Events that shaped insurance industry in 2012

Amidst daunting challenges, the National Insurance Commission (NAICOM) and operators came into the year with high expectations. Their goals were hinged on Market Development and Restructuring Initiative (MDRI), launch of Nigerian Insurance Industry Database (NIID) and other initiatives. But at the close of the year, most targets were not achieved. CHUKS UDO OKONTA examines the events that impacted the sector.

How to grow the industry was paramount to the National Insurance Commission (NAICOM) and operators, who came into the year with hope of leveraging essentially on the enforcement of Market Development and Restructuring Initiative (MDRI), Nigerian Insurance Industry Database (NIID) to achieve their targets. While the MDRI mandates the public to comply with compulsory insurances such as motor vehicle, buildings and buildings under construction, employer’s liability, medical professional liability, group life for all employers, the NIID was designed to develop a database for insured vehicles in the country. The industry set a target of over N100 billion to be achieve through the NIID.

The operators were also optimistic that the enforcement of their initiatives would aid the attainment of N1trillion gross premium income by the end of the year, a dream which now seen a mirage according to feelers from the industry.

MDRI is a medium term industry development plan by the NAICOM covering the period of 2009-2012. It is designed to operate as the first phase of the necessary reforms in the insurance sector and focused on the following: enforcement of compulsory insurance products, increase insurance awareness, reduction in the incidence of fake insurance, insurance agency reform. It was the industry’s projection that the following results will be achieved by the end of this year: gross premium income of N1.10 trillion, creation of additional 250,000 new jobs, make substantial contribution into the Fire Service Maintenance Fund (FSMF) as provided in section 65(5) of the Insurance Act and attain3.0 per cent insurance contribution to the nation’s Gross Domestic Product (GDP) as against 0.72 percent in 2008.

Developments that impacted the industry are issuance of guidelines by NAICOM, directives on money laundry, Dana aircraft crash, NIID, appointments, and others.


THEMATIC GUILDLINES

The Commissioner for Insurance Fola Daniel said NAICOM adopted thematic guidelines to ensure continuity in the industry’s reform, adding that yearly change of guidelines would not help in achieving the desired reform of the industry. He said the adoption of the guidelines would help strengthen most of the policies that are being implemented by operators.

He said every policy stated in the guidelines will be strictly implemented to help promote the on going reform in the industry. He noted that the industry has moved very slowly, as it has been walking in the last years, with an attempted to jog. He said the industry would no longer jog but we run to meet with public expectations.

Daniel said notwithstanding the challenges in the industry, NAICOM has continued to provide leadership and roadmap for the industry in the relevant areas through the issuance of regulatory guidelines, circulars and letters, adding that as part of its efforts at achieving a measure of efficiency, the Commission has since 2011 ceased issuance of operational guidelines. Instead, thematic guidelines now exist under the following heads: oil and gas, risk management, claims management, micro insurance, takaful insurance and others. He said guidelines on takaful will be out this month.

TRAINING ON MONEY LAUNDERING

In line with the Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT), insurers were mandated to preserve their customers’ information for not less than 10 years after the end of any transaction. They were also to pay a daily fine of N1 million for infraction on the AML/CFT Act.

Director General Nigerian Insurers Association (NIA) Sunday Thomas said the custody of customers’ information is in line with the industry’s bid to have detail information of customers. He said companies are to display in their offices the notice stating the corporate responsibility for disclosure of information in respect of transactions above specified threshold.

He said insures are also to identify the nature and scope of the business to be transacted, the duty to obtain evidence of identification, keep customers information up to date and review customers’ information at every point of transaction.

He noted that insurers are to report to the NAICOM observations detrimental to the their operations, adding that the they have to also receive and vet suspicious transaction reports from staff; rendering "nil" reports with the Nigeria Financial Intelligence Unit (NFIU), where necessary to ensure compliance, co-coordinating the training of staff in Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT), awareness, detection methods and reporting requirements; and serving both as a liaison officer for the NAICOM and NFIU and a point-of contact for all employees on issues relating to money laundering and terrorist financing.

According to him, operators are also to effectively monitor unusual transactions, take enhanced measures in respect of higher risk customers, keep adequate records of transactions and promptly respond to enquires by the NFIU in respect of any transaction with any individual, entity, or organisation named in the request.

He noted that there should also be protection of the security and confidentiality of such requests, create high level awareness and training among the staff, ensuring that all branches and subsidiaries observe appropriate AML measures.

DANA AIRCRAFT CRASH

The Dana aircraft crash on June 3, in Lagos, thrown the nation into pains, as the 153 passengers on board perished. The mishap which is rattled that insurance industry as underwriters that insured the ill fated aircraft incurred about N16.48 billion claims. According to sources, about 34 deceased families have filed their claims which underwriters are franticly working out their claims.

Former Chairman Nigerian Insurers Association Olusola Ladipo-Ajayi said the victims claims would be paid, irrespective of challenges arising from the premium payment. He noted that ‘No Premium No Cover’ clause would not deter insurers from settling the claims of the civil servants who died in Dana aircraft crash.

Ladipo-Ajayi said though the Federal Government is yet to pay the group life cover for its employees; insurers would settle the claims arising from the mishap and collect the premium later.

He said: "On the issue of Head of Service, I know the laws says No premium No cover, but I am not aware that the law criminalises the issue of granting cover without premium. To the best of my understanding and belief, it is a gentle man agreement, when premiums have not been paid, that cover exists. And it has been a serious problem because the federal government is the major insurance buyer in this country and they observe that provision of the law in the breach of it, because of the administrative network. Insurance companies have been in the habit of collecting their premium in arrears. I am sure no insurance company will raise the clause no premium no cover at this point in time for the civil servants that died in the air crash."

He noted that the insurers and government would find a common place to resolve the issue to ensure that the victims get their benefits.

Nigerian Insurance Industry Database (NIID)

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

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

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



NIA GETS NEW CHAIRMAN

Within the period under review, the mantle of NIA leadership was transferred to the Executive-Vice Chairman Industrial and General Insurance Limited Remi Olowude. He promised to take the industry to a lofty height through adherence to laws and creation of awareness.

Olowude said: "In our determination to achieve our mission and objectives as a group, it has become imperative to take deliberate steps towards closer interaction and strategic partnership with all stakeholders, particularly the major arms of government: the Executive, the Legislature and the Judiciary. "Towards this end, the Governing Council will consider seeking an audience with The Presidency to table issues such as the key roles of insurance to the socio-economic growth and development of the nation; how the insurance industry and the Government can collaborate in areas of poverty alleviation; the need to give the industry the opportunity to contribute to the formulation of certain government policies; insurance industry representation in appropriate government committees; among others.

"Closely related to this is the need to restructure and strengthen the NIA secretariat for effective public sector liaison and monitoring of the political andlegal environment as it affects insurance. As recent events in the Nigerian financial sector have shown, no insurance company was too big to fail or too small not to matter. Insurance companies are institutional investors which invest in equities and securities. When these entities fail, insurance companies are faced with the challenges of honouring their obligations to their customers. But unfortunately, there is nothing in place on the part of the government to bail out the insurers in times of trouble. This is food for thought."

He said NIA intends to initiate interactive sessions with the appropriate committees or organs of the two chambers of the National Assembly to discuss issues such as restrictive laws on insurance practice, multiple taxation, insurance awareness and penetration, development of oil and gas industry, etc.

He noted that the NIA will equally strengthen relationships with the different organs of the Judiciary by organising annual or bi-annual Insurance seminars for judges and the leadership of the Nigerian Bar Association, adding that the seminars will focus on developments in insurance law in Nigeria, and ensure that the judiciary, legal profession, the regulators, and practitioners in the insurance industry as well as the media have a mutual understanding of insurance law and practice. The more people understand the law, the less the courts are inundated with avoidable suits.

"The NIA will pay greater attention to its partnership with the Organized Private Sector. We will increase our participation and representation in the activities and deliberations of the Nigerian Association of Chambers of Commerce, Industry, Manufacturing and Agriculture, the Chambers of Commerce and Industry in Lagos, Kaduna, Abuja and Port Harcourt, and the Nigeria Employers Consultative Association.

"The NIA will also support the activities of the Cargo Defence Fund, an offshoot of the Nigerian Shippers Council (NSC). We shall collaborate with the NSC to introduce Protection and Indemnity insurance clubs, to monitor developments in maritime law on carriage of goods by sea and related international conventions. It is my conviction that this kind of collaboration will help to develop marine insurance generally by ensuring full protection of maritime risks, backed by authentic and strong reinsurance cover to lighten the burden of marine insurance claims.

"Promoting Ethical Standards and Ensuring the Workability of Market Agreements. The Association will initiate a review and improvement of the Professional Ethics and Code of Good Insurance Practice for the Insurance Industry in Nigeria. It will be the responsibility of all practitioners and institutions to promote and uphold the tenets of the ethics and codes. The Governing Council of NIA will, in addition, draw a charter for all Council members on the conduct of business by their individual companies. The proposed charter and adherence to its principles will ensure that Council members lead by example with specific reference to market discipline," he said.

