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Tag: NCRIB

  • NCRIB to check fake operators

    NCRIB to check fake operators

    The Nigerian Council of Registered Insurance Brokers (NCRIB) is taking steps to sanitise the sector, The Nation has learnt.

    Its National President, Mrs Laide Osijo, said the Council would send the list of genuine brokerage firms to clients to check fake operators.

    She said the council would also close registration for members on March 31, adding that by the first week of April, the list of members would be published.

    She said: “Our rule states that we should publish the list of members every year. I must not forget to commend the effort of the Commissioner for Insurance for his efforts in promoting the affairs of the council.

    “Our law says that registration with NCRIB is a requirement for licensing by NAICOM. Before this year, so many brokers have been going to NAICOM for registration, but since the beginning of this year, NAICOM has refused to give anybody licence if they did not have the NCRIB registration certificate. The Commissioner and his team have been doing a good job to ensure people comply with the rules.”

    The Council chief also said: “If a firm has a new chief executive, the person has to come to the council for us to check if he is fit to run the organisation. This is because the new executive would be held liable for anything that happened in the firm.

    “If an organisation changes its executive, it has to write to us and we would give it six months to present the executive for examination. If an operator failed to meet up with his financial obligations, his membership will lapse, that is also what NAICOM is doing.”

    She said members have been told to renew their membership before March 31, to avoid being sanctioned.

    On the proliferation of brokerage firms, the president said some of them were established to secure a particular business..

    She said the council has observed that some people just register a brokerage firm because they wanted to secure a business through their relatives, who can assist them.

    She noted that these individuals abandon the firms once they get the business. She added that some of the brokerage firms were also established because people wanted to be known as managing director.

    She said: “Instead of 10 people joining hands to form a strong firm, they want to be managing directors. We have always encouraged mergers and acquisition. If you have a formidable team, it is better than being alone.”

    She noted that the council is collaborating with the National Insurance Commission (NAICOM) to ensure that only genuine operators and professionals operate in the sector, adding that at the monent the council has to give approval before a firm is licensed by NAICOM.

    “The NCRIB law says that registration with NCRIB is requirement for licensing by NAICOM. Prior to last year, so many brokers do go to NAICOM, for registration but from last year, NAICOM has refused to give anybody licence if they did not have the NCRIB registration certificate. The Commissioner and his team have been doing a good job to ensure people comply with the rules,” she said.

    Stakeholders said any step taken by the council to sanitise the sector is welcome, adding that it would help curb unethical practices and enhance the industry’s performance.

  • Mutual Benefits Assurance, others win awards

    The Management of Inspenonline has named the President, Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, the Insurance Man of the Year 2012.

    She emerged top out of many insurance operators considered for the award. Within the short period she has been in the saddle of leadership of the largest insurance brokers’ fraternity in African, she has distinguished herself and has used her wealth of experience to reposition insurance practice.

    Commissioner for Insurance Fola Daniel was awarded the Good Leadership Award for his steps in repositioning the industry and providing adequate security for policyholders.

    Mutual Benefits was named the Insurance Company of the year. It was picked as a result of its stride in retail insurance through well- developed micro-insurance channel.

  • Early budget execution good for insurance

    Early implementation of the budget would enable operators meet their projections, President Nigerian Council of Registered Insurance Brokers (NCRIB), Mrs Laide Osijo, has said.

    She told The Nation that proper implementation of the budget would impact the industry positively, adding that operators performance would improve tremendously if premiums are paid as at when due.

    She called on the government to put adequate compensation for the insurances of its properties, which have been made compulsory, adding that delay in implementation of the budget is affecting the insurance industry negatively.

    She said: “When proper premium is paid on group life scheme, there would be an increase in the income of insurance industry. We have been advocating early implementation of the budget. We have so many premiums that are outstanding due to late implementation of the budget. “Premiums cannot be paid if the budget is not released. Therefore, if the budget is released on time, definitely, insurance companies would have their premium at the right time and all the risks would be covered adequately. No Premium No Cover policy is ignored, because of delay in the implementation of the budget. The delay in implementation of the budget is affecting the insurance industry negatively, if the government could implement the budget early and make all necessary payments, insurance companies would benefit a lot.”

  • ‘NAICOM to maximise opportunities in sector’

    ‘NAICOM to maximise opportunities in sector’

    The National Insurance Commission has promised to ensure the maximal use of opportunities in the sector.

    Commissioner of Insurance Mr Fola Daniel made this known at the inauguration of the Nigerian Council of Registered Insurance Brokers (NCRIB) secretariat and a book launch in Lagos.

    He urged insurance practitioners to be united, adding that an achievement by an arm of the industry is a success for other operators.

    Daniel said brokers have made the industry proud by constructing a befitting office. He urged them to sustain the development entrenched by their founding fathers.

