CIIN takes insurance curriculum to ministries of education

Chuks Udo Okonta

The Chartered Insurance Institute of Nigeria (CIIN) in colloboration with the Federal Ministry of Education are working out ways to get states' ministries education enforce the introduction of insurance curriculum in secondary schools, Inspen has learnt.

President
CIIN Dr. Wole Adetimehin, who disclosed this in an interview, said as part of the institute's strategic action plans, it intends moving round all ministries of education across the nation to canvass the implementation of the policy

He said: "In our favour, the Federal Government has made insurance West African Examinations Council (WAEC) and National Examinations Council (NECO) subject, where by, students have to offer insuurance from Senoir Secondary one to three.

"As part of our strategic action plans, we intend moving round all ministries of education across the nation to canvass the implementation of this policy. We have been to the Federal Ministry of Education and we have gotten all the curriculum for the schools, now we are partnering the Federal Ministry of Education in enforcing or compelling all the states' minitries of eduction to implement this new agenda."

He said the institute is already commissioning people to write text books on insurance in line with the curriculum, adding that the effort would at the same time create jobs for members of the institute.

The Federal Government in a bid to deepen insurance awareness, last year, introduced a curriculum that would enable students acquire insurance knowledge at the secondary school level.

Where we are on transfer window - PenOp

 

Executives of Pension Fund Operators Association of Nigeria (PenOp), in this interview, with journalists, spoke on why the transfer window has not been opened, challenges, progress and efforts being employed to strenghten the industry. Chuks Udo Okonta was there.

When the transfer window will become operational

Ronke Adedeji, Leadway Pensions: On the issue of transfer window, a lot of work is being done to date. The transfer window is quite a complex exercise, on the face, it always appears very simple. People always say, ‘I want to change my PFA and move from A to B,’ but its complex from the perspective that when you are moving an account from one PFA to another certain processes need to take place and the major one is the identification process. We want to make sure that when you are transferring account from one entity to the other, you are transferring correctly and that you are not transferring somebody else’s account simply because they have common names. So the issue of biometrics is very key. As such, the identification process to ensure that the transfer is secure and correct has to take place. In Nigeria, we really haven’t sorted out identification, but in more developed parts of the world, identification is quite simple and straightforward. So a major criterion for us is biometrics. There are various initiatives going on regarding biometrics. The federal government has an initiative, the banking sector has an initiative, and we are also looking at it and at the end of the day, we want to come out with a process that will ensure that it is comprehensive, effective and cost effective. So it’s a large exercise in terms of getting the biometrics right, but that is even a part of the whole thing. There is also the software and the data bank process from the National Pension Commission, PenCom’s perspective. So there are still a lot of issues that we are trying to sort out. We are working hard on the biometrics, to sort out software, databank issues. We may end up doing collaboration between the PFAs; we may look at other stakeholders such as federal government and the banks to work with so that the process can be complete and effective.

State of the pension industry after recapitalisation

Dave Uduanu, Chairman, PenOp: Regarding recapitalisation, you will notice that a lot of the ‘medium to big’ PFAs already had close to N1billion before the recapitalisation programme was announced. They didn’t need to bring in a whole lot of money, which is why you don’t see that a lot of things have changed; even though the law and the guideline stipulated N150 million, a lot of PFAs were already capitalised to over N800 million or N1 billion or more and they anticipated that there will be increase in capital. So the PFAs that control at least 90 per cent of the market did not see material inflow by way of new share capital. Now the pension business is not about brick and mortar, unlike banks where everyday people go and withdraw money. The more electronic payment channels are developing, the fewer branches we are going to have because pension is not money that you need for day to day living. So, the transactional aspect of the business is much lower than in banking, therefore the need for brick and mortar is not as high as banking.

The pension funds also have distribution network through the custodians. So if you are with First Bank or with UBA or with Zenith, you have opportunity to have your pension desk in these branches. However, PFAs are putting brick and mortar in some of the more remote locations. In Nigeria, there are six geo political zones and most people look at it and say ‘ok we are really sure of this geo political zone where the commercial capital is or where we have the most customers, so I will put in a location.’ Pension funds that are owned by banks ride on their parent company network. So don’t look for the brick and mortar, look for quality of service, customer contact point, it could be call centres, cell phones, or e-mails that will resolve problems. Even the banking industry is moving from brick and mortar, the world is moving away from brick and mortar to electronic payment channels. What I believe will drive employment level in the PFAs is when the informal sector opens up. You can’t say, ‘now I have N1 billion, let me go and hire people.’ Employment is driven by business needs and business needs is driven by the opening up of the market and the size of the market. So I think that the recapitalisation has made PFAs to be stronger entities, it has also made them to invest in the things that you don’t see like risk management systems, and quality of people. Overall, the industry is better off because of the recapitalisation.

Misibau Yola, MD, Legacy Pensions: Whenever branches are mentioned in the financial services industry, it’s the banking perspective that is usually on our minds. For pension, remittances are made by employers; they are not even by individuals. What you find is that as the number of retirees’ increases, you are going to have the likelihood of more physical branches opening. Now what we have is 5.2 million registered RSA holders or probably less than 200,000 retirees. It is a small number because it is the retirees that you actually sit with a lot of the time. I believe that as the number of retirees increases we will see more branches. But as it is now, I for example, I have UBA, as my custodian, all over Nigeria, in any UBA office; people will sit there and interact with customers. So you will see the number of branches increase as the size of RSA grows.

Idu Okwuosa, Stanbic/IBTC Pensions: There is also a guideline from PenCom based on the number of RSAs you have, you must have an office in the state. So if you have a certain number of RSAs you have to have an office in that state.

Accessing 25 per cent of retirement contribution

Yola: As a contributor to the CPS, be reminded that it is six months after you had lost your job that you can access 25 per cent of your pension contribution. If you resigned by yourself, the law does not allow you to have access to that 25 per cent. The objective is to make it look like some insurance benefit if you lose your job. The truth is that you didn’t plan to lose your job, so the 25 per cent payment will help you until you get another job. If you resigned on your own, presumable, you had other plans like going to self-employment, or you want to set up your own newspaper, there wont be any 25 per cent initial payment for you. The law states that it is only when you lose your job and you have stayed out of employment for six months, then you can take 25 per cent while you are looking for another job. So when you get another job, you continue with your pension contribution.

Appointing a substantive board for PenCom

Uduanu: It is the duty of the federal government to appoint a substantive board for PenCom. Clearly you don’t want a vacuum in any organisation whether it is a regulator, parastatal or even government itself. The government has not appointed a permanent board for PenCom, however, there is an acting Director General and I will say that there is high level of continuity in PenCom because of the way PenCom is run. It is very consultative giving that everything and anything that is done, the regulators deliberate with the operators. So they just don’t wake up and issue guideline or make amendments to regulation without carrying the operators along.

PenOp is also strong and is getting stronger and is the voice of the industry and serves as a bridge between the regulator and the industry. Whilst we have desired that there will be no vacuum anywhere, we are mindful of the fact that government is always government and I believe that they will appoint a substantive board for PenCom very soon. We are working with the acting DG and they are people we are very familiar with and there is a high level of continuity. Substantially, it is not affecting the management of pension funds or what we plan to do with the funds. If there is a new leadership in PenCom, as with all new leaderships, they will take the plans and all the guidelines and bring their own experiences and views to the table and we discuss. If their views are consistent with the progress that is being chart for the industry, they will be implemented, otherwise, it will be difficult for somebody to come to PenCom today and change things completely.

Recovery agents

Okwuosa: As of date, 15,760 employers are defaulters of the CPS. Out of these, a total of 8,584 have been visited by the recovery agents. Till date the liability from people they visited is N2.5 billion, that is what we are hoping to recover from those they have seen so far. They have sent them demand notices, as well as account of custodians on how to remit the money.

Uduanu: Suffice it to say that for most of the big employers, most of them are current with their remittances to a reasonable extent. Most employers in the organised private sector pay their pension and are in compliance. The organised private sector has done very well. They treat pensions the way they treat salaries, it is important to encourage them because they have turned out to be probably the strongest pillars and supporters of this scheme even though initially when we started, they saw it as additionally tax or financial burden.