　

NCRIB secretariat commissioned

The Nigerian Council of Registered Insurance Brokers (NCRIB)commissioned its N400 million secretariat.

Its president Mrs Laide Osijo, said: "
We give thanks to God for sparing our lives and for the successes recorded by the Nigerian Council of Registered Insurance Brokers (NCRIB). We have so many things on which we need to rejoice. Things like celebration of our 50th anniversary and the opening of our secretariat."

Miss Insurance empowers youths

Chuks Udo Okonta

The 2012 Insurance Queen, Miss Onyeka Adigwe recently held an event tagged ‘Youth Empowerment Day’ at CMS Grammar School, Bariga, Lagos as the grand finale of her pet project themed "Youth Empowerment: Functional Education and the Dangers of Drug Abuse".
Miss Adigwe visited secondary schools with her team which comprises officials of National Drug Law Enforcement Agency (NDLEA), educationists and Insurance practitioners. They have held series of interactive sessions with the students on various issues contributing to failure in their academics, dangers of drug abuse as well as benefits of Insurance as a profession and a way of life. This, they believed would help to build their immunity against negative
influences.
Adigwe said her pet project was instigated by her passion to see students focus more on their education and disallow distraction from peer pressure and social vices depriving them of the
opportunity to build a future beneficial to them and the country. She targeted the secondary school students "because they are more prone to negative influences that can jeopardise their future as well as that of the nation; and also to bring about veritable change among the
upcoming leaders of tomorrow."
She believed that such enlightenment should not be left to the government alone; hence she sourced for support from insurance companies to join hands in combating one of the major menaces of our society – Drug Abuse.
In the course of her project, Miss Insurance engaged the students in an inter-school essay competition titled, "Benefits of Insurance to a Nigerian Child". This she did in order to entrench the gospel of insurance in them and to serve as a platform of ‘catching them young’.
With this, the students were able to carry out a research on Insurance and its significance to individuals, families and nations.
On the Youth Empowerment Day, students and school-representatives were awarded prizes and plaques for their participation in the essay competition. The winner of the essay-writing competition took a HP laptop while his school took a HP desktop computer. The second
position took a mini laptop and her school, three-in-one scanner and a white board. The third position won a digital camera and a cash of N20,000.00 while his school took a water dispenser.
The speakers at the event were Mrs. Modupeola Dallas-Olusanya, Managing Director of Gombot Insurance Brokers Limited; NDLEA officials led by Mrs. Bolanle Adekunle; Mr. Joseph Oba from the Chartered Insurance Institute of Nigeria; and Mr. Tunde Badmus from Regency Alliance Plc. The day was graced by teachers, students of secondary schools in Lagos and representatives of her sponsors: NEM Insurance Plc, Regency Alliance Plc Goldlink Insurance Plc, FBN Insurance Brokers, UBA Metropolitan, Law, Union & Rock Insurance Plc, and Mutual Benefits Plc.

How NCRIB is fighting charlantans - Osijo

Chuks Udo Okonta

The President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, has said the council has mobilised brokers at all level in the fight against the activities of charlantans in the brokering business.

She told Inspen that the measures adopted are yeilding results as many fake brokers have been weeded out of the sector.

She said: "We have a mechanising on how to curb the activities of charlantans. In my inaugural speech, I told brokers fraternity that I would empower the Area Chapters. And I have really done that. I have empowered them through qualitative service. I went a step further by touring the six geographical area chapters, to make them work in line with the secretariat.

"I told them to ensure that all brokers in their region are known and that they are registered members of that chapter. With that at the back of their mind, they would pay their subscription and attend members activities which carry Mandatory Continuous Professional Development (MCPD) points. With these, they would be able to discover genuine brokers.

"We have told those at the Area Chapters to enter any office with sign of a brokering practice and ask for the particulars of the person. We have mandated brokers to glaze their licenses in their offices and to put NCRIB logo on their letter head papers. All these we have put in place to disabilised charlantans. So far, some brokers have been reporting brokers that are not registered and we have been educating them on what to do to be our members. NAICOM efforts have really helped to stop those who want to operate without our approval."

She noted that the step taken by the National Insurance Commission (NAICOM) in ensuring that all brokers register with the NCRIB has helped to have a harmonised data base of brokers. She said before, if NAICOM has 600 brokers, the NCRIB would have 400, adding that the developments entrenched by the council in recent time has really helped curb the activities of charlantans.

Sovereign Trust adopts new business model

Sovereign Trust adopts new business model

Chuks Udo Okonta

Sovereign Trust Insurance Plc has announced the re-modelling of its internal business structure to optimize performance and increase its market share in the Insurance industry.

The company took at the decision joint Strategy Session between members of the Board of Directors and the Senior Management in Lagos.

Its spokesperson Mr Segun Bankole, said the new business model is designed with the aim of harnessing greatly the vast opportunities that are inherent in the insurance business as well as explore new untapped market in the insurance industry in the country.

Under the new business model, the activities of the underwriting firm will be anchored on three Divisions namely, Retail and Business Development, Operations and Finance & Administration respectively.

The Chairman of the Establishment, Governance and Business Development Committee, Ogala Osoka, pointed out that the session provided a never-before opportunity to hatch time-enduring ideas with Managers of the business and hopes that the dividend of the session will become visible in a not-too distant time. In his words, " it is very imperative that business models are periodically reviewed to ensure that the opportunities in the market space are adequately addressed in taking a vantage position".

In furtherance of the implementation of the business model, the Management has equally appointed Officers who will be responsible for propelling the initiative. They are Olaotan Soyinka, Kayode Adigun and Ugochi Odemelam.

Olaotan Soyinka the erstwhile Divisional Head of Energy Division takes charge of the Operations Division with the responsibility of directing the affairs of the Departments under the Division which are Energy, Technical and Branch Operations.

Kayode Adigun is to oversee the affairs of the newly established Finance and Administration Division with responsibility for Finance and Investments, Corporate Services, Human Resources, General Internal Services and Legal services.

Ugochi Odemelam formerly in charge of the Marketing & Relationship Management Division moves to Head the Retail & Business Development Division of the company with responsibility for Direct Marketing, Agency Network, e-business as well as

Olaotan Soyinka is an erudite and well-grounded underwriter with over 17 years experience. He is an Associate of the Chartered Insurance Institute of Nigeria. He holds a Bachelor’s degree in Insurance from University of Lagos and a Master of Science degree in Marketing. He is an alumnus of the Lagos Business School having successfully completed the Senior Management Programme. He joined Sovereign Trust Insurance Plc in March1998.

Kayode Adigun holds a Master of Science degree in Government and Finance from Liverpool John Moore University, United Kingdom with an additional Master Degree in Business Administration from the Obafemi Awolowo University Ile-Ife. He is a Fellow of both the Institute of Chartered Accountants of Nigeria and the Chartered Institute of Taxation of Nigeria respectively. He is equally an alumnus of the Lagos Business School. Kayode joined Sovereign Trust Insurance Plc in 1997.

Ugochi Odemelam is seasoned sales personnel with over 18 years experience. She is a Member of the Chartered Insurance Institute of Nigeria (CIIN), Chartered Insurance Institute of London (CII) and the Nigerian Institute of Management (NIM). She holds a Master Degree in Business Administration from ESUT Business School. Ugochi is an alumnus of the Lagos Business School having successfully completed the Senior Management Programme. She joined Sovereign Trust Insurance Plc in its year of inception, 1995.

This change according to the Head of Corporate Communications and Brand Management, Segun Bankole was informed by the need to sustain high level performance across the company, ensure Human Resource optimisation, and provide exceptional customer relationship management. It is expected that the change will bring about monumental growth in terms of the company’s market share and impact positively on the underwriting firm’s balance sheet in the years ahead. He further stated that Management will continue to make appropriate changes in the company’s structure and processes to achieve the set goals and objectives as defined in the corporate philosophy of the company.

Its Managing Director Wale Onaolapo wished every member of the team in the newly established Divisions well and enjoined them to commit their hearts to the great task ahead. He said Management will continually provide an enabling work environment that will engender good performance, promote team spirit and good welfare package.

Insurers want good treatment from oil and gas firms

The Nigerian Content Policy on insurance was meant to expand the operations of insurers, but President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, said in this interview with Chuks Udo Okonta that harsh conditions laid by oil and gas firms may erode the the benefits of the policy.

How did the insurance industry fared this year?

We give thanks to God for sparing our lives and for the successes recorded by the Nigerian Council of Registered Insurance Brokers (NCRIB). We have so many things on which we need to rejoice. Things like celebration of our 50th anniversary and the opening of our secretariat. On the entire industry, we tried, but had lots of challenges. Our performance this year is better than last year, for the Gross Domestic Product (GDP) is a bit high than that of last year. Our challenges is in the area of receivables, which means that we had a lot of businesses, but little income in our treasure. With that we cannot say we are home and dry. I think with the introduction of no premium no cover which would start next year, there would be a new thing in our operations.

