The domestic economy is likely to remain fragile in the months ahead, as the government explores alternatives to contain the falling local currency, rising inflation and high interest rates and reduce its expenditure, among others, an analyst, Nana K. Agyeman, at the Merban Stockbrokers has said.
In his analysis of the economy in the month of May, he noted that "With businesses and consumer sentiments falling in recent months, it is imperative that the government fixes the local economy".
He said already, businesses were not optimistic about achieving targets for capital expenditure, employment, sales and revenue as revealed by latest surveys conducted by the BoG, adding that "Credit by banks to the private sector has also slowed, while the National Petroleum Agency has maintained fuel prices for a second time after its bi-weekly review."
"Though these developments might placate businesses and consumers in the weeks ahead, the question that remains is ‘For how long’? but noted that "With the cedi still sliding, the continuous depreciation may weigh on the prices of goods and services as the rippling effects of our import-dependent economy weigh."
Domestic economy remains fragile
He said business and consumer sentiments remained at low levels as key economic indicators continued to underperform during the month under review.
"The local currency continued its downward slide; inflation and interest rates remained high, while erratic power supply hampered business plans," he indicated.
The worrying trend, according to him, saw labour unions call on the government during this year’s May Day celebrations to find bold initiatives that would reduce the current high unemployment rate, rising utility tariffs and escalating fuel prices.
He said businesses, which continue to bear the brunt of the present developments, sustained their clarion call on the Private Enterprise Foundation (PEF), summing up the feeling amongst members as "frustration", "chaos" and "uncertainty".
Mr Agyeman said "Businesses usually begin the year on an optimistic note but the AGI Business Barometer for 2014 quarter one recorded a significant dip of 90.13 in business confidence, one of its lowest in almost 4 years."
Meanwhile, the National Economic Forum held during the month, with participants drawn from all sectors of the economy, is yet to assuage the concerns of businesses and other economic players, he opined, adding that although the cedi’s volatility has reduced in recent weeks, some stakeholders claim that the outlook is promising for the local economy.
Currency market
The cedi continued to lose grounds against the major trading currencies, although at a decelerating pace. Improvements in the economies of a number of advanced countries in recent months, which gave a boost to their currencies, ensured that the cedi lost further grounds in May.
Although demand by investors, corporates, importers and other economic participants have also driven up the pressure on the local currency since the turn of the year, the level of volatility has dropped slightly in recent weeks.
On the back of the foregoing, the cedi closed the month down by 3.39 per cent against the dollar to GH¢2.89.
This compares to a depreciation of 4.08 per cent and 5.85 registered against the greenback in April and March. The cedi’s slide against the dollar was, however, no better as it slipped by 0.25 per cent against the greenback in May 2014.
The cedi also shaved 2.0 per cent against the Euro to GH¢3.94, while against the pound and the Swiss franc it trimmed 2.71 per cent and 2.04 per cent to GH¢4.84 and GH¢3.23 respectively. Comparatively, the cedi’s performance against the two currencies this month was better than the outturn in April when it trimmed 5.27 per cent and 4.44 per cent respectively. Against the South African rand, the cedi closed the month down by 4.54 per cent to GH¢0.28.
The stock market
The stock market bounced back from its two-month slide, with the indices getting a respite as eight advancers outmuscled fourteen laggards.
A turnaround in the fortunes of some financials which had lost grounds in the preceding weeks gave a lift to the bourse in May. Societe Generale, Ghana Commercial Bank, Ecobank Ghana, SIC Insurance and CAL Bank all recorded impressive gains after being under pressure in the two previous months.
Profit taking, which had seen the shares of some blue chip stocks such as EBG, SCB and GCB under pressure in March and April, also created buying opportunities as their prices had slipped to bargaining levels. Additionally, resilient Q1 results gave a boost to their multiples. As a result, as investors took advantage of opportunities, demand improved, while, additionally, orders by some speculators saw eight equities head north.
Advancers help indices regain luster
On the back of the aforesaid, the benchmark GSE Composite Index (GCI) clawed back some grounds as it rose 63.85 points (2.83 per cent) to 2,319.12. The GCI had shaved 131.07 points (5.49 per cent) in April and 34.57 points (1.43 per cent) in March. The return on the market, thus, improved to 8.11 per cent from 5.13 per cent at the end of April.
The GSE Financial Index (GFI) was also resolute, bagging 121.18 points (6.34 per cent) to 2,033.2, representing a year-to-date gain of 13.8 per cent. The Financial Index (FI) had lost 180.44 points in April. The GFI’s return, as a result, rose from 7.02 per cent at the end of April to 13.80 per cent.
Outlook for the stock market
Investors have been advised not to be dampened by some of the recent declines in some blue chip stocks.
Rather, they have been urged to consider the opportunities presented on the stock market and take positions at the current bargain prices.
Additionally, investors will be able to reduce the losses on their portfolios as buying shares at some of the current low prices will reduce the average costs of their holdings.
In the coming weeks we anticipate the search for bargains and also the correction in the prices of some shares on the market. Nonetheless, we expect the bourse to consolidate gains, as recent sessions have witnessed outstanding bids for a number of stocks.
It is believed that opportunities for the long term still exist in the Ghana Commercial Bank, Ecobank Ghana, Stanchart and Societe Generale as they are currently trading at some historically lower PE and P/Bs. BOPP, PBC and GOIL will also be amongst the stocks to be watched by investors.
On the flip side, Guinness Ghana and PZ Cussons may be amongst the stocks under pressure due to profit taking, while Fan Milk and Unilever may shed some grounds in the near term due to present production challenges.
Source Ghana Web
Monday 30 June 2014
Indian govt working on world's largest health insurance scheme
The new Indian government is planning to bring about a "complete transformation" of the health sector and is working on the blueprint of the world's largest universal health insurance programme.
This was announced by Health Minister Harsh Vardhan as he read out a speech by Prime Minister Modi to a gathering of US-based Indian medical professionals in San Antonio, Texas, underscoring the need for all citizens to involve themselves in the national endeavour for "Healthy India".
"It is my firm belief that our focus needs to go beyond health insurance. The way ahead lies in health assurance. We need to focus on preventive health care where public participation has a major role to play," the Prime Minister said in his address to delegates at the 32nd annual convention of the American Association of Physicians of Indian Origin (AAPI) held in San Antonio.
Modi said the aim of his government is to bring about a "complete transformation" of the health sector through research, innovation and the latest technology.
The AAPI is a professional body of physicians of Indian- origin.
On medical insurance, Harsh Vardhan said that the blueprint of the world's largest universal health insurance programme is in the process of being sharpened under his personal gaze.
It is partially inspired by US President Barack Obama's grand insurance-for-all project which is popularly known as "Obamacare", he said.
"The Prime Minister has authorised me to come up with a brand new policy soon. I need your help to write this all-important document," the Minister said.
The Prime Minister's message also resonated in Harsh Vardhan's address to AAPI members.
He named specific sectors where AAPI members could contribute, like accepting teaching assignments, share knowledge on telemedicine, lend their expertise in fighting disease, help develop model primary health centres, etc.
The Health Minister also unfurled the "Swasth India" portal which, apart from showcasing medical advancement and recommending panacea for the benefit of Indians, would facilitate online permission for Indian American doctors to serve in the areas of their choice in India.
"Swasth India" would make it possible for any US-based Indian doctor to select the areas they wish to serve in India, seek and receive formal approval from Medical Council of India (MCI) on their qualifications, and address all other government issues within 15 days.
"Before leaving on this trip, I had written to MCI that existing bottlenecks should be eased and if permission is held up beyond 15 days, then it should be deemed automatically granted," Harsh Vardhan said.
The president of MCI, Jayashreeben Mehta, was present on the occasion.
Harsh Vardhan's theme, "2020: Vision for Healthcare in India" drew warm appreciation from the audience.
He stressed that under Modi's overarching leadership, health policy making and its implementation will not be the monopoly of the government but would be guided by the lived experience of hundreds of experts who will be urged to bring local solutions to local problems.
"For the first time we have a Prime Minister who is committed to serving every mother and child, every Indian young and old, with free and clean hospitals, generic medicines, rational drug policy, healthy lifestyles and, most importantly, enough doctors.
I urge the Indian Diaspora to avail this historic opportunity to contribute to realising this dream," the Health Minister said.
The Minister admitted that in the areas of telemedicine, seminal research, surveillance and early warning systems and, most importantly, medical insurance, he could do with the proven expertise of Indian American doctors.
Source ZeeNews
This was announced by Health Minister Harsh Vardhan as he read out a speech by Prime Minister Modi to a gathering of US-based Indian medical professionals in San Antonio, Texas, underscoring the need for all citizens to involve themselves in the national endeavour for "Healthy India".
"It is my firm belief that our focus needs to go beyond health insurance. The way ahead lies in health assurance. We need to focus on preventive health care where public participation has a major role to play," the Prime Minister said in his address to delegates at the 32nd annual convention of the American Association of Physicians of Indian Origin (AAPI) held in San Antonio.
Modi said the aim of his government is to bring about a "complete transformation" of the health sector through research, innovation and the latest technology.
The AAPI is a professional body of physicians of Indian- origin.
On medical insurance, Harsh Vardhan said that the blueprint of the world's largest universal health insurance programme is in the process of being sharpened under his personal gaze.
It is partially inspired by US President Barack Obama's grand insurance-for-all project which is popularly known as "Obamacare", he said.
"The Prime Minister has authorised me to come up with a brand new policy soon. I need your help to write this all-important document," the Minister said.
The Prime Minister's message also resonated in Harsh Vardhan's address to AAPI members.
He named specific sectors where AAPI members could contribute, like accepting teaching assignments, share knowledge on telemedicine, lend their expertise in fighting disease, help develop model primary health centres, etc.
The Health Minister also unfurled the "Swasth India" portal which, apart from showcasing medical advancement and recommending panacea for the benefit of Indians, would facilitate online permission for Indian American doctors to serve in the areas of their choice in India.
"Swasth India" would make it possible for any US-based Indian doctor to select the areas they wish to serve in India, seek and receive formal approval from Medical Council of India (MCI) on their qualifications, and address all other government issues within 15 days.
"Before leaving on this trip, I had written to MCI that existing bottlenecks should be eased and if permission is held up beyond 15 days, then it should be deemed automatically granted," Harsh Vardhan said.
The president of MCI, Jayashreeben Mehta, was present on the occasion.
