Vehicle insurance policies on NIA database hit 1.5m

 

Chuks Udo Okonta

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

He disclosed this on Tuesday at a media parley in Lagos, adding that operators have continued to upload data of new policies they registered.

He said the association has procured 1000 units of motor insurance electronic readers, of which 25 units has been given to Ogun State Vehicle Inspection Officers (VIO) and that reports have revealed that the units has helped the agency to spot genuine policies.

Thomas said the association is presently discussing with the Lagos state government and that a date for the deployment of the devices in the state will soon be fixed.

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

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

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

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

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

Insurers tackle poverty with special products

Chuks Udo Okonta

Some insurance firms have risen to the challenge of tackling poverty through the evolvement of special products which provide succour for the less privilege and empower small business owners to remain afloat, Inspen can reveal.

Two underwriting firms that are transforming the industry operations through this initiative are Royal Exchange Assurance Plc and Mutual Benefits Assurances.

Managing Director, Royal Exchange General Insurance Olutayo Borokini, said the company has embarked on strategies to reach out to the poor, adding that the effort is to lift them out of poverty and contribute to economic development.

Head, Retail Business Royal Exchange, Mrs Temi Tope, said the firm has evolved policies to protect people who apply for micro-loans, adding that the initiative is to ensure that there is continuity in the economic stream.

She said: "We is poised to drive insurance to the next level and that is why we make a strategic move recently to set up the retail end of our business to actually focus on encouraging individuals to have policies that are personal to them.

"We believe that this is more pure way to drive insurance penetration. This is because if people have personal policy, it is easier to get them involved in corporate type when it gets to their businesses.

"On Micro insurance, we are firmly established on that and I can tell you that our company has policies designed to protect the people who are applying for loans and this is making sure that there is continuity in that economic stream.

"Also, we want to pay value to products so that at the end of the day, people can be assured there is products to take care of their needs. We are also looking at the Health area. We have currently fine-tuned products that can take care of people’s health. We believe that a healthy nation would be productive. Therefore, we are hoping that all these and many more, would make insurance reach every Nigerian."

Group Managing Director, Mutual Benefits Assurance plc, Akin Ogunbiyi, said the company has been able to lift many people out of poverty through its micro insurance initiative.

He said the firm has
products as low as N50 that suits the need of the public, stressing that through the firm's micro finance bank, it has been able to issues over 65,000 individual policies.

Ogunbiyi
noted that the company, today sells insurance to pure water sellers, book sellers, teachers, drivers and more through well structured microinsurance strategy.

He said: "Mutual micro finance bank, is into micro insurance and we have devised products and services that common people can actually buy. We have products as low as N50.

"Our products are affordable and it meets the needs of this people and of course we approach the micro insurance association of Nigeria. We discussed our idea with them and how we can use insurance to create value and empower the people, but all our plea and presentation never saw the light of the day.

"That was how we approached NAICOM, we made a presentation to them as to the objective we want to achieve using micro finance banks to drive micro insurance. As God will have it they gave us the approval to invest in the bank. Today the bank alone has given us about 65,000 individual policies.

"These are N10, N5 policies hanging somewhere, which the insurance industry would never have captured as premium. But we are very happy the micro finance bank is doing very well. It is through this we have been able to actually meet the objective of creating value and empowering the masses.

"It is a success story today in Lagos state. I remember, we have a group of people who are selling jotters. We approached them and put them in cooperative units, we empowered them as well encouraging them."

He noted that at the moment, the individuals who were grouped are accessing up to N10 million from the firm's micro finance bank and they are paying back. "The same applies to those selling textbooks, purewater, this is what we have done to use insurance to create value, empower them to be able to buy our products and services," he added.

Pension fraud: NJC Suspends Justice Talba for One Year

By Adelanwa Bamgboye

　

Justice Abubakar Talba of the Federal Capital Territory (FCT) High Court has been suspended for 12 months without pay by the National Judicial Council (NJC) headed by Chief Justice of the Federation Justice Aloma Mukhtar.

A statement signed by NJC's Acting Director of Information, Soji Oye said Talba's suspension was sequel to findings by the council that the judge did not exercise discretion judicially and judiciously when he sentenced an Assistant Director, Police Pension Board John Yusuf.

Yusuf, who faced three criminal charges over his role in the N24 billion pension fund scam, was sentenced by Talba to two years imprisonment with an option of N250, 000 (total of N750, 000) on each of the three charges.