How have brokers and underwriters managed their rift on premium collection and remittance?

What the present administration in National Insurance Commission (NAICOM) has done to bring sanity in the industry is a good thing in the right direction. The idea of underwriters accusing brokers of non remittance of premium will now be a thing of the past with the introduction of no premium no cover. According to the Commissioner for Insurance Fola Daniel, when they were doing verification of accounts of brokers and underwriters, they observed that most of the outstanding premium that brokers were accused of, were not actually true. Some of the underwriters raised their books to cover their expenses. NAICOM observed the mis-representations and sanctioned the errant underwriters. Some brokers who erred by keeping premium beyound the stipulated date were also sanctioned. I am not saying that brokers are perfect, but most of the accusation by underwriters are not really true. NAICOM observed that most of the withheld premiums are receivables. For an example the Head of Service insurance and other businesses done last year, their premium are yet to be paid. The Group life of Head of Service, only 25 per cent of the total sum was paid. The money was paid after some of us went to plead for its release. Up till now, I am yet to receive my commission from the group life account. Is this the type of businness that will increase the industry's growth? With all these challenges, I am of the school of positive thought that no premium no cover policy should stay. If you have your premium, we would give you cover, but if you do not have there would be no cover. We envisaged that there may be a problem with the policy. This may arise when brokers agree to abide by the guidelines and reject businesses without premium and the underwriters go ahead to release the policies. Some brokers have been asking me this question on what have been done to ensure that underwriters would not subvert the guidelines by releasing policies they rejected. I have told them to report underwriters who by-pass them to take a business they rejected. We have all agreed to abide by the policy, for it would bring sanity to the industry. We are prepared to abide by the rule, we have educated brokers and they are all ready to comply.

Would the NCRIB take up these envisaged challenge to NAICOM?

I was at Abuja where the no premium no cover was made known to underwriters and brokers by NAICOM. Desk officers of ministries, departments and agencies were also at the forum and the issue was thoroughly discussed.We have agreed with NAICOM to call the stakeholders in the insurance industry - representatives of the brokers and underwriters to sit and chart the way forward for the implimentation of the policy. We have to agree on the modalities. It is during that meeting that we will raise this and other challenges that we envisaged that may clogged the policy. These issues are foundament to the operations of brokers, for 80 per cent of insurance business in the country is done through brokers. If we follow the law and underwriters refuse to follow, the whole thing would be a mess. We would try to ensure we get the modalities as to how to go about the policy.

How would the industry manage government's delay to premium payment in the no premium no cover regime?

Earnestly, government is the highest spender and they are to pomote the insurance industry. What the government should do because of delay in implimentation of the budget, is for most agencies to move their renewer period from January to April ending or June. If they do that, they would have enough time, after the budget is released to get their premium. I believe the Commissioner has discussed that with Perminent Secretaries. We believe the issue should also be discussed with the legislators to encourage government to place insurance first in the budget. We envisage the first year is a toothing period, hence all the challenges encountered will be addressed as we make progress. The policy is a good thing in the right direction for it pays the brokers, underwriters and public better. With the policy, once the public pay their premium, their claims would be effected promptly.

How have brokers fared in oil and gas business?

Honestly, in the area of oil and gas, the Nigerian Content Act made provision for local operators to be trained, so that the business could be handed over to us. But the way those oil and gas operators are doing things are contrary to what is expected. What they are asking for were never envisaged when the law was provided. The Nigerian National Petroleum Corporation (NNPC) is really putting more demands on brokers. We are worried because we thought we would acquire more knowledge as we grow on the business, but reverse is the case. We have undertaking oil and gas training at home and abroad, but with the restrain by the oil and gas operators, we can never put to test what we learnt. With the things they are asking for, barely can 10 brokers or even five qualify for the business. If they are doing it intensionally, where then is the local content law? We were supposed to be trained so that the foreigners would hand over the businesses to us. If we are not given the practical training and exposure, how would we learn? It has been unfair, but we will continue to strive until we get there. The first time they did it, we had 34 brokers engaged, and the next, we had 14. We thought after getting 34, we would have higher rate,but they went and reduced it. This year, they put so many conditions and at the end only few brokers will also be engaged. It is unfair to the local content law. The local content law is there to protect us and put food on our table, but the way they are asking for so many things, is really disturbing. We would continue to strive to meet their demands. Honestly, the brokers are complaining. They are not happy about it, most of them have paid so much to certify many documents. Corporate Affairs Commission (CAC) gave us certification, but they still want us to certify it. And they would give us short period within which they want us to impliment these things. People have spent much money going to Abuja due to much requirements by the operators. Many brokers have written petitions to my office, for we to answer were they belong in the local content, but I do not know how to answer them, for NNPC is not given us fair treatment.

Is there any role NAICOM can play to remedy this situation?

There is little or nothing NAICOM can do when it concerns insured and underwriter. They are our regulator. The only where they can come in is when the oil and gas operators admit people. The operators would send the list of engaged insurers to NAICOM to comfirm whether they are registered and have the wherewithal to handle the risks. Once an operator is qualified, done many training and spent so many years in the industy he will be approved by NAICOM, but that does not mean NNPC would pass the operator. Issues on insurer client relationship, NAICOM always draw back. They would say the insured has right to ask for any thing. NAICOM can only appeal to the oil and gas operators. The only people that could help us are the legislators for they made the law.

How is NCRIB handling issues on indiscipline among members?

On the issue on lapse policies. NAICOM lapsed almost 100 brokers. The reason for lapsing them is because most of them refused to renew their policies. The NCRIB law allows us to renew our registeration every two years and any operator who fails to renew his registeration lasped. The renewer does not just centre on financial obligations, but the operator must meet all the requirements. This is because we have our standard rule that is used for renewer. Once one is able to meet the conditions, his license would be renewed. If a firm has a new chief executive, the person has to come to us to check if the person is fit and proper to run the organisation. This is because the new executive would be held liable for any thing that happened in the firm. If an organisation changes its executive, it has to write us and we would give it six month to present the excutive for examination. If an operator failed to meet up with his financial obligation, his membership will lapse that also is what NAICOM is doing. We have observed that some people just register a company because they want to secure a business due to the influence of their relative that is in power. Once they get the business, they would abandon their brokering business. Others just want to be managing director. Instead of 10 people joining hands to form a strong firm, they want to be managing directors. We have always encouraged mergers and acquisition. If you have a formidable team, it is better than been alone. We have already told our members that by March 31, our register would be closed for 2013. And we would publish the list of members on our website and newspapers. We also send the list to our clients. By first week of April, list of our members would be out. Our rule states that we should publish list of members every year. I must not forget to comment the effort of the Commissioner for Insurance for his efforts in promoting the affairs of the council. Our law says that registeration with NCRIB is requirement for licensing by NAICOM. Before this year, so many brokers have been going to NAICOM, for registeration. But since the beginning of this year, NAICOM has refused to give any body licence if they did not have the NCRIB registeration certificate. The Commissioner with his team have been doing a good job to ensure people comply with the rules.

How does the council ensures those deregistered do not continue to practice?

We have a mechanising to that effect. In my inaugural speech, I told brokers fraternity that I would empower the Area Chapters. And I have really done that. I have empowered them through qualitative service. I went a step further by touring the six geographical area chapters, to make them work in line with the secretariat. I told them that all brokers in their region are known and ensure that they are registered members of that chapter. With that at the back of their mind, they would pay their subscription and attend members activities which carry Mandatory Continuous Professional Development (MCPD) points. With these, they would be able to discover genuine brokers. We have told those at the Area Chapters to enter any office with sign of a brokering practice and ask for the particulars of the person. We have mandated brokers to glaze their licenses in their offices and to put NCRIB logo on their letter head papers. All these we have put in place to disabilised charlantans. So far, some brokers have been reporting brokers that are not registered and we have been educating them on what to do to be our members. NAICOM efforts have really helped to stop those who want to operate without our approval. The step taken by NAICOM has helped us to have a harmonised data base of brokers. For before, if NAICOM has 600 brokers, the NCRIB would have 400. This has really helped curb the activities of charlantans.

What is your take on the performance of the MDRI?

I think the government has a lot to do. Some of the compulsory insurances are not enforced. NAICOM has tried its best supporting the industry, by making some businesses to be compulsory under the Market Developement and Restructuring Initiative (MDRI). But the implimentation and enforcement lie with the government either at state and federal levels. If at the state level, hostels, hospitals are made to effect insurance by the local government, they would do it. The local governments have a way of collecting rates, that can be deployed to collect the premiums. At the grassroots, the agents need to do their jobs. The brokers are wholesalers, they want oil and gas and other big accounts from the federal governments. They neglect retail business where there are more money. We have so many graduates searching for jobs, if the brokers engage them to go to the grassroots, pay them good money and training, we would achieve more on the MDRI. We still have a long way to go, I must be frank with you. When I go any of the local chapters and get complain of lack of business, I always ask them if they all are after government accounts. And why not go to the grassroots since they are closer to people there. I tell them to look at businesses at the grassroots and forget businesses in Abuja. That is why I respect Mutual Benefits Assurance Plc. It is one company that is really promoting micro-insurance in Nigeria. They are doing very well and making money in the business. Other big companies, are too big that they do not want small things at the grassroots. With about 168 million people in the country, we have a lot of businesses to do.