Harsh Vardhan's theme, "2020: Vision for Healthcare in India" drew warm appreciation from the audience.
He stressed that under Modi's overarching leadership, health policy making and its implementation will not be the monopoly of the government but would be guided by the lived experience of hundreds of experts who will be urged to bring local solutions to local problems.
"For the first time we have a Prime Minister who is committed to serving every mother and child, every Indian young and old, with free and clean hospitals, generic medicines, rational drug policy, healthy lifestyles and, most importantly, enough doctors.
I urge the Indian Diaspora to avail this historic opportunity to contribute to realising this dream," the Health Minister said.
The Minister admitted that in the areas of telemedicine, seminal research, surveillance and early warning systems and, most importantly, medical insurance, he could do with the proven expertise of Indian American doctors.
Source ZeeNews
Insurance manager arrested after shooting motorist dead
A senior manager of an insurance firm was arrested after shooting a motorist dead in Nairobi on Saturday night, police said.
He also wounded a brother of the deceased who is admitted to hospital with gunshot injuries.
The manager of the insurance firm based in Nairobi was being questioned on circumstances that led to the shooting that occurred in Dagoretti, shortly after midnight.
According to police, the manager in custody claims he stopped to inquire why a vehicle behind him was trailing him for a long distance on Old Naivasha Road, when an argument arose.
"That is the allegation he is making and an investigation has been launched to establish if he was justified to use his firearm," a senior police officer briefed on the matter said.
During the confrontation, the insurance firm manager is reported to have opened fire killing the driver instantly. A passenger who police said is a brother to the deceased was also wounded.
The man claims he thought the vehicle was carrying thugs who were trailing him.
Source allAfrica
He also wounded a brother of the deceased who is admitted to hospital with gunshot injuries.
The manager of the insurance firm based in Nairobi was being questioned on circumstances that led to the shooting that occurred in Dagoretti, shortly after midnight.
According to police, the manager in custody claims he stopped to inquire why a vehicle behind him was trailing him for a long distance on Old Naivasha Road, when an argument arose.
"That is the allegation he is making and an investigation has been launched to establish if he was justified to use his firearm," a senior police officer briefed on the matter said.
During the confrontation, the insurance firm manager is reported to have opened fire killing the driver instantly. A passenger who police said is a brother to the deceased was also wounded.
The man claims he thought the vehicle was carrying thugs who were trailing him.
Source allAfrica
Insurance fund wary of fraudsters
By Henry Ifeanyi
THE Nigeria Social Insurance Trust Fund (NSITF) has warned the public to be wary of fraudsters who are using the name of the agency to swindle job seekers.
The agency said its attention had been drawn to the activities of scammers using the internet and other social media platforms to swindle job seekers with promises of fake job vacancies in the agency.
NSITF, in a statement, frowned at this act and dissociated itself from the activities of the scammers.
The agency also warned the public to disregard individuals requesting for money or any form of gratification in exchange for job opportunities in the agency, insisting that it employed strictly based on competence.
Meanwhile, NSITF Board Chairman, Dr Ngozi Olejeme, specifically said she was repositioning the agency in line with the provision of the Act establishing it.
She explained that in order to actualize the agency's mandate, it is restructuring the organization and also re-engineering its current workforce to reflect the objective of the Scheme.
Olejeme hinted that the efforts to reposition NSITF was in pursuance of the transformation agenda of President Goodluck Jonathan.
"No stone will be left unturned to ensure that the agency measures up to global standards," she said.
Source allAfrica
THE Nigeria Social Insurance Trust Fund (NSITF) has warned the public to be wary of fraudsters who are using the name of the agency to swindle job seekers.
The agency said its attention had been drawn to the activities of scammers using the internet and other social media platforms to swindle job seekers with promises of fake job vacancies in the agency.
NSITF, in a statement, frowned at this act and dissociated itself from the activities of the scammers.
The agency also warned the public to disregard individuals requesting for money or any form of gratification in exchange for job opportunities in the agency, insisting that it employed strictly based on competence.
Meanwhile, NSITF Board Chairman, Dr Ngozi Olejeme, specifically said she was repositioning the agency in line with the provision of the Act establishing it.
She explained that in order to actualize the agency's mandate, it is restructuring the organization and also re-engineering its current workforce to reflect the objective of the Scheme.
Olejeme hinted that the efforts to reposition NSITF was in pursuance of the transformation agenda of President Goodluck Jonathan.
"No stone will be left unturned to ensure that the agency measures up to global standards," she said.
Source allAfrica
DIB contributes to financial system stability
THE Deposit Insurance Board (DIB) is a legal entity currently operating within the Bank of Tanzania (BoT) in accordance with the law.
Since its commencement in 1994, DIB has remained largely unknown to the public.
Our Special Correspondent recently had an exclusive interview with the DIB Director, Mr Abraham Rasmini who discussed widely about DIB, in this first of three interviews. Excerpts.
QUESTION: We are made to understand that Deposit Insurance Board (DIB) started its operations in 1994. In simple terms, what is deposit insurance system all about?
ANSWER: Deposit Insurance is one of the mechanisms employed by governments to ensure stability of the banking systems and consequently stability of the financial system.
It is a complimentary element of an extensive financial safety net that includes Banking Law and Regulations, Lender of Last Resort and Banking Supervision.
Deposit Insurance Systems are intended to protect depositors against the loss of their insured deposits placed with member institutions in the event a member institution has failed.
Deposit insurance ensures that a depositor does not lose all his money in the event of bank failure.
Deposit Insurance Systems are necessary because banks and financial institutions differ from most industrial and commercial enterprises in that they depend mainly on deposits mobilized from public for their working capital and are highly leveraged.
If a bank or financial institution is unable to meet its obligation to depositors due to operational problems or business failure, anxious depositors may cause a run on the bank as well as other healthy institutions and hence the stability of the financial system would be at risk.
Deposit insurance prevents bank runs by providing assurance of deposit repayment to the great majority of depositors.
Where deposit insurance system exists, depositors are reimbursed their protected deposits when a bank fails and in so doing maintain the confidence of depositors in continuing doing business with banking institutions and promotes the stability of the banking system by assuring savers of the safety of their funds.
In many countries the objective has been to protect small savers because because they cannot cost effectively collect and analyze information on the financial institutions they do business with.
In view of this, governments establish deposit insurance mechanism to provide protection for small depositors and contribute to financial stability.
Another motive for protecting small depositors is that the financial intermediary function of banks which is a locomotive force behind an economic expansion is largely supported by small depositors who normally provide less volatile (core) deposits to banks.
Q: How does insured deposit differ from 'uninsured deposit'?
A: Insured deposits are those deposits within the insurance coverage limit of DIB. Currently, the limit is TZS1.5 million. Uninsured deposits are those above insurance coverage limited.
Q: What are the risks taken by Tanzanians for having uninsured deposits?
A: The risk taken is potential loss of uninsured amount in the event of bank failure. It is therefore recommended that depositors should keep their money in separate banks if are above maximum coverage limit.
Q: What is the main objective of DIB?
A: Like other deposit insurance systems in the world, the main objective of DIB is to provide protection to small depositors or small savers against risks of losing their savings arising from bank failures and thereby maintaining public confidence in the banking and financial system.
Q: How do you summarize the DIB roles and activities that contribute to enhancement of public confidence in the banking system?
A: The DIB role is to protect depositors against the loss of insured deposits placed with member institutions in the event a member institution has failed.. .
DIB activities are under the stewardship of the Board of Directors, The Board is responsible for policy formulation and management and control of the Deposit Insurance Fund.
According to the provisions of the law, DIB Board is comprised of the following members; Governor of the Bank of Tanzania (BOT) - Chairman, Permanent Secretary to the Treasury (United Republic of Tanzania) Principal Secretary to the Ministry responsible for finance of the Revolutionary Government of Zanzibar, and three other members appointed by the Minister for Finance United Republic of Tanzania.
Day to day activities of the DIB are under the control of the Director of Deposit Insurance Board who is assisted by two line managers namely; Manager Operations and Manager Finance and Administration.
The BOT is required under the Bank and Financial Institutions Act, 2006 to provide facilities and officers that are necessary for the proper and efficient exercise of the functions of DIB.
Q: The assertion is that the DIB has contributed to the promotion of financial stability in co-operation with other safety net players. What is meant by safety net players here? Who are other safety net players?
A: In the context of financial sector, Safety net players are authorities within the financial sector that work together for the purposes of attaining financial stability. The Safety net players constitutes all institutions that play role in ensuring that country's financial system is stable, safe and sound.
In Tanzania the institutions are BOT which is a lender of last resort, supervisor and regulator of banks and financial institutions; DIB for protection of depositors funds and the Ministry of Finance (MOF).
The components of the financial safety net are: Supervisory and regulatory framework For a country's financial system to remain stable, safe and sound there must be an effective regulation and supervision of all key financial institutions.
This will ensure entrance of viable members into the system and make close follow up on the member's performance. Lender of last resort function of the central bank Liquidity in banking institution is comparable to oxygen in normal life.
Due to the nature of banking business an institution may face temporary liquidity problem. While illiquidity in a banking institution may not automatically lead into insolvency it remains true that a prolonged illiquidity condition may lead into insolvency and ultimately collapse of a bank or financial institution.
In view of this central banks provide a temporary liquidity support (facilities) to banks and financial institutions and thus bail them out of temporary liquidity problems.
Deposit Insurance System While effective regulation and supervision and lender of last resort is of paramount for the survival of a banking institution it however happens that due to other unavoidable circumstance an institution may fail.
Under such circumstances and in understanding of the fact that a banking institution working capital is derived from public deposits, an orderly exit of a failed banking institution is important for the stability of the financial system.
A Deposit Insurance System is therefore designed to ensure an orderly exit of a banking institution. Government (Ministry of Finance) - the Fiscal aspect A Deposit Insurance System is designed to manage medium sized banking institution failures.
In case of failure of a large banking institution with systemic impact in the economy or in case of failure of several banks (crisis), the funds collected by a DIS may not suffice the financial requirement of such failures.
Under these circumstances, the government through the ministry of finance may intervene by providing financial support that will help to resolve the bank failure in a manner that will have less negative impact on country's economy.
Source allAfrica
Since its commencement in 1994, DIB has remained largely unknown to the public.