New guideline for state governments issuing bond

uduanu: The National Pension Commission, PenCom, released some guideline for state governments that want to access pension funds by way of issuance of bonds. Such state governments will not only participate in the scheme but PenCom has introduced more stringent requirement to ensure that you don’t just come in, access the funds of the PFAs and stop contributing. What PenCom tried to do is to equate pension payment with payment of salaries. PenCom put in place a mechanism to ensure that at the end of the every month it is no longer discretionary to remit money into contributors account just as salaries are not discretionary. You must pay contributors just as you pay salaries at the end of the month. It is the whole idea to make pension at par with salary. The mechanisms they want to use to do that are being fine-tuned.

One area that we are very conscious of are that a lot of investments of pension funds are located in the bond market particularly the federal government bonds. So we have taken it upon ourselves, working with the regulators to find out ways we can, through working with other partners, to can expose the funds to the real sector. Now we have to be careful how we do this. The real sector elicits both positive and negative feedbacks. The negative feedback is people being afraid of the pension fund being invested in infrastructure. That is not what we are talking about. We are talking about, how do you invest pension funds in the real sector through such mechanisms as private equities, or through the housing or mortgage market and through infrastructure bonds? So as part of that process, we are speaking to the regulators and the governments and institutions like the International Finance Corporation, IFC, the African Development Bank, AFDB, who are interested in growing the real sector of the economy. Just as everybody is conscious of the fact that funds cannot only stay in government bonds, we are much more conscious of that fact because the more we grow the real sector, the more employment is created, the more jobs are created and the more our businesses grow. The focus of our strategic plan is to bring in the informal sector, make sure all the state governments key in and invest in the real sector so that the informal sector can become much more formalized so that our economy can grow and create jobs and that way, grow the Contributory Pension Scheme, CPS, subscriber base from 5.2 million to 20 million which is our target for five year period.

Putting pension payment at par with salaries

YOLA: Under the law, pension payments are supposed to be made at least one week after salaries are paid. Ideally, if you pay salaries, you should be able to simultaneously pay pension at the same time, because you are deducting from the salary payment. A grace of one week was given just for organisations to tidy whatever they have not tidied up. For the state governments, there was a circular or guideline issued by PenCom about state governments accessing pension assets by way of issuing bonds. The initial position was that they will do Irrevocable Standing Payment Order, ISPO, for the repayment of the bond which is a normal thing. What was added was that the states will also require ISPOs for the pension payment. Therefore, they are not only having standing payment order for funds to pay to the bonds but to ensure that pension deductions are also taken at source. The whole idea is that they don’t have access to pension assets and while their bond is successful, remittance of pensions become at their own convenience. The idea is to force them, simultaneously as they are making accruals for paying the bond they are also putting down money to make sure that the monies get into the pension RSAs of their employees, so that they don’t just abandon it midway by opening RSAs, take the monies to finance their bonds and then they don’t pay back. So PenCom added an ISPO for pension deductions also. So if you want to access the monies in the pension fund, you must have both ISPOs. Ordinarily you must open RSAs, but now you have to have ISPO for pension payments. It is just to ensure that the states do not renege on that particular issue. States usually give ISPOs to the Central Bank so that the money is deducted at source before it even gets to them to spend.

So it means that once a state has raised money from the bond market, for pension funds to invest in the bond, the payment of pensions will no longer be at the instance of the state, it will be deducted at source and remitted to the PFAs. That is such a strong requirement and the push back initially could be wide but it requires financial discipline on the part of the state. That is what we need as a country.

Importance of the guideline

The guideline is important because state governments collectively are a huge employer of labour and they have a lot of employees that would ordinarily go for RSAs but because they have to make their own laws first it is at their own convenience to do that. So the idea is really to get them on board, but make sure that they come on board safely and not just half way. A number of states have already issued bonds prior to this regulation because this regulation came out in December. Prior to that Lagos, Niger, Delta, Ekiti as well as Imo state have issued bonds under the old guideline which simply require them to open RSAs and then have an ISPO for repayment of the bond.

If the question is will it encourage or deter state governments from accessing the pension fund, it is a question of explaining to the state government what the objectives are. Well initially some states might think it is stringent, but at the end of the day, if you really want to implement the scheme for your citizens, that is probably the way to go. It also means that the governor after you doesn’t cancel the initiative. Once an ISPO is with the Accountant-General of the federation, you cannot go and stop it, it is a direct deduction. It is such a strong statement from PenCom. So we will dialogue with the states on a need basis and we will see how the guideline affects the growth of the industry.

Transfer window

On the issue of transfer window, a lot of work is being done to date. The transfer window is quite a complex exercise, on the face, it always appears very simple. People always say, ‘I want to change my PFA and move from A to B,’ but its complex from the perspective that when you are moving an account from one PFA to another certain processes need to take place and the major one is the identification process. We want to make sure that when you are transferring someone’s account from one entity to the other, you are transferring correctly and that you are not transferring somebody else’s account simply because they have common names. So the issue of biometrics is very key, so the identification process to ensure that the transfer is secure and correct has to take place. In Nigeria, we really haven’t sorted out identification, but in more developed parts of the world, identification is quite simple and straightforward. So a major criterion for us is biometrics. There are various initiatives going on regarding biometrics, the federal government has an initiative, the banking sector has an initiative, we also are looking at it and at the end of the day, we want to come out with a process that will ensure that it is comprehensive and effective and also, cost effective. So it’s a large exercise in terms of getting the biometrics right, but that is even a part of it. There is also the software and the data bank process from PenCom perspective. So there are still a lot of issues that we are trying to sort out. We are working hard on the biometrics, to sort out software, databank issues. We may end up doing collaboration between the PFAs; we may look at other stakeholders such as federal government and the banks to work with so that the process can be complete and effective.

Having two RSAs

It is not possible for a contributor to have two RSAs. If the database was correct, you wouldn’t be able to have two RSAs. Even now, it is an aberration that you can have two RSAs, it means that the identity wasn’t sorted out. If your fingerprint was already there, then, any second RSAs registration would have been rejected. In a very well organised identity Programme that would be impossible, you will have only one RSA and only one in number. If you have two, something went wrong somewhere, it shouldn’t have been. But in general, PenCom recognises the first pin that was registered. They have a record of which pin was registered when, so if you are the holder of these two RSAs then write a letter to PenCom to say I have two RSAs but please resolve it. Now you can pass that through your PFA, so PenCom will now determine which PFA registered you first and that will be the valid pin and PenCom will cancel the other pin and ask the other PFA to transfer your balance from that PFA to the first PFA. That is how it works.

Accessing 25 per cent of retirement contribution

Be reminded that it is only if you lost your job after six months that you can access 25 per cent of your pension contribution. If you resigned by yourself, the law does not allow you to have access to that 25 per cent. If you resign voluntarily, you can’t access it unless you lose your job. The objective is to make it look like some insurance benefit if you lose your job. The truth is that you didn’t plan to lose your job, so the 25 per cent payment will help you until you get another job. If you resigned on your own, presumable, you had other plans like going to self-employment, or you want to set up your own newspaper, no 25 per cent for you. The law states that if you lose your job and before you get another job and you have stayed out of employment for six months, then you can take 25 per cent while you are looking for another job. So when you get another job, you continue with your pension contribution. So you cannot withdraw from it more than once.

Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye

Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye

MDRI hits 75% success, says Soladoye

Chuks Udo Okonta

The Market Developement and Restructuring Initiative (MDRI) has recorded up to 75 per cent success, the Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye, has said.

He disclosed this at media parley with members of National Association of Insurance Correspondents (NAICO) in Lagos. He noted that the initiative is a turing point in insurance practice in the country, adding that with MDRI, operators, regulators, support service providers, journalists and government, now realise the fact that there is something going on in the industry.

He said prior to the introduction of the MDRI, operators were leading the industry, but with the initiative, the fear of the regulator is now the beginning of underwriting wisdow.