What are the things that would drive insurance next year?

I believe the indstry will grow when the mandatory insurances are enforced. Also adhering strictly to the no premium no cover policy, practising professionally and avioding unethical competition among brokers and underwriters. There should also be progressive government policies and early implimentation of the budget. The budgetary provision for insurance should be strictly used for the purpose not diverting it to other purposes.

Brokers decry high demand by NNPC

Chuks Udo Okonta

Insurance brokers are not comfortable with the enormous demand by the Nigerian National Petroleum Corporation (NNPC) to enable them qualify for oil and gas insurances Inspen has learnt.

Our investigation revealed that NNPC has placed difficult hurdles to restrain the brokers from qualifying for risks allotted to local brokers by the Nigerian Content Policy. 34 brokers were engaged for the NNPC account in 2011, but the number was reduced to 14 this year and findings have showed that the number may also go down next year.

The President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, said the corporation has subjected brokers to enormous demand which most of them are wary about.

She said the operators are worried because they thought they would acquire more knowledge as they grow on the business, but reverse is the case now,as they are not given the opportunity to improve their knowledge on the job.

She said: "Honestly, in the area of oil and gas, the Nigerian Content Policy made provision for local operators to be trained, so that the business could be handed over to us. But what the oil and gas operators are doing, is contrary to what is expected.

"What they are asking for were never envisaged when the law was provided. The NNPC is really putting more demand on brokers. We are worried because we thought we would acquire more knowledge as we grow in the business, but reverse is the case.

"We have undertaking oil and gas training at home and abroad, but with the restrain by the oil and gas operators, we can never put to test what we learnt. With the things they are asking for, barely can 10 brokers or even five qualify for the business. If they are doing it intensionally, where do we then put the local content law?"

She said the operators were supposed to be trained so that the foreigners would hand over the businesses to them, adding that if the operators are not given the practical training and exposure, how would they learn.

"The oil and gas operators have been unfair, but we will continue to strive until we get there. The first time they did it we had 34 brokers engaged, and the next one we had 14. We thought after getting 34, we would have higher rate, but they went and reduced it. This year, they put so many conditions and at the end only few brokers will also be engaged.

"It is unfair to the local content law. The local content law is there to protect us and put food on our table, but the way they are asking for some many things, it is really disturbing. We will continue to strive to meet their demands.

"Honestly, the brokers are complaining. They are not happy about it, most of them have paid so much to certified many documents. Corporate Affairs Commission (CAC) gave us certification, but NNPC still want us to certify it. And they would give us short period within which they want us to impliment these things," she said.

She noted that many brokers have written petitions to her office about the hurdles placed by the NNPC for qualification, adding that the corporation is not given brokers fair treatment.

　

Bleak christmas for pensioners as 259,000 abandoned to die

　

ABOUT 259,000 retired state teachers and civil servants in the 36 states and Abuja, the Federal Capital Territory, FCT, are literally eating from the dust bins due to non-payment of their pensions and gratuities.The number of retirees which range from 6,000 to 12,000 in each state, excludes retirees at the federal level, who are being owed entitlements; some for a period of 10 years.

Arrest Maina,Senate directs IGP

This is coming on the heels of last week's directive by the Senate, asking the police to arrest the Chairman of the Federal Task Force on Pensions, Alhaji Abdulrasheed Maina over alleged missing N195 billion Pensions Fund.

Senator Kabiru Gaya, PDP, Kano South, who asked for the rules to be applied on Abdulrasheed following Maina's absence at the Senate to answer questions on the missing fund said, "I think we have the rules and we have the power. We have the power to request the police to arrest Maina and bring him before us here."

The Chairman of the Joint Senate Committee, Senator Aloysius Etok, PDP, Akwa Ibom North-West, said "we request the Inspector General of Police to arrest him."

According to Senator Etok, "we have sent the warrant of arrest to the Senate President to sign to be forwarded to the Inspector General of Police for necessary action."

Retirees live in penury

However, a random survey carried out by Vanguard across the country showed that apart from few states like Anambra, Lagos, Edo and Delta, retired workers are living in penury as both the federal and state governments have abandoned them to their fate.

Uduaghan approves N1.2bn in Delta

In Delta State, although government was owing the retired workers some arrears of pensions and gratuities, the Governor, Dr Emmanuel Uduaghan last week approved N1.2 billion for the payment of arrears to about 12,000 retirees.

Uduaghan said, "we will pay you the arrears; we are working out the modalities for the payment. The N1.2 billion had been approved since August 2011; we will begin the payment this month. We have conducted screening exercises in the state. In the first exercise about 5,000 pensioners were captured while in the second exercise, we got about 9,700 pensioners but only 7,000 were physically sighted."

*Some of the Pensioners at one of the screening exercises

Section 173(3) of the 1999 Constitution stipulates that entitlements of pensioners must be reviewed upwards once every five years but the constitutional provision is obeyed in the breach, as none of the three tiers of government had ever complied with it.

11,000 retireeslament in Ogun

In Ogun State, no fewer than 11,000 retired civil servants are lamenting their alleged continued neglect by state government. The state Secretary of the Nigeria Union of Pensioners, NUP, Mr. Bola Lawal, said many pensioners had died without gratuity while several others were on their sick beds as their pensions and gratuities had not been regular in the last three years. Lawal told Vanguard in an interview in Abeokuta that none of the pensioners on the former employment of both the Federal and state civil service had also benefited from the six and 15 per cent increase in pensions since 2003.

It's gloomy tide in Oyo, Plateau

Retired workers in Oyo State were being owed several months of their entitlements, even as the issue reached a crisis point during the last administration of Governor Christopher Alao-Akala, who failed to pay the senior citizens as at when due.

Also, in Plateau State, the situation is even more complicated as those still in the service of the government had not been paid in the last six months, not to talk of the retired workers.

Bauchi: NUP protests N5.3 bn arrears

In Bauchi State, Vanguard learnt that the story of the neglect of the nation's senior citizens as the 3,000- strong membership of the NUP, Tuesday demonstrated over alleged non-settlement of the entitlements amounting to over N5.3 billion.

It's suffering galore in Enugu

According to the findings, the Enugu State government had not paid any entitlements to its teachers and other civil servants who retired since 2010 even as those who left service earlier were being owed 27 months arrears between 2002 and 2004.

Retired primary school teachers in the state said that the NUP agreed with Governor Sullivan Chime to discuss the modalities for the settlement of the 27 months arrears on May 11, 2009, adding that Chime promised to off-set the backlog of arrears within 14 months from then but reneged on his promise.

Both federal pensioners and their counterparts in the Abia State civil service were also full of lamentations over their plight saying that the were being weighed down due to the hardship they go through on account of non-payment of their monthly pensions, which arrears had run into several months.

For 77 year old, Pa Stephen Onuoha who retired as a Railway staff, life has been like hell as his pensions have not been paid for over four months.

He told Vanguard that, "we are not talking about harmonization as we have not seen the old one. You can see me, in my condition, I struggle to queue up to do one clearance or the other, and most times after the so called verification nothing comes. We are suffering".

However, on gratuity, the retired federal worker said, his gratuity was paid "on time and at once because, things were not as rotten" as they were today.

"I do not know the legacy the governments at both the state and federal levels want to leave if they can not pay old people who laid the foundation of what they are now destroying instead of building. My son, it is only God that will save us. It is difficult for us", Onuoha lamented.

According to the retirees, the ugly situation in which retired workers at both the federal, state and local governments had made people, especially young civil servants to get involved in corrupt enrichment to prepare themselves for their own retirements.

Retirees praise govt, seek review in Jigawa

In Jigawa State, the NUP said that although they were being paid their pensions, the government had failed to review their entitlements in accordance with the provisions of the constitution.

However, the state chapter of NUP has suspended its planned protest following the intervention of the state Head of Service, Alhaji Mustapha Aminu, who assured them that the state government would look into their grievances with a view to addressing them.

The state chairman of the NUP, Alhaji Mohammed Ayuba, said the decision to suspend the planned protest as directed by the national leadership of the association was because of the timely intervention of the State Head of Service

According to Ayuba the NUP was however enjoying cordial relationship with the state and local governments in Jigawa State. Said he: "State and local governments in Jigawa State are enjoying good relationship with us because the government ensured that all pensioners get their pension and gratuities as at when due. We get our pensions paid before other civil servants get their salaries in the state. The state government has even assured pensioners in the state that in accordance with the provision of the 1999 Constitution as amended, pensions are subject to review every five years, and the governor has assured that our pension will be increased next year."