Our Special Correspondent recently had an exclusive interview with the DIB Director, Mr Abraham Rasmini who discussed widely about DIB, in this first of three interviews. Excerpts.
QUESTION: We are made to understand that Deposit Insurance Board (DIB) started its operations in 1994. In simple terms, what is deposit insurance system all about?
ANSWER: Deposit Insurance is one of the mechanisms employed by governments to ensure stability of the banking systems and consequently stability of the financial system.
It is a complimentary element of an extensive financial safety net that includes Banking Law and Regulations, Lender of Last Resort and Banking Supervision.
Deposit Insurance Systems are intended to protect depositors against the loss of their insured deposits placed with member institutions in the event a member institution has failed.
Deposit insurance ensures that a depositor does not lose all his money in the event of bank failure.
Deposit Insurance Systems are necessary because banks and financial institutions differ from most industrial and commercial enterprises in that they depend mainly on deposits mobilized from public for their working capital and are highly leveraged.
If a bank or financial institution is unable to meet its obligation to depositors due to operational problems or business failure, anxious depositors may cause a run on the bank as well as other healthy institutions and hence the stability of the financial system would be at risk.
Deposit insurance prevents bank runs by providing assurance of deposit repayment to the great majority of depositors.
Where deposit insurance system exists, depositors are reimbursed their protected deposits when a bank fails and in so doing maintain the confidence of depositors in continuing doing business with banking institutions and promotes the stability of the banking system by assuring savers of the safety of their funds.
In many countries the objective has been to protect small savers because because they cannot cost effectively collect and analyze information on the financial institutions they do business with.
In view of this, governments establish deposit insurance mechanism to provide protection for small depositors and contribute to financial stability.
Another motive for protecting small depositors is that the financial intermediary function of banks which is a locomotive force behind an economic expansion is largely supported by small depositors who normally provide less volatile (core) deposits to banks.
Q: How does insured deposit differ from 'uninsured deposit'?
A: Insured deposits are those deposits within the insurance coverage limit of DIB. Currently, the limit is TZS1.5 million. Uninsured deposits are those above insurance coverage limited.
Q: What are the risks taken by Tanzanians for having uninsured deposits?
A: The risk taken is potential loss of uninsured amount in the event of bank failure. It is therefore recommended that depositors should keep their money in separate banks if are above maximum coverage limit.
Q: What is the main objective of DIB?
A: Like other deposit insurance systems in the world, the main objective of DIB is to provide protection to small depositors or small savers against risks of losing their savings arising from bank failures and thereby maintaining public confidence in the banking and financial system.
Q: How do you summarize the DIB roles and activities that contribute to enhancement of public confidence in the banking system?
A: The DIB role is to protect depositors against the loss of insured deposits placed with member institutions in the event a member institution has failed.. .
DIB activities are under the stewardship of the Board of Directors, The Board is responsible for policy formulation and management and control of the Deposit Insurance Fund.
According to the provisions of the law, DIB Board is comprised of the following members; Governor of the Bank of Tanzania (BOT) - Chairman, Permanent Secretary to the Treasury (United Republic of Tanzania) Principal Secretary to the Ministry responsible for finance of the Revolutionary Government of Zanzibar, and three other members appointed by the Minister for Finance United Republic of Tanzania.
Day to day activities of the DIB are under the control of the Director of Deposit Insurance Board who is assisted by two line managers namely; Manager Operations and Manager Finance and Administration.
The BOT is required under the Bank and Financial Institutions Act, 2006 to provide facilities and officers that are necessary for the proper and efficient exercise of the functions of DIB.
Q: The assertion is that the DIB has contributed to the promotion of financial stability in co-operation with other safety net players. What is meant by safety net players here? Who are other safety net players?
A: In the context of financial sector, Safety net players are authorities within the financial sector that work together for the purposes of attaining financial stability. The Safety net players constitutes all institutions that play role in ensuring that country's financial system is stable, safe and sound.
In Tanzania the institutions are BOT which is a lender of last resort, supervisor and regulator of banks and financial institutions; DIB for protection of depositors funds and the Ministry of Finance (MOF).
The components of the financial safety net are: Supervisory and regulatory framework For a country's financial system to remain stable, safe and sound there must be an effective regulation and supervision of all key financial institutions.
This will ensure entrance of viable members into the system and make close follow up on the member's performance. Lender of last resort function of the central bank Liquidity in banking institution is comparable to oxygen in normal life.
Due to the nature of banking business an institution may face temporary liquidity problem. While illiquidity in a banking institution may not automatically lead into insolvency it remains true that a prolonged illiquidity condition may lead into insolvency and ultimately collapse of a bank or financial institution.
In view of this central banks provide a temporary liquidity support (facilities) to banks and financial institutions and thus bail them out of temporary liquidity problems.
Deposit Insurance System While effective regulation and supervision and lender of last resort is of paramount for the survival of a banking institution it however happens that due to other unavoidable circumstance an institution may fail.
Under such circumstances and in understanding of the fact that a banking institution working capital is derived from public deposits, an orderly exit of a failed banking institution is important for the stability of the financial system.
A Deposit Insurance System is therefore designed to ensure an orderly exit of a banking institution. Government (Ministry of Finance) - the Fiscal aspect A Deposit Insurance System is designed to manage medium sized banking institution failures.
In case of failure of a large banking institution with systemic impact in the economy or in case of failure of several banks (crisis), the funds collected by a DIS may not suffice the financial requirement of such failures.
Under these circumstances, the government through the ministry of finance may intervene by providing financial support that will help to resolve the bank failure in a manner that will have less negative impact on country's economy.
Source allAfrica
Benefits of world’s pension summit - Anohu-Amazu
 |
| Anohu-Amazu |
Chuks Udo Okonta
The World’s Pension Summit billed for July 7 and 8 in Abuja, will provide an
opportunity for pension professionals across Africa to share blueprints and
practices with the aim of further developing the pension market in the continent
over the next decade, the Acting Director-General National Pension Commission (PenCom), Chinelo Anohu-Amazu,
has said.She noted that the Summit will focus on key lessons learned amongst African nations and will share global expertise on relevant topics and developments such as pensions administration and investment, risk management, regulatory essentials, technology, communication , and financial literacy.
She said: "We are delighted to bring the World Pension Summit to
Africa. A number of African nations are experiencing strong economic growth
supported by the rising investment in natural resources and robust private
consumption. As a result, the role of the pensions industry in providing a
stable consumer savings vehicle for Africa's growing middle classes, and the
investment of capital from its pension funds, is of increasing significance.”
According to her, many of Africa's 55 countries will be represented at the
Summit, including South Africa, Botswana, Ghana and Kenya. Founder & Chairman of the World Pension Summit, Eric Eggink, said: "Africa's growth story, particularly Nigeria as its largest economy, has been well documented. But with such growth come a responsibility, expectation and opportunity to leverage capital growth, using pension funds as an instrument for further economic and social development.
"The Summit represents a strong commitment
to ensure sufficient pension provision across the continent, so that African
workers reap the benefits of their countries' successes with a future that is
safeguarded in retirement."
Anohu-Amazu,
noted that Nigerian pension sector has continued to thrive due to safety
mechanisms built into it to protected the over N4.3 trillion contributed by
workers.
She
noted that one of the safe valves and beauty of the scheme is the separation of
the function of management from that of Custody of pension assets, adding that
government contribution is a charge on the consolidated
revenue fund, unlike in the past.
She also
enumerated that there is guarantee of assets in custody by owners of the
Pension Fund Custodians (PFCs) and mandatory statutory reserve requirement by
Pension Fund Administrators (PFAs).
She said
there are also meticulous investment limits and risk rating, daily monitoring
of pension fund investment, ensuring that fit and proper persons are put in
place for pension funds management, strict corporate governance and disclosure
requirement.
Anohu-Amazu
said adept attention is taken to ensure that pension assets are not used to
meet the
claim of any creditors or be sold, or granted as loan, statutory reserve Fund:
PFAsrequired to set aside 12.5 per cent of profit after tax to absorb any losses, strict compliance
to rules and regulations by operators: requirement for appointment of compliance officers
scheme is strictly regulated and supervised by PenCom
On how
the mechanisms are enforced, she said the commission regularly carries out
public
enlightenment,
collaboration with other regulatory authorities, imposition of regime ofsanctions and penalties, engagement of recovery agents.
Others
she said are institution of criminal and civil actions, as appropriate for
infractions
through Federal
High Court, National Industrial Court, investment and Securities Tribunal.Sunday 29 June 2014
Municipal pension fund not off the hook
By Martin Hesse
The Municipal Employees Pension Fund, which was slammed by the Pension Funds Adjudicator for applying a rule change that reduced members’ withdrawal benefits without first obtaining the approval of the Registrar of Pension Funds, has had the rule change approved with retrospective effect. However, it is still obliged to pay out the original higher benefit to members who left the fund between the retrospective date of the rule change, April 1, 2013, and April 1 this year, when the rule was registered.
Recently, Personal Finance reported that, in February, the adjudicator, Muvhango Lukhaimane, ruled that TS Raboshakga, who had worked for the Aganang Municipality, be paid the withdrawal benefit ton to which he was entitled by the Municipal Employees Pension Fund because its then-registered rules did not allow it to pay a reduced benefit.
Both Personal Finance and the adjudicator’s office have received queries from other former members of the pension fund affected by the rule change. Some of these former members have been told that they have no claim against the fund because the Registrar of Pension Funds, Rosemary Hunter of the Financial Services Board, approved the rule change with retrospective effect to April 1, 2013.
When Personal Finance asked Lukhaimane whether she had received complaints from affected ex-members, she said she had, and her office had asked the registrar "to provide us with reasons why they registered the rule that the fund has commenced applying unlawfully with retrospective effect".
"When faced with complaints, our office would want to establish the rationale behind such action, especially in an instance like present where … the impact of the change is this drastic on the withdrawal benefits of members."
However, the office of the registrar has pointed out that, while in law a rule amendment may be approved with retrospective effect:
- It cannot be applied before it has been registered; and
- It cannot be applied to benefits that have accrued before the amendment was approved by the registrar.
The registrar says these principles were applied in an earlier determination by the adjudicator in 2010.
At a board meeting of the Municipal Employees Pension Fund in June last year, the board resolved to amend its rules with effect from April 1, 2013 to reduce the amount payable to a member on withdrawal, from three times to 1.5 times a member’s contributions and interest.