He said: "MDRI is also a turing point because it is from that stage we saw the regulator leading the market. There is a united focus for all of us. Whether you adopt it or not, we all know that there is a project on ground and there is a destination to reach and there is a direction as to the way we can go for us to secure increased penetration for insurance business in this country.

"The initiative is a watershed in the history of the industry and it is also an evergreen thing . You cannot wish it away, as it has brought about many developments. When you read the strategy document, you would see that micro-insurance is part of the area that was recommended as were the industry will get development.

"Takafu is also an aspect of the initiative. As MDRI is targeted as restructuring, therefore, all the restructuring that are happening in the market are embedded within the the programme."

He lauded the efforts of the Commissioner for Insurance Fola Daniel, adding that prior to his appointment, the best the industry had on the premium income was 24 per cent increase, now it has increased to 36 per cent.

He said the results in the past five years that the Commissioner has being in position, is an indication that the industry will meet its projections.

He noted that with industry's projection, by the time all the insurance companies that are engaging agents fully commence operations, there will be tremendous increase. He said by December 2009, NAICOM has in its record about 1695 registered agents with different insurance companies, stressing that by December 2010, the number increased to 3404, which was about 2000 increment.

Soladoye noted that in spite the success, more companies are yet to embrace retail marketing, which he said remains one of the penaceas to the industry's growth.

"The insurance companies feel that retail system is not the area they want to adopt, despite the fact that the regulator has put in place for them a lot of incentives to make them go into agency recruitment. Note that the National Insurance Commission (NAICOM) does not have underwriting license neither does it has a brokering license.

"The regulator has done all it could, believing that this is what is operating ease where and if underwriters adopt the initiative we will get there. From the reports available to us, we have observed that the underwriters are now realigning to embrace the initiative."

He said the MDRI has not ended, stressing that there was a delay in the implementation and that the industry will adjust to meet the set targets.

President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, presenting an award to the Managing Director Law Union and Rock Insurance Plc Mrs Toyin Ogunseye at the NCRIB Members Evening in Lagos.

President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, presenting an award to the Managing Director Law Union and Rock Insurance Plc Mrs Toyin Ogunseye at the NCRIB Members Evening in Lagos.

From left: President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo; Managing Director Law Union and Rock Insurance Plc Mrs Toyin Ogunseye and the company's Vice-Chairman Remi Babalola at the NCRIB Members Evening in Lagos.

From left: President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo; Managing Director Law Union and Rock Insurance Plc Mrs Toyin Ogunseye and the company's Vice-Chairman Remi Babalola at the NCRIB Members Evening in Lagos.

Revoked brokers' license to attract new fee, says NAICOM

 Chuks Udo Okonta

Brokers whose operational licenses are revoked due to infraction would henceforth pay the new processing fee of N2.5 million to remain afloat, the National Insurance Commission (NAICOM) has warned.

The Commissioner for Insurance Fola Daniel, disclosed this at the Council meeting of the Nigerian Council of Registered Insurance Brokers (NCRIB) on Tuesday in Lagos.

He urged brokers to avoid any thing that would make NAICOM revoke their licenses, adding that any broker who subverts the industry's rules, and have his or her license revoked has to be considered as intending member and pay the new processing fee.

Daniel used the occassion to discussed issues of the new premium collection and remittance regime with the brokers.

Meanwhile, the President NCRIB Mrs Laide Osijo, at the Members Evening of the Council, urged brokers to cooperate with NAICOM in the implementation of the new premium regime. She advised them to avoid any infraction that may lead to sanctions.

She stressed that the council has gathered from members and underwriters that the public and government are already adjusting to the new premium rule. She called on insurance operators to embark on enlightenment of client on the new rule.

She said: "Reports reaching us from the underwriters and brokers indicate an adjustment to the new rule by insurance clients, including the government.

"Even though it is not out of place of some pessimism about its workbility from some quarters, the onus is on insurance operators , including our members to embark on enlightenment of clients on the new rule.

"From my findings, it has become necessary to advise brokers to cooperate with NAICOM in the implementation of this rule as well as avoid any infraction that may lead to sanctions by the commission."

Osijo noted that the new rule would put to rest the incessant unnecessary bickering between brokers and underwriters over the issue of unpaid premium and remission of brokerage commission.

Royal Exchange appoints managers

Chuks Udo Okonta

Royal Exchange Plc has announced three strategic appointments in the areas of Asset Management, Human Resources and Retail Business.

A statement from its Corporate Communications Department said Mr. Donald Nosiri was made the new Group Head, Human Resources; Abiola Sanni, Group Head, Asset Management and Mrs. Temitope Ige-Isang as the new Group Head, Retail Business.

Its Group Managing Director, Mr. Chike Mokwunye noted that the resolve of Royal Exchange is to build a market-oriented organization that would be responsive to the needs of the market and the ever-changing demands of customers. "These new appointments are in line with our vision to once again be one of the dominant players in the insurance industry in the coming years", Mr. Mokwunye added.

Below is a profile of the new appointees

Abiola Sanni

,

Group Head, Asset Management, brings to his current role several years of top-tier engagement in corporate finance and investment management. In the past, he had been responsible for setting up Zenith Capital Asset Management, which he nurtured to a competitive market status, initially in his capacity as portfolio manager and later as Chief Operating Officer. He was previously Assistant Vice President/Chief Operating Officer at First City Asset Management where he was responsible for technology, funds operations, funds roll-out and the build-out of FCMB’s asset management business with a focus on retail distribution.

A Nigerian certified public accountant, Abiola is an authorised dealing clerk of the Nigerian Stock Exchange, graduate member of the Chartered Institute of Stockbrokers, a Chartered Banker and an associate member of the National Institute of Marketing of Nigeria (Chartered). Abiola graduated with a B. Sc degree in Accounting from Obafemi Awolowo University, Ile-Ife, and holds a Masters in Finance (Economic Policy) from the University of London, UK.

Donald Nosiri

, Group Head, Human Resources, is an experienced human resources practitioner with over 21 years working experience in the banking sector and also in HR Consulting. While in the banking industry, Donald served in various capacities including being the Head of Human Capital Management of Diamond Bank Plc for about six years. He was also formerly Senior Consultant to Nosprom Consult.

　

Donald holds the Bachelors and Masters Degrees in Mass Communication from the University of Nigeria, Nsukka and the University of Lagos respectively and a Certificate in Personnel Practice from the Chartered Institute of Personnel and Development London. He is an alumnus of the Lagos Business School (LBS) having undergone the Senior Management Programme (SMP24).

He belongs to several professional associations, among them: the Chartered Institute of Personnel Management of Nigeria (CIPM), the Chartered Institute of Personnel and Development, (CIPD), London and he is a Honorary Senior Member (HCIB) of the Chartered Institute of Bankers of Nigeria.

Mrs. Temitope Ige-Isang

, Group Head, Retail Business, is coming on board with over 22 years of sales experience spanning several industries. She joins from Mutual Benefits Assurance Plc, where, as Head of Retail, she successfully established and managed a retail agency network of about 3,000 personnel.

Mrs. Isang holds a B.Ed (History) from Ondo State University, a Post Graduate Diploma in Management Sciences from ESUT Business School, Enugu and has attended the Strategic Marketing Management (SMM) programme of the Harvard Business School, USA.

　

From left: Chief VIO, Ogun State Bayo Otuyemi; Permanent Secretary, Ministry of Works and Infrastructure, Ogun State Eng.Kayode Ademolake; Council Member, Nigerian Insurers Association Sakiru Oyefeso and Director General Nigerian Insurers Association Sunday Thomas, during the Official Presentation of NIID Mobile Devices for Moror Insurance in Ogun State.

From left: Chief VIO, Ogun State Bayo Otuyemi; Permanent Secretary, Ministry of Works and Infrastructure, Ogun State Eng.Kayode Ademolake; Council Member, Nigerian Insurers Association Sakiru Oyefeso and Director General Nigerian Insurers Association Sunday Thomas, during the Official Presentation of NIID Mobile Devices for Moror Insurance in Ogun State.

