operators. In years past, more insurance brokers operated without valid license than those with license. Today the story is different. He enforced the code of corporate governance for insurance companies which was issued in 2009 but was not enforced. The re-launch of the Market Development and Restructuring Initiative (MDRI) which seeks to make Nigeria the insurance hub of Africa has reached an advanced stage.
Just recently, Kari had a running battle with insurance companies and brokerage firms for not capitulating to the wishes of the cabals in the insurance industry. Expectedly, these powerful interests not only have huge resources at their disposal, they deploy it to fight his efforts to rid the insurance industry of corruption. Even with the President’s strong body language against corruption, these powerful interests in the insurance sector seem to not to bother. However, with the support of the President, we have a strong advocate of honesty, probity, dedication and excellence to purge the cancer in the system and drive the insurance industry to greater heights.
- Alwan Hassan,
Abuja.
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Inspectorate dept’s relocation pits NAICOM’s management against workers
The relocation of National Insurance Commission (NAICOM) Inspectorate Department from its headquarters in Abuja to Lagos has created a problem between its management and workers.
Though its Head of Corporate Affairs, Rasaaq’ Salami, has explained that the comission meant well by the relocation aimed at ensuring effective and regular inspection of insurance entities, the workers think otherwise.
The workers, who have embarked on a protest over the issue, claimed that the relocation was targeted at their leader.
The union have shut the Commission’s headquarters and prevented access into the building. As at press time, the union was reportedly meeting with the management of NAICOM to resolve the issue.
Speaking with reporters in Lagos, Salami pointed out that the Central Bank of Nigeria’s (CBN’s) Banking Supervision Department is in Lagos, adding that this was so because most banks’ headquarters are in Lagos.
Highlighting benefits of the Inspectorate Department in Lagos, he said over 95 percent of insurance firms are also in Lagos.
He said there were also cost-benefits of the department being sited in Lagos.
Salami explained that aside from the Commission’s achieving quick and better service delivery, it had also created proximity to operators allowing quicker response time, among others.
He said: “The relocation of NAICOM Inspectorate Directorate from the head office in Abuja to the Lagos Control office is for better service delivery to stakeholders. The relocation is part of an ongoing restructuring aimed at improving efficiency of the workforce and bringing the Commission closer to the regulated entities for effective insurance industry supervision.
“For the records, the Directorate is saddled with conducting on-site inspection of insurance entities for the Commission. It is imperative to note that over 90 per cent of insurance operators are headquartered in Lagos being the hub of commercial and economic activities in the country. Thus, this exercise will ensure prompt and regular inspection of these insurance firms – Insurance Companies and Brokers.
“The insurance industry operators are enjoined to take advantage of this proximity to the Inspectors to enjoy quicker and efficient service delivery from the Regulator,” he added.
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Africa Re seeks NAICOM/operators’cooperation to boost insurance
There is need for the Federal Government through the National Insurance Commission (NAICOM) and insurance operators to work together to increase insurance penetration in the country, Chairman, reinsurance Corporation (Africa Re), Hassan Boubrik has said.
He made this known at the closing dinner of the 141st Board Meeting in Abuja.
He said efforts to increase the penetration of insurance had to be collective.
He said: “We call on all, especially insurance companies, supervisors, and government bodies to work tirelessly to increase the insurance penetration and our population, and to contribute to the provision of risk management solutions to our communities and countries.
“As a composite company providing lifetime covers in over 60 countries spread across Africa, Brazil, Asia and the Middle-east is rated A by Standard & Poors, an international rating agency, Africa Re is a major industry in Africa in terms of market share. We are also not just in Africa and the Middle-East in terms of size of premium income estimated at $700 million – one of our own major achievement in our financial rating by Standard & Poor.”
African Re Group Managing Director, Mr. Cornellie Karekezi explained why the reinsurers decided to take its board meeting to Abuja this year.
“We had our board meetings in Lagos for the last 38 years. And, it is normally a unique opportunity for board directors to interact with staffs that are in Lagos and to interact with the insurance community of Nigeria. Although the insurance market is in Lagos, the corporation aim to achieved two-prong targets with the Abuja meeting.We came to Abuja mainly for two reasons. First, to visit top authorities of Nigeria to discuss some matters of common interest, especially the projects which we intend to do in this country.