This decision was taken on the advice of the fund’s actuary, who said the fund could not afford to continue paying the higher benefits and, because the rates at which employers contributed to the fund were fixed, the only way to ensure that the fund remained financially sound was to reduce the benefits. The reduced benefits would still be higher than the minimum benefits prescribed by the Pension Funds Act.
In July 2013, the board applied to the registrar for the approval of the rule change, but that approval was granted only on April 1, 2014 – after the adjudicator had dealt with Raboshakga’s complaint.
The registrar’s office says the decision on the rule amendment was delayed because the fund had failed to submit a certificate by its valuator confirming that the amendment was financially sound.
The rule change was approved in terms of section 12 of the Pension Funds Act, which says that:
- The registrar must approve a rule amendment if it is not inconsistent with the Act and is financially sound; and
- A rule amendment will take effect on the date chosen by the board and specified in the rule amendment or, if no such date has been specified, on the date on which the amendment is approved by the registrar.
In this case, the effective date chosen by the board was April 1, 2013. Nonetheless, those whose membership of the fund ended between April 1, 2013 and April 1, 2014 (before the amendment was registered) are entitled to benefits in terms of the pre-amendment rules.
Source Independent Online
The Municipal Employees Pension Fund, which was slammed by the Pension Funds Adjudicator for applying a rule change that reduced members’ withdrawal benefits without first obtaining the approval of the Registrar of Pension Funds, has had the rule change approved with retrospective effect. However, it is still obliged to pay out the original higher benefit to members who left the fund between the retrospective date of the rule change, April 1, 2013, and April 1 this year, when the rule was registered.
Recently, Personal Finance reported that, in February, the adjudicator, Muvhango Lukhaimane, ruled that TS Raboshakga, who had worked for the Aganang Municipality, be paid the withdrawal benefit ton to which he was entitled by the Municipal Employees Pension Fund because its then-registered rules did not allow it to pay a reduced benefit.
Both Personal Finance and the adjudicator’s office have received queries from other former members of the pension fund affected by the rule change. Some of these former members have been told that they have no claim against the fund because the Registrar of Pension Funds, Rosemary Hunter of the Financial Services Board, approved the rule change with retrospective effect to April 1, 2013.
When Personal Finance asked Lukhaimane whether she had received complaints from affected ex-members, she said she had, and her office had asked the registrar "to provide us with reasons why they registered the rule that the fund has commenced applying unlawfully with retrospective effect".
"When faced with complaints, our office would want to establish the rationale behind such action, especially in an instance like present where … the impact of the change is this drastic on the withdrawal benefits of members."
However, the office of the registrar has pointed out that, while in law a rule amendment may be approved with retrospective effect:
- It cannot be applied before it has been registered; and
- It cannot be applied to benefits that have accrued before the amendment was approved by the registrar.
The registrar says these principles were applied in an earlier determination by the adjudicator in 2010.
At a board meeting of the Municipal Employees Pension Fund in June last year, the board resolved to amend its rules with effect from April 1, 2013 to reduce the amount payable to a member on withdrawal, from three times to 1.5 times a member’s contributions and interest.
This decision was taken on the advice of the fund’s actuary, who said the fund could not afford to continue paying the higher benefits and, because the rates at which employers contributed to the fund were fixed, the only way to ensure that the fund remained financially sound was to reduce the benefits. The reduced benefits would still be higher than the minimum benefits prescribed by the Pension Funds Act.
In July 2013, the board applied to the registrar for the approval of the rule change, but that approval was granted only on April 1, 2014 – after the adjudicator had dealt with Raboshakga’s complaint.
The registrar’s office says the decision on the rule amendment was delayed because the fund had failed to submit a certificate by its valuator confirming that the amendment was financially sound.
The rule change was approved in terms of section 12 of the Pension Funds Act, which says that:
- The registrar must approve a rule amendment if it is not inconsistent with the Act and is financially sound; and
- A rule amendment will take effect on the date chosen by the board and specified in the rule amendment or, if no such date has been specified, on the date on which the amendment is approved by the registrar.
In this case, the effective date chosen by the board was April 1, 2013. Nonetheless, those whose membership of the fund ended between April 1, 2013 and April 1, 2014 (before the amendment was registered) are entitled to benefits in terms of the pre-amendment rules.
Source Independent Online
Chicago Teachers' Pension Fund Receives Full 2014 Payment from CPS
The Chicago Teachers' Pension Fund (CTPF) received more than $585 million earlier today, completing the $612.5 million required contribution from the Chicago Board of Education (BOE) for the 2014 fiscal year.
"This is an important step. This payment marks the first time since 2010 that the BOE has made a full payment of its pension obligation," said Jay C. Rehak, CTPF president of the board of trustees and interim executive director. "Our members pay their pension obligations in full with every paycheck – every month, every year – and have never missed a payment. We appreciate the employer doing the same."
"CTPF is a well-managed plan that has generated an 8.86 percent average return over the last 35 years," said Rehak. "Our financial situation has deteriorated because our employer and the state underfunded this plan for decades. As a result, our plan's funded ratio has fallen from 100 percent in 2002 to our current 49.5 percent."
Before 1995, CTPF collected a property tax levy directly from the city of Chicago to fund pensions. Legislation passed in 1995 allowed CPS to divert the property tax levy into its operating budget. Between 1996 and 2005, the BOE collected $2 billion in property tax revenue but did not make actuarially required contributions to support the fund. At the same time, the state of Illinois – which had agreed, in principle, to fund CTPF at 20 to 30 percent of the amount it funded the downstate Teachers' Retirement System (TRS) – has never seen fit to honor that commitment.
CTPF's fiscal situation was exacerbated in 2010 when the Illinois General Assembly passed PA 96-0889, which allowed the BOE to reduce its payments from 2011 to 2013. This pension "holiday" cost CTPF an additional $1.2 billion.
"Our fund has had an actuarially based funding schedule in place for many years, but without a consistent, reliable source of revenue – it means nothing," said Rehak. "Our teachers who do not contribute to Social Security depend on their pensions for financial security in retirement. We hope that this payment is the first of many as our fund pursues full funding."
ABOUT CTPF
Established by the Illinois state legislature in 1895, the Chicago Teachers' Pension Fund manages members' assets and administers benefits. The $9.7 billion pension fund serves approximately 63,000 active and retired educators, and provides pension and health insurance benefits to more than 27,000 beneficiaries.
Source Chicago Teachers' Pension Fund (CTPF)
"This is an important step. This payment marks the first time since 2010 that the BOE has made a full payment of its pension obligation," said Jay C. Rehak, CTPF president of the board of trustees and interim executive director. "Our members pay their pension obligations in full with every paycheck – every month, every year – and have never missed a payment. We appreciate the employer doing the same."
"CTPF is a well-managed plan that has generated an 8.86 percent average return over the last 35 years," said Rehak. "Our financial situation has deteriorated because our employer and the state underfunded this plan for decades. As a result, our plan's funded ratio has fallen from 100 percent in 2002 to our current 49.5 percent."
Before 1995, CTPF collected a property tax levy directly from the city of Chicago to fund pensions. Legislation passed in 1995 allowed CPS to divert the property tax levy into its operating budget. Between 1996 and 2005, the BOE collected $2 billion in property tax revenue but did not make actuarially required contributions to support the fund. At the same time, the state of Illinois – which had agreed, in principle, to fund CTPF at 20 to 30 percent of the amount it funded the downstate Teachers' Retirement System (TRS) – has never seen fit to honor that commitment.
CTPF's fiscal situation was exacerbated in 2010 when the Illinois General Assembly passed PA 96-0889, which allowed the BOE to reduce its payments from 2011 to 2013. This pension "holiday" cost CTPF an additional $1.2 billion.
"Our fund has had an actuarially based funding schedule in place for many years, but without a consistent, reliable source of revenue – it means nothing," said Rehak. "Our teachers who do not contribute to Social Security depend on their pensions for financial security in retirement. We hope that this payment is the first of many as our fund pursues full funding."
ABOUT CTPF
Established by the Illinois state legislature in 1895, the Chicago Teachers' Pension Fund manages members' assets and administers benefits. The $9.7 billion pension fund serves approximately 63,000 active and retired educators, and provides pension and health insurance benefits to more than 27,000 beneficiaries.
Source Chicago Teachers' Pension Fund (CTPF)
U.S. public pensions' investment gains slow in first quarter -Census
U.S. public pensions eked out modest gains on their investments in the first quarter of the year, reflecting a slowdown after their huge returns during the stock market's rally in 2013, according to U.S. Census data released on Thursday.
The slower pace of gains could curb public pensions' ability to pay benefits in the years ahead as the aging Baby Boom generation retires.
Public pensions' holdings hit a record high of $3.22 trillion in the first quarter, the Census data showed.
Earnings on their investments, though, were only $73.15 billion for the first quarter - less than half the $167.41 billion earned during the last quarter of 2013 - and down sharply from $118.29 billion earned during the year-ago period.
Investments provide most of public pensions' revenues. In 2013, the soaring U.S. stock market pushed pensions' cash and securities holdings to the highest levels on record while erasing losses from the 2008-2009 financial crisis.
Public pensions' total stock holdings slipped 3.1 percent to $1.09 trillion during the first quarter from $1.13 trillion in the fourth quarter of 2013. That was still up 8.3 percent from the first quarter of last year, according to the Census data. U.S. stock indexes had a rocky first quarter, with both the Dow Jones industrial average and the Standard & Poor's 500 Index tumbling at the end of January and the beginning of February before rising again. The Dow ended the first quarter down 0.7 percent, while the S&P 500 gained 1.3 percent.
International securities held by public pensions rose 2.1 percent from the fourth quarter of 2013 to $675.2 billion at March 31. That was up 12.9 percent from 2013's first quarter.
Corporate bonds in public pensions' portfolios rose during the first quarter to $346.9 billion, up 2.6 percent from the final quarter of 2013. Treasuries rose 3.3 percent from last year's fourth quarter to $273 billion.
Government contributions, essentially from taxpayers, fell 7.5 percent from the final quarter of 2013 to $25.7 billion at March 31. These contributions, though, were up 15.1 percent from a year earlier.
Employee contributions increased 5.4 percent from the final quarter of 2013 to $10.9 billion at March 31, the end of the first quarter; the gain was 7.8 percent over the year.
