The Nation Newspaper

Tag: NIA

  • IMF, NIA partner on growth

    The International Monetary Fund (IMF) and the Nigerian Insurers Association (NIA) are exploring how to harness the potentials of the industry to boost the economic growth of the country.

    The Director-General of NIA, Sunday Thomas, who made this known in Lagos, said the representatives of the association’s Governing Board led by Prof Joe Irukwu, has met with the representative of the IMF, Dr Rodoyo Wenrhan, to discuss how operators of the industry can maximise value from the enormous insurance potentials in the country.

    Thomas said the parties hope to work out on how to sustain stability on insurance contributions to the economy.

    He said: “The representatives of our Governing Council led by Professor Joe Irukwu, has met with the representative of the IMF, Dr Rodoyo Wenrhan, to explore the potentials of the insurance industry as an economic growth driver in Nigeria.

    “Among the objectives of the mission was to ensure stability is sustained within the system. The representative of the IMF stated that the outcome of the meeting is expected to be published with recommendations made on how to move the insurance industry forward.”

    Th industry is also said to have within the last three years, recorded growth of one million subscribers.

    Commissioner for Insurance Fola Daniel, who made this known, said the number of insured in Nigeria was 500,000 about three years ago, but at present stands at about 1.5 million, out of a population of over 165 million.

    Daniel noted that the Gross Premium Income (GPI) has also increased from N157 million in 2010 to N250 million in 2012, adding that as a result of that, increase in the ratio of premium to Gross Domestic Product (GDP) moved from below 0.5 per cent to nearly one per cent.

    He said increase in local capacity has moved from less than 10 per cent to 48 per cent, adding that the commencement of implementation of Section 50 of the insurance Act 2003 has improved financial assets of operators.

     

  • NIA: Vehicle insurance policies hit 1.5m

    About 1.5 million vehicle insurance policies have been uploaded into the industry’s database platform, the Director-General (DG), Nigerian Insurers Association (NIA), Sunday Thomas, has said.

    He disclosed this during a session with reporters in Lagos, adding that operators are still uploading data of new policies they registered.

    He said the association has procured 1,000 motor insurance electronic readers, out of which 25 units have been given to Ogun State Vehicle Inspection Officers (VIO), adding that the units have helped the agency to spot genuine policies.

    Thomas said the association was discussing with the Lagos State Government and that a date for the deployment of the devices in the state would be fixed soon. He said the association was planning to take the units to Abuja, the federal capital and the northern states.

    He noted that with the success achieved from the deployment of motor insurance data, the association would intensify efforts to ensure that before the end of the year, marine data would be deployed followed by property and other classes of insurance.

    NIA said it decided to start the deployment of electronic devices to Abeokuta, because historically, insurance in the country is traceable to the city, adding that the state also was one of the states to indicate interest in the project.

    The industry’s database project, which was conceived in 2010, to help develop robust information on insured vehicles, was launched in June, last year. It is an information technology-based system that will facilitate easy collation and dissemination of statistical and other information relating to insurance and help check activities of fake documents.

    The NIA promised to deploy over 500,000 electronic card readers to security agencies to verify genuine vehicle insurance licences.

    The project, according to NIA, would, among other things eradicate fake insurances and minimise instances of fraudulent claims, provide real time information that would address issues raised by stakeholders: insuring public, market players, law enforcement agents and regulators as well as serve as source of historical data for analysis and benchmarking, thereby providing qualitative analysis of industry performance.

    The initiative will enhance transparency and accountability and restore confidence in the insuring public, create the basis for scientific management of operations in the industry and it will enable the tracking of transactions in the industry.

    Assessing the first quarter operations in the industry, the NIA DG said reports received so far are consistent with expectations. He said the No premium No Cover policy introduced by the industry regulator, the National Insurance Commission (NAICOM) has worked very well for its members as shown by the reports sent in by insurers.

    Thomas said many of the insurers have been able to record very high level of payments which is good for the system.

    “Ordinarily when premiums are calculated, it is with the intention that they will be collected as at when due and invested so that when claims arise the insurer will be able to pay. He said with the current situation, the industry is actually moving from what used to be the order to what should be,” he said.

    Thomas said in 2011, about 28 per cent of the total premium that arose from transactions remained as outstanding premium. He said the situation would not arise this year because of the No premium No cover policy.

    ”The first quarter has been good though not in terms of volume but in terms of real business, that is transacting the business and collecting the premium,” he said.

  • NIA, NSC collaborates to form insurance clubs

    NIA, NSC collaborates to form insurance clubs

    Mr Remi Olowude, Chairman, Nigerian Insurers Association (NIA), has said the association was collaborating with the Nigerian Shippers Council (NSC) to form insurance clubs.

    He told the News Agency of Nigeria (NAN) in Lagos that the collaboration would be in the area of growing both industries and forming Protection and Indemnity Insurance Clubs.

    Olowude said the NIA would help to introduce clubs where members from both associations would regularly meet to do business.

    He said that the clubs would help to monitor developments in the maritime sub-sector in Nigeria and also track developments in maritime international conventions.

    “It is my conviction that this kind of collaboration will help to develop marine insurance.

    “The clubs will also assist to protect maritime risks premiums and facilitate receipt of claims,” Olowude said.

