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Tag: National Insurance Commission (NAICOM)

  • NAICOM partners police on compulsory insurance

    NAICOM partners police on compulsory insurance

    The National Insurance Commission (NAICOM) has sought an audience with the Inspector-General of Police (IGP), Kayode Egbetokun and the management of the Nigerian Police Force (NPF) in pursuit of the enforcement of compulsory insurance.

    The commission stated this during a courtesy visit to the IGP at the Police Headquarters, Abuja.

    The Commissioner for Insurance(CFI) /CEO, NAICOM, Mr. Olusegun Ayo Omosehin, said the police are critical stakeholders aligned with NAICOM’s vision, to achieve its mandate.

    He requested collaboration to advance the insurance sector roadmap.

    He emphasised that it is unlawful for individuals to drive on the road without valid motor insurance (third party). He noted that less than a quarter of the vehicles have valid motor insurance. The CFI stated that the visit was aimed at seeking NPF’s collaboration to ensure the enforcement of compulsory third party motor insurance, as mandated by law.

    Last year, the CFI highlighted, the ECOWAS Brown Card was captured in the upgraded premium for third party motor insurance cover by NAICOM, allowing insured vehicles to travel across the West African sub-region. Additionally, he noted that the benefits attached to the third party insurance had been increased to N3 million.

    Read Also: Stanbic IBTC Insurance receives NAICOM’s approval for 2023 Financial Report

    To further this initiative, the CFI underscored the need for digital platforms to authenticate the validity of vehicle insurance. He mentioned that the system is already being implemented by the Lagos State government.

    The CFI requested the establishment of a team to collaborate with the Commission in conducting enforcement actions, asserting that the success of this initiative would be a significant achievement for Nigeria.

    The IGP assured the CFI of the Nigerian Police Force’s full support in enforcing compulsory third party insurance. He announced that a team, headed by the Deputy Inspector-General (DIG), Operations, would be set up to oversee the enforcement of the compulsory insurance.

  • Stakeholders urge new insurance commissioner on performance

    Stakeholders urge new insurance commissioner on performance

    With the appointment of a new Board for the National Insurance Commission (NAICOM) by President Bola Tinubu, experts have expressed mixed reactions on whether or not the sector will witness a significant growth.

    Among the Board, the experts have focused most especially on the appointment of the new Commissioner, Mr. Olusegun Omosehin.

    The development has elicited reactions from the industry.

    An expert, who spoke on condition of anonymity, said he is skeptical about his choice by the President.

    He believes that Omosehin, who is the Managing Director of Old Mutual Life Insurance Limited, may not be able to prevail on his former colleagues to follow the rules and regulations of the regulatory authority.

    He opined that he may not also be able to handle the tough sector as some operators are averse to many policy changes.

    Read Also: Deji Adeyanju’s law firm demands N100m from HURIWA over alleged defamation

    He however said as a stakeholder, he will be an onlooker, noting that he will watch closely to see the outcome and impact of the new commissioner on the sector.

    But the former Executive Director of Leadway Assurance, Ms Adetola Adegbayi is optimistic that the new commissioner is right and ripe for the position.

    For her, Omosehin has the expertise and professional knowledge that can impact positively on the sector.

    Another stakeholder in the sector disagreed on the appointment of Omosehin as the new commissioner.

    He lamented that the sector needs fresh breath of air and the President should have appointed an insurance expert or actuary from outside the insurance sector.

    Before now, the insurance industry has been struggling to record major growth like other sectors in the financial services sector.

    Besides, the sector has been unable to deepen insurance penetration with many Nigerians having trust concerns while some are still unaware of the benefits of insurance.

    The immediate past Commissioner for Insurance, Mr. Sunday Olorundare Thomas who became commissioner on April 30, 2020 could not secure a reappointment after the end of his first four-year tenure.

    Thomas became Commissioner when insurance penetration was below one per cent and contribution to the overall nominal Gross Domestic Product (GDP) was 2.80 per cent in Fourth Quarter 2020, lower than the 3.12 per cent it recorded in Q4 2019, but higher than the contribution of 2.46 per cent it made in Q3 2020.

    Also in 2020, the sector contributed 3.11 per cent of aggregate nominal GDP.

    Presently, only 1.5 million Nigerians out of 200 million population are insured.

    While the sector under his administration witnessed growth in gross premium income from about N514 billion in 2020 to N1 trillion in 2023, not much impact was made on insurance penetration indices as it remained below one per cent.

    Total assets of the sector also slightly moved from N2.1 trillion to N2.3 trillion in 2020.