RECORD PENSION PAYMENTS
The slower pace of investment gains this year could make it harder for pensions to cover the growing demand for benefits. The $62.95 billion that pensions paid out in the first quarter marked the largest on Census records stretching back to 1968. Payments have climbed as the aging Baby Boom generation retires. Only five years earlier, in the first quarter of 2009, payments were $41.31 billion, the Census data showed.
Pensions' funded levels have "likely bottomed out," Standard& Poor's Ratings Services said earlier this week. S&P found that the average state pension's funded ratio, showing how much of its liabilities a system can cover, was 70.9 percent in 2012, the last year for which data is available, down from 72.9 percent in 2011.
The gap between pensions' funding ability is widening as well, S&P said. Wisconsin remained the top-funded pension with a funded ratio at 99.9 percent. Illinois stayed at the bottom at 40.4 percent.
Earlier this month, Boston College estimated that pensions had enough assets to cover 72 percent of liabilities last year. (Reporting by Lisa Lambert; Editing by Jan Paschal)
Source Reuters
The slower pace of gains could curb public pensions' ability to pay benefits in the years ahead as the aging Baby Boom generation retires.
Public pensions' holdings hit a record high of $3.22 trillion in the first quarter, the Census data showed.
Earnings on their investments, though, were only $73.15 billion for the first quarter - less than half the $167.41 billion earned during the last quarter of 2013 - and down sharply from $118.29 billion earned during the year-ago period.
Investments provide most of public pensions' revenues. In 2013, the soaring U.S. stock market pushed pensions' cash and securities holdings to the highest levels on record while erasing losses from the 2008-2009 financial crisis.
Public pensions' total stock holdings slipped 3.1 percent to $1.09 trillion during the first quarter from $1.13 trillion in the fourth quarter of 2013. That was still up 8.3 percent from the first quarter of last year, according to the Census data. U.S. stock indexes had a rocky first quarter, with both the Dow Jones industrial average and the Standard & Poor's 500 Index tumbling at the end of January and the beginning of February before rising again. The Dow ended the first quarter down 0.7 percent, while the S&P 500 gained 1.3 percent.
International securities held by public pensions rose 2.1 percent from the fourth quarter of 2013 to $675.2 billion at March 31. That was up 12.9 percent from 2013's first quarter.
Corporate bonds in public pensions' portfolios rose during the first quarter to $346.9 billion, up 2.6 percent from the final quarter of 2013. Treasuries rose 3.3 percent from last year's fourth quarter to $273 billion.
Government contributions, essentially from taxpayers, fell 7.5 percent from the final quarter of 2013 to $25.7 billion at March 31. These contributions, though, were up 15.1 percent from a year earlier.
Employee contributions increased 5.4 percent from the final quarter of 2013 to $10.9 billion at March 31, the end of the first quarter; the gain was 7.8 percent over the year.
RECORD PENSION PAYMENTS
The slower pace of investment gains this year could make it harder for pensions to cover the growing demand for benefits. The $62.95 billion that pensions paid out in the first quarter marked the largest on Census records stretching back to 1968. Payments have climbed as the aging Baby Boom generation retires. Only five years earlier, in the first quarter of 2009, payments were $41.31 billion, the Census data showed.
Pensions' funded levels have "likely bottomed out," Standard& Poor's Ratings Services said earlier this week. S&P found that the average state pension's funded ratio, showing how much of its liabilities a system can cover, was 70.9 percent in 2012, the last year for which data is available, down from 72.9 percent in 2011.
The gap between pensions' funding ability is widening as well, S&P said. Wisconsin remained the top-funded pension with a funded ratio at 99.9 percent. Illinois stayed at the bottom at 40.4 percent.
Earlier this month, Boston College estimated that pensions had enough assets to cover 72 percent of liabilities last year. (Reporting by Lisa Lambert; Editing by Jan Paschal)
Source Reuters
The domestic economy is likely to remain fragile in the months ahead, as the government explores alternatives to contain the falling local currency, rising inflation and high interest rates and reduce its expenditure, among others, an analyst, Nana K. Agyeman, at the Merban Stockbrokers has said.
In his analysis of the economy in the month of May, he noted that "With businesses and consumer sentiments falling in recent months, it is imperative that the government fixes the local economy".
He said already, businesses were not optimistic about achieving targets for capital expenditure, employment, sales and revenue as revealed by latest surveys conducted by the BoG, adding that "Credit by banks to the private sector has also slowed, while the National Petroleum Agency has maintained fuel prices for a second time after its bi-weekly review."
"Though these developments might placate businesses and consumers in the weeks ahead, the question that remains is ‘For how long’? but noted that "With the cedi still sliding, the continuous depreciation may weigh on the prices of goods and services as the rippling effects of our import-dependent economy weigh."
Domestic economy remains fragile
He said business and consumer sentiments remained at low levels as key economic indicators continued to underperform during the month under review.
"The local currency continued its downward slide; inflation and interest rates remained high, while erratic power supply hampered business plans," he indicated.
The worrying trend, according to him, saw labour unions call on the government during this year’s May Day celebrations to find bold initiatives that would reduce the current high unemployment rate, rising utility tariffs and escalating fuel prices.
He said businesses, which continue to bear the brunt of the present developments, sustained their clarion call on the Private Enterprise Foundation (PEF), summing up the feeling amongst members as "frustration", "chaos" and "uncertainty".
Mr Agyeman said "Businesses usually begin the year on an optimistic note but the AGI Business Barometer for 2014 quarter one recorded a significant dip of 90.13 in business confidence, one of its lowest in almost 4 years."
Meanwhile, the National Economic Forum held during the month, with participants drawn from all sectors of the economy, is yet to assuage the concerns of businesses and other economic players, he opined, adding that although the cedi’s volatility has reduced in recent weeks, some stakeholders claim that the outlook is promising for the local economy.
Currency market
The cedi continued to lose grounds against the major trading currencies, although at a decelerating pace. Improvements in the economies of a number of advanced countries in recent months, which gave a boost to their currencies, ensured that the cedi lost further grounds in May.
Although demand by investors, corporates, importers and other economic participants have also driven up the pressure on the local currency since the turn of the year, the level of volatility has dropped slightly in recent weeks.
On the back of the foregoing, the cedi closed the month down by 3.39 per cent against the dollar to GH¢2.89.
This compares to a depreciation of 4.08 per cent and 5.85 registered against the greenback in April and March. The cedi’s slide against the dollar was, however, no better as it slipped by 0.25 per cent against the greenback in May 2014.
The cedi also shaved 2.0 per cent against the Euro to GH¢3.94, while against the pound and the Swiss franc it trimmed 2.71 per cent and 2.04 per cent to GH¢4.84 and GH¢3.23 respectively. Comparatively, the cedi’s performance against the two currencies this month was better than the outturn in April when it trimmed 5.27 per cent and 4.44 per cent respectively. Against the South African rand, the cedi closed the month down by 4.54 per cent to GH¢0.28.
The stock market
The stock market bounced back from its two-month slide, with the indices getting a respite as eight advancers outmuscled fourteen laggards.
A turnaround in the fortunes of some financials which had lost grounds in the preceding weeks gave a lift to the bourse in May. Societe Generale, Ghana Commercial Bank, Ecobank Ghana, SIC Insurance and CAL Bank all recorded impressive gains after being under pressure in the two previous months.
Profit taking, which had seen the shares of some blue chip stocks such as EBG, SCB and GCB under pressure in March and April, also created buying opportunities as their prices had slipped to bargaining levels. Additionally, resilient Q1 results gave a boost to their multiples. As a result, as investors took advantage of opportunities, demand improved, while, additionally, orders by some speculators saw eight equities head north.
Advancers help indices regain luster
On the back of the aforesaid, the benchmark GSE Composite Index (GCI) clawed back some grounds as it rose 63.85 points (2.83 per cent) to 2,319.12. The GCI had shaved 131.07 points (5.49 per cent) in April and 34.57 points (1.43 per cent) in March. The return on the market, thus, improved to 8.11 per cent from 5.13 per cent at the end of April.
The GSE Financial Index (GFI) was also resolute, bagging 121.18 points (6.34 per cent) to 2,033.2, representing a year-to-date gain of 13.8 per cent. The Financial Index (FI) had lost 180.44 points in April. The GFI’s return, as a result, rose from 7.02 per cent at the end of April to 13.80 per cent.
Outlook for the stock market
Investors have been advised not to be dampened by some of the recent declines in some blue chip stocks.
Rather, they have been urged to consider the opportunities presented on the stock market and take positions at the current bargain prices.
Additionally, investors will be able to reduce the losses on their portfolios as buying shares at some of the current low prices will reduce the average costs of their holdings.
In the coming weeks we anticipate the search for bargains and also the correction in the prices of some shares on the market. Nonetheless, we expect the bourse to consolidate gains, as recent sessions have witnessed outstanding bids for a number of stocks.
It is believed that opportunities for the long term still exist in the Ghana Commercial Bank, Ecobank Ghana, Stanchart and Societe Generale as they are currently trading at some historically lower PE and P/Bs. BOPP, PBC and GOIL will also be amongst the stocks to be watched by investors.
On the flip side, Guinness Ghana and PZ Cussons may be amongst the stocks under pressure due to profit taking, while Fan Milk and Unilever may shed some grounds in the near term due to present production challenges.
Source Ghana Web
In his analysis of the economy in the month of May, he noted that "With businesses and consumer sentiments falling in recent months, it is imperative that the government fixes the local economy".
He said already, businesses were not optimistic about achieving targets for capital expenditure, employment, sales and revenue as revealed by latest surveys conducted by the BoG, adding that "Credit by banks to the private sector has also slowed, while the National Petroleum Agency has maintained fuel prices for a second time after its bi-weekly review."
"Though these developments might placate businesses and consumers in the weeks ahead, the question that remains is ‘For how long’? but noted that "With the cedi still sliding, the continuous depreciation may weigh on the prices of goods and services as the rippling effects of our import-dependent economy weigh."
Domestic economy remains fragile
He said business and consumer sentiments remained at low levels as key economic indicators continued to underperform during the month under review.
"The local currency continued its downward slide; inflation and interest rates remained high, while erratic power supply hampered business plans," he indicated.
The worrying trend, according to him, saw labour unions call on the government during this year’s May Day celebrations to find bold initiatives that would reduce the current high unemployment rate, rising utility tariffs and escalating fuel prices.