    He said brokers, who are over 600, should set the pace as they constitute the largest group in Africa.He lauded the contributions of past and present leaders of the NCRIB, which he said have helped to position the council for improved performance.

    Daniel also commended brokers for writing a book on insurance broking in Nigeria. He urged insurance practitioners to buy the book to update their knowledge, adding that it would help improve their performance.

    President, NCRIB, Mrs Laide Osijo, who was excited over the completion and opening of the office, said the council conceived the idea of having a befitting secretariat over two decades ago.

    She noted that its completion was a fulfilment of purpose, vision, and commitment of the founding fathers of the profession to bequeathe an edifice to the Council.

    She lauded the stride made by Daniel in creating a conducive environment, which encouraged brokers to uphold their financial commitment to the council. She also commended the efforts of the founding fathers and her predecessors in taking the profession to a lofty height.

    Laide said: “The erection of the NCRIB secretariat, has among other things, propelled our profession into a position of respect in the comity of other progressive professional bodies in Nigeria. Let me note, however, that there are still rooms for members to be a part of the success story of this building and etch their names on gold.

    “Historically, the idea of having a befitting secretariat worthy of the rising profile of NCRIB, which is unarguably one of the oldest professional bodies in Nigeria, was conceived more that two decades ago. It is, however, providential that the building is being completed and inaugurated during my tenure as the first female president of our great council.”

    Managing Director, Lasaco Assurance Plc, Olusola Ladipo-Ajayi, commended the leadership of NCRIB for making the industry proud through the completion of the office, adding that underwriters and brokers in recent time have been working together to reposition the industry.

    The President Chartered Insurance Institute of Nigeria (CIIN), Dr Wole Adetimehin, said the rift among insurance operators is inimical to the industry’s growth.

    He said the operators are loyal to the industry they belong to instead of working as professionals with a common stake.

    He called on the practitioners to have a change of attitude, adding that the industry could only grow when stakeholders show commitment to their profession.

    “We must shed this coat and put up a united front as one profession,” he said.

    He noted that the need for change of attitude and total commitment to the profession could not be over emphasised.

  • CIIN seeks operators’unity, cooperation

    The President, Chartered Insurance Institute of Nigeria (CIIN), Dr Wole Adetimehin, has said the rift among insurance operators is inimical to the industry’s growth.

    Adetimehin, who spoke during a stakeholders’ conference in Ibadan, Oyo State urged the operators to collaborate and move the industry forward.

    He called on the practitioners to have a change of attitude, adding that the industry can only grow when stakeholders are committed to their profession.

    He said: “My observation is that we are loyala to the arms of our industry instead of seeing ourselves as professionals with a common stake; that is, brokers are loyal to Nigerian Council of Registered Brokers (NCRIB), underwriting staff to Nigerian Insurers Association (NIA), Loss adjusters to the Institute of Loss Adjusters of Nigeria (ILAN).

    “We must shed this coat and put up a united front as one profession. Self-development is advocated for the individual and companies should reward the staff adequately when they acquire higher qualifications.”

    He noted that the need for change of attitude and total commitment to the profession can note be over emphasised, adding that integrity and transparency should at all times be the guide for operators.

    “We must refrain from unethical conduct and any infractions should be reported to the institute for disciplinary action to deter others and improve our perception,” he said.

  • How to insure firms’ reputation

    The need to insure the reputation of companies has been stressed.

    The Assistant Director, Nigerian Council of Registered Insurance Brokers (NCRIB), Mr Tope Adaramola, who canvassed the inclusion of the option as an insurable product, said this is one of the insurable interests being practised by companies in advanced countries, adding that it would help to deepen insurance practice in Nigeria, as well as indemnify firms if they suffer losses as a result of reputation problems.

    He explained that the concept refers to an interest in a person or thing that will support the issuance of an insurance policy; an interest in the survival of the insured or in the preservation of the thing that is insured, stating that in advanced countries where insurance is well accepted, almost everything is insurable.Even dancers are said to insure their waists, he added.

    ‘’For many’’, he said, ‘’these risks can be divided into operational, financial and business, with different individuals in the company being responsible for each one,’’ adding that while some big firms operating in Nigeria insure most of the different aspects of their operations, “one which has continued to cry for cover within and beyond our clime is image or reputation risk.

    ”We are definitely in an epoch when image matters above all things. This underscores the popular aphorism that image is everything. Whether as an individual or corporate institution, image projection and protection has remained a valued endeavour that must be factored into decisions of individuals or organisations.

    “Image or reputation, as some prefer to call it, comprises the personality, which has to do with the character and ethos of the organisation regarding its operational behavior; identity, which is the totality of what you or your organisation says or wants to be seen as and perception, which denotes how stakeholders view your company or impression that they hold about the organisation”.