Talba said the convict needed a reprieve for assisting the court by confessing to getting N3 billion as his share from the N32.8 billion leading to the summary trial.

The sentence, however, attracted a backlash from Nigerian citizens and anti-corruption activists across the globe.

The NJC also "seriously warned" Justice Okechukwu Okeke after considering his response to the series of petitions alleging judicial misconduct against him.

"The NJC held emergency meeting on February 20, and set up a Fact Finding Committee to investigate the allegations levelled against Talba in the police pension case of FRN vs Esai Dangabar and five others.

"The council, however, observed that the charges brought by EFCC against Yusuf in the first charge sheet containing counts one to 10 under Section 315 of the Penal Code with jail term of 14 years and fine were dropped.

"The EFCC counsel substituted it with another charge sheet with only three counts under Section 309 of the Penal Code that moulds a lesser punishment of two years imprisonment with or without option of fine.

"The National Judicial Council, in the exercise of its disciplinary powers under the 1999 Constitution also issued serious warning to Talba to desist from unreasonable exercise of judicial discretion in all matters brought before him," the statement read.

Source Daily Trust

SA Insurance gets kudos for golf competition sponsorship

Chuks Udo Okonta

　

Standard Alliance Insurance Plc, has received kudos for sponsoring the 2013 Charity Golf Tournament organised by the Daniel Ogechi Akujobi Memorial Foundation at the Ikoyi Club 1930 in Lagos.

The Foundation’s Programme Manager, Mrs. Clare Henshaw, while commending the firm, said: "We recognize the impeccable reputation of Standard Alliance Insurance Plc in promoting sports in Nigeria and are convinced that through your continued support, we will weave a tapestry of hope for the less privileged members in the society."

Managing Director of the underwriting firm Tom Imokhai, said "As a corporate citizen with high respect for social responsibility, we see it as an honour on us to support programmes of this sort which aim at giving back to the society.

"It is the society that has ensured our continued success through their patronage. It was, therefore, not out of place to give the support we could to the Foundation which has been doing much to affect the lives of the very needy in our midst."

In the same vein, Standard Alliance Insurance Plc sponsored a ‘Hole in One" contest for players at the Le’ Meridien Golf Tournament which held last weekend at the Le’ Meridien Golf course at Uwanniba, Uyo, Akwa Ibom State.

The company’s Head of Corporate Communications, Nelson Egboboh, said the firm decided to add the excitement the tournament deserved by sparking up huge interest among golfers who never wanted to attend the tournament before.

"Eventually became the main attraction to players who participated in the tournament as they competed to pick the N1m money-prize,"he said.

It could be recalled that the company did a similar thing at the MicCom Golf Tournament at Ada, Osun State with a Toyota Corolla as prize.

Sovereign Trust Insurance supports youth mentoring initiative

Chuks Udo Okonta

Sovereign Trust Insurance Plc, said as part of its Corporate Social Responsibility (CSR), is partnering, Teenage Life, a non-governmental agency on mentoring and development of youths and secondary school pupils in Lagos State.

A statement by the firm's spokesperson Segun Bankole, said the focus of the initiative is to effect positive behavioural change in the life of young adults through effective education and sensitisation on pertinent health issues.

The Project Manager, Jessica Braimah, said: "The Teenage Life Project sets out to secure the future of young people by providing them with enduring moral compass as their guide for navigation in the passage of life".

She noted that it is pertinent for youths to be appropriately sensitised and empowered with adequate knowledge and skills that will enable them adopt pre-marital sex abstinence as the most preferred option for the prevention of sexually-transmitted diseases and the prevention of teenage pregnancies as well as abortion.

She said to amplify the sensitisation and advocacy reach, the organisation has adopted an interactive radio programme that is focused on youth and family life with regards to everyday moral issues.

She said the main objective of the programme is to reduce to the barest minimum, such societal malaise like prostitution, rape, teenage pregnancies, abortion and HIV/AIDS transmission.

Bankole, said the support for the Teenage Life Project is in line with one of the company’s corporate social responsibility platform which is hinged on Health, Sports and the Environment.

He pointed out that the underwriting firm is committed to ensuring that initiatives under these categories are supported in bringing about positive change in the society. He also stated that the infection rate of HIV/AIDS in the country is gradually hitting an alarming state and hence, efforts should be directed at combating the spread of the scourge at an early stage before it becomes too late not forgetting to mention the several pathetic abortion stories rampant amongst youths of today.