He said businesses, which continue to bear the brunt of the present developments, sustained their clarion call on the Private Enterprise Foundation (PEF), summing up the feeling amongst members as "frustration", "chaos" and "uncertainty".
Mr Agyeman said "Businesses usually begin the year on an optimistic note but the AGI Business Barometer for 2014 quarter one recorded a significant dip of 90.13 in business confidence, one of its lowest in almost 4 years."
Meanwhile, the National Economic Forum held during the month, with participants drawn from all sectors of the economy, is yet to assuage the concerns of businesses and other economic players, he opined, adding that although the cedi’s volatility has reduced in recent weeks, some stakeholders claim that the outlook is promising for the local economy.
Currency market
The cedi continued to lose grounds against the major trading currencies, although at a decelerating pace. Improvements in the economies of a number of advanced countries in recent months, which gave a boost to their currencies, ensured that the cedi lost further grounds in May.
Although demand by investors, corporates, importers and other economic participants have also driven up the pressure on the local currency since the turn of the year, the level of volatility has dropped slightly in recent weeks.
On the back of the foregoing, the cedi closed the month down by 3.39 per cent against the dollar to GH¢2.89.
This compares to a depreciation of 4.08 per cent and 5.85 registered against the greenback in April and March. The cedi’s slide against the dollar was, however, no better as it slipped by 0.25 per cent against the greenback in May 2014.
The cedi also shaved 2.0 per cent against the Euro to GH¢3.94, while against the pound and the Swiss franc it trimmed 2.71 per cent and 2.04 per cent to GH¢4.84 and GH¢3.23 respectively. Comparatively, the cedi’s performance against the two currencies this month was better than the outturn in April when it trimmed 5.27 per cent and 4.44 per cent respectively. Against the South African rand, the cedi closed the month down by 4.54 per cent to GH¢0.28.
The stock market
The stock market bounced back from its two-month slide, with the indices getting a respite as eight advancers outmuscled fourteen laggards.
A turnaround in the fortunes of some financials which had lost grounds in the preceding weeks gave a lift to the bourse in May. Societe Generale, Ghana Commercial Bank, Ecobank Ghana, SIC Insurance and CAL Bank all recorded impressive gains after being under pressure in the two previous months.
Profit taking, which had seen the shares of some blue chip stocks such as EBG, SCB and GCB under pressure in March and April, also created buying opportunities as their prices had slipped to bargaining levels. Additionally, resilient Q1 results gave a boost to their multiples. As a result, as investors took advantage of opportunities, demand improved, while, additionally, orders by some speculators saw eight equities head north.
Advancers help indices regain luster
On the back of the aforesaid, the benchmark GSE Composite Index (GCI) clawed back some grounds as it rose 63.85 points (2.83 per cent) to 2,319.12. The GCI had shaved 131.07 points (5.49 per cent) in April and 34.57 points (1.43 per cent) in March. The return on the market, thus, improved to 8.11 per cent from 5.13 per cent at the end of April.
The GSE Financial Index (GFI) was also resolute, bagging 121.18 points (6.34 per cent) to 2,033.2, representing a year-to-date gain of 13.8 per cent. The Financial Index (FI) had lost 180.44 points in April. The GFI’s return, as a result, rose from 7.02 per cent at the end of April to 13.80 per cent.
Outlook for the stock market
Investors have been advised not to be dampened by some of the recent declines in some blue chip stocks.
Rather, they have been urged to consider the opportunities presented on the stock market and take positions at the current bargain prices.
Additionally, investors will be able to reduce the losses on their portfolios as buying shares at some of the current low prices will reduce the average costs of their holdings.
In the coming weeks we anticipate the search for bargains and also the correction in the prices of some shares on the market. Nonetheless, we expect the bourse to consolidate gains, as recent sessions have witnessed outstanding bids for a number of stocks.
It is believed that opportunities for the long term still exist in the Ghana Commercial Bank, Ecobank Ghana, Stanchart and Societe Generale as they are currently trading at some historically lower PE and P/Bs. BOPP, PBC and GOIL will also be amongst the stocks to be watched by investors.
On the flip side, Guinness Ghana and PZ Cussons may be amongst the stocks under pressure due to profit taking, while Fan Milk and Unilever may shed some grounds in the near term due to present production challenges.
Source Ghana Web
Only 2.5 million vehicles have valid insurance - NIA
By Sola Alabadan
Out of the more than 12.5 million vehicles registered in Nigeria, only 2.5 million currently have genuine insurance cover.
The 2.5 million figure is the total number of insured vehicles captured in the Nigerian Insurance Industry Database (NIID) up till today, the Nigerian Insurers Association (NIA) disclosed at its annual general meeting in Lagos.
As insurers continue to lose billions of naira from motor insurance to fake insurers, analysts say such a development has been contributing to the stunted growth of the nation's insurance industry and preventing it from making meaningful contribution to the Gross Domestic Product (GDP).
NIA Chairman, Remi Olowude, also said all the 60 insurance companies operating in the country generated a premium income of N285 billion in 2013 and that this was in spite of the fact that the industry had targeted a premium income of N1 trillion as far as 2012.
It also implies that majority of the motorists in the country have been violating Section 68 of Insurance Act 2003 compelling all motorists to have insurance cover before putting their vehicles on the road.
The section states that, "No person shall use or cause or permit any other person to use a motor vehicle on the road unless a liability, which he may thereby incur in respect of damage to the property of third parties, is insured with an insurer registered under this Act".
The NIID, an initiative of the NIA, officially launched in June 2012, is an information technology-based system to facilitate easy collation and dissemination of statistical and other information relating to insurance while helping to check activities of fake documents.
With a mobile device, a product of the NIID, it is now easy for law enforcement agencies and relevant authorised persons to identify genuine insurance documents.
Once a motor insurance policy has been arranged by a licensed insurance company, the NIA assured that the details of such an insurance policy will be reflected on the website within 24 hours.
Source Daily Independent
Out of the more than 12.5 million vehicles registered in Nigeria, only 2.5 million currently have genuine insurance cover.
The 2.5 million figure is the total number of insured vehicles captured in the Nigerian Insurance Industry Database (NIID) up till today, the Nigerian Insurers Association (NIA) disclosed at its annual general meeting in Lagos.
As insurers continue to lose billions of naira from motor insurance to fake insurers, analysts say such a development has been contributing to the stunted growth of the nation's insurance industry and preventing it from making meaningful contribution to the Gross Domestic Product (GDP).
NIA Chairman, Remi Olowude, also said all the 60 insurance companies operating in the country generated a premium income of N285 billion in 2013 and that this was in spite of the fact that the industry had targeted a premium income of N1 trillion as far as 2012.
It also implies that majority of the motorists in the country have been violating Section 68 of Insurance Act 2003 compelling all motorists to have insurance cover before putting their vehicles on the road.
The section states that, "No person shall use or cause or permit any other person to use a motor vehicle on the road unless a liability, which he may thereby incur in respect of damage to the property of third parties, is insured with an insurer registered under this Act".
The NIID, an initiative of the NIA, officially launched in June 2012, is an information technology-based system to facilitate easy collation and dissemination of statistical and other information relating to insurance while helping to check activities of fake documents.
With a mobile device, a product of the NIID, it is now easy for law enforcement agencies and relevant authorised persons to identify genuine insurance documents.
Once a motor insurance policy has been arranged by a licensed insurance company, the NIA assured that the details of such an insurance policy will be reflected on the website within 24 hours.
Source Daily Independent
Insurance services go mobile in Malawi
By Gregory Gondwe
The country’s leading insurance firm, Nico General Insurance Company Limited has disclosed that in the next four months it will be bringing to the market mobile phone services where its established clientele as well as prospective ones will be able to access all their services.
Both the company Chief Executive Officer Eric Chapola and Assistant General Manager Donbell Mandala who is responsible for operations that include underwriting, marketing and business development said this is the next big innovation that their company is bringing to the market.
"At Nico General we ensure that we remain very innovative and remain a market leader. We believe that in the next five or ten years we should remain innovative," said Mandala adding that justifying this position the major product or service that they are bringing on market called USSD Mobile Solution.
He insisted that they are bringing this product in the next two to three months to the insurance consumers who will be able to access it 24/7.
"We want to reduce the pain you suffer when you come to our office and access some of our services," said Mandala.
He explained that with this product customers will be able through an SMS or through logging in using their cellular phone to get more details about their products and more details about the policies that they have on offer.
"You can access your renewal information; you can access your premium statement and for most of you can access the claim status of your policy. Through the same function, you’ll be able to check your balances but also be able to check where you can access some of our service providers," said Mandala to a cross section of their clients who had earlier on participated in a golf tournament the company organised in Dwangwa Nkhotakota district over the weekend.
He explained that customers will also be able to access information on their clients that provide emergency mechanical services they might need and be able to get contacts especially when stranded in the middle of nowhere with a faulty vehicle.
"We believe it’s a milestone and we will be implementing it fully in the next three or four months," he said.
CEO Chapola said the new product that they will be launching is meant to make interaction between Nico and customers easy.
"You don’t have to come to our offices any more. From your machines; laptops, cell phones you should be able to interact with us. You should also be able at a later stage even to pay your premiums through this system," said Chapola before challenging: "No other company by the way is even thinking to take that route."
However for the initiative to become successful, Mandala said they will be launching an aggressive campaign that will move them forward to that level they are itching to reach
"In the next one of two weeks we’ll go full throttle on that and we’ll need your support. Because we need to acquire more details about your our clients; future clients and existing clients so that the database that we have should give us the foundation for you to be able to access the system full and also that the system should be more effective," he said.
He therefore asked for support on that initiative from the business community.
Already Nico operates an online service aided by an advanced insurance software solutions which is a suite that is designed to proficiently perform all the functions of an insurance company through their interactive website that allows clients to fill in and submit proposal and claim forms and any other query online.
Source BiztechAfrica
The country’s leading insurance firm, Nico General Insurance Company Limited has disclosed that in the next four months it will be bringing to the market mobile phone services where its established clientele as well as prospective ones will be able to access all their services.
Both the company Chief Executive Officer Eric Chapola and Assistant General Manager Donbell Mandala who is responsible for operations that include underwriting, marketing and business development said this is the next big innovation that their company is bringing to the market.
"At Nico General we ensure that we remain very innovative and remain a market leader. We believe that in the next five or ten years we should remain innovative," said Mandala adding that justifying this position the major product or service that they are bringing on market called USSD Mobile Solution.