Why NAICOM didn't inform NCRIB of new license fee

Chuks Udo Okonta

The National Insurance Commission (NAICOM) has said it failed to officially inform members of Nigerian Council of Registered Insurance Brokers (NCRIB) of the new licensing
processing fee because existing members are not affected.

The Assistant Director Corporate Affairs NAICOM, Lucky Fiakpa,
told Inspen that there is no need to communicate the Nigerian Council of Registered Insurance Brokers (NCRIB) since the rule is for prospective brokers.

President Mrs Laide Osijo, said the NCRIB, had only heard rumour about the new fee, adding that the issue will be discussed with the Commissioner for Insurance Fola Daniel, when he visits the council tomorrow.

NAICOM has said intending Insurance Brokers would henceforth pay N2.5million as license processing fees from January 1.

It noted that the fees will be paid as follows: application – N250, 000.00 and licensing for successful outcome of process – N2, 250,000.00.

NAICOM said as part of efforts aimed at effective service delivery, the registration of new brokers will be carried out in two batches annually.

It said consequently, operating licenses to successful applicants in the first batch would be issued on June 31 of each year, while the second batch shall be issued on December 31 of the same year.

The commission noted that all relevant documents for applications for the first batch are expected to reach the commission not later than March 31, while those for the second batch should have been received in the Commission on or before September 30 for processing.

"Meanwhile, applications and or support documents received after the cut-off dates of March 31<sup>st or September 30th shall be treated as part of the next batches for consideration in the succeeding second half of the year.

"This clarification had become imperative to enable adequate preparations, necessary due diligence enquiries, publications in the media and more significantly, to afford time certainty for service delivery," NAICOM said.</sup>

NIA begins distribution of motor insurance e-readers

Chuks Udo Okonta

The Nigerian Insurers Association (NIA) has given 25 units of motor insurance electronic readers to Ogun State government, Inspen has learnt.

Its Head Corporate Affairs and Human Resources, Davis Iyasere, in a telephone interview, said the units were given to the State's Vehicle Inspection Officers (VIO) in Abeokuta, adding that discussings are also going on with the Lagos State Government.

He said: "We have given 25 units of the phones to the Ogun State Government, through the VIO, the distribution is according to demand. If they need more, we would give them. The 25 is just for them to start with Abeokuta metropolis."

He noted that the association decided to start with Abeokuta, because historically, insurance in the country is traceable to the city, adding that the state also is one of the states to first indicate interest in the project.

"We are discussing with the Lagos state government, we have had meeting with the Commissioner for Transportation and we are also working out ways to reach other states," he said.

He said insurance companies have continued to upload their data to the database, adding that much success has been recorded.

The industry’s database project which was conceived in 2010, to help develop robust information on insured vehicles, was launch on June 26, 2012. The NIA AT the launch promised to deploy over 500000 electronic card readers to security agencies to verify genuine vehicle insurance licences.

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

It is believed that the initiative will enhance transparency and accountability to its stakeholders thereby restoring confidence in the insuring public, creates the basis for scientific management of operations in the industry and it will enable the tracking of transactions in the industry.

NAICOM exploits court's rulings to enforce new premium policy

Chuks Udo Okonta

The National Insurance Commission (NAICOM) has identified court's rulings that would aid its legal strength to push the new premium regime, Inspen can reveal.

In a circular entitled Settle Court Case on partial/Instalmental/Non-payment of Insurance premium, signed by its management, the commission noted that the settled Appeal Court cases on the issue of insurance premium are clear indications that anything short of full payment at the commencement of an insurance contract renders such transaction null and viod ab initia.

It said the Provision of Section 50 (1) of the Insurance Act 2003 which states that, "The receipt of insurance premium shall be a condition precedent to a valid contract of insuran and there shall be no cover in respect of an insurance risk, unless the premium is paid in advance", is indeed in the interest of the insured going by decided cases on the issue by competent court of law.

It said: "Case1, the Court of Appeal in Ajaokuta Steel Co. Limited V. Corp. Insurance Limited (2004) 16 NWLR 369 at 373 held that: The foundamental purpose of an insurance contract is to give cover for an insurancerisk. Thus, a law, such as insurance Act, which says that there is no insurance cover unless premium was pre-paid, is in fact saying that the contract is viod if no premiium was paid.

"By virtue of Section 50(1) of the Insurance Act, No 2 of 1997 (as amended), the receipt of insurance premium is a condition precedent to a valid contract of insurance and there can be cover in respect of an insurance risk unless premium was paid in advance.

"Case 2, The Court held in Leadway Assurance Company Limited V. J.U.C. Limited (2005) 5NWLR 539 at 543 that: ... by virtue of Section 50(1) of Insurance Act, 1997, the receipt of an insurance premium is a condition precedent to a valid contract of insurance, and there is no cover in respect of an insurance risk unless premium is paid. In other words, a valid insurance contract is made when premium for the insurance is paid.

"Case 3, In IGI Company Limited V. Adogu (2010) INWLR pt 337 at 357 the Court held that the premium paid must be full and stated that: Section 50 of Insurance Act 2003 does not contemplate installment payment of premium in an insurance contract.

"The payment of premium is a condition precedent to a valid contract of insurance and when parties have entered into a conditional contract the condition precedent, like in the instant case, that is, the full payment of premium must happen before either party becomes bound by the contract."

The new premium regime has received the support of the government, as all ministries, departments, agencies and stakeholders have been adviced to ensure strict compliance.

NAICOM, in a bid to ensure that operators play according to the rules provided by the policy, has began having meetings with them.

Fed Govt vows to sanction MDAs on No Premium No Cover violation

Chuks Udo Okonta

Ministries, Departments and Agencies (MDAs) and other stakeholders that failed to embrace the No Premium No Cover provisions, would henceforth be sanctioned accordingly, the Federal Government has warned.

The Minister of State for Finance Dr Yeri Lawal Ngama, disclosed this in a circular entitled Guidelines on Insurance Premium Collection and Remittances - Compliance with Section 50(1) of the Insurance Act, issued to MDAs and other stakeholders.

He noted that in furtherance of the ministry's resolve to end the menace and era of non-remittance of insurance collections and premiums, as well as consolidate the gains of the on-going efforts in sanitising the insurance industry, the National Insurance Commission (NAICOM) has issued guidelines on insurance collection and remittance compliance in accordance with the provision of Section 50(1) of the Insuarnce Act 2003.

He said: "Arising from the observed non-compliance by MDAs and other critical stakeholders in the insurance industry, the ability of insurance companies to meet their various claims obligations under contracts of insurance to eligible beneficiaries has been grossly underminded. It is on record that the total premium debts owed the insurance companies by MDAs as at January, 2012 is N24 billion in spite yearly budgetary provision for insurance.

"Consequently, MDAs and other stakeholders are by this circular directed and adviced to comply with the provision of the above Act, as any MDAs/organisation found culpable, would be sanctioned accordingly. To this end, all MDAs and other stakeholders are enjoined to render their returns on premium collection and remittances to NAICOM as enshrined in the guidelines.

"In addition, it is worthwhile to note that henceforth, any contract of insurance entered into without payment of full premium in advance, shall be legally unenforceable.

"It is expected that the enforcement of this provision of the law, will strengthen insurance companies' ability to meet claims obligations under contracts of insurance."

He urged heads of MDAs to ensure that the information is brought to the attention of all concerned for strict compliance.

Executive Director Crystalife Assurance Plc, Mr Teju Ogunjimi; Managing Director of the company, Mrs Seyi Ifaturoti ; President NCRIB, Mrs Laide Osijo and Executive Director of Crystalife, Mr Owolabi Salami during a courtesy visit on NCRIB by the company in Lagos.

Executive Director Crystalife Assurance Plc, Mr Teju Ogunjimi; Managing Director of the company, Mrs Seyi Ifaturoti ; President NCRIB, Mrs Laide Osijo and Executive Director of Crystalife, Mr Owolabi Salami during a courtesy visit on NCRIB by the company in Lagos.