"All these are societal menace which must be immediately addressed and reduced to a zero level because the future of the country might be worse off if positive measures are not urgently put in place.

"As a socially responsible corporate entity, we are sensitive to the happenings in our immediate environment and beyond. The wellbeing of every young adult is important for the continued existence of our nation because the youths are the future of our beloved country and as such they must be encouraged and supported in every sphere of their existence".

Bankole, said the company will continue to support initiatives geared towards advancing the human capital resources of the economy.

The underwriting firm has kept an impressive record in pioneering and advocating for a healthy society amongst insurance companies in the country. For some years now, it has been an ardent financial supporter of the Hospice Home for the physically challenged children and other charitable Homes in the country.

Sovereign Trust remains the only insurance firm to date that have instituted a commemorative World AIDS Day campaign through her annual sponsorship of thematic messages in the electronic media in creating public awareness for HIV/AIDS.

Insurance consultative forum to be commission soon

 Chuks Udo Okonta

A consultative forum that would help unite the stakeholders from the various arm of the insurance industry would soon be formalised, Inspen has learnt.

The initiative which is a baby of the chartered Insurance Institute of Nigeria (CIIN), when fully operational, would regularly bring the industry regulator - National Insurance Commission (NAICOM), underwriters, brokers, loss adjusters, loss evaluators, agents and others under a roof to chart the way forward for the industry.

President
Chartered Insurance Institute of Nigeria (CIIN) Dr. Wole Adetimehin, who disclosed in an interview, said steps have been taken to effect the take-off of the initiative, adding that the initiative has been put to test in some events organised by the institute and that it was endorsed by operators.

He said: "We have various arms in our industry, and in years past, we seem to have operated in a situation were everydoby is in his own world. And at the end of the day, conflicting policies, were made that have not supported the growth of the industry.

"That was what informed my coming up of the consultative group, whereby we downplay all the arm of segregation and we can sit together under a platform with our regulator and sort out issues.

"No matter how difficult, we would resolve issues. Unlike when the underwriter would approach the regulator and sort itself out and careless whether the broker, adjuster are affected or not.

"Again it would afford the regulator the opportunity to take input into what ever regulation or new development coming up in the market. I would say we have taken up, but not commissioned.

"First when we were in Abuja for the annual education conference, we had that kind of parley, an assembly of Managing Directors of insurance companies, brokers, loss adjusters, we meet with the commissioner and quite numbers of issues were trashed out.

"At the same time, we met at the professional forum in Ibadan. We took minute and resolved that that kind of consultative forum should be formalised and we can decide to be meeting yearly, quarterly, bi-monthly to address issues."

He noted that the idea is laudible and it would go along way in promoting unity within the various arm of the industry, while also promoting growth and developements in the industry.

NAICOM set to unlock over N60b microinsurance market

Chuks Udo Okonta

The National Insurance Commission (NAICOM) will soon release the guidelines that would help unlock the over N60 billion microinsurance untapped opportunities, Inspen has learnt.

It was gathered that the commission is putting finishing touches to ensure the release of the much anticipated guidelines, that would help deepen retail market and take insurance to the grassroots.

An industry observer, said the guidelines when operational, would strengthen the collaboration between insurers and micro finance banks operators, whom it was learnt, are anxiously waiting to leverage the guidelines to secure the loans granted to their customers.

Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye, said the embrace of microinsurance and retail market would trigger a revolution in the industry, adding that some few companies that have keyed into the system are presently doing very well.

He urged insurers to develop products that suit the need of the public, adding that any product that does not take default into consideration would fail. He said most insurers sell products and not solution.

He noted that research has revealed that Micro Finance Banks (MFBs) in the country presently have over 20 million customers, stressing that the customers are good prospects for microinsurance.

He said the problem of insurance is that most people lack education on how it operates, adding that it is worrisome that most operators recycle products developed by their counterpacts.

Group Managing Director, Mutual Benefits Assurance plc, Akin Ogunbiyi, said the company has position itself in microinsurance business, adding that the firm would soon launch 50 microinsurance product very soon.

He noted that firm has products as low as N50 that suits the need of the public, stressing that through the firm's micro finance bank, it has been able to issues over 65,000 individual policies.