He insisted that they are bringing this product in the next two to three months to the insurance consumers who will be able to access it 24/7.
"We want to reduce the pain you suffer when you come to our office and access some of our services," said Mandala.
He explained that with this product customers will be able through an SMS or through logging in using their cellular phone to get more details about their products and more details about the policies that they have on offer.
"You can access your renewal information; you can access your premium statement and for most of you can access the claim status of your policy. Through the same function, you’ll be able to check your balances but also be able to check where you can access some of our service providers," said Mandala to a cross section of their clients who had earlier on participated in a golf tournament the company organised in Dwangwa Nkhotakota district over the weekend.
He explained that customers will also be able to access information on their clients that provide emergency mechanical services they might need and be able to get contacts especially when stranded in the middle of nowhere with a faulty vehicle.
"We believe it’s a milestone and we will be implementing it fully in the next three or four months," he said.
CEO Chapola said the new product that they will be launching is meant to make interaction between Nico and customers easy.
"You don’t have to come to our offices any more. From your machines; laptops, cell phones you should be able to interact with us. You should also be able at a later stage even to pay your premiums through this system," said Chapola before challenging: "No other company by the way is even thinking to take that route."
However for the initiative to become successful, Mandala said they will be launching an aggressive campaign that will move them forward to that level they are itching to reach
"In the next one of two weeks we’ll go full throttle on that and we’ll need your support. Because we need to acquire more details about your our clients; future clients and existing clients so that the database that we have should give us the foundation for you to be able to access the system full and also that the system should be more effective," he said.
He therefore asked for support on that initiative from the business community.
Already Nico operates an online service aided by an advanced insurance software solutions which is a suite that is designed to proficiently perform all the functions of an insurance company through their interactive website that allows clients to fill in and submit proposal and claim forms and any other query online.
Source BiztechAfrica
NIA limits claims to customers’ complaints bureau to minimum of N100m
 |
| Thomas |
Chuks Udo Okonta
The Nigerian Insurers Association (NIA) has said only claims issues
that are N100 million and above should be referred to its Customers’ Complaint
Bureau, saddled with the responsibilities of resolving problems between insurers
and the insured.
Its Director-General, Sunday Thomas, disclosed this at the association’s
annual general meeting in Lagos, adding that the resolution was reached in the review
of the operation guidelines for the NIA customers’ complaint bureau.
He noted that the desire to review the guideline was informed by the
need to widen the scope and enhance the efficiency of the established
alternative dispute resolution mechanism.
He said: “The association’s desire to widen the scope and enhance the efficiency
of the established alternative dispute resolution mechanism required that the
operational guideline for the resolution of customers’ complaint bureau be
reviewed. This was effected, to include the resolution of disputes between
members companies.
“A mediation advisory committee was established with the responsibility
for reviewing disputes between members companies. Where however an insurer is
not satisfied with the decision of the committee, such insurers shall be free
to lodge its complaint with the association’s customers’ complaint bureau.
“The review also included the introduction of a limit on the value of
claims that should be referred to the bureau; this was set at a minimum of N100
million.”
Former Chairman of the association Olusola Ladipo-Ajayi, said the bureau was not established to
witch-hurt anybody or to de-market any company, but to provide fast dispute
resolution mechanism between insurer and their clients.
“What we suffer is that when one insurance company does extremely well, the
members of the public would say this is rather an exception, the company takes
the credit alone, but when one company does exceptional bad, rather than seen
that as an exception, the public would say that is the way insurance industry
behaves. So, this is our concern and it was generally agreed that we submit to
the jurisdiction of the customers’ compliant bureau.”
He said a number of cases have been resolved amicably through the bureau.
Saturday 28 June 2014
'World Cup Heartbreak Insurance' available in China, unless you're an England fan
By Sean Leahy
As the group stage of the World Cup comes to an end this week, 16 countries will be going home after their dreams of glory were dashed. China didn’t make it to Brazil for the tournament, failing to get out of the third round of the Asian Football Conference qualifying, so its supporters were forced to find a second team to root for.
To give Chinese soccer fans additional incentive to follow the World Cup and pick up a second team to follow, an insurance company offered up "World Cup Heartbreak Insurance."
Only good for one round, the policies cost 8 yuan. As the Wall Street Journal points out, if you chose Spain, you would have had a pay out of 18 yuan, which is about $1.30 USD. That money doesn’t go directly back into your pocket, however.
From the Wall Street Journal:
"If you use cash it looks a bit too much like gambling," said Zhang Yi, product manager at An Cheng Insurance of the southwestern city of Chongqing. "It’s more like entertainment. It’s fun."
It also has another purpose. "This World Cup Heartbreak Insurance is for young people," said Mr. Zhang. "They are the main audience for the World Cup. Our target is to attract their attention and to buy more of our products."
The big teams are covered, except for England, as a spokesman told The Telegraph, which makes sense given its penchant for providing plenty of disappointment every four years.
There is also the all-important "Soccer Hooligan Insurance," where if you’re at a bar and get pummeled by a supporter of another nation, a 3 yuan policy covers up to 10,000 yuan (roughly $1,600 USD) of medical expenses.
According to the company, over 1,000 month-long policies have been taken out. With the number of soccer powers bowing out in the group stage, there are likely a decent number of payouts to be had.
Source Sports.Yahoo
Insurance premiums go up by £50 in UK owing to nightmare neighbors
Insurance premiums have always been grumbled about. These are one of the necessary evils of the 21st century that keeps the working class’ nose close to the grind for the better halves of their lives. Hence when the insurance companies decided to increase the insurance premium by £50 recently, the public outcry was expected. However, what’s absurd, though justified, is the reason behind the increase in the premiums.
Insurance companies are levying the extra charge to manage payouts owing to "nightmare neighbors." One in ten British home owners file claims with their home insurance as a result of their neighbors’ "unruly" behavior. In other words, about 10 percent of home owners have or will need to claim on their home insurance as a direct result of their neighbors’ conduct.
Though this might sound bizarre, the incidents of homeowners having to bear the brunt of bad neighbors is on the rise. Recently MoneySuperMarket, an insurance price comparison portal, conducted a survey which revealed some interesting, though disturbing, facts about how neighbors are causing not just emotional but financial burdens to home owners, reported Money Wise.
According to the portal, about 29 percent of homeowners filed a claim on their home insurance policy owing to property damage from unruly gardens and overgrown trees, while another 26 percent made claims because their neighbors neglected their property — leaving gutters clogged, not repairing loose roof tiles, etc. More than one in five claims was generated because of a burst pipe or gas leak at a neighboring property.
Essentially, general lack of upkeep and improper care has resulted in damages to the properties next door, reported Mindful Money. Insurance companies aren’t taking any more risk, since almost 30 percent of homeowners have confirmed that unruly neighbors have or will damage shared wall or fences. Majority of the 2,000 respondents have expressed their concern about the damage that these nightmare neighbors will cause, as reflected by the report.
Moreover, owing to such neighbors, it is only logical that the resell value of the homes will be significantly impacted. This is simply because you can easily alter or repair the interiors or even the exteriors, but you cannot do much about unruly neighbors except complain about them, which in many cases has taken an ugly turn, cited many home owners.
Homeowners, though grumblingly, are expected to shell-out the extra premium since they are confident that their neighbor’s pets, children, or their utter disregard to communal harmony will cause serious damage at some point in the future.
Source The Inquisitr News.
Indian man jailed in UK for faking death to claim insurance
An Indian-origin British businessman has been jailed for two-and-a-half years by a UK court for faking his own death to claim over 1 million pounds in insurance payout.
Sanjay Kumar pleaded guilty at Southwark crown court in London to six counts of insurance fraud. His wife, Anju Kumar, pleaded guilty to two counts of fraud.
While Sanjay was jailed for two-and-a-half years, his wife received a five-month sentence, suspended for two years.
Source The Times of India
Sanjay Kumar pleaded guilty at Southwark crown court in London to six counts of insurance fraud. His wife, Anju Kumar, pleaded guilty to two counts of fraud.
While Sanjay was jailed for two-and-a-half years, his wife received a five-month sentence, suspended for two years.
Source The Times of India
Less than 20 per cent of Nigerians have access to health Insurance —UNICEF
In
its weekly poll result, U-report Nigeria, an SMS-based initiative of the United
Nations Children Fund (UNICEF) revealed that only 19 percent of U-reporters
have access to health insurance scheme.
The
poll which centered on how much Nigerians knew about Health Insurance showed
that “69 per cent of U-reporters knew what health insurance is, but only 19 per
cent of them said they have health insurance scheme
The
respondents to the poll also expressed that “49 per cent of insurance was being
paid for by the government.”
Health
insurance is a kind of insurance against the risk of incurring medical expenses
among individuals. It protects people by helping them afford health care beyond
the freely available services.
Reacting
to the result, Oluwaseun Akingboye said private employers are not doing enough
for their employers on health matters. “It is so bad because only few private
employers care about the health of their employees.”
U-report,
which was launched by the UNICEF on April 20, had over 20,000 registered
members in its first eight weeks. The initiative is to ensure that an average
Nigerian has access to up-to-date information in its environment on health,
education and other aspects.
UNICEF
consultant on the initiative, Caroline Barabwoha, enthused that the power of
U-report lies in its number. “U-report is already making waves in Burundi,
Uganda and DR Congo, with the potentials in Nigeria, we are confident that this
program is going to be a success
“We
are in partnership with the National Youth Service Corp (NYSC) and we also want
to expand our network to all Nigerians.” On issues concerning the multi
ethnicity nature of Nigeria, Barebwoha said “to make communication accessible,
U-report is set to adopt the five major languages in Nigeria; Hausa, Igbo,
Yoruba, Pidgin and English as means of communication.”
Furthermore,
she added that there is no age limit to join the platform. “All you need is
just your phone. Send ‘join’ to 24453 and what makes it unique is the fact that
it is absolutely free.”
Source Tribune
Friday 27 June 2014
Staco hosts NCRIB members evening
Chuks Udo Okonta
Staco insurance plc, in a bid to further extend the
frontiers of professional and business relationship with insurance brokers, will
on Tuesday, July 1, host the July Edition of the Nigerian Council of Registered
Insurance Brokers (NCRIB) members evening, bill to hold at Insurance Brokers
House, Moleye, Sabo Yaba, Lagos. Time 3pm.
