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Tag: NCRIB

  • NAICOM urged to reduce N350m microinsurance minimum capital

    NAICOM urged to reduce N350m microinsurance minimum capital

    Insurance expert and Managing Director, RiskGuard Africa Nigeria Limited, Mr Yemi Soladoye has urged the National Insurance Commission (NAICOM) to reduce the N350 million, N200 million and N150 million minimum paid-up share capital for intending composite, General and life microinsurance operators.

    Soladoye, who is also a consultant to NAICOM on Market Development Restructuring Initiative (MDRI), said this will ensure that the objective of microinsurance initiative in the country is achieved.

    He spoke while presenting a paper at the 2013 Nigerian Insurance and Pension Award organised by Inspenonline Media in Lagos.

    He disclosed that as at February 2014, about seven commercial underwriters are providing Microinsurance products in Nigeria while some six new applications are said to have been received by NAICOM from intending standalone operators.

    He said the challenge of the microinsurance initiative is how it will be run in a manner that it does go the way that conventional insurance.

    He said: “Microinsurance is already un-locked in Nigeria through the commendable efforts of NAICOM and German Development Corporation (GIZ) and the next stage is to keep the door ajar. The challenge now is how to leave it unlocked. The Nigerian Council of Registered Insurance Brokers (NCRIB) and the Nigeria Insurers Association (NIA) are very crucial in unlocking the business.

    “Also, the N350 million required capital is on the high side. This is a major challenge and if we do not approach it in the right manner, microinsurance business will go the way of conventional insurance”.

    He also said that existing weak brokers and microinsurance bankers should be encouraged to take up the business.

    “In any case, the minimum number of Microinsurance providers required in Nigeria by 2020 is 774 i.e. one Per Local Government area. At the current rate, the regulators will have to recognize the following non-tradition operators at least as distribution channels if it truly wants to provide access to Microinsurance in Nigeria.

    “The Minimum Capital Requirement (MCR) to operate an insurance company in Nigeria is the highest in Africa. This capital increase has however not translated into geometrical premium growth since 1961 when the first MCR was stipulated as £25,000 (N3.875 million). Whereas, the industry MCR had increased by 6,250 per cent between 1976 and 2011, the Gross Premium Income had only increased by 1,230 per cent. The net result is always the death of old players and birth of new players who will later become old players. This is what puts a question mark on the huge amount of N350 million specified as the MCR for Micro insurance. A National Microinsurance Goals and Strategy Statement together with National Business Plan and Regulatory Framework should immediately be put in place by the regulator.

    “How many offices does the regulator expect an operator to open with N350 million? Are we expecting AjoseAdeogunMicroinsurance Companies? Prado Jeep and Ipad MDs, Is Microinsurance going to be the landing pad, for weak commercial underwriters. We suggest use of 5-tier operational model based on Capital Requirement to secure widest coverage of Microinsurance in Nigeria. For instance, National to remain at N350m going by Insurance Act 2003, Regional to be N90million going by 1997 Ins Act, State to be 40million going by 1997 Ins Act, LG to be N10million going by 1991 Ins Act and Unit to be N5million going by 1991 Ins Act. The unit and regional approach will reduce cost of doing business. Lean structure, modest office, appropriate location must all be specified per unit of office outlet by the regulator”, he said.

    He however noted that he believes NAICOM is a listening regulator and they will look into the challenge.

    Guideline on microinsurance earlier released by NAICOM states that any Microinsurerintending to commence a specialized Microinsurance business shall have aminimum paid-up share capital of N150 million to operate LifeMicroinsurance Business, N200 million for GeneralMicroinsuranceBusiness and N350 million to operate the Composite Microinsurance Business.

    It read: “The Commission may increase from time to time the amount of minimum paid up share capital as stated above. A specialized Microinsurershall maintain with the Central Bank of Nigeria a statutory deposit of 10 per cent of the minimum capital requirement and shall maintain adequate and valid reinsurance arrangements.

    “Micro-insurance products are specially designed for the low income earners. It requires them to pay a little premium, which in return, offers them cover in times of losses or other unforeseen occurrences.