    He stated that a company’s reputation is important because it affects the ways by which various stakeholders relate it. This applies to employees, investors, customers and the general public, and it influences such key issues as employee retention, customer satisfaction, customer’s loyalty and investor relations.

    Hre said: “Organisations that will have sustainable existence need to constantly realise that reputation is built in the realm of the mind as a set of memories, perceptions and opinions that sit in your stakeholders’ consciousness.”

    He argued that despite the crucial place of reputation, it is regretful that different stakeholders prioritise corporate reputation in a different order.

    He cited investors’ financial performance as the most important characteristics followed by quality of management. For customers, however, the quality of services and products, together with customer service are the highest priorities, he said.

    “Accountancy practices do not allow many companies to put a financial value on their own corporate reputation in the balance sheet. They treat the inclusion of individual product brand value or director’s reputation with a wave of the hand in their financial calculus. Despite all, Public Relations (PR) pundits have continued to hold the view that a company’s reputation conservatively constitutes between 66 and 100 per cent of its annual revenues.

    ‘’The question that may be agitating for answer therefore is; how can a company’s reputation be at a risk? Tope said the answer is simple. Although an occurrence or event on its own may rarely threaten a business reputation, more often than not, it is an event followed by poor management of the consequences that jeopardise corporate reputation. Events that sound reputation alarms include fraud, marketing fiasco, hostile take-over; loss of regulatory approval, etcetera, he explained. But how does the insurance industry mitigate reputation risks?’’ Tope said.

    “Traditionally, there are different risks underwritten by the industry, such as occupational risks, property damage and employers liability. In such cases, quantifying the immediate losses involved is straightforward.

    ‘’For property, it is a case of establishing the value of the property and its liability, losses are defined by the courts. Additional losses such as the increased cost working, following an event, are often covered under insurance policies. What is not covered is the impact on the company’s reputation,’’. he added.

    Of the various types of risks, reputation risk is perhaps the hardest for insurers to tackle he said. The reason is because reputation is essentially an intangible asset that accountants and specialist firms are still struggling to quantity in monetary terms.

  • NAICOM to check false declaration of accounts

    NAICOM to check false declaration of accounts

    The National Insurance Commission (NAICOM) is to start the validation of debts often believed to be overstated in the accounts of insurance firms to ascertain their authenticity, a source has said.

    NAICOM’s Deputy Commissioner Finance and Administration George Onekhena, who confirmed this, said the commission was poised to remove fictitious items from insurers’ books.

    He noted that the commission has received reports from the Nigerian Council of Registered Insurance Brokers (NCRIB) indicating that some debts in the books of underwriters are cooked.

    On steps to be taken by NAICOM, Onekhena said the commission has come up with some strategies one of which is the “No Premium No Cover” policy. This, he said, will stem the claims of withholding or unpaid premium often reported by underwriters.

    He said: “NAICOM would soon commence the validation of debts in the books of companies to ascertain the true position of the debts. “2012 is a year of reality; we are going to remove everything that is fictitious in companies’ books,” he said.

    Though some people believe that the “No premium No Cover policy” would not work, he said the commission would work and that they were going to adhere to the policy to wipe debts off the books of underwriters.

    He noted that the commission would continue to engage underwriters to ensure that they nip in the bud the challenges that they are having on the cleaning of their books for effective transition to International Financial Reporting Standard.

    He said many firms have been sanctioned for infraction, adding that while the commission disciplines firms, it would also ensure that the industry is protected.

    Meanwhile, as part of measures aimed at sanitising the accounting systems of insurance firms, the National Insurance Commission (NAICOM) has warned auditors of underwriting and broking firms, that henceforth they would be liable for approving falsified financial accounts.

    Onekhena, who disclosed this during a seminar organised by the Commission for external auditors to insurance and broking firms in Lagos, said auditors would be held liable for their opinion in the financial books of insurance operators in this International Financial Reporting Standard (IFRS) dispensation, adding that any auditor that approved a falsified account would be reported to the Financial Reporting Council (FRC).

    He urged auditors to clear grey areas with their clients before approving their accounts. He told the auditors to esteem integrity, noting that it is better not to have a job, than having one that would tarnish their image.

    He urged the auditors to report to NAICOM any challenge they observed in executing their responsibility.

    He said: “We are going to hold auditors responsible for their opinion in the financial accounts of companies. We would profile auditors with issues on their practice and report them to the Financial Reporting Council (FRC). Auditors should note that their responsibilities have increased in the current dispensation.

    “We do not want to make a mess of the International Financial Reporting Standard (IFRS) by next year; that is why we are investing in training and capacity building of operators and auditors.”

  • NCRIB admits 32

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has inducted 32 brokers into its fold, buoying its membership to 492.