He said: "Mutual micro finance bank, is into micro insurance and we have devised products and services that common people can actually buy. We have products as low as N50.

"Our products are affordable and it meets the needs of this people and of course we approach the micro insurance association of Nigeria. We discussed our idea with them and how we can use insurance to create value and empower the people, but all our plea and presentation never saw the light of the day.

"That was how we approached NAICOM, we made a presentation to them as to the objective we want to achieve using micro finance banks to drive micro insurance. As God will have it they gave us the approval to invest in the bank. Today the bank alone has given us about 65,000 individual policies.

"These are N10, N5 policies hanging somewhere, which the insurance industry would never have captured as premium. But we are very happy the micro finance bank is doing very well. It is through this we have been able to actually meet the objective of creating value and empowering the masses."

He noted that the company, today sell insurance to pure water sellers, book sellers, teachers, drivers and more through well structured microinsurance strategy.

"It is a success story today in Lagos state. I remember, we have a group of people who are selling jotters. We approached them and put them in cooperative units, we empowered them as well encouraging them.

"Today they are accessing up to 10 million naira from the micro finance bank and they are paying back. The same applies to those selling textbooks, purewater, this is what we have done to use insurance to create value, empower them to be able to buy our products and services," he maintained.

Insurance responsible for mortgage woes - Expert

 

Chuks Udo Okonta

The inability of the insurance industry to provide long term fund for the public to acquire properties, contributes to the poor developement of the mortgage sector, Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye, has said.

He told Inspen that mortgage sector cannot develop without a well developed insurance market, because it is only in insurance that the public can get funds of long term gestation, adding that once long term funds are unavailable, there can't be mortgage.

He noted that insurance industry has a weakness in understanding the competing collaborating influence of insurance and other financial services operators.

He said: "Mortgage cannot develop without a well developed insurance market, because it is only in insurance that you can get funds of long term gestation and once you don’t have that, you don’t have mortgage.

"We have houses all over Lagos and other cities, but nobody is buying them or renting them because the insurance aspect of it is lacking. The mortgage sector has not seen the need or the importance of insurance in its activities, the insurance people instead of seeing the banking sector as collaborators,　 five years and below they saw bankers has competitors. whereas we can get a lot from bank assurance which is a collaboration between insurance and banking sector."

He expressed misgivings over the choice by insurers to adopt or restrict themselves to the traditional distribution, neglecting all available collaborative opportunities that would have enhance the industry's profitability.

He said the industry's supply channel is presently insufficient, stressing that the insufficient supply channel is also very weak in depth and breadth.

"The supply we had was only to the government sector. All other areas were not really expanding. The moment Shoprite was coming to Nigeria, insurers must have been ready to collaborate with it. Megaplaza and many of such are there, but no collaboration was made with them," he added.

Royal Exchange to commission Enugu regional office

　

 

Chuks Udo Okonta

Royal Exchange General Insurance Company, (REGIC) has announced plans to commission its state-of-the-art regional office in Enugu, which will serve the needs of the South-East geo-political zone.

Its Managing Director Richard Borokini, in a statement said Enugu is a functional watershed location from which the company's customers in the South-East can access premium insurance products and experience excellent customer service.

He said: "We have noted the centrality of Enugu and its importance in the historical and socio-economic development of the region, and it is our firm belief that Royal Exchange can leverage on this to take insurance deeper to more of the critical mass of the people.

"Our desire is to deliver value-added service to the discerning customers in the region.

"Besides, our company’s new focus on retail insurance means that more job opportunities will open up through our agency programme, thereby complementing the government’s efforts to meaningfully engage the youths of this country.

"Royal Exchange has taken note of the low insurance penetration in Nigeria and is embarking on a deliberate policy of developing and deploying an extensive branch network, replete with the requisite skilled manpower, throughout Nigeria, to be able to reach out to the masses and elicit their interest in insurance".

He said the firm has hitherto maintained a low key presence in Enugu and Aba, but going forward, it intends to reinforce its unique attributes of enviable claims profile, robust technological backbone and pleasant customer experiences through an audacious branch expansion programme covering the 36 states of the federation, including the Federal Capital Territory.

On entrepreneurship, Borokini, said the company was out to support both established and fledgling businesses by providing them with adequate risk covers necessary for growth and profitability.