Poor records hurt retirees in Sokoto

Vanguard was told in Sokoto State that retired teachers were not paid for upwards of 15 years before the administration of Governor Magatakada Wamakko."For about 15 years, there was no Teachers' Pension Board, TPB, to oversee the plight of retired teachers. Because of this, there was no records of retired teachers, hence a good number of them have not enjoyed their pensions and gratuity till date," Alhaji Umaru Bagida, 70, from Tangaza who retired from service six years ago said, adding that that since he retired, he had not been paid his gratuity. "I retired from teaching service six years ago but have not been paid my gratuity although I receive my monthly pension regularly," he said.

Sokoto state chairman of NUP, Alhaji Ahmed Ciroma said that there are about 2,000 retired teachers in Sokoto state, adding that the state government released between N25 million and N30 million monthly for the payment of pension to retired teachers.

Retirees smile in Anambra, Edo

Investigations showed that for many years between 1999 to 2003, pensioners in Anambra State bemoaned their fate as they had no hope of receiving their monthly pensions. Those who were due to retire from service then were always afraid of the uncertainty they were going to face, as government could not pay their pensions and gratuities. During the administration of Dr. Chinwoke Mbadinuju, pensioners were always embarking on demonstration to the seat of government to prevail on the authorities to pay them.

Mbadinuju, who governed the state from 1999 to 2003, was said to have described pensioners in the state as dead woods and urged them to leave government alone, although he later debunked the report, saying the it was the handiwork of his political opponents who were bent on tarnishing his image. His successor in office, Senator Chris Ngige however, reversed the ugly trend, which has been maintained by Governor Peter Obi.

Source: Vanguard

No premium no cover: NAICOM assures of govt's compliance

Chuks Udo Okonta

The Commissioner for Insurance Fola Daniel, has said the government would adhere to the no premium no cover policy as it is part of the nation's laws.

Daniel, in telephone interview, told Inspen that the policy is the law of the nation, hence there is no cause for anxiety over government's adherence to the policy which will take effect from January 1, 2013.

The National Insurance Commission (NAICOM) assurance stemmed from expressions by some insurance operators who said government attitude to premium payment may hinder the attainment of the policy. The operators have wondered how the policy would work since the government which is the highest insurance buyer in the nation, is also the highest debtor.

An operator who do not want to be named, said the government is yet pay her company the premium of this year's group life insurance.

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

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

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

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

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

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

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

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

PenCom gets Acting Director General

Chuks Udo Okonta

Following the expiration of the tenure of the Chairman and Executive members of the Board of the National Pension Commission (PenCom), which came up on 16 December, 2012, the Secretary to the Government of the Federation (SGF) has directed that the affairs of PenCom be handed over to Mrs. Chinelo Anohu-Amazu, the most senior General Manager in the Commission.

A statement by Head, Communication Unit Emeka Onuora, said Mrs. Anohu-Amazu was part of the team of experts that midwifed the Contributory Pension Scheme in Nigeria. She served in the Fola Adeola Pension Reform Committee set up by former President Olusegun Obasanjo, whose work led to the enactment of the Pension Reform Act 2004, and received a presidential commendation for the quality of work done on the 2004 pension reform. Before joining PenCom as the pioneer Commission Secretary/Legal Adviser, Mrs. Anohu-Amazu consulted for many private sector initiatives as well as non-governmental organizations and public institutions including the Bureau of Public Enterprises (BPE). Mrs. Anohu-Amazu holds an LL. B. in Law from the University of Nigeria, Enugu Campus. She is a member of the Nigerian Bar and holds a Masters degree in Telecommunication & Information Technology Law from the London School of Economics. She is a member of the Chartered Institute of Arbitrators, London and has attended the Executive Education programme in the Wharton Business School, Pennsylvania where she obtained certification in "Negotiations: Bargaining for Advantage", the Kennedy School of Government, Harvard University, where she obtained a certificate in "Leaders in Development: Managing Economic and Political Change"; and the Graduate School of Business, Columbia University.

Standard Alliance posts N4.76 b premium income

Chuks Udo Okonta

Standard Alliance Insurance Plc generated a gross premium of N4. 765 billion last year, its Chairman Aliyu Sa'ad, has said.

He disclosed this at the company's Annual General Meeting (AGM) in Lagos, adding that the firm made a gross premium of N3.883 billion in 2010.

He noted that the firm's underwriting income also grew to N4.253 billion from N3.541 billion in 2010 and that the underwriting profit stood at N2.729 billion as against N1.754 billion recorded in 2010.

Sa'ad said the company through hard work was able to return to profit, growing its profit after tax to N223.6 million,from a loss of N8.6 billion in 2010.

He said the company is poised to take advantage of the reforms in oil and gas, agriculture and other sectors to drive its operations.

The Managing Director Tom Imokhai, said the company would continue to work hard to increase its market share locally and internationally and would continue to be responsible to clients in claims settlement.

He said the firm has put in place the necessary machinery towards the adoption of International Financial Reporting Standard (IFRS), adding that the firm is also on course in ensuring that its 2012 financials is IFRS compliants.

NAICOM to suspend underwriters' license on cover without premium

Chuks Udo Okonta

From January 1, 2013, any underwritering firm that provides insurance cover without collecting the premium would be liable to a penalty of N500, 000 or lose its license, the Commissioner for Insurance Fola Daniel, has said.

He disclosed this in a Circular on 'No Premium No Cover' made available to Inspen, adding that all insurance covers shall only be provided on a strict 'no premium no cover' basis. He noted that consequently, only cover for which payment has been received, directlt by the insurer or indirectly through a duly licensed insurance broker, shall be recognised as income in the books of the insurer.

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

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

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

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

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

Daniel urged insurers and brokers to reconcile their accounts not later than March 31, 2013. He enjoined brokers and lead insurers to notify the commission of premium received and unremitted to insurers, not later than 30 days from the end of every quarter.

Pension assets is about N3 tr,says Ahmad

Pension assets is about N3 tr, says Ahmad

Chuks Udo Okonta

Pension assets presently stand at about N3 trillion the Director-General National Pension Commission (PenCom) Mohammad Ahmad, has said.

Ahmad, who disclosed this in a television interview, said 5.4 million subscribers had been registered in the scheme.

He expressed misgivings on the numbers of subscribers, adding that it is still a far cry as there are about 40 million workers in the country.

He said the commission is working hard to ensure that small employers in the private sector embrace the scheme, adding that getting small business operators to embrace the scheme and inadequate education and enlightenment remain a great challenge to the industry growth.

He noted that to encourage more people to embrace the scheme, the commission hopes to introduce customers service index, which would ensure that customers get better services from PenCom and operators.

Ahmad said the commission has continued with its regulatory and supervisory philosophy, which is risk-based and consultative, adding that investment regulation that would allow multiple fund is being reviewed.

Ahmad said the Retirement Savings Account (RSA) transfer clearing system application that would be used to coordinate the processes relating to the transfer of retirement savings accounts is being developed and tested to ensure that it meets the capacity and robustness required.

"As part of the implimentation of the opening the transfer window, the Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) who are key stakeholders on the pensions industry will participate in the various workshops geared towards ensuring their full understanding and participation in the transfer process, before the window opens. The estimated date for the opening of the transfer window is December, 2012," he said.

Ahmad noted that the commission would continue to collaborate and engage state governments in the implimentaion of the scheme in the states.

Stanbic IBTC Bank renews commitment to cashless economy

Stanbic IBTC Bank renews commitment to cashless economy
… *909# marks one year of operation

Chuks Udo Okonta

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings Plc, on
Tuesday December 11, commemorated the first anniversary of its *909#
mobile money service, reiterating its commitment to continuously
deliver innovative products and solutions, part of which includes
enhancing the robustness of its mobile banking and mobile payments
systems.

The bank was one of the first organizations licensed by the Central
Bank of Nigeria in October last year to operate mobile money services
in Nigeria in accordance with the Mobile Payments Regulatory
Framework.

At the event in Lagos, which was attended by stakeholders from the
banking, retail and telecoms sectors, the Chief Executive Officer of
Stanbic IBTC Holdings Plc, Mrs. Sola David-Borha, recalled that
Stanbic IBTC Bank had since 2009 shown commitment to technology-driven
branchless banking and enthusiastically embraced the Central Bank of
Nigeria’s drive towards an increasingly cashless economy.

David-Borha said the organization’s decision to launch the *909#
Stanbic IBTC MobileMoney solution last year was underscored by the
bank’s strategic focus of strengthening its universal banking
franchise by integrating Nigeria’s huge informal economy, which is
characterized by unbanked small scale farmers, traders, craftsmen and
other types of small and medium sized businesses, into the formal
economy, and in the process enhance financial inclusion in Nigeria.

She described mobile money as a game changer which apart from enabling
customers to conduct basic financial transactions such as mobile money
account opening, buying airtime, deposit and receipt of cash, as well
as payment of utility bills through their mobile phones, also offers
enormous benefits to the Nigerian economy by channeling the huge funds
in the informal sector through the banking system to engender economic
development.