    “The regulatory horizon was broadened and, therefore, geared towa

    In November last year, NAICOM opened up the microinsurance business to non-conventional insurers like multi-purpose Cooperative Societies, Microfinance Banks, Faith-Based Organization (FBOs), Mutual and Community Based Organization (MCBOs), Non-Governmental Organizations (NGOs), Governments and MDAs, The NHIS, Civil Society Organizations (CSO), Telcos, Utilities, Brokers and Agents. The Commission has since then began issuing of licenses to intending operators.

  • ‘Why public buildings insurance policy is failing’

    • NCRIB warns underwriters against unethical practices

    Despite efforts by the National Insurance Commission (NAICOM) to implement the insurance on public buildings under the Insurance Act of 2003, not much has been achieved in the implementation or enforcement of this provision, Managing Director, Niger Insurance Plc, Mr Kola Adedeji has said.

    Adedeji made this known while delivering a paper at the Nigerian Council of Registered Insurance Brokers (NCRIB) Members Evening hosted by Niger Insurance in Lagos.

    He stated that the launching of the Market Development and Restructuring Initiative (MDRI), which covers insurance of public building, did not yield the desired result.

    To this end, the Niger chief said a multi-dimensional approach would be necessary to tackle the challenges.

    He said that the regulator’s strategy was not working, confirmed the opinion of experts on compulsory insurance that it should be restricted to areas it is needed.

    He stressed that problems associated with the insurance of public buildings cannot be divorced from that of the industry.

    He recalled that NAICOM in one of its documents listed poor compliance culture, inadequate legislative and legal framework, poor public perception of NAICOM as a regulator and public resistance to insurance as threats to the industry.

    He said: “The Insurance Act of 2003 made provisions for a number of compulsory insurances among which is the insurance of public buildings.

    “Section 65 of the said Act states every public building shall be insured with a registered insurer against the hazards of collapse, fire, earthquake, storm and flood. The Act defines public buildings as tenement house, hostel and building occupied by a tenant, lodger or licensee. It also includes eateries, restaurants, internet cafes, shopping malls etc”.

    He added that sanction for non-compliance with this provision is stated as a fine of N100, 000 and/or imprisonment of one year.

    He said insurance of public buildings is meant to provide an avenue for compensation to third parties and users of damaged properties, adding that all compulsory insurances, it provides a socio-economic function in the society.

    He further said: “Rather than have new compulsory insurances, such as for buildings under construction, occupier’s liability, and insurances of public buildings lumped under the Insurance Act, it would have been more pragmatic to have a separate Act of parliament for each and every one of them.

    “Each of these Acts would then provide relevant enforcement agencies though the benefits on the long run accrue to the insurance industry in form of increasing   patronage and growth. In the case of the insurance of public buildings, all states physical planning authorities should be empowered to enforce the provisions of the Act.”

    Meanwhile, the President, Nigerian Council of Registered Insurance Brokers (NCRIB) Ayodapo Shoderu,  has criticised underwriters for unethical practices.

    He said the sub-sector is endangered by the activities of some underwriters who subvert brokers on their accounts.

    He noted that what such unethical underwriters do is to go back to woo clients brought in contact with them by brokers, even when the account being covered by the company was still running.

    Shoderu said this practice is not only unwholesome, but capable of snuffing life out of brokers, with its grave implications on the national economy.

    He said the council has taken the issue up with the National Insurance Commission (NAICOM) and the Nigerian Insurers Association (NIA).

    Shoderu called on brokers to disassociate themselves from those who have been soliciting membership for a parallel broking body, stressing that the NCRIB is the only body saddled with the registration of insurance brokers.

  • British, Nigerian brokers partner on capacity building

    British, Nigerian brokers partner on capacity building

    THE British Insurance Brokers Association (BIBA) has promised to assist the Nigerian Council of Registered Insurance Brokers (NCRIB) in building the capacity of its members for effective insurance brokerage service delivery and growth in the country.

    Speaking during a courtesy visit to BIBA’ office in London, NCRIB President, Mr Ayodapo Shoderu, attributed part of the problems that have made the contribution of the sector insignificant in spite of the enormous potentials in Nigeria is low capacity of the existing professionals and poor image of the industry.

    To this end, he said his administration aims at creating and leveraging on a robust relationship with the BIBA for better insurance brokerage delivery in Nigeria. He said this is imperative because BIBA is a frontline global insurance intermediary institution.