    Its President, Mrs Laide Osijo, urged the new intakes to brace for the unfolding global and regulatory challenges confronting professionals in the finacial services sector.

    Mrs Osijo urged them to ensure that they operate within laid-down ethical and professional standards prescribed by the council, as well as other regulatory bodies to which they subscribe.

    “You are coming in at a time when insurance business and operators in Nigeria are being challenged by several factors, notably, public image and global regulatory prescriptions. You must strive to play above board.”

    She commiserated with families who lost their loved ones and valuables in the flood ravaging some parts of the country.

    She advised the government to evolve concerted and proactive disaster management strategies aimed at combating similar calamities in the future, as well as educating Nigerians on the need to avoid building their residences in flood-prone areas. She stressed the need for them to eschew habits that could make the society vulnerable to such disasters.

    Mrs Osijo said the industry could bring succour and mitigate losses that may result from such calamities, both at the individual and government levels when fully embraced.

    In a lecture on ethics and professionalism, the Deputy President, Ayodapo Shoderu, urged the inductees to be ingenious in developing products that meet the desires of the public.

    Shoderu said despite the social functions of insurance, operators must constantly bear in mind the need to entrench the practice in the minds of the public to reduce the image and acceptance problems confronting the industry.

     

  • NCRIB to partner NAICOM on debt validation

    The Nigerian Council of Registered Insurance Brokers (NCRIB) will partner with the National Insurance Commission (NAICOM) on its planned validation of debts allegedly owed by brokers, NCRIB Prresident Mrs laide Osijo has said.

    Mrs Osijo told The Nation that the council suggested the idea to validate the debts to NAICOM, adding that brokers are striving to be ethical and professional and would never engage in anything that would attract sanction.

    She said: “We suggested the idea to validate acclaimed debts to NAICOM. The underwriters have been accusing brokers of with-holding premium which is not true. The underwriter often claim that the premiums has been paid and that brokers are with-holding them. But the truth is that most of the premiums are receivables that are not yet collected, especially government accounts, adding that because the debit notes are written by brokers, it is assumed that the money is with brokers.

    “The allegation is unfounded. We have asked underwriters that have documentary evidence to bring them out, so that we can do reconciliation. That was the advice we also gave NAICOM.The commission wrote us and we replied by telling them to ask underwriters to show evidences of premiums with-held by brokers. I would not say that brokers do not err, but brokers in the past are different from those practising now. ‘’

    She further stated that brokers of these days are afraid of being sanctioned, hence, they abide by rules. ‘’So we are trying to practice professionally and ethically these days, and I can boldly boast of that. Why would anybody accuse somebody for no just cause? It is unfair. If it is possible underwriters can go to the insured to confirm if the premiums have been paid, instead of accusing brokers unjustly. But that may be going to the extreme for there is no contract between the insured and the underwriter. Since we bring the business, we should be allowed the freedom of contract,” she said.

    She said NCRIB would collaborate with NAICOM to validate the claims of underwriters to stem the allegation that brokers hold back underwriters’ premiums, stressing that there should be proper documentation before laying accusation on the brokers.

  • CIIN, NCRIB seek govt’s support for industry

    CIIN, NCRIB seek govt’s support for industry

    The President, Chartered Insurance Institute of Nigeria (CIIN), Dr Wole Adetimehin and his counterpart in the National Council of Registered Insurers Brokers (NCRIB), Mrs. Laide Osijo, have called on state governments to support the industry by procuring policies to cover their risks.

    Adetimehin, made the call during a visit to the Ogun State Governor, Senator Ibikunle Amosun in Abeokuta, on the one hand, and Ondo State Governor, Olusegun Mimiko, in Akure, recently.

    Adetimehin said support from governments, would go a long way in promoting service delivery and enhance international best practices.

    He said there are compelling reasons why the citizenry and governments should take insurance more seriously, adding that Nigerians are under daily threat from risks emanating from natural disasters such as floods, rainstorms and security risks which are taking their toll on the citizenry.

    He noted that the low insurance contribution to the economy stemmed from lack of necessary infrastructure, adding that lack of basic needs prevent people from making insurance part of their priorities.

    He said: “With unemployment at an estimated 23.9 per cent in 2012, the Insurance business in Nigeria is hardly able to improve on its contribution to the nation’s GDP, above one per cent, unlike in South Africa where it is 15 per cent. The reason for this is because citizens are apparently laden with costs which are channeled at the procurement of otherwise basic and fundamental needs such as electricity, water and security, these, he said prevent them from making insurance part of their priorities.

    “I am delighted that some state governments are making positive efforts in the improvement of citizens’ welfare and this includes Ogun State. We wish to also seize this opportunity in requesting Ogun State and other state governments to provide a level playing ground for the insurance companies within the states in the procurement of state insurances.