  • Recapitalisation will cause shift in market, says NAICOM

    The National Insurance Commission (NAICOM) has again said the recapitalisation of insurance companies has huge potential to cause a positive shift in the market and overall economic health of the country.

    NAICOM’s Deputy Commissioner (Technical), Mr Sunday Thomas, who represented the Commissioner of Insurance at a seminar for insurance correspondents in Ijebu-Ode, Ogun State, stated this at the weekend.

    He said: “We are in a very sensitive period in the commission in the sense that the issue of capitalisation has always been viewed as a policy initiative. To the operators, most find it difficult to see the benefits at the take-off point but the policy regulator sees it as a way to cause a shift in the system.

    “As an agency of the Federal Government, more than ever before, we want to be visible. We also clearly want to do all that we can within our terms of reference as an institution to prove our contributions to the economy.

    “This cannot be done without the contributions of operators, development partners and other stakeholders – shareholders represented by board of directors, staff of operating companies and other regulators.”

    Read Also: NAICOM to insurers, reinsurers: submit your recapitalisation plans

    Thomas added: “For a nation, this is an election year, and we know that there are a lot of expectations from the political end that find themselves translating to the economy. The Insurance sector wants to be part of the big game; the driver of that initiative has to be the regulator.

    “Of course, there are shades of opinions about its adequacy, timing, among others. However, in quick succession, we want to prosecute this recapitalisation like never before.

    “The idea of this recapitalisation is to have an industry that is strong, that is diligent in prosecution of its assignment, that is highly liquid in terms of being responsible and prompts in claims settlement, that is solid in terms of assets, that is visible in terms of retaining businesses in our environment.

    “We believe that at the end of this exercise, we want to turn around the image of this market. We have the mandate to ensure that this recapitalisation throws up very solid companies.

    “We are engaging other regulators for cooperation for the success of the exercise. Our arms are open to welcome investors either into existing companies or a totally new company.

    “What is important to us is to have an industry that is solid, that is able to support the government in its initiative, that is able to create employment by its reason of expansion, and at the end of it is able to add value to our economy.”

  • Recapitalisation will cause a shift in the market – NAICOM

     

    The National Insurance Commission (NAICOM) has restated that the recapitalisation of insurance companies has the huge potential to cause a positive shift in the market and overall economic health of the country.

    This was disclosed by the Deputy Commissioner (technical) of NAICOM, Mr Sunday Thomas, who sat for the Commissioner of Insurance, at the seminar for insurance correspondents which held in Ijebu ode over the weekend.

    According to him, “We are in a very sensitive period in the Commission in the sense that the issue of capitalisation has always been viewed as a policy initiative, which to the operators most find it difficult to see the benefits at the takeoff point, but which the policy regulator sees as a way to cause a shift in the system.

    “As an agency of the federal government, more than ever before, we want to be visible. We also clearly want to do all that we can within our terms of reference as an institution to prove our contributions to the economy.

    “This cannot be done without the contributions of operators, development partners and other stakeholders – shareholders represented by board of directors, staff of operating companies and other regulators.”

    He further added,  “As a nation this is an election year, and we know that there are a lot of expectations from the political end that finds itself translating to the economy. The insurance sector want to be part of the big game; the driver of that initiative has to be the regulator.

    Read Also: Photos: NAICOM workers protest in Abuja

    “Of course there are shades of opinions about it’s adequacy, timing etc., however, in quick succession, we want to prosecute this recapitalisation like never before it.

    “The whole idea of this recapitalisation exercise is to have an industry that is strong, that is diligent in prosecution of its assignment, that is highly luquid in terms of being responsible and prompts in claims settlement, that is solid in terms of assets, that is visible in terms of retaining businesses in our environment.

    “We believe that at the end of this exercise, we want to turn around the image of this market. We have the mandate to ensure that this recapitalisation exercise throws up very solid companies.

    “We are engaging other regulators for cooperation for the success of the exercise. Our arms are open to welcome investors either I to existing companies or a totally new company.

    “What is important to us is to have an industry that is solid,  that is able to support the government in its initiative, that is able to create employment by its reason of expansion, and at the end of it is able to add value to our economy.”

     

  • Motor insurance a must, says Insurers Committee

    Driving without motor insurance policy is an offence, the regulatory body of insurance, the Insurers Committee has said.

    The Committee, which comprises the National Insurance Commission (NAICOM) and insurance operators, said it is a must for vehicle owners and others to have a motor insurance policy.

    Its Sub-Committee on Publicity and Communication Chairman Mr Oye Hassan-Odukale said the committee is educating the public on the need for insurance and its benefits.