    He said, among other things, the NCRIB is soliciting the support of BIBA in the provision of market information, continued and constant working relationship and regular exchange of ideas by the two bodies.

    He disclosed that his tenure would be devoted to initiating strategic working relationship with notable institutions and network individuals across the world and at home, in order to break down the barrier of ignorance about the insurance broking profession, and by so doing creating more opportunities for its members.

    Chief Executive of BIBA, Steve White said the association had continually initiated strong interactive platforms through its several events and publications, for the engagement of government, customers and the general public on the value of insurance broking services.

    As part of its support to NCRIB, White said BIBA will assist the c2ouncil to facilitate its membership with the World Federation of Insurance Institutions (WFII) as well as feature its activities in editions of its annual publication,’The Broker’

    He added that BIBA will continually avail the NCRIB with relevant advice and strategies on how it could effectively engage its crucial segments, notably government and other relevant stakeholders, as being effectively done by the association in the UK.

    BIBA was formed in 1977 and is the UK leading general insurance intermediary organisation.

     

  • NCRIB seeks NAICOM’s help on unethical practices

    The problem of rate cutting between underwriters and brokers in the insurance industry is deteriorating with the Nigerian Council of Registered Insurance Brokers (NCRIB) accusing underwriters of unethical practices.

    President of the Council, Mr. Ayodapo Shoderu, called on the National Insurance Commission and Nigerian Insurance Association (NIA) to investigate the matter and sanction those found guilty.

    Shoderu, who made this known in Lagos while speaking with journalists, frowned at some insurance firms for undermining brokers on existing accounts by using a broker to poach clients, noting that such unethical act could stall the progress of the industry.

    According to him, some underwriters also poach existing businesses from broker’s client offering the clients reduced premium. He said the Council has decided to challenge the unwholesome practice which it perceived as a threat to the brokers, adding that it will affect their contributions to economy.

     

    Stressing that brokers occupy pivotal place, Shoderu noted that their wealth of experience is usually brought to bear in assisting clients to get the best possible terms, as well as assist them in claims collection when a loss arises.

    He said the exclusion of brokers from insurance accounts leaves the clients with no advantage of competitiveness in services of companies, in terms of the kind of insurance policy being offered, premium charged and fairness in claims settlement.

     

  • NCRIB takes micro insurance campaign to market women

    THE Nigerian Council of Registered Insurance Brokers (NCRIB) has taken the campaign for micro insurance awareness to market women.

    Its President, Mr Ayodapo Shoderu, who led the crusade during a visit to the Iyaloja -General of Nigeria, Mrs Folashade Tinubu-Ojo in Lagos , said market women and traders constituted a significant segment that must be mobilised for the growth of insurance growth in Nigeria.

    Shoderu said the Market Development Restructuring Initiatives (MDRI) has brought more attention to micro insurance to further create wealth for Nigerians, especially the budding entrepreneurs and small scale business promoters at the grassroots.

    He said: “Suffice it to say that market women and men are prone to diverse risks that daily threaten their existence. The most significant of which is theft and fire outbreaks and these risks could be borne on their behalf by the insurance industry.”

    The NCRIB chief, who listed instances of devastating market fire disasters in Nigeria, noted that such perils had left tales of woes for their victims and increased poverty levels in the country.

    “Accepted that governments and concerned individuals give some forms of succour to victims after such incidents,”Shoderu said, adding that such assistance is monetary and could have been more long-lasting through insurance.

    He said brokers were in better position to assist the market women in view of their numerical spread across the nook and cranny of Nigeria and their knowledge, which they could deploy in assisting clients in profitable insurance placement and claims payment when loss occurs.

    Shoderu seized the opportunity to applaud governments who spend monumental sums of money to erect ultra-modern markets, advising that adequate building insurance covers must be put in place for such projects to safeguard against unfolding risks in line with the laws on compulsory insurances.

    The Iyaloja-General commended the initiatives of the NCRIB for the visit.

    She assured that the campaign would be taken to market women and men for their business growth.