He expressed confident that underwriting firm will, in the shortest possible time, achieve strong traction with the market and a seamless connection with the people of the South East.

Borokini noted that the opening of the new South-East Regional Office in Enugu is in keeping with the policy of the Board of Royal Exchange Plc to provide a conducive environment for the conduct of the company’s business and also in line with the company’s transformation strategy to once again be one of the dominant players in the insurance industry in the coming years, since Group places a high premium on the condition of the operating environment of its staff and customers, as signified by the modern office complex in the region.

Royal Exchange General Insurance Company (REGIC) currently has 26 branches across the Federation and eight regional offices in Lagos three, Ibadan, Enugu, Abuja, Port Harcourt and Kaduna.

　

Shareholders want reasons for fines in insurers' financial accounts

Chuks Udo Okonta

Shareholders have called on the National Insurance Commission (NAICOM) to henceforth mandate insurance companies to state the reasons for which they incur fines in their financial accounts to enable them reduce unnecessary payments on offences that affect their investments.

The shareholders who spoke in reaction to the remark by NAICOM that what ought to be their dividends are used by companies to pay avoidable fines, called on NAICOM to go beyond just asking firms to state infractions in their accounts and assist shareholders in protecting their investments, by instructing companies to give detailed breakdown on the penalties for which they are fined.

The President, Nigerian Shareholders’ Renaissance Association, (NSRA) Olufemi Timothy, told Inspen that the documentation of reasons for fines would help shareholders know who is culpable and what should be done to stem such offence.

He said: "It is necessary shareholders know why their companies are fined. This will enable the companies investors know the kind of offence committed and watch against it in the future. It will also help to determine who is culpable in the company."

He noted that shareholders invest their hard earned income in companies to have return in investment, adding that situations where companies mismanagement funds entrusted to them and leave the investor suffer, should be discouraged by government and regulators.

National Coordinator, Pragmatic Shareholders Association of Nigeria (PSAN) Mrs Bis Bakare, called on NAICOM to go beyond reporting of infractions in annual accounts of firms and ensure that firms state reasons for infractions to enable shareholders query them appropriately.

She noted that shareholders had at several fora sought from their organisations reasons for delays in the presentation of their accounts, and that the firms often attribute the delay to NAICOM's refusal to approve the accounts on time.

'How to unlock Nigeria's multi-trillion insurance business'

In spite the huge insurance opportunities in the country, insurers still struggle to underwrite few businesses that have been for years. To unlock the untapped potentials and take the industry to the next level, experts believe the government, industry regulator and the public must perform their required roles. Chuks Udo Okonta reports.

Why did the insurance industry failed to hit the one trillion naira premium target last year? This is a question the government, National Insurance Commission (NAICOM) and the public have being seeking for an answer.

While some industry observers believe the target was set without first attending to the basic variables that ought to drive it, others said the variables have been put in place and that it would take some time for them to begin yeilding results.

The Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye, who traced the problems of the industry from the inception, said the industry was left unattended to for many years and that in recent times, many initiatives have been put in place to unlock the oppotunities, stressing that the industry will soon hit the anticipated trillion naira regime.

He said: "I would look at how to unlock the insurance multi-trillion business in two perspectatives, because it would be necessary for us to know the cause, then it will be easy to know the solution. I want to divide it into two stages.

"In all sincerity, between 2008 and today, that the insurance regulator, NAICOM added Market Development and Restructuring Initiative (MDRI) to its operations, thing have never remained the same. Things have never be as it is now. The focus before was supervision and regulation. In so many countries, unless the regulator intensionally add market development initiatives, you would find out that the market may just stagnate. So, we were at that stage up to 2007, when the Commissioner for Insurance Fola Daniel came in.

"I believe he settled down by 2008, from where we started seeing a lot of difference. But still, because we spent about 90 years, at the same spot, the way I see it is that up till recent time or before the MDRI was brought in, the demand for insurance actually exceeded supply. Which I believe was as a result of infrastructural constraint."

He noted that the fact is that, there are many insurance companies in the country, even larger than the number in India and China, but at the same time, these companies are small when compared with international standard. He said the companies are only concentrated in two cities which are Lagos and Abuja.

He maintained that the industry in the past has failed to take advantage of opportunities provided by other sectors of the economy.