    He pointed out that motor insurance protects road users from the unexpected.

    According to him, having motor insurance goes beyond being free from road safety officials.

    He explained that there are two  motor insurance, Third Party Motor Insurance and Comprehensive Motor Insurance.

    Read Also: ‘Insurance policy as low as N5000’

    He called on every Nigerian, who  drives, to buy motor insurance policy, noting that the premium for a Third Party is N5000

    He said: “It protects road users from unexpected occurrences on the highway. Insurance covers when someone bashes your car or breaks into your car, as well as cases of accidental damage to third party property while driving.

    “As the name implies, Third Party Motor Insurance covers for accidental damage, injury to third party property, which refers to other road users while driving. It does not cover accidental damage to the insured vehicle. Comprehensive motor insurance, on the other hand, covers for loss or damage to the vehicle caused by fire or theft, damage to third party as well as personal injury or fatality resulting from accident. It also comes with perks, such as covering the cost of towing your vehicle, as well as a car tracker.

    “It is worthy of note that insurance companies, under the umbrella of Insurers Committee and National Insurance Commission (NAICOM), have made insurance policies affordable to all Nigerians. With N5,000, you can get your third party motor insurance.

  • GOXI gets state micro-insurance approval

    The National Insurance Commission (NAICOM) has granted approval to GOXI Microinsurance Company Limited to operate as State Composite Microinsurance Company in Lagos State.

    In a statement yesterday, NAICOM’s Assistant Director, Salami Rasaaq, said the new firm is licensed to transact Life and General Micro Insurance Business in the state only, saying it granted approval to GOXI in its drive to ensure insurance market development through enhanced access points for insurance services in Nigeria.

    “This is one of several applications received in the commission from individuals and corporate entities requesting approval for registration as Micro Insurance operators.

    “GOXI Microinsurance Company Limited thus become the first full-fledged standalone Micro Insurance Operator in Nigeria,” the statement read.

  • NAICOM sacks Moore as Goldlink Insurance MD

    Goldlink Insurance Plc on Monday announced the sack of its Managing Director, Mrs Funke Moore by the National Insurance Commission (NAICOM) effective from January 18.

    Mr Tobi Olaleye, Goldlink Insurance Company Secretary/Legal Adviser, stated this in a letter to the Nigerian Stock Exchange (NSE) and the investing public.

    Olaleye said that NAICOM removed Moore and reconstituted a new board for the insurance company.

    He said that the commission approved the appointment of Mr Kenneth Egbaran as the new Chief Executive Officer of the insurance firm.

    Read also: SEC, NIPC collaborate to attract investors

    Olaleye said that NAICOM also appointed Nahim Ibraheem as the Chairman of the newly constituted board.

    According to him, other members of the new board are; Adeyinka Olutungase, Olarenwaju Suliamon, Tonbofa Eva and Farouk Yola.

    The News Agency of Nigeria (NAN) reports that NAICOM took over the management of Goldlink in 2012 and appointed an interim management board for the company in furtherance of its regulatory oversight function.

    The commission had last year approved a recapitalisation scheme for the insurance company in a bid to restructure the company and return it to profitability.

    The company is yet to take any step in the capital raise process. (NAN)

  • NAICOM issues guidelines for State Insurance Producer

    The National Insurance Commission (NAICOM) on Tuesday released operational guidelines for State Insurance Producer (SIP) across the 36 states of the country, including the Federal Capital Territory (FCT).

    The SIP whose key responsibility includes facilitating the sale of the compulsory classes of insurance within the state jurisdiction and all classes for its principal’s insurance, is also an agency of a state government licensed by NAICOM to provide intermediary services as defined by the guideline issued by the commission and also remunerated as by the provisions of the guideline.

    According to the Commissioner for Insurance, Alhaji Mohammed Kari, the policy is expected to take off on January 01, 2019.

    The guideline reads: “The State Government shall be responsible for all the acts, commissions and omissions of its appointed Insurance officer and every other staff in its employment acting on insurance related issues.

    Read Also: NAICOM to release state insurance policy guideline next week

    “Any disputes arising between a State Insurance Producer and an Insurer or a client, or any other person either in the course of its engagement as an intermediary or otherwise may be referred to the Commission by the person so affected; and upon receipt of the complaint or representation, the Commission shall conduct an enquiry or an inspection or an investigation on the complaint or the representation as may be necessary.”

    “Once licensed to operate by the commission, the SIP shall enter into Memorandum of Understanding (MoU) as may be sanctioned by NAICOM, with approved insurance companies in its jurisdiction for the purposes of placement and management of insurance business within a state,” Kari said.