  • NCRIB seeks prompt claims’ settlement’

    NCRIB seeks prompt claims’ settlement’

    The National Insurance Commission (NAICOM) must enforce prompt settlement of claims on underwriting firms, President, the Nigerian Council of Registered Insurance Brokers (NCRIB)Ayodapo Shoderu has said. He spoke at the NCRIB members’ evening hosted by WAPIC Insurance Group, in Lagos.

    He said the directive became necessary because of the importance of claims in the business.

    He urged the regulator to be stringent on its stand on prompt settlement of claims, adding that claims payment remains the best advertorial to boost the industry’s image.

    He said: “One of the areas of interest of our council is the need for underwriters to always pay claims expeditiously. While many underwriters are striving to strictly to the time limits for claims payment to clients, some still do err in this regard.

    “Considering the place of claims payment in insurance’s image and acceptance, the Council under my leadership has taken up the matter with NAICOM during my recent visit to the Commission. We urged NAICOM to consider a directive to underwriting companies on the need for them to be prompt in the settlement of claims to clients.

    “Since the sustenance of any insurance industry is its ability to pay claims promptly, our opinion is that the Commission should be more stringent on its stand or directive to insurers on claims payment, the same way the Commission frowns at brokers with regards to remission of premium.”

    He said NCRIB and NAICOM would continue to partner in enforcing ethical practice, urging operators to play according to rules.

    Acting Managing Director WAPIC Insurance Group, Ashish Desai, said the firm has been repositioned. He called on stakeholders to join hands to enable the industry takes its position in the economy.

  • NCRIB president bows out

    The Nigerian Council of Registered Insurance Brokers (NCRIB) is set to install a new president as its President, Olaide Osijo, bows out.

    Executive Secretary of NCRIB, FataiAdegbenro, who disclosed this, said the investiture of the institute’s Deputy President, Ayodapo Shoderu as the 17th president in Lagos next week will climax its annual conference.

    He said the place of insurance brokers in Financial Sector Strategy (FSS 2020) will be the central focus at its National Insurance Conference with theme entitled: “Insurance Brokers and FSS 2020: Imperatives of insurance growth strategy” and will be delivered by the Head of FSS 2020 project, O.A. Jokosenumi.

    He said the conference is meant to draw attention of insurance professionals and other players in the business sector to their place and contributions to national economic vision and development under the FSS 2020.

     

  • NCRIB to operators: Curb premium flight

    President, Nigerian Council of Registered Insurance Brokers (NCRIB), ‘Laide Osijo, has tasked operators in the industry to work towards curbing the menace of premium flight.

    She lamented that the performance of the industry has impacted marginally on the economy over the years, adding that there was need for operators to make concerted efforts toward reversing of the trend through a radical approach.

    Osijo, who made this call in Lagos, also emphasised the need for stakeholders improve the sector by being active.

    She said: “The future, they say belongs to those who prepare for it. For us to take our rightful position in the comity of nations and play the expected roles as Africa’s leader that we ought to be, we need to wake up from our slumber and start doing things differently and rightly.

    “It should be affirmed that the roles of ithe nsurance industry are very crucial to the attainment of strategic objectives of FSS 20:2020. Let us have a paradigm shift in the way we do business and start being more creative, professional and adhere strictly to ethics of the profession.”

    The NCRIB chief also stressed the need for cordial relationship, collaboration and cooperation between the regulators and other stakeholders for growth to be achieved.

    “NCRIB believes in the nation’s vision, and is committed towards the attainment of the strategic objectives of FSS 20:2020. Therefore, to contribute to the repositioning of the industry, we continued cooperation and collaboration with the National Insurance Commission (NAICOM), Chartered Insurance Institute of Nigeria (CIIN), Nigeria Insurers Association (NIA), Institute of Loss Adjusters of Nigeria (ILAN) and other stakeholders in corporate governance enforcement.

    “We are also sensitising the public on the benefits of using registered insurance brokers for insurance placement,” she said.

    She added that NCRIB was working towards protection of the insuring public, ensuring that brokers are more professional in the discharge of their services to the insuring public and encouraging collaboration with bodies of interest in the enforcement of the compulsory insurances to deepen the insurance penetration as it is being promoted by NAICOM.