"When you look at other sectors in the system, like education, banking, religion and others, opportunities from them such as bancassurance, micro insurance, takaful were not harnessed. In the real sense of it, when you look at other sub-sectors of the economy that actually create demand for insurance, the supply from insurance industry could not meet the demand.

"In the same manner, even the supply that is insufficient, I see it very weak in depth and breadth. The supply we had was only to the government sector. All other areas were not really expanding. The moment Shoprite was coming to Nigeria, insurers must have been ready to collaborate with it. Megaplaza and many of such are there, but no collaboration was made with them.

"All the collaborating and opportunities that make insurance to thrive were not utilised by the industry. I also realised that service expectation exceeded service delivery and what do we get from there, customer dis-satisfaction. People knew the importance of insurance, but when it comes to giving them good service, it was not there. So, people were dis-satisfied.

"The distributions channels were quite few. What we got was that we find ourselves in a situation where retail was not utilised. The opportunity with the aggregators were not utilised. At the end of the day, it is only the brokers' market that was been utilised. I also feel that the products that were been given to the people, were off the shelf.

"We had laws, so many provisions in our laws, that made insurance compulsory, but the products were not there. New markets were ignored - micro insuance, takaful and annuity. All these were ignored. When you put all these together, that was the situation we found ourselves.

"Moreso, all these issues were why the MDRI was initiated. In the MDRI we talk about insurance companies collaborating with all other other sub-sectors. To the extent that we named 48 stakeholders that are to be collaborated with. We worked out ways that Fire Service across the states can help insurers enforce the compulsory occupier liability, because there was provision for them there. We talk of the retail market to the point of NAICOM and Chartered Insurance Institute of Nigeria (CIIN) to lower the entering requirement so that more people can enter the insurance agency job.

Having explained the reasons for the poor developement of the industry, Soladoye, highlighted the steps that are being worked on to unlock the market opportunities.

"I want to say, that as things stand presently, I can see an evolutionary process. It is already taking place, to unlock this trillion naira premium. Because, at the moment, insurance companies are now appreciating the importance of the retail market. Many of them are already going into it. But because it is a process, you might not see it now. In the last one year, a company like Mutual Benefits Assurance Plc, has opened 44 new branches. And I know other companies are doing same.

"Annuity is also taking the central place,as many retirees are embracing it. I have also realised that stakeholders are now asking for insurance on their own. In our last meeting with micro-finance banks in Lagos state, they were actually asking to have insurance products. The no premium no cover is now bringing respect and professionalism back to insurance, as insurers are now seen as professionals. Even the underwriters that went out of the country as a result of the capitalisation to establish branches abroad, have now realised the huge potentials in the local market.

"Now, foreign donor agencies are now funding market reforms. Some foreign operators like Old Mutual are coming into the country. The regulation is now appreciating the importance of non-traditional distribution channels in insurance market developement. All these are evolutionary process. Looking at our level, what we need is revolutionary process and for that to take place, there must be a trigger from within or a threat from outside the industry.

"Incidentally, I think we are going to have a trigger from within in the next four to six months. It would come in the area of service, product and marketing. A new approach is going to be dictated, and it would make all other insurance companies go back to the drawing board.

"In essence, I think the problems with the industry has been appreciated and they are being addressed in a revolutionary manner. The revolutionary process would take the industry in a supersonic manner into the multi-trillion naira regime. The trigger from within would actually un-lock the multi-trillion business. Once somebody takes the lead, and I know one company is prepared for that. Definately, within this year, each insurance company will have to go back to the drawing board and that process, will take us in a supersonic manner to the trillion naira business," he said.

The President, Nigerian Shareholders’ Renaissance Association, (NSRA) Olufemi Timothy, said the the industry regulator NAICOM, has to do more in the crave to unlock the market. "The regulator has not been implimenting policies like other regulators. For an instance, if somebody can walk into my office and demand for my tax clearance, if somebody can say before you take a visa, you must produce three years tax clearance, if somebody can say before you can drive a car, you must have a driver's license, I do not know why the government and insurance regulator cannot enforce the laws on compulsory insurances.

"I do not know why the government cannot prosecute those who do not insure their houses. I believe there is no house that is preventable from fire mishap. Looking at the compulsory insurances in our laws, is any body enforcing that law? The government must join hands with the operators to develop the sector for when the sector thrives, the government would get more taxes.