Obinnia Abajue, Executive Director of Personal and Business Banking,
Stanbic IBTC Bank, said it was in recognition of the need for
market-driven partnerships and alliances with the different
stakeholders in the mobile money value chain, that the bank went into
partnerships with all the four major telecom operators in Nigeria,
enabling mobile payment services to take root, proliferate, and scale
up across the country.

According to Abajue, Stanbic IBTC has recorded significant milestones
with mobile money. To date, *909# Stanbic IBTC mobile money has over
600,000 registered customers, over 790 agents nationwide and there
have been over 7.7million agent airtime transactions and a total
monthly transaction value of N1.3 billion. A mobile wallet can be
funded through; a mobile money agent, at any Stanbic IBTC Bank branch,
any ATM, person to person transfer, and online through the web,
internet banking and through Quickteller, Abajue said. Stanbic IBTC
recently won the Nigerian Financial Technology Award for the best use
of IT in mobile money services.

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings Plc, is a
full service end to end financial services organization with a clear
focus on three main business pillars - Corporate and Investment
Banking, Personal and Business Banking and Wealth Management. The
Standard Bank Group, to which Stanbic IBTC Holdings Plc belongs, is
rooted in Africa with strategic representation in 18 key sub-Saharan
countries and other emerging markets. Standard Bank has been in
operation for 150 years and is focused on building first-class
on-the-ground banks in chosen countries in Africa and connecting other
selected emerging markets to Africa and to each other.

NAICOM refutes report on closure of insurance firms

NAICOM refutes report on closure of insurance firms

Chuks Udo Okonta

The National Insurance Commission (NAICOM) has no plan to close any insurance firm as reported by Business Monitor International (BMI) Limited in its Nigeria Insurance Report 2012, the Commissioner for Insurance Fola Daniel, has said.

He told Inspen that NAICOM has no reason to close any underwriting firm, adding that the commission is committed to strengthening the firms for the protection of policyholders.

BMI in its report, said there are a number of bogus insurance companies that the regulator is keen to close. It noted that NAICOM is also keen to improve capitalisation and standards among the 15,000 insurance agents and 350 brokers.

It said: "Over the years that BMI has been monitoring the Nigerian insurance sector, the story has remained the same even as premiums (appear to) have grown.

"An industry that is largely ignored by foreign multinationals (with South Africa’s Metropolitan being an important exception) consists of a large number of (extremely) small, predominantly listed, indigenous insurers.

"As is explicitly noted in the discussion by NAICOM, the regulator, of the objectives for its Market Development & Restructuring Initiative (MDRI), there are a number of bogus insurance companies that the regulator is keen to close.

"The regulator is also keen to improve capitalisation and standards among Nigeria’s 15,000 insurance agents and 350 brokers, a community in which sharp practice has also been rife in the past.

"Thus far, there has been no sign that the MDRI has had a substantial and positive effect on insurance penetration or popularity in a country where 94 per cent of people are completely uninsured."

BMI noted that in relation to the MDRI, it believes that total premiums in 2012 will be about one third of the N1 trillion that was originally envisaged by NAICOM.

Standard Alliance boss, O’tega Emerhor, bags multiple awards

Standard Alliance boss, O’tega Emerhor, bags multiple awards

The Group Chief Executive Officer of Standard Alliance Group, one of the frontline players in the nation’s financial services sector, Olorogun O’tega Emerhor, has added more feathers to his cap as he was last week decorated with three awards at separate events in Lagos and Abuja for his contributions to the growth of the nation’s economy.

Emerhor who was decorated along with other eminent Nigerians at the AES Excellence Cub’s 3rd Annual CEOs Dinner/Awards Nite held Friday in Lagos received an award as The Entrepreneur of the Year, 2012.

Speaking at the presentation of the awards, Dr. (Mrs) Nike Akande, a former Minister of Industries and Chairman of the Club, noted that "we have carefully been following Emerhor’s giant strides in business and his crucial contributions to the growth of the nation’s economy and the only way we can encourage him to continue with the good work is to recognize him today as our Entrepreneur of the Year, 2012.

Other eminent Nigerians who were recognized with him at the event included Alh. Yusuf Maitama-Sule, Arc. Mike Onolememen, the Minister of Works, Dr. Christopher Kolade, Engr. Rabiu Kwankwaso, Kano State Governor and Hon. Adejoke Orelope-Adefulire, the Deputy Governor of Lagos State who were at the event to receive their respective awards.

Meanwhile, Olorogun Emerhor, a national honours award recipient of the Officer Order of the Niger, OON, was last week further recognized by the University of Nigeria Alumni Association and the Nigerian Chamber of Shipping with a Lifetime Achievement award and an award as a Major Contributor to the Growth of the Chamber respectively at their separate events in Abuja and Lagos.

Making his speech at the Alumni’s International Founders’ Day Dinner and Award Ceremony in Abuja, the National President, Dr. Nwanne Chioke, noted that the association was proud of Emerhor for his achievements and good representation of his alma mater, urging him not to relent.

In the same vein, Mrs. Ify Anazonwu-Akerele, the Director-General of the Chamber of Shipping said if the history of the ten years old chamber is to be written, Olorogun Emerhor will stand out as one of those few Nigerians who took it upon themselves to ensure the chamber progressed, noting that "for his singular support, we are saying thank you today with this award as a Major Contributor to the Growth of the Chamber."

Nigeria's insurance industry is open to foreign multinationals - BMI

Nigeria's insurance industry is open to foreign multinationals - BMI

Chuks Udo Okonta

The Nigeria’s insurance market is not entirely closed to foreigners, Business Monitor International Limited, has said

The United Kingdom (UK) firm, said in its Nigeria Insurance Report 2012, that recent entry of some foreign underwriters into the insurance market has proved that foreign firms can access the industry, adding that the United Bank of Africa (UBA) Metropolitan joint venture shows that Nigeria’s market is not entirely closed to foreigners.

BMI canvassed that any change in the regulations that have the effect of facilitating the entry to the market by foreign multinationals would be beneficial.

It said: "Anecdotal evidence suggests that life insurance has been boosted by the

introduction of compulsory group life policies. Improvement in the regulatory environment could boost the sector.

"Any change in the regulations that have the effect of facilitating the entry to the

market by foreign multinationals would be beneficial. We note, though, that the UBA

Metropolitan joint venture shows that Nigeria’s market is not entirely closed to foreigners.

The rapid growth in the (still small) UBA Metropolitan joint venture indicates that Nigerians will

buy long-term insurance from organisations that they have confidence in."

It expressed worry over the low level of transparency across the sector, adding that with such challenge, it is difficult to know how the various companies are faring.

It also highlighted on the lack of trust among operators, stressing that an industry in which none of the protagonists trust or co-operate with each other is one that runs a risk of becoming irrelevant.

BMI also expressed fear that the 2010 Local Content law which mandates that at least 70 per cent of insurance bought by Nigeria’s energy sector must be sourced from local companies has the potential to cause havoc if the insurers fail to price the risks properly.

NAICOM set to review MDRI programme

NAICOM set to review MDRI programme

Chuks Udo Okonta

The National Insurance Commission (NAICOM) has concluded plans to review the Market Developement and Restructuring Initiative (MDRI) which was designed to enhance the industry's growth, Inspen has learnt.

The Commissioner for Insurance Fola Daniel, who disclosed this in a telephone interview, said NAICOM will next year review the operational guidelines of the initiative to align it, for better performance.

He said the review is one of the commission's programme for the new year, but declined to give the time table for the review and release of the envisaged guidelines.

It was learnt that the need for the review, became necessary due to the failure of the industry to achieve projections envisage it the first phase, where a target of N 1 trillion premium income was to be attained.

The Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye, said delay in the implimentation of the initiative affected the projections set to be achieved, adding that the programme was meant to commenced in 2009, but never took-off until 2011.

He noted that to recover the lost period, there should be a shift in the deliverables to make-up for the difference between the time of the strategy crafting and implimentation.

He said the N1 trillion premium income projection for this years was to be achieved with a four-year strategic plan, adding that there is no way the target will be achieved, with the commencement of implimentation of the initiative a year to the set deadline.

He said: "Most people are reading the strategy document and not relating it to when implimentation took off. If there is a projection that in year four, we will get N1 trillion and as we could see from the paper, we were to start in 2009, we had what we are to achieve in 2009, 2010, 2011 and 2012. So, N1 trillion is in year four which is 2012. If implimentation started in 2011, it will be a case of shifting the deliverables forward base on the difference on the ground between the strategy crafting and the implimentation. The initiative is remarkable in the history of the industry and it is also an evergreen thing."

He noted that the initiative cannot be wish away, as it has brought about many developments, adding that efforts by NAICOM to reposition the industry through micro-insurance, takaful and more are strategic plans stated in the MDRI document.