Life underwriters urged to develop people centred products

Chuks Udo Okonta

The President Nigerian Council of Registered Insurance (NCRIB) Mrs Laide Osijo, has urged Life Assurance companies to take advantage of the Group Life Insurance Scheme as provided for under the Pension Reform Act 2004.

She gave the advice when the management of Crystalife Assurance Plc, led by the Managing Director, Mrs. ‘Seyi Ifaturoti paid her a courtesy visit in the NCRIB House in Lagos.

Osijo opined that the 27 existing life companies in the country should continually evolve insurance policies that would meet the needs of the teeming Nigeria population as obtained in other developed countries.

The NCRIB President noted that under the Pension Act, every employer of labour was under obligation to arrange for a life insurance cover for employees and in order to make it workable, the scheme is arranged on group basis under the Group Life Insurance.

While disclosing that the public sector was already complying with the Act, Osijo said there were rooms for ingenious Life companies to prospect the numerous private sector workers and take advantage of the Act to grow the industry.

She said all over the world, life specialist companies play catalytic roles to economic development as they possess the required professional competence to conceive life policies or welfare schemes that would ultimately benefit both employers and employees.

Osijo commended the on-going synergy between the National Insurance Commission (NAICOM) and the Pension Commission (PENCOM) on Group Life insurance and annuity, noting that the action would grow the industry and improve the social welfare of Nigerians.

Meanwhile, the February edition of the NCRIB Members Evening is to be hosted by Law Union and Rock Insurance Plc on Tuesday, February 26, 2013.

The event which is a bi-monthly programme utilized to promote professional and social interaction between leading underwriting companies and insurance brokers in the fold of the NCRIB holds at the Insurance Broker House, 58 Moleye Street, Alagomeji Yaba, starting from 3.00 pm. The management team of Law Union led by the Managing Director, Mrs Toyin Ogunseye will be received by the President of the Council, Barrister Laide Osijo.

NAICOM meets operators on implementation of No Premium No Cover policy

Chuks Udo Okonta

The National Insurance Commission (NAICOM) has commenced meetings with insurance operators to examine progress and challenges observed in the implementation of the No Premium No Cover regime, Inspen can reveal.

It was learnt that the Commissioner for Insurance and NAICOM's helmsman Fola Daniel, met the umbralla body of underwriters - Nigerian Insurers Association (NIA) during their council meetings few weeks back to ascertain the challenges and progress made since the policy took effect on January 1, this year.

A source in NIA, said issues on implementation of the policy dominated discussions at the meeting, adding that the underwriters, used the avenue to delibrate with NAICOM on the challenges they envisaged and agreed on how to tackle them.

It was also gathered that NAICOM will next week, meet members of the Nigerian Council of Registered Insurance Brokers (NCRIB).

President NCRIB Mrs Laide Osijo, speaking on the meeting, said it would provide opportunity for brokers to share observed challenges with the Commissioner and seek ways to ensure smooth implementation of the policy.

She said: "The Commissioner has been with the NIA and he will be with us next week. At the meeting, we would tell him the challenges we have being going through."

NAICOM had early in the year, issued a circular stating that from January 1, any underwritering firm that provides insurance cover without collecting the premium would be liable to a penalty of N500, 000 or lose its license.

It also noted that all insurance covers shall only be provided on a strict 'no premium no cover' basis and that only cover for which payment has been received, directly by the insurer or indirectly through a duly licensed insurance broker, shall be recognised as income in the books of the insurer.

The commission said any insurer, who grants cover without having premium in advance or premium receipt notification from the relevant insurance broker, shall be liable to a penalty of N500, 000 in respect of each cover so granted , and in addition, may be a ground for suspension of of the license of the insurer.

It said irrespective of period of insurance, insurers shall ensure that at any point, they have received directly or indirectly, through the insurance broker the full premium in advance for cover being granted.

NAICOM noted that all brokers should within 48 hours of receiving premiums on behalf of any insurer, notify the insurer in writing in each case, of the receipt of such premium, adding that all such notification shall be accompanied by the broker's credit notes, acknowledging indebtedness to the insurer.

It said said upon the receipt of such credit notes, the insurer shall issue cover and forward the policy documents along with the related debt notes to the broker.

It said any broker who fails to notify the insurer of any premium received on his behalf shall be liable to a penalty that is not less than N250,000 in each case of failure to notify.

NAICOM mandated insurers to notify it, not later that 30 days from the end of every quarter, of all premiums acknowledged as having been received by brokers or lead insurers, but not remitted to them, adding that any insurer who fails to render such return, shall be liable to a penalty of N5000 for each day of default.

Insurers and brokers were asked to reconcile their accounts not later than March 31, 2013 and brokers and lead insurers are to notify the commission of premium received and unremitted to insurers, not later than 30 days from the end of every quarter.

Pension Scam - Reps Back Senate Over Call for Maina's Sack

By Okey Ndiribe and Emman Ovuakporie,


MEMBERS of the House of Representatives Tuesday supported the earlier call by the Senate to sack Chairman of the Pension Reform Task Force Team, Mr Abdulrasheed Maina.
Also, the Speaker of the House, Hon Aminu Tambuwal has asked the Inspector General of Police, Mr Mohammed Abubakar to produce Maina to answer questions on how over N200billion pension fund was allegedly mismanaged.
The resolution to concur with the Senate over Maina's sack arose from a motion brought to the floor of the House by the Chairman, House Committee on Rules and Business, Hon Albert Sam-Tsokwa representing Taraba State tagged: "House Concurrence to Senate Resolution on Dismissal of Mr Abdulrasheed Maina for Refusal to Appear before the Senate."
Tsokwa who led the debate said that: "the Senate of the Federal Republic of Nigeria on Wednesday 13th February 2013 passed Resolution (S/Res/033/02/13) requesting, that Mr. Abdulrasheed Maina be dismissed from the Public Service of the Federal Republic of Nigeria immediately and be disengaged from all acts relating to public duty;
" The Inspector General of Police should appear before the Committee on Police Affairs to give reasons why he did not act on the Warrant issued by the President of the Senate."
After deliberations on the matter, the Speaker put the motion to a voice vote and it was unanimously adopted.
The Speaker however, charged the IGP to immediately liaise with Interpol and get Maina arrested.
He said, "we won't be fighting corruption in isolation of some people through selective processes. Whatever Maina represent we cannot pretend to be fighting corruption yet we are condoling corruption.
"Every available fact here is against him, those of us in high places must not be seen to be condoling corruption or we will be seen to be paying lip service to the fight against corruption. Mr. Abdulrasheed Maina should be investigated and prosecuted. "

Source Vanguard

'I am enjoying No Premium No Cover policy'

Chuks Udo Okonta

Barely one month that the No Premium No Cover policy, took effect, brokers are already counting their gains, Inspen can authoritatively reports.

The President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, said she is enjoying the policy as her firm has within this period received more that what it used to get in a year.

She said: "We are coping very well with the policy, as far as my company is concerned, we have received in this month, more than what we normally get in a year.

"Three months before the commencement of the policy, we wrote our clients, to inform them that no premium no cover has come to stay, effective from January 1. We have to prepare the mind of our clients for January renewers and those also within the first quarter. We made sure we never held cover for any body without his or her money.

"I have reasonable clients that know what insurance is and they have being cooperating. Even for most of the government jobs that I do, we had our letters of appointment very early this year."

She noted that as the President of NCRIB, she had appealled to most Ministries, Departments and Agencies (MDAs), to ensure that premiums are paid as provided in the budget.

Osijo said reponses from brokers as to how clients are complying have being very encouraging. She noted that because the policy did not give room for part payment, client now make full payment which is very profitting.

"The volume in the short run may be a bit lower this year, but in the long run, we will have better return. Changes would always come with challenges, but with time, the challenges would be sub-dued. In the real sense, the volume before now does not measure the real premium that operators get. If we have some much volume, while the premiums are receivables, it amounts to nothing.