“Two projects are on our minds at the moment. Of course, we are requesting the venue for building residential properties. We have been doing a lot here, and this is our home. We want to relocate our head office to Abuja. It’s long due. So, we will come here, in the next two to three years, we’ll build our head office, and that is one of the major relocations we have.”
He said Africa Re was planning to support farmers by providing insurance covers against drought and other diseases.
On the impact of recession on insurance business and Africa Re, its Deputy Managing Director Ken Aghoghovbia, said the impact was insignificant to the corporation’s overall business.
“The recession has impacted our operations. In Nigeria, there is a depreciation of the currency because we report in the US dollar. The impact affects not only on liquidity, our balance sheet, but the good news is that even in South Africa, the Rand has steadied. There is marginal appreciation. I think 10.6 percent. In Kenya, the shillings have been stable. In the CFA zone, the currency which is tied to Euro has kind of appreciated against the US dollar.
“However, Africa Re’s diversification has been relatively stable. There is an impact, no doubt, but it is not as bad as it would have been. It is the same story across the board,’’ Aghoghovbia added.
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Insurance regulation’ll remain stringent, says NAICOM
•Warns distractors
Insurance regulatory body, the National Insurance Commission (NAICOM) has said it will not be deterred in its quest to sanitise the insurance industry.
This is coming on the heels of allegations of fake Associate of the Chartered Insurance Institute, London (ACII) qualification against the Commissioner for Insurance, Mohammed Kari.
This is contained in a statement by the Head Corporate Affairs, Rasaaq ‘Salami, in Lagos. He said the allegation was made by unscrupulous elements represented by faceless persons around the industry.
He said: “Our attention was drawn to recent circulations on the authenticity of the ACII qualification of the Commissioner for Insurance by an obscure collection of faceless persons called Concerned Insurance Professionals. From our conclusion, this allegation is a baseless misinformation aimed at maligning the reputation of the commissioner.
“The commissioner will continue to do his best to sanitise the industry in spite of the many distractions by unscrupulous elements as represented by faceless persons. It is perhaps, those unhappy with his dogged fight against unprofessional conduct in the industry that are on this misguided mission to discredit his good intentions.”
To buttress the point of the commission, two insurance professionals, Omotayo Dada and Olugbenga Falekulo said they were classmates and housemates of Mohammed when he attended the Glasgow College of Technology, Glasgow, UK now Caledonian University.
“We wish to aver that it is an incontrovertible fact that Kari is a renowned insurance practitioner of many years’ experience and has been an Associate of the Chartered Insurance Institute, London since 1987. We would have expected the so-called Concerned Insurance Professionals to see the futility in their mischievous propaganda, after our institute, the Chartered Insurance Institute of Nigeria (CIIN) released the evidence of Mohammed’s professional certificates.
“They have instead continued in a hatred-ridden mission with a view to deluding the unsuspecting public into believing false and spurious allegations. We hope this will put to rest the distraction which the industry can least afford in view of the already bad publicity it is getting from other sources.
“Institutions around the world offer courses and training for students sitting for Chartered Insurance Institute (CII) examinations but certification are only issued by the institute on completion and election to successful students. The same applies to students who may have pursued their qualification in other institutions or by private studies. Because the intention of these faceless persons was a sinister mission, they chose to ignore this simple fact that nowhere in the profile referred did Mohammed claim he had obtained his ACII from the university or in 1984.
“It is a common knowledge that the search facility on the CII London’s website would not show the details of a member who has opted out from the display of his detail. The following is conspicuously printed on the members’ search page. “If, as a member, you do not wish your details to appear, simply go to your profile and tick the opt-out checkbox. In this case, Mohammed opted to restrict appearance of his name in searches. If the group actually had good intentions, they could have formally contacted him for his PIN or contacted the CII, London for confirmation of his Associateship,” they said.
Dada pointed out that the faceless group has the correct facts but would rather impugn the character of this recognised professional. “We can unequivocally state that we were Mohammed’s classmates and housemates in Glasgow and he is bona fide chartered member of the CII as evidenced by his membership card and a search at the CII. He has since removed the “opt-out” to shame the mischief makers.