How to curb unethical practices in insurance industry - Soladoye

How to curb unethical practices in insurance industry - Soladoye

Chuks Udo Okonta

The adoption of retail marketing strategy would curb the menace of unethical practices in the insurance industry, the Managing Director Riskguard-Africa Nigeria Limited Mr Yemi Soladoye, has said.

He told Inspen that the problems in the industry are manifestation of the refusal by the operators to adopt retail as a business policy, adding that to stem the enormous challenges in the industry, the board of the various insurance companies, as a matter of urgency, should mandate their management to adopt the retail marketing.

He said the operators are into the problem of unhealthy competition because they boxed themselves into a very narrow distribution outlet, which is brokering market, stressing that in any situation, price becomes the only competitative strategy, when people are not adding value to their business.

He said: "That the clients are asking for reduced price every year, and the brokers are doing the same, it is a manifestation of the fact that they are saying that they have not seen any competitative strategy. So, the only thing that the marketers do, is to ask the broker, how much is the rate we gave you last year, we are ready to reduce it. It is the admission of the fact, that no other strategy.

"The insurance companies, concentrate on premium growth, as against market expansion. The future and the solidity of the operators can only come from market expansion.

"All the operators want is to ensure that their premium for this year is higher than what it was last year, and they are ready to spend anything to achieve that. If their market position last year was number six and they move to number five this year, their board would laud their effort, not minding the cost.

"The companies cost of doing business is indeed very high, the claims ratio is quite low. These are pointers to the fact that insurance companies need something new and better. The issue of unhealthy competition will be getting worst, until they look for better, cost effective and non volatile distribution channel.

"When I talk of retail, may be the operators do not understand what I mean. Bankassurance which is having a colloboration with banks is a retail channel. It also means engaging in strategic alliances with organisations, like Shoprite, Megaplaza and others. Colloborating with cooporative societies and more. It is so wide and until they adopt it, the market cannot expand."

He noted that the adoption of retail marketing should be made compulsory, stressing that operators are already feeling the bite of the narrow distribution outlet they are using at the moment.

He said most of the problems operators face - high cost of doing business, premium reduction, unhealthy competition, are all manifestation of the fact that they are using narrow distribution method. He added that if they have an alternative, they would be able to do business on your own terms, but when they do not have alternative, they have to achieve whatever any body tells them.

He noted that the operators are not creating alternative distribution outlets to expand their operations, adding that the industry can never grow when the operators scramble for few businesses.

"I think what they need to do is to go back to the drawing board to examine their operations. Each company needs to sit and draw strategy on how to develop their business and adopt retail marketing strategy. When this is done, issues of unhealthy cmpetition, premium reduction and others will stop," he added.

Underwriters take insurance issues to Presidency

Underwriters take insurance issues to Presidency

Chuks Udo Okonta

The Nigerian Insurers Association (NIA)hopes to seek an audience with the Presidency to table issues such as the key roles of insurance to the socio-economic growth and development of the nation;its Chairman Remi Olowude, has said.

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

He noted that towards this end, the Governing Council of the association will consider seeking an audience with The Presidency to table issues such as the key roles of insurance to the socio-economic growth and development of the nation.

He said how insurance industry and the Government can collaborate in areas of poverty alleviation, would also be considered, together with the need to give the industry the opportunity to contribute to the formulation of certain government policies; the industry representation in appropriate government committees; among others.

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

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

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

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

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

Olowude said the association will pay greater attention to its partnership with the Organised Private Sector (OPS), adding that it will increase its participation and representation in the activities and deliberations of the Nigerian Association of Chambers of Commerce, Industry, Manufacturing and Agriculture, the Chambers of Commerce and Industry in Lagos, Kaduna, Abuja and Port Harcourt, and the Nigeria Employers Consultative Association.

He said the NIA will also support the activities of the Cargo Defence Fund, an offshoot of the Nigerian Shippers Council (NSC)and shall collaborate with the NSC to introduce Protection and Indemnity insurance clubs, to monitor developments in maritime law on carriage of goods by sea and related international conventions.

He said this kind of collaboration will help to develop marine insurance generally by ensuring full protection of maritime risks, backed by authentic and strong reinsurance cover to lighten the burden of marine insurance claims.

Lion Club celebrates former NCRIB boss Sanusi

Lion Club celebrates former NCRIB boss Sanusi

Chuks Udo Okonta

Not less than 1,500 Nigerians are to benefit from the free eye screening and diabetes screening planned by the Lions Clubs Region 7 to be held in seven designated centres and 700 of those screened will get free eye-glasses, while 70 will enjoy free cataract operations, in a programme designed to honour the former President of Nigerian Council of Registered Insurance Brokers (NCRIB) Taslim Sanusi.

Also, a considerable number of people will enjoy free diabetes screening and will get free drugs and counseling from Saturday, December 8, 2012 at the world-class Diabetes Centre at the Lagos University Teaching Hospital (LASUTH), Ikeja. The eye screening will be held at the Eye Centre and Eye Bank at Ota, Ogun State.

The birthday tagged ‘Giving Service a Meaning at 70’ will kick-off on Friday, Dec. 7, 2012 with a jumat service at the Ota Central Mosque, Ota, Ogun State and church service at on Sunday, Dec. 9. Free eye screening kicks-off as follows at Ota on Saturday, Dec. 8; Alausa, Ikeja on Monday, Dec. 10; Baptist/AUD Schools, Ota on Wednesday, Dec. 12 and at Iju Ota on Monday, Dec. 17.

Free diabetes screening and drugs will be held at Ilupeju Lions Club Diabetes Clinic LASUTH, Ikeja on Thursday, Dec. 13. The grand finale is on Sunday, Dec 23 when free eye-glasses will be given out and the presentation of a biography on Dr. Sanusi entitled Dr. T. A. Sanusi: The Odyssey of an Ordained Trojan.

These services aimed at uplifting humanity’s quality of life are the club’s contributions to activities outlined to mark the 70<sup>th birthday of a former District Governor 404B Nigeria, Lion (Dr.) Teslim Sanusi who built and equipped the Diabetes Centre at LASUTH and the Eye Centre, as president of Ilupeju Lions Club and District Governor respectively.

Chairman of the Lions Club Lion Teslim Sanusi Birthday Committee, Otunba TAK Oloyede said Dr. Sanusi is a modest and God fearing personality and a Lions Club leader who has contributed immensely to uplifting the less-privileged in the society.

He has, therefore, decided to open a new chapter in the way Nigerians celebrate their moment of joy, hence he opted to provide service to Nigerians in need because holding an elaborate ceremony would amount to giving to people who already have enough to eat, Oloyede added.

"There are thousands of people out there who are losing their sights daily and several dying of diabetes. They could have been saved if they had the kind of opportunity I am now offering. Government cannot do it all alone because its resources are overstretched. Some of us who are modestly blessed should rise and put smiles on the faces of fellow humans who are less privileged due to no fault of theirs," Oloyede quoted Sanusi as saying.

A member of the Ilupeju Lions Club since 1993, Sanusi was elected the Millennium Club President in 2000 and at the national convention of the club in 2006 in Akure, he was elected the District 404B Governor. The hallmark of his tenure as President of Ilupeju Lions Club was the construction and equipping of a Diabetes Clinic at the Lagos University Teaching Hospital, LASUTH, Ikeja, Lagos. As District Governor, he went a step further by constructing and equipping an Eye Centre and Eye Bank at Otta, Ogun State.

A distinguished insurance broker who was the immediate past president of the Nigerian Council of Registered Insurance Brokers was born on December 23, 1942 in Erin-Ile and had his primary education at Baptist School, Kaduna and secondary education at the Eastern Academy, Onitsha in the former Eastern Region.

He is the Managing Director of Cosmic Insurance Brokers Limited which he founded in November 1982. The highflying firm was 30 years old last month. Sanusi is married and has children and grandchildren.</sup>

Ex NAICO President, Duru bags CIIN Associate

Ex NAICO President, Duru bags CIIN Associate

Chuks Udo Okonta

The immediate past President of the National Association of Insurance Correspondents (NAICO) and Insurance Editor of THISDAY Newspaper, Mr. Nnamdi Duru has bagged the Associateship of the Chartered Insurance Institute of Nigeria (CIIN).
He is the first serving Journalist in the country to pass the three stages of the institute’s professional examinations and qualify as a chartered insurance professional.
Born June 24, 1969 in Ehime Mbano Local Government of Imo State, Duru Attended Community School, Umunakanu Ama in Mbano, Imo State and Orile Agege Community High School, in Lagos. He holds a 1992 Bachelors degree in Banking/Finance from the Abia State University and bagged an MBA in Management from Imo State University in 2005. He also holds a Diploma in Computer Studies from the Lagos City Computer College (LCCI), Ikeja.
Duru worked with Maldesa Foods as Sales and Account Executive between 1995 and 1999 before he crossed over to THISDAY Newspaper as Reporter and was assigned to cover the Labour and Industrial Relations.
He was later elevated to the position of Correspondent and Head of Insurance and Pension Desk in the organisation in 2003, a position he occupies till date. Taxation was later added into his schedule of duties in 2005.
Duru was Secretary of the Labour Writers Association of Nigeria (LAWAN) between 2001 and 2003. He was Secretary of NAICO for two terms between 2004 and 2008 and was elected President of NAICO for another two terms between 2008 and 2012. He is currently an Ex-Officio of the association.
The newly qualified chartered insurance professional has attended several courses including the special training in Insurance for media practitioners organised by CIIN (2009 - 2011), the special training on pension for Finance Correspondents & Business Editors organised by the National Pension Commission, (PenCom), (2008 – 2012) and special training for Insurance Editors & Correspondents organised by the National Insurance Commission, (NAICOM) (2009 – 2012.
At the national level, he was participated in the first National Tax Retreat, a programme that was hosted by the Federal Inland Revenue Service (FIRS) in 2005 to chart a new course for taxation in the country.
Duru is happily married to Esther and they have two daughters Chiamaka and Eziwnanne and two sons Eziuche and Enyioma.