"I am proud to say that I am in a better position, for I was bent on not writing cover without premium and my cleints are responding. The truth is that the clients have the money, and have always been pretending.

"I can possibly say I am enjoying no premium no cover regime," she said.

Managing Director Lectern Insurance Brokers Limited Tunde Oguntade, said the policy may be tough, but the operators are trying to adjust, adding that it is for the betterment of the industry.

He noted that considering the volume of un-paid premium over the past years, the policy remains one of the best things to have happened in the industry.

He said the clients are complying, stressing that they have no choice as the law has come to stay.

Oguntade stressed that in the first instance, there would be a drop in the volume of premium to be generated. But, maintained that over time, people would get used to it.

Lagos evolves quick access to pension benefits

Chuks Udo Okonta

Lagos State Pension Commission (LASPEC) is working out ways to enable retirees access their pensions a month after their retirement, Its Executive Director Technical, Mrs Folashade Onanuga, has said.

Onanuga, who disclosed this in Lagos, said the state is poised to make retirees enjoy their benefits immediately they leave service.

She noted that delays observed in accessment of pension benefits often stem from the retirees, adding that if retirees documents are received by LASPEC four months before their retirement, their accrued rights would be credited into their Retirement Savings Account (RSA) at the time they are retiring.

She urged workers approaching retirement to commence the process of their retirement six months to their exit.

Director-General LASPEC, Rotimi Hussain, said the commission is working out ways to assist retirees and their next-of-kin in accessing their benefits through preparation of Will. He noted that LASPEC is exploring the possibility of identifying reputable organisations that will assist workers in the area of Will preparation.

He said: "The erroneous belief in many quarters is that if you prepare a Will, you may die early. This is not the case. Preparation of Will is not a license to early death, rather, it is an essentail document which allows beneficiaries or next-of-kin unfettered access to the estate left behind by their benefactor.

"If a person dies intestate without a Will, the beneficiaries would be required to provide a letter of administration from the Probate Registry of Law Court before the beneficiaries can access the balance in the RSA."

Hussain noted that obtaining the letter of administartion is often difficult, considering the time and finances involved, hence, he called on workers to immediately seek legal opinion on Will preparation before it is too late.

Unpaid premium can drive industry into extinction, says Daniel

The Commissioner for Insurance Fola Daniel, in this report, said the vexed issue of delayed or unpaid insurance premium has attained an alarming crescendo, threatening to drive the industry into extinction if not curbed. He also spoke on what the National Insurance Commission (NAICOM) is doing to boost the industry's profitability. CHUKS UDO OKONTA writers.

　

What is NAICOM doing to ensure government comply with the policy?

The National Insurance Commission by virtue of the provisions of the NAICOM Act 1997 and the Insurance Act of 2003 is the adviser to government on insurance matters. You may also have noticed that the Insurance of strategic Government assets has become a burning issue in the nation’s polity in recent times.

Not long ago, the Commission held a retreat for Insurance Desk Officers of Ministries, Departments and Agencies (MDAs) in Nasarawa State to amongst others; sensitize them on the need to ensure adequate insurance protection for all strategic government assets.

Indeed, there have been growing concerns over the non-compliance with the provisions of the Insurance Act in relation to payment of premium for the insurances of strategic government assets and property by the MDAs.

　

What is the commission doing about poor budgetary provisions for insurance?

At different times and forum, government has always been reminded of the need for it to show more commitment to the insurances of its assets by making adequate provisions for insurance in its annual budget. We have noticed that current budgetary provisions for insurance of government assets and properties were either inadequate or in most cases not made at all.

Besides, where the provisions are made, payments of premium to insurance companies are either delayed for months or the fund redeployed to meet other needs by ministries, departments and agencies of government which is in clear breach of Section 50 (1) of the Insurance Act 2003.

To which extent has this menace affected the industry?

The vexed issue of delayed or unpaid insurance premium has now attained an alarming crescendo, threatening to drive the industry into extinction if not curbed.

Most insurance companies make huge provisions for outstanding premiums in their books on an annual basis, which invariably affects their bottom-line and thus, their inability to make profit, pay dividends to shareholders and attract investments to enable growth. This avoidable situation is unhealthy and dangerous to the industry and it is time to put a stop to it.

　

Why has NAICOM not enforced this law in time past?

For the avoidance of doubt, let me state here clearly that the "No-Premium-No-Cover" policy is neither a creation of the National Insurance Commission nor is it a new regulation. It is indeed, a statutory provision in the Insurance Act of 2003 which is obligatory on NAICOM to ensure its implementation. Section 50 (1) of the Act says "The receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk unless the premium is paid in advance".

This is the provision of the law, and until such a time when government deem it imperative to amend the law, NAICOM, being the industry regulator have no other alternative but to implement this law.

Our business is to apprise the public on the modalities for the implementation and enforcement of Section 50 (1) of the Insurance Act to avoid gaps in the insurance cover of Government Assets. It is expected that we would have succeeded in building a healthy and mutually beneficial working relationship between the industry and the MDAs.

　

　

NAICOM pegs brokers' license processing fees at N2.5mn

Chuks Udo Okonta

Intending Insurance Brokers would henceforth pay N2.5million as license processing fees, the National Insurance Commission (NAICOM), has said.

The insurance industry regulators in a circular on Registration of New Insurance Brokers, said the fees took effect from January 1, adding that the fees will be paid as follows: application – N250, 000.00 and licensing for successful outcome of process – N2, 250,000.00.

It noted that as part of efforts aimed at effective service delivery, the registration of new brokers will be carried out in two batches annually.

NAICOM said consequently, operating licenses to successful applicants in the first batch would be issued on June 31 of each year, while the second batch shall be issued on December 31 of the same year.

It said all relevant documents for applications for the first batch are expected to reach the commission not later than March 31, while those for the second batch should have been received in the Commission on or before September 30 for processing.

NAICOM said: "Meanwhile, applications and or support documents received after the cut-off dates of March 31<sup>st or September 30th shall be treated as part of the next batches for consideration in the succeeding second half of the year.

"This clarification had become imperative to enable adequate preparations, necessary due diligence enquiries, publications in the media and more significantly, to afford time certainty for service delivery."</sup>

Head, Benefits and Insurance National Pension Commission (PenCom) Lana Loyinmi and Acting Director-General PenCom Mrs Chinelo Anohu-Amazu; President Pension Fund Operators Association of Nigeria (PenOp) Dave Udeanu and Director Inspectorate NAICOM Thompson Barineka at the workshop on annuity and group life insurance in Lagos.

Head, Benefits and Insurance National Pension Commission (PenCom) Lana Loyinmi and Acting Director-General PenCom Mrs Chinelo Anohu-Amazu; President Pension Fund Operators Association of Nigeria (PenOp) Dave Udeanu and Director Inspectorate NAICOM Thompson Barineka at the workshop on annuity and group life insurance in Lagos.

Private sector leads in pension contributions, says PenOp

Chuks Udo Okonta

The Organised Private Sector (OPS) has taken over the lead in pension contributions from the public sector which has been at the fore-front since 2004 when the contributory scheme became operational.

The President Pension Fund Operators Association of Nigeria (PenOp) Dave Udeanu, who disclosed this in Lagos, said the organised private sector has performed tremendously well in recent time, as organisations in the sector are complying with the scheme by remitting their contributions promptly.

He said: "The organised private sector has done very well. Often time, we talk of the public sector, but we should give credit to the private sector, for most of them, treat pension as they treat salary. It is important to encourage them for they have turned out to be the strongest pillar or supporters of the scheme. The private sector has overtaken the public sector in terms of registration of contributors."

Udeanu also noted that as part of deepening the sector, pension operators and the National Pension Commission (PenCom) are working out ways of integrating the over 40 million workers in the informal sector into the scheme. He noted that the framework to that effect will soon be finalised.

He said PenCom will also before the end of the first quarter of this year, incorporate a multi-fund structure for Retirement Saving Accounts (RSA) funds, into the amended investment guidelines.