    Osijo added that the council encourages the practitioners on the need for adequate capitalisation for global competitiveness. She urged them to explore options of mergers while promoting innovations by the operators to provide covers and policies for the new exposures emanating from the transformational processes.

    She said other actions by the council include, “Improve on training and human capital development for practitioners, Increase on insurance awareness drive to the insuring public, especially towards the promotion of micro insurance, since insurance thrives on large number.”

    Osijo urged the present generation to stand up to be counted by being creative, thinking outside the box, and be ready to square up to the emerging risks emanating from the various sectors of the economy as a result of the transformation strategy in process.

    “We can no longer afford to be docile or be spectators and at the same time be expecting development and/or curb premium flight if we don’t take charge of our destiny. All we need to do is to change our mindset, and our attitude would change, hence our industry would be vibrant again with the resultant return of the glory of our beloved nation,” she said.

  • NCRIB seeks payment of 59% outstanding premium

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has called on the Federal Government to pay the outstanding 59 per cent of last year’s group life premium.

    Its President Mrs Laide Osijo, who disclosed this at the April edition of the monthly Brokers’ Evening in Lagos, said the government has only paid 41 per cent of the total group life premium for last year, stressing that the non-payment of the outstanding is unhealthy for the insurance industry.

    She said: “I want to appeal to the Federal Government for the release of outstanding premium on group life for 2012. As it stands, only 41 per cent of the premium has been paid; remaining 59 per cent to be paid.

    “This situation has made many insurance companies to discountenance claims under the year in review of the now existent No Premium No Cover policy. This, as we are all aware, is to the displeasure of some beneficiaries especially to those who died in active service.

    “The impression many of them have is that the insurance industry is insensitive to their plights, a situation that creates serious image smear for the industry.”

    She called on the government to assist the industry to avoid further accumulation of unpaid premiums and claims, adding that such could negate the new premium collection system.

    Osijo said the initial apprehension on the workability of the no premium no cover policy is gradually being laid to rest as brokers and underwriters now testify to the gains from the initiative.

    Managing Director LASACO Assurance Olusola Ladipo-Ajayi, lauded the NCRIB, pledging the company’s commitment to work with brokers to deepen insurance in the industry.

    He said the company would continue to esteem professionalism and sustain its achievements, adding that the firm presently is the leader in special risk businesses and remains the only underwriting firm in the country with ISO certificate.

  • Ajimobi hailed on workers’ insurance policy

    Ajimobi hailed on workers’ insurance policy

    The Chairman Western Area Committee of the Nigeria Council of Registered Insurance Brokers (NCRIB), Pastor Ayo Oladokun has praised the Oyo State Governor, Senator Abiola Ajimobi over the good life policy insurance scheme recently approved for all civil servants in the state.

    He noted that the policy will ensure that the well-being of workers is protected, even as it will make the workers become more committed in their job.

    The NCRIB boss spoke at the Council’s Annual General Meeting/Brokers Day celebration held at the Recreation Club Sabo, Ibadan.

    According to him, the Insurance policy approved by Governor Ajimobi will cover life insurance in case of death, personal accident insurance in case of temporary or permanent disability of any of the beneficiaries, saying that it was a right decision that will make the workers be more proactive to their duty.

    “The practice where government’s properties were destroyed with impunity without any corresponding liability on the culprit would be a thing of the past. This is so because the current administration in Oyo State takes interests in its workforce and property. With this, their future is protected.

    “For instance, if any civil servant dies in active service, the Oyo State government’s insurance company will be able to compensate the next of kin of the deceased. This is a perfect departure from what obtains in the past when a staff of the Oyo State civil service dies and there would be no compensation which his relatives could benefit from,” he said.

    Earlier in her welcome address, the President of NCRIB, Laide Osijo said the aim of the Annual General Meeting (AGM) is to ensure that all insurance brokers from the Western Area Committee act in unity in order to overcome all the challenges that are confronting the operations of the insurance brokers.

    She appealed to the Oyo State government for patronage of  their registered members, promising that they will arrange and package the Group Life Scheme for the government in a professional manner at no cost.

    “The National Insurance Commission has come to Oyo State to flag off the five compulsory insurances. We are happy that the government has embraced this effective risk transfer mechanism. We urge them to employ the services of registered insurance brokers to provide professional services to them,” Osijo said