    The NAICOM boss explained that while the SIP will be empowered to penalize defaulters according to the laws of the States, it will equally maintain proper records of individuals and organisations bound by the requirements of the compulsory classes of insurance and monitoring the compliance.

    The apex insurance sector regulator has promised to open 20 new branch offices across the states of the federation for strict management and enhancement of insurance penetration.

    This according to it, will not only deepen insurance penetration, but also assist the government in meeting its objectives and expectations with regards to the Economic Recovery and Growth Plan (ERGP) in the areas of job creation, poverty prevention and confidence in the face of risk.

  • Financially excluded a minus to our GDP – SEC

    Securities and Exchange Commission (SEC) has lamented the non-participation of those in the grassroots in the financial sector, noting that this has affected the Gross Domestic Product (GDP) of the country.

    SEC’s Acting Director-General, Mary Uduk, stated this during its financial inclusion sensitization programme in Gwagwalada Area Council, Abuja, on Thursday.

    Uduk, who was represented by Head of Investor Education at the commission, Francis Okafor, stated that the sensitization programme hopes to enlighten those at the grassroots, and educate them on how to invest in the Capital Market and the financial industry.

    She said the target of the commission is to ensure that by the end of this year, every area council in Abuja is reached.

    Uduk said: “The last sensitization programme for this year will be held in Abaji area council. We want to ensure that by the end of this year, every area council in Abuja is reached.

     “If you buy shares, you are sure to get it back (dividends). Pension is not only for civil servants, but also for business people through the Micro Pension Scheme; that is why we have partnered PenCom.

    “In Kano we talked about commodity ecosystem and non-interest finance. It was quite successful in Kano.

    “Commodity Ecosystem is all about commodities – agricultural products. In the hay days of this country, we had things like the groundnut pyramids etc., today, those thing have died down. Beyond oil, Agriculture is a sector that can bring this country into limelight.

    “We hope to establish and increase commodity exchange that will compete, if not better than what we have today in the stock exchange.

    Read Also: Nigeria’s GDP contracts as oil production slumps

    “A committee has submitted a report on the Commodity Ecosystem; we are currently at the implementation stage.

    “We have partners and collaborators under financial inclusion. We have the Nigeria Deposit Insurance Commission (NDIC), National Pension Commission (PenCom), National Insurance Commission (NAICOM) etc.”

    The apex regulator of the capital market encouraged participants to embrace collective investment schemes like the Esusu and others that are regulated by SEC. Explaining that the Sukuk which is a non-interest finance scheme, is not a purely religious arrangement that excludes everyone else, urging participants to engage it.

    Head of Awareness Unit of Micro Pensions Department of PenCom, Mr. Emeka Onuora, said: “Micro pension is part of the Contributory Pension Scheme (CPS). It is a coverage extension of the CPS.

    “We have always placed emphasis on those that are working in government offices under the CPS; this time around, we want to include individuals working on their own. We want to educate them on the need to make provisions for their retirement regardless of whether they are working on their own.

    “For the Micro Pension Scheme (MPS), you have to be registered to get started just like you get registered under the CPS with Pension Fund Administrator (PFA).

    “When it comes to making payments (contributions), you can use your phones, ATM cards, USSD, banks, etc.

    “For the Micro Pension Scheme, you are not compelled on the amount you have to pay or the frequency of payment. You can pay in daily, weekly or monthly.

    “The MPS has incentives such that you have access to a certain percentage of your contributions for everyday expenses; this amounts to 40%. The other 60% is kept for your pension and is being invested by the Pension Fund Administrator so that when you retire, you are guaranteed your pension.”

  • NAICOM confirms takeover of Unic Insurance Plc

    NAICOM confirms takeover of Unic Insurance Plc

    The National Insurance Commission ( NAICOM ) on Friday confirmed it had taken over the management of Unic Insurance Plc to reposition the company for better performance.
    NAICOM’s spokesman, Mr Rasaaq Salami, said in an interview with the News Agency of Nigeria (NAN) in Lagos that the takeover became imperative to rescue the company from distress.
    Salami said the commission had subsequently appointed an interim board to manage the affairs of Unic Insurance Plc for the next six months.
    He said the members of the interim board included Mr Samuel Ordu as chairman, Mr Theophilus Eke as Managing Director, Mrs Ifeyinwa Momah and Mr Nicholas Shaiyen.
    “The commission gave Ordu and his team six months to do a forensic audit on the financial position.
    “Forensic audit would be carried out on the corporate governance failures observed in the course of reviewing the financial statement of the company,” Salami said.