"The decision to introduce the multi-fund structure in the first quarter 2013, is to allow enough time for public education and sensitisation by the commission and also allow operators enough time to be ready to impliment the structure.

"The multi-fund would be primarily differentiated by their overall exposure to variable income instruments and a contributor's choice of funds may be limited based on the age of the contributor. Also the multi-fund structure would likely also allow for the introduction of a non - interest or ethical fund," he said.

No premium, no cover: NAICOM gets Fed Govt's support

Chuks Udo Okonta

The Ministry of Finance will next week, issue a circular to Federal Government's Ministries, Departments and Agencies (MDAs) to adhere to implementation of ‘no premium, no cover’ policy, the Commissioner for Insurance Fola Daniel, has said.

Daniel, who disclosed this in Ilorin, said the role of government is vital to the development of insurance industry.

He said: "A circular will be issued by the Finance Ministry to all government ministries, departments and agencies on the policy next week. If government is exempted, there is no moral justification for not allowing a private sector operator to pay premium in instalments.

"Government is a significant buyer of insurance. The previous government was notorious for not paying insurance premiums. Now, government must pay insurance premiums in advance and not in instalments. Government is not exempted at all from the no premium, no cover policy."

He assured insurance operators who have expressed worry about government attitude to premium payment that government would adhere to the the polict which is part of the nation's laws.

The operators have wondered how the policy would work since the government which is the highest insurance buyer in the nation, is also the highest debtor.

They also called for unity among underwriters and brokers in handling the policy, adding that the policy would fail if underwriters would by-pass brokers to collect risks rejected due to non comformity with the new policy.

President Chartered Insurance Institute of Nigeria (CIIN) Dr. Wole Adetimehin, said operators are looking up to NAICOM as government's adviser on insurance and industry's regulator to ensure the success of the policy.

NAICOM has said all insurance covers shall only be provided on a strict 'no premium no cover' basis, adding that only cover for which payment has been received, directly by the insurer or indirectly through a duly licensed insurance broker, shall be recognised as income in the books of insurers.

The Commission said any insurer, who grants cover without having premium in advance or premium receipt notification from the relevant insurance broker, shall be liable to a penalty of N500, 000 in respect of each cover so granted , and in addition, may be a ground for suspension of the license of the insurer.

It said irrespective of period of insurance, insurers shall ensure that at any point, they have received directly or indirectly, through the insurance broker the full premium in advance for cover being granted.

NAICOM noted that all brokers should within 48 hours of receiving premiums on behalf of any insurer, notify the insurer in writing in each case, of the receipt of such premium, adding that all such notification shall be accompanied by the broker's credit notes, acknowledging indebtedness to the insurer. It said upon the receipt of such credit notes, the insurer shall issue cover and forward the policy documents along with the related debt notes to the broker.

It said any broker who fails to notify the insurer of any premium received on his behalf shall be liable to a penalty that is not less than N250,000 in each case of failure to notify.

The Commission mandated insurers to notify it, not later that 30 days from the end of every quarter, of all premiums acknowledged as having been received by brokers or lead insurers, but not remitted to them, adding that any insurer who fails to render such return, shall be liable to a penalty of N5000 for each day of default.

　

Sovereign Trust Insurance embraces enterprise management framework

　

Sovereign Trust Insurance embraces enterprise risk management framework

Chuks Udo Okonta

Sovereign Trust Insurance Plc siad it has embraced enterprise risk management framework to drives its operations.
Its spokesperson Segun Bankole, in a statement said the move became necessary as a panacea to ensuring that operations of the organisation are carried out on sound business principles with a view to protecting shareholders and other stakeholders’ interest from time to time. He said, "In view of the ever-evolving nature of the macro-economic and regulatory dynamics of the industry’s operating environment, the need for regular and periodic evaluation of the effectiveness of the company’s Enterprise Risk Management process and internal controls cannot be overemphasized, hence, the adoption of the framework"
While commenting, the Head of Risk Management and Control of Sovereign Trust Insurance Plc, Mr. Sanni Oladimeji said it has become very imperative in modern-day business clime to apply sound Risks Management Principles in ensuring that organizations are properly safeguarded against unforeseen risks that might arise in the course of business transactions on a daily basis. He further explained that the company’s Management is religiously committed to the execution of the framework in the years ahead especially with the adoption of the new business model which has successfully taken off. In his words, "risks responses that were once successful at some point may become inappropriate at another time just as control activities may become outdated and inadequate as a result of the dynamics of the business environment; For this reason, there must be constant review of operating processes and controls".

He noted that the creation of the Risk Management and Control Department in the organization has given a common voice to all members of staff in terms of identifying risk elements and providing swift response in nipping such when they arise. He said every employee in the company has undergone some level of training and orientation towards making them Risk Champions; in essence, they can identify, assess, measure and provide mitigating report on any risk identified across the company.
He pointed out that the overriding objective of the Enterprise Risk Management Framework as set up by the organization is to ensure that the business of the company is conducted in accordance with applicable statutory, regulatory and supervisory requirements as well as promote adherence to the company’s code of ethics and good business conduct.
In the same vein, the Managing Director/CEO, Mr. Wale Onaolapo said the ERM framework is also designed to assist the Board and Management to align the company’s risk appetite to its business strategy, enhance risk response decisions, reduce operational surprises and losses, identify and manage interdepartmental risks, allow for more informed risk decisions and improve capital management.
Onaolapo informed that the Nigerian regulatory environment has evolved with regulators constantly seeking assurance as to the robustness of the risk management capacity and the financial viability of financial institutions in a stressed environment. Conclusively, he said part of the company’s policy is to maintain a strong capital base in supporting the development and growth of its business and to also be able to meet regulatory capital requirements at all times through its corporate governance, processes and procedures.
The company maintains a high level of discipline over its investment decision and where it allocates its capital, seeking to ensure that shareholders’ investments yield good returns year-on-year.

　

Director-General Lagos State Pension Commission (LASPEC) Rotimi Hussain

Director-General Lagos State Pension Commission (LASPEC) Rotimi Hussain

Acting Director-General PenCom Mrs Chinelo Anohu-Amazu

From left: Assistant Director Inspectorate National Insurance Commission (NAICOM) Sam Onyeka; Head, Benefits and Insurance National Pension Commission (PenCom) Lana Loyinmi and Acting Director-General PenCom Mrs Chinelo Anohu-Amazu at the workshop on annuity and group life insurance in Lagos.

From left: Director-General Lagos State Pension Commission (LASPEC) Rotimi Hussain; Board Member Akeem Kazeem and Board Member Mrs Rhoda Ayinde at the Lagos State 3rd Pre-Retirement Seminar in Lagos.

Lagos State pays N14.48 bn to retirees

Chuks Udo Okonta

The Lagos State Government paid N14.486 billion to 2,604 retirees of the contributory pension scheme in two years, Director-General Lagos State Pension Commission (LASPEC) Rotimi Hussain, has said.

Hussain, who disclosed this at the 3rd Pre-Retirement Seminar for Workers retiring from the state's service from January and June, said the contributory pension scheme in the State, has continued to record huge success, adding that the amount was paid between October 2010 and December 2012.

He noted that the pre-retirement programme was designed to help the would-be retirees prepare for their physical, emotional and financial well-being in retirement.

He said with effective planning, retirees would be afforded the benefit of being in a better position and frame of mind to build a vibrant and rewarding life in retirement.

He said: "I am pleased to state that the contributory pension scheme in Lagos State has continue to record huge success. As we speak, 2,604 retirees who retired from the State public service under the scheme have been paid N14.486 billion between October 2010 and December 2012.

"This feat gives hope that with the contributory pension scheme, the future is absolutely bright for workers in the state."

Hussain said the state is poised to provide comfortable live for its workers during retirement.

Executive Director Technical LASPEC Mrs Folashade Onanuga, said the state is working hard to ensure that workers get their benefits a month after their retirement.

She urged workers to comply with the contributory pension scheme by observing all they are required to do, adding that the scheme has put the future of workers in their hands as the scheme is transparent and carries workers along in all the process involved.