A statement by the Director of Public Relations of the
NCRIBC, Tope Adaramola, said the event further create rapport between the host
underwriter and brokers, who constitute the major stakeholders in the nation's
insurance value chain.
He noted that the event will feature special presentations
by the Managing Director of the host company, Shakiru Oyefeso while the
President of the NCRIB, Ayodapo Shoderu will apprise members with contemporary
trends in the industry.
The NCRIB Members' Evening, according to him, has remained
one of the most veritable platforms for exchange of business information and
networking between insurance brokers and selected underwriters in the nation's
insurance market.
Wole Soyinka@80: Sovereign Trust Insurance endorses essay competition
Chuks
Udo Okonta
Sovereign
Trust Insurance Plc, as part of its continuing effort in promoting academic
excellence amongst youths who are still undergoing post-primary education in
the country and beyond, has singularly
endorsed the prize money for the essay competition instituted in honour of
Nigeria’s Literary Giant and Nobel Laureate, Professor Wole Soyinka, who will
on July 13, 2014, turn 80.
A
statement by the Chief Spokesperson for the giant underwriting firm, Segun
Bankole, said the activities leading to the birthday of the notable wordsmith
is scheduled to commence on July 7, 2014, to the end of the year within and
outside of the country.
He
noted that the Project WS is an International Cultural Exchange Program
designed for the purpose of using the platforms of Literature, Arts and Culture
to affirm and uphold the dignity of our
society; focusing on youths as the future of humanity.
He said
the project was premiered in 2010 on the 76th Birthday of Professor
Wole Soyinka, adding that it has three main categories namely: the Essay
competition which is open to Nigerian Secondary School Students anywhere in the
world, the Stage plays which features renowned Nigerian and International
actors and the Advocacy lectures.
The
project sets out to engrave in the hearts of the youth, the uncommon view that
education, arts and culture are authentic panacea to fear, violence and their
resultant erosion of individual will and self actualization, he said.
“The
Pan Nigerian Secondary School Essay competition being a cultural exchange
project chooses pertinent topics which is thrown open to Senior Secondary
School Students all over Nigeria and the Diaspora. Interested students are
encouraged to submit essays on selected topics based on which finalists are
selected; the number of which tallies with the age of the Noble Laureate.
“This
year’s Essay topic for the finalists is themed, “Path to Freedom and the
Future”. The final stage of the essay competition will be held live as all the
selected finalists will converge at the same venue to write the final stage of
the essay at the same time. The first three winners will get cash scholarships
and laptop computers while their respective schools get desk top computers as
well,” he said.
While
appreciating the Management of Sovereign Trust Insurance Plc for its
immeasurable support and partnership towards the hosting of this year’s edition
of the project, the Project Coordinator and Executive Producer, Alhaji Teju
Kareem, said that the Organising Committee expresses its profound gratitude to
the Management of the company for finding the Project WS a laudable initiative
worthy of support.
He enjoined
other corporate entities to follow in the stead of Sovereign Trust Insurance
Plc in identifying and supporting worthy causes as a way of ensuring the
progressive movement of our dear country.
Bankole
said the underwriting firm is noted for relentlessly supporting projects that
are in line with the company’s CSR philosophy in bringing about positive
changes in our society. He noted that the focus of this project are the youths
who are the future of our great nation because they hold the key to change and
prosperity in Nigeria and the world at large. In his words, “it is our duty to
productively engage them and ensure that their mindset and priorities align
with the direction of progress for the motherland and humanity”.
He said
the firm will continue in its stride to give optimal support to initiatives
geared towards advancing the immediate community and the country as a whole.
Nigerian health insurance to become paperless from next month
Nigeria’s National Health Insurance Scheme (NHIS) has announced plans to make health insurance paperless in Nigeria, signing a Memorandum of Understanding that will make health insurance available to Nigerians for NGN250 (US$1.54) per month.
Dr Femi Thomas, executive secretary of NHIS, said this at the fifth anniversary and inauguration of Redcare Health Services’ head office in Ilupeju, Lagos, saying the MoU would digitalise insurance in Nigeria.
"The business of health maintenance is growing day by day in Nigeria with new challenges that we have to cope with. We want to make health insurance paperless by next month; enrollment, monitoring will be digitalised," Thomas said.
"We just signed a Memorandum of Understanding for Mobile Health Insurance and will become operational in next few weeks in Nigeria. It means people will now be able to register with their mobile devices, pay, and choose their Health Maintenance Organisations (HMOs). It also means that HMOs must make themselves more visible for Nigerians to access them.
"With it, notification of referrals will be digitalised and transfer will be easier. The HMOs are expected to comply or face sanction. The device will only cost NGN250 subscription monthly."
He said the move would improve the standard of education in the country and has advised HMOs to embrace adapt to the mobile system.
Source Humanipo
Dr Femi Thomas, executive secretary of NHIS, said this at the fifth anniversary and inauguration of Redcare Health Services’ head office in Ilupeju, Lagos, saying the MoU would digitalise insurance in Nigeria.
"The business of health maintenance is growing day by day in Nigeria with new challenges that we have to cope with. We want to make health insurance paperless by next month; enrollment, monitoring will be digitalised," Thomas said.
"We just signed a Memorandum of Understanding for Mobile Health Insurance and will become operational in next few weeks in Nigeria. It means people will now be able to register with their mobile devices, pay, and choose their Health Maintenance Organisations (HMOs). It also means that HMOs must make themselves more visible for Nigerians to access them.
"With it, notification of referrals will be digitalised and transfer will be easier. The HMOs are expected to comply or face sanction. The device will only cost NGN250 subscription monthly."
He said the move would improve the standard of education in the country and has advised HMOs to embrace adapt to the mobile system.
Source Humanipo
NIID pushes motor insurance business by over 50%, as 2.5m certificates captured
 |
| Thomas |
Chuks Udo Okonta
The Nigerian Insurance Industry Database
initiative has pushed motor insurance business especially third party, by over
50 per cent between 2012 and 2013, the Director-General Nigerian Insurers
Association (NIA) Sunday Thomas, has said.
He noted that over 2.5 million motor
insurance certificates have been captured in the database as at date, adding
that the initiative has gained recognition amongst the populace as the
mechanism for verification to ascertain genuine insurance covers.
Thomas noted that investigations
conducted by the research department of the association revealed that over 70
per cent of the people met, have knowledge about the NIID initiative, stressing
that there is gradual restoration of confidence of the public and their
purchase of genuine motor insurance policies.
He lauded the supports made by the
Federal Road Safety Corps (FRSC), adding that it has been instrumental to the
level of success attained in the implementation of the NIID.
He said FRSC in compliance with the
law has continued to ensure the enforcement of genuine motor insurance cover by
making it a pre-requisite for the issuance of proof of ownership certificate
during the renewal of motor vehicle license.
ACCEPTANCE SPEECH BY THE INCOMING CHAIRMAN OF THE NIGERIAN INSURERS ASOCIATION (NIA), MR. G.U.S. WIGGLE ON THURSDAY, JUNE 26, 2014 AT BEST WESTERN HOTEL, OPPOSITE BAR BEACH, VICTORIA ISLAND, LAGOS
 |
| Wiggle |
ACCEPTANCE
SPEECH BY THE INCOMING CHAIRMAN OF THE NIGERIAN INSURERS ASOCIATION (NIA), MR.
G.U.S. WIGGLE ON THURSDAY, JUNE 26, 2014 AT BEST WESTERN HOTEL, OPPOSITE BAR
BEACH, VICTORIA ISLAND, LAGOS
Protocols,
On behalf
of the Governing council and the entire membership of the Nigerian Insurers
Association, I thank you all for finding time to be part of the events of
today. My appreciation also goes to my colleagues in the Council and the
general assembly of Nigerian Insurers and Reinsurers for the confidence reposed
in me as expressed in my election as the 21st Chairman of the Nigerian Insurers
Association. I am eternally grateful to you all.
My
election is a call to duty and it has no doubt given me the opportunity to
build on the achievements of my predecessors in office. I am aware of the fact
that the assignment is daunting and I therefore call on all my colleagues to
join me to reflect on the past, critically assess the present and look forward
to the future with greater hope and enthusiasm.
I pledge
therefore that during my tenure as Chairman of the Association I will do all
within my powers to sustain the incredible achievements of my predecessors and
strengthen our Association for the future generation of Insurers.
During my
tenure, I intend to lead the team focusing primarily on the following areas
among others:
To sustain
and improve on the good relationship that already exists with our regulator,
NAICOM.
We will
also reach out to other regulators in the financial services sector whose
oversight functions impact on our business.
We will
strengthen the cordial relationship that exists with other arms of the industry
such as NCRIB, ILAN, ARIAN, CIIN etc.
We will
enforce market discipline by encouraging peer review among member companies
with a view to aligning the market practice with international best practices.
We will
sustain the current effort at addressing those laws that are militating against
the growth of the market. The Companies Income Tax Amendment Act (CITA) 2007
amongst others readily comes to mind.
We will
increase the support for the Technical Committees of the Association with a
view to realizing their potential which will be harnessed for the achievement
of the overall goals of the Associations
Nigeria
has the comparative advantage in the production of Oil and Gas. We will
therefore fast track the process of re establishing the Oil & Gas Insurance
Pool so that the industry can reap the full benefit of the Nigerian Local
Content Development Act.
The
Association is appreciative of the efforts of NAICOM in Promoting
Microinsurance to deepen insurance penetration in Nigeria. Our administration
will take up the challenge by encouraging member companies to institute
corporate structures that will ensure the success of the initiative.
I want to
restate that the NIA has remained true to its legacy as an institution that
exists to champion the cause of the insurance industry and we will ensure that
the founders sense of purpose will be upheld by us at all times.
I am
particularly proud of all the past Chairmen of this Association whose
far-sightedness and courage has ensured that we stand here today.
Ladies
& Gentlemen, friends and colleagues, on behalf of the Governing Council, I
wish to restate our commitment to the ideals of this Association.
I am truly
honoured to join you in this remarkable, rewarding, exciting and uplifting
journey. I ask for your support,
encouragement, advice and prayers.
I thank
most profoundly, my colleagues in the Governing Council for their confidence
and faith in me, the Nigerian Insurers Association and the insurance industry
in Nigeria.
Together
we will take the NIA, nay, the insurance industry in Nigeria to greater heights.
Thank you
and God bless
G. U. S.
Wiggle
Chairman,
NIA
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