    He said the uploading of marine insurance policies on the Nigerian Insurance Industry Database (NIID) would be made easier through the clubs.

    According to him, the second phase of the NIID project would mainly focus on the uploading of marine insurance policies.

    He disclosed that Motor and Mari)e Insurance policies were being given priority in the first phase of the NIID uploading of data project because of the “magnitude of fraud in those areas’’.

    “The volume of fake insurance certificates which businessmen in those two areas are parading compelled us to give attention to them so as to reduce such crime,’’ Olowude said.

  • NIA seeks Presidency’s assistance

    The Nigerian Insurers Association (NIA) is planning a meeting with the Presidency to discuss issues affecting the sectors; its Chairman, Remi Olowude, has said.

    Olowude, who stated this in Lagos, said in line with the association’s determination to achieve its objectives, it has become imperative to take deliberate steps towards closer interaction and strategic partnership with all stakeholders, particularly the major arms of the government.

    He said the Governing Council of the association would table issues, such as the key roles of insurance to the socio-economic growth and development of the nation.

    He said how the industry and the government could collaborate in poverty alleviation, would also be considered, adding that the need to give the industry the opportunity to contribute to the formulation of certain government policies; the industry representation in appropriate government committees is important.

    He noted that efforts would also be made to ensure the restructuring and strengthening of the association’s secretariat for effective public sector liaison and monitoring of the political and legal environment as it affects insurance, adding that this has become necessary as recent events in the financial sector had shown, no insurance company was too big to fail or too small not to matter.

    He said: “Insurance companies are institutional investors which invest in equities and securities. When these entities fail, insurance companies are faced with the challenges of honouring their obligations to their customers. But, unfortunately, there is nothing in place on the part of the government to bail out the insurers in times of trouble. This is food for thought.

    “Similarly, we intend to initiate interactive sessions with the appropriate committees or organs of the two chambers of the National Assembly to discuss issues, such as restrictive laws on insurance practice, multiple taxation, insurance awareness and penetration, development of oil and gas industry.

    “The NIA will also strengthen relationships with the different organs of the Judiciary by organising annual or bi-annual Insurance seminars for judges and the leadership of the Nigerian Bar Association.

    “The seminars will focus on developments in insurance law in Nigeria, and ensure that the judiciary, legal profession, the regulators, and practitioners in the insurance industry as well as the media have a mutual understanding of insurance law and practice. The more people understand the law, the less the courts are inundated with avoidable suits.”

  • 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.

  • RISAN holds conference on disaster management

    Risk Surveyors Association of Nigeria (RISAN) will hold its national conference next month, in Lagos.

    Entitled: Human element in disaster management and loss prevention, the conference, the President of the association, Jacob Adeosun, said in a statement, will address the challenges of disaster management and proffer solutions to mitigate the occurrence of losses on roads as well as in commerce and industry resulting from industrial fires and allied perils.

    Adeosun said the conference will focus on the impact of human element in disaster management at this year’s parley given the central position which human beings play in managing the challenges of risks.

    Expected at the event are Mr Fola Daniel, Commissioner for Insurance (NAICOM); Dr Remi Olowude, Chairman, Nigeria Insurers Association (NIA), Dr Wole Adetimehin, President, Chatered Insurance Institute of Nigeria (CIIN) and Mrs Laide Osijo, President, Nigerian Corporation of Registered Insurance Brokers (NCRIB), among others.

    The conference will climax with the investiture of Adeosun as the President of the association.

  • NIA yet to deploy electronic cards

    The Nigerian Insurance Asso-ciation (NIA) is yet to deploy the over 500,000 electronic card readers two months after launch because of logistics.

    A source said the organisation has been sorting out some logistic challenges, adding that efforts were being made to ensure that the desired result is achieved.

    He said the association wants to ensure that the gadgets get to the various states and people they are meant for, stressing that the deployment would commence soon.
    Former NIA Chairman Olusola Ladipo-Ajayi said the project would help stem fake policies carried by motorists and help security agencies – Nigeria Police and Federal Road Safety Commission (FRSC) – ascertain genuine vehicle licensces and weed out fake insurance certificates.

    He said the data device was aligned with that of the FRSC to forestall harassment of policy holders by security officers, adding that the device will block the enormous financial leakages in motor insurance due to fake operators.

    He said: “Our data is linked to the FRSC data base so that they can verify the authenticity of insurance certificate that will be presented to them by motorists. We are deploying the electronic card readers to the security agencies to enable them know vehicles that are properly insured.

    “The most important thing is for us to get it right. It is not how soon, but how well, because every existing data must be captured, tested and be error proof. This is because we do not want any body to be denied passage by the police and other security agents when he or she has a genuine vehicle insurance cover.

    “What this means is that all policies that are still running now will be captured into the system, so that when a policy holder is accosted, he or she will not be accused of carrying a fake or counterfeit document, whereas the individual is carrying a genuine document. This we are presently doing.”

    Ladipo-Ajayi said the data would provide a mechanism for verification of insurance certificates issued or presented as evidence of insurance, an enabling environment for submission of statutory returns online and also provide access to relevant policy, underwritten and claims information.

    He noted also that the initiative will enhance transparency and accountability to stakeholders, thereby restoring confidence in the insuring public. It will create the basis for scientific management of operations in the industry and enable the tracking of transactions in the industry.