PenCom, NAICOM tackle issues on annuity

Chuks Udo Okonta

The National Pension Commission (PenCom) and National Insurance Commission (NAICOM) have resolved to tackle the challenges affecting implementation of annuity so that operators and stakeholders can maximise great benefits.

Acting Director-General PenCom Mrs Chinelo Anohu-Amazu, at a workshop on annuity and group life insurance in Lagos, said PenCom and NAICOM would through the review of the implementaion of the guidelines on life insurance policy and the regulation on annuities, expose insurance and pension operators to a better understanding of the rudiments of annuity and group life insurance policy, as well as their responsibilities.

She noted that one of the challenges clogging annuity business, is inadequate sensitisation and public enlightenment on the roles operators and stakeholders were expected to play towards the successful implimentation of the guidelines.

She said: "The Pension Reform Act (PRA) 2004, allows a retiree to utilise the balance standing to the credit of his Retire Saving Account (RSA) for programmed withdrawal through the pension fund administrator, or annuity for life purchased from a life insurance company.

"While it is the mandate of NAICOM to regulate the annuity and life insurance markets, it is the responsibility of PenCom to ensure that the modalities for the administration of retirement benefits through life annuity as well as terminal benfits involving group life insurance policy are strictly followed to guarantee payments as at when due"

She noted that the colloboration between PenCom and NAICOM would help address challenges like misinformation, reporting requirements and other operational issues encountered in implementing the guidelines/regulation.

Assistant Director Inspectorate NAICOM, Sam Onyeka, said NAICOM is determined to ensure that insurance firms providing annuity live up to their responsibilities. He noted that NAICOM would continue to support the operators so that they could provide improve services to retirees who buy annuity.

From left: President Pension Fund Operators Association of Nigeria (PenOp) Dave Udeanu; Managing Director ARM Pension Managers Limited Sadiq Mohammed and Managing Director Leadway Pensure Limited Ronke Adedeji at a press conference in Lagos.

From left: Managing Director Legacy Pension Managers Limited Misbahu Yola; President Pension Fund Operators Association of Nigeria (PenOp) Dave Udeanu and Managing Director ARM Pension Managers Limited Sadiq Mohammed at a press conference in Lagos.

Pension operators target 20m contributors by 2017

Chuks Udo Okonta

Operators in the pension industry would leverage the integration of businesses in the informal sector to increase the numbers of contributors from 5.5 million to 20 million by 2017, the President Pension Fund Operators Association of Nigeria (PenOp) Dave Udeanu, has said.

Udeanu, who disclosed this on Tuesday at a media parley in Lagos, said several additional incentives are being proposed to make the pension scheme more beneficial to persons working in the informal sector, who accounts for over 60 per cent of the working population in the country.

He noted that the National Pension Commission (PenCom) has released an exposure draft of the framework for the participation of persons operating in the informal sector, stressing that the draft is currently being finalised.

He said the framework once released, would ensure the participation of persons working in the informal sector and effectively increase the coverage of the scheme.

Udeanu said PenCom will also before the end of the first quarter of this year, incorporate a multi-fund structure for Retirement Saving Accounts (RSA) funds, into the amended investment guidelines.

He said: "The decision to introduce the multi-fund structure in the first quarter 2013, is to allow enough time for public education and sensitisation by the commission and also allow operators enough time to be ready to impliment the structure.

"The multi-fund would be primarily differentiated by their overall exposure to variable income instruments and a contributor's choice of funds may be limited based on the age of the contributor. Also the multi-fund structure would likely also allow for the introduction of a non - interest or ethical fund."

Managing Director ARM Pension Managers Limited Sadiq Mohammed, on pension contributory recovery agents, said the agents have visited over 5,584 firms out of 15,750 firms identified as non-complaint, adding that over N2.5 billion is expected to be recovered from the identified defaulters.

PenCom, PenOp tackle issues on retirement benefits

Chuks Udo Okonta

The delay in accessing retirement or terminal benefits by some retirees has become a worry to the National Pension Commission (PenCom) and the Pension Fund Operators Association of Nigeria (PenOp), Inspen has learnt.

PenOp's President Dave Udeanu, said some retirees have failed to collect their benefits from their Pension Fund Administrators (PFAs). He noted that the operators have intensified efforts to locate the retirees and their families, adding that unaccessed benefits have continued to grow as people retire.

He said operators would continue to educated the public, adding that the challenge cannot be tackle overnight.

Dauda Ahmed of Corporate Strategy Unit (PenCom), said the Commission has directed PFAs to advertise the names of affected retirees in national dailies after a waiting period of six months.

He noted that PFAs have also been directed to visit the last place of employment or address of the retirees to obtain any available contact information or those of their next-of kin in an effort to trace them and ensure that outstanding benefits are processed for payment.

He said: "In effect, we wish to confirm that there are no "unclaimed pensions" with PFAs in the real sense of it, but possible issues of temporary delay in processing the withdrawal of pensions/terminal benefits due mainly to loss of contact.

"The balance in the Retirement Savings Account (RSA) of a retiree comprises of the proceeds of his retirement bond, his contributions from July, 2004 to month of retirement and the investment income. At the point of retirement, the retiree is expected to submit necessary documents to, and discuss with the PFA on his preferred mode of withdrawal of his pensions. "The retiree has the option of either Programmed Withdrawal (PW) which provides pension over the expected lifespan through the PFA or purchase of annuity from an Insurance Company which ensures payment of pension for life.

"However, these payments can only be made after the Commission had granted approval of the agreement entered into by the retiree with his Pension Fund Administrator (PFA) regarding the mode of withdrawal of his benefit.

"Nevertheless, there could be delays by retirees or next of kin (NOK) in the case of death benefits in accessing retirement or terminal benefits, but not "unclaimed pensions". Such delays in accessing retirement or terminal benefits can be attributed mainly to the inability of the PFA to contact the retiree who may have retired to his village without leaving an active contact address with the PFA or identify the NOK in the case of a deceased employee."

He urged the public to always liase with pension operators to sort out issues, adding that the new pension scheme is poised to provide comfortable life style for retirees.

First Bank Nigeria Plc Insurance Massive Recruitment 2013

First Bank Nigeria Plc Insurance Massive Recruitment 2013 (Graduate & Experienced)




First Bank Nigeria Plc Insurance Company - We are one of the foremost life insurance underwriting firms in Nigeria. As part of our plans to preserve our leadership position in the Industry, we seek to recruit individuals that are focused, energetic, result-oriented and have a passion for success to fill the following positions: Copied from: www.hotnigerianjobs.com

1.) Internal Audit Senior (Ref: FLIAS)
Location: Lagos
Experience: 6 years
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2.) Internal Audit Associate (Ref: FLIAA)
Location: Lagos, Nigeria
Experience: 4 years
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3.) Legal and Compliance Officer (Ref: FLLSCO)
Location: Lagos, Nigeria
Experience: 1 year
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4.) Senior Actuarial Assistant (Ref: FLSAA)
Location: Lagos, Nigeria
Experience: 4 years
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5.) Brokers Relationship Managers (Ref: FLBRM)
Location: Lagos, Abuja ,Port Harcourt, Ibadan and Enugu
Experience: 5 years
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6.) Administrative Manager (Ref: FILAO)
Location: Lagos, Nigeria
Experience: 6 years
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7.) Commission Payment Officer (Ref: FLCPO)
Location: Lagos, Nigeria
Experience: 1 year
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8.) Retail Branch Admin Officer (Ref: FLADP)
Location: Port Harcourt
Experience: 1 year
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9.) Retail Distribution Managers(Ref: FLAHRD)
Location: Lagos, Abuja and Port Harcourt (Nigeria)
Experience: 6 years
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10.) Retail Admin Officer(Ref: FLRAO)
Location: Lagos, Nigeria
Experience: 4 years
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11.) Corporate Strategy Officer(Ref: FLCSO)
Location: Lagos, Nigeria
Experience: 1 year
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12.) Graduate Trainees(Ref: FLGT)
Experience: 0
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Application Closing Date
10th February, 2013