CIIN to withdraw certificates from erring holders

CIIN to withdraw certificates from erring holders

Chuks Udo Okonta

The Chartered Insurance Institute of Nigeria (CIIN) has threatened to withdraw the certificates from any holder who engages in unethical practices.

Its President, Dr. Wole Adetimehin, who disclosed this at the Institute's 2012 graduation and fellowship award ceremony in Lagos, said the i

nstitute reserves the right to withdraw its certificate from any holder, if it discovers any breach of the examination process, adding that further reason for such withdrawal of certificates may emanate from acts unbecoming of a holder of the Institute’s professional qualification.

He said: "Permit me to reiterate the policy of Council in regarding all Certificates issued by the Institute as the Institute’s property which could be withdrawn from the holders if the Institute has good reasons to do so.

"Let me state categorically that the Institute reserves the right to withdraw its certificate from any holder, if it discovers any breach of the examination process. A further reason for such withdrawal of certificates may emanate from acts unbecoming of a holder of the Institute’s professional qualification."

He noted that the institute would continually strengthens its examination system through regular review of the syllabus and examination structure, stressing that the institute is conscious of the industry post consolidation challenges which came with new and complex human capital needs.

"The challenges facing the industry today not only require a fresh impetus in human capital development but also a renewed vigour and approach to skills recreation in order to equip practitioners for the huge tasks of managing the current realities in the business landscape," he said.

He note that the attainment of professional qualification should not be seen as an end in itself, but as a means to an end. Therefore behoves all holders of professional qualifications to be mindful of the efficacy of Continuous Professional Development (CPD).

"As you are aware, the CPD has become institutionalized with varying degrees of enforcement by most professions. In our own case, it engenders a scheme which requires all members to locate themselves in the point scoring index, hence it is referred to by our Institute as the Mandatory Continuous Professional Development (MCPD) programme," he added.

He said no professional should exempt themselves from the scheme under any guise, adding that the MCPD is, unarguably, an inalienable part of their professional development and should be treated as such.

　

GRADUATION LECTURE SPEECH TITLED "THE PROFESSINAL AND NATION BUILDING" GIVEN BY MR. WOLE OSHIN

GRADUATION LECTURE SPEECH TITLED "THE PROFESSINAL AND NATION BUILDING" GIVEN BY MR. WOLE OSHIN B.Sc, MBA, FCIIN, ACII, AT THE 2012 GRADUATION AND AWARDS CEREMONY OF THE CHARTERED INSURANCE INSTITUTE OF NIGERIA HELD ON WEDNESDAY 5TH OF DECEMBER 2012

The Financial Reporting Council (FRS) in a recent newspaper advertorial requested that all professionals working in quoted companies and significant public interest companies should immediately register with it. The advert raised a debate in my office with one school of thought of the opinion that all staff should register and another was of the view that only the Chartered Accountants, Chartered Insurers, Lawyers etc. should register. For fear of not wanting to get on the wrong side of the law we decided to contact the FRC for their definition of a professional. Unfortunately, as at the time of writing this speech they had not responded. Be that as it may, the question "who is a professional?" begs for understanding. Are teachers, nurses, plumbers, clerks, doctors, lawyers all professionals? Who do you think of when you say a professional? I stumbled across an article by a Harvard Professor who essentially says a professional should have ethical responsibility. A professional provides a service. A professional is a service provider just as a mechanic or plumber except that he subscribes to a code of ethics.

In some professions you are not considered a professional until you stand up and take a vow. In medicine, they take the Hippocratic Oath. You have vows in the military to serve your fatherland. In some religious orders you take a vow of chastity. In others you impliedly sign into the code of ethics. It is this code that professionals are supposed to hold true to.

We live in a nation where rules and regulations are not respected. A nation that makes heroes of corrupt politicians and leaders; a nation so dysfunctional that the youth no longer know the difference between right and wrong nor do they see a clear line of distinction between good and evil. Nigeria has lost its way and it is our responsibility to steer the ship of the nation back on course. This however, can only be achieved if each and every one of us play our part in our different places of endeavour. We must hold firm to core values which should be the guiding pillars of our life and career. In understanding a framework for these principles I realized that if all professionals stand by the code of ethics of their various professions, Nigeria would be at worst a developing nation.

The failure of our institutions, the banking sector, education, civil service in many cases is largely attributed to the President, Ministers, Chief Executive Officers and the Board of Directors. But in reality there are a chain of professionals who directly or indirectly serve as advisers. There are lawyers, bankers, accountants, insurers, and even analysts who advice Government and the Boards on various situation reports. More often than not they are never mentioned but yet they play significant roles in the destinies of institutions.

Permit me therefore, at this point to share some of these core values or better still, code of ethics which are partial extracts from the Chartered Insurance Institute, UK.

UPHOLD HIGH ETHICAL STANDARDS

Being honest, trustworthy and open:

Do people trust you? If not, why?

Do you think it is okay if you are not caught?

Being reliable, dependable and respectful. Do what you say and say what you do. Talking the talk is so prevalent that walking the walk is rare these days. We should learn to engage our brain before talking so that we don’t lose our hard earned trust.

Do not take unfair advantage of the client, your colleagues or even third parties

Bear in mind your actions in and out of work could bring disrepute to your organization or even the industry. What would an outsider think of what I am doing and does this matter ethically?

Not offering or accepting gifts, hospitality which could appear disproportionate to the service that you render. Do you ask the question why am I being entertained or offered hospitality or gifts?

Work within the code of conduct of your organization. Do you know if your company has a code of conduct and do you understand it?

ACT IN THE BEST INTEREST OF YOUR CLIENT

Encourage fair treatment of your clients. Do you act fairly towards your clients, employer or colleagues? Are your opinions and statements objective?

Give your clients full disclosure to allow them make informed decisions (except confidential information)

Respect confidential information of all clients.

Ensure information from the office is not used unjustly and for personal use.

Turn down work where there is a conflict of interest.

LAW ABIDING

We must deal with our regulators and the institute in a clear and cooperative manner.

We must work not only within the law but in the spirit of the law

Set up and ensure your compliance unit is abreast of regulations from both the Institute and the various regulatory bodies e.g. NAICOM, Securities and Exchange Commission (SEC), Stock Exchange, etc.

PROVIDE A HIGH STANDARD OF SERVICE

Become an expert in the skills and tools necessary to do your job

Accurate and straightforward communication which is clearly understood.

Transparency in fees and costs.

Ensure adequate and correct records are kept.

Act with skill, care, and diligence.

Acting within your ability and seeking assistance where necessary.

Keep your knowledge up to date

　

　

　

EQUITABLE & JUST TREATMENT OF PEOPLE

Obey equality and diversity laws of your company and the country

Always act openly and fairly and treat employer, employees, colleagues, clients, with equal respect and opportunity.

Show kindness to all people in particular those under disabilities that can be dealt with at work

With all these in mind we are here today celebrating a crop of bright, intelligent, dedicated and hardworking men and women who have burnt the midnight candle, scaled the rigorous, demanding and difficult examinations of the institute. They will today be addressed as Charted Insurers. The chartered status proffers on you the nobility of professionalism. It confers on you a status looked upon by many in the industry and far afield with envy. It confers on you dignity, knowledge, dedication, and above all integrity. Your cohort is expected after today to go out into the world and impact it positively in whatever your chosen area of specialization either as an insurance broker, loss adjuster, underwriter, risk manager, or an insurance manager in a government agency.

Today we congratulate you with an assurance that you will make the desired impact in our great industry and indeed our nation Nigeria. As a professional you are expected to lead and guide the industry and in turn lead our nation. Bear in mind however that your primary responsibility on the job must not conflict with your secondary goal which is personal. If it does, then have a re-think.

On a final note I thank the President and Council members of the great institute for giving me the opportunity to present this paper. Long live the Chartered Insurance Institute of Nigeria. Long live Nigeria.

Thank you.