"Nothing stops the government and NAICOM from instituting a compulsory life insurance for every child that want to enter school in Nigeria. And the certificate would be used as a qualification for admission into schools. To un-lock the business, enforcement must be a priority, as it is the reason why people do not buy insurance just as we have in other nations," he said.

The President Chartered Insurance Institute of Nigeria (CIIN) Dr. Wole Adetimehin, said insurance needs a level of law enforcement for it to thrive.

He noted that the presentation of compliance certificate by individuals bidding for government's businesses, have helped in adherence to group life policy of the Pension Reform Act 2004.

Adetimehin, noted that for the public to comply with the compulsory insurances, NAICOM should ensure there is a law to enforce it.

President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, called for colloboration with the government in the enforcement of the compulsory insurances in the MDRI.

She noted that though NAICOM has helped make some insurances compulsory, effort should be intensified on the enforcement of the laws.

"I think the government has a lot to do. Some of the compulsory insurances are not enforced. NAICOM has tried in supporting the industry, by making some businesses to be compulsory under the MDRI. But the implimentation and enforcement lie with the government either at state and federal levels," She said:

NAICOM has said it would review the operational guidelines of the MDRI to align it, for better performance.

　

Revolution to hit insurance industry soon - Soladoye

Chuks Udo Okonta

A trigger to pull revolutionary process in the insurance industry and send all operators to their drawing board, would strike in the next four to six months, the Managing Director Riskguard-Africa Nigeria Limited and Consultant to the National Insurance Commission (NAICOM) Yemi Soladoye, has revealed.

Soladoye, told Inspen in exclusive telephone interview, that the industry would soon witness a revolutionary transformation that would launch it into the multi-trillion naira business regime.

He noted that the industry in past 90 years has been moving within a system and that the problems that have stalled the industry's growth had been identified and solution evolved to address them.

He said: "Looking at our level, what we need is revolutionary process and for that to take place, there must be a trigger from within or a threat from outside the industry.

"Incidentally, I think we are going to have a trigger from within in the next four to six months. It would come in the area of service, product and marketing. A new approach is going to be dictated, and it would make all other insurance companies go back to the drawing board.

"In essence, I think the problems with the industry has been appreciated and they are being addressed in a revolutionary manner. The revolutionary process would take the industry in a supersonic manner into the multi-trillion naira regime."

He said a threat from without which would also move the industry on a supersonic speed, would happen when NAICOM appreciates the fact that insurance should not be distributed only through the traditional distribution channel.

He noted that the threat would open up the sales of insurance products in places like shoprite, cooperative societies and megaplaza and others, adding that when NAICOM is confidence enough to open the door for retail marketing there would be tremendous growth in the industry.

Soladoye said every problem in the industry is a manifestation of the refusal by the operators to adopt retail as a business policy, stressing that the board of the various insurance companies, as a matter of urgency, should compel their management team to adopt retail marketing as their core business drive.

"The operators are into the problem of unhealthy competition because they boxed themselve into a very narrow distribution outlet, which is broking market. In any situation, price becomes the only competitative strategy, when people are not adding value," he added.

NCRIB boss Osijo bags award

.Condoles Ekiti State Government
Chuks Udo Okonta

The President Nigerian Council of Registered Insurance Brokers, (NCRIB) Barrister Laide Osijo has been conferred with the Alimosho Federal Constituency Achievers' Award.

A statement by Deputy Director Corporate Affairs NCRIB Tope Adaramola, said the award is in recognition of her sterling contributions to community development and youth enpowerment.

He noted that the Award was instituted to recognise personalities who have played pivotal roles towards the socio economic development of Alimosho Federal Constituency, popularly believed to be the largest constituency in Nigeria.

While presenting the Award in Lagos, the Secretary of the Award Committee, Hon. Olufemi Olajide disclosed that Barrister Osijo was nominated out of 50 shortlisted prominent indigenes and residents in the constituency because of her numerous philanthropic strides in the realm of commerce and youth empowerment.

Olajide used the occasion to implore well meaning individuals to always see the need to give back to the society and mentor the upcoming generation.

Responding, Barrister Osijo expressed delight at the award and noted that the best recognition was the ones than comes from ones commuinty, noting that she had lived in the area in the last 32 years.

Similarly, the NCRIB has commiserated with the government of Ekiti State over the demise of the Deputy Governor, Mrs Funmi Olayinka. In a condolence letter signed by the President, Barrister Laide Osijo described the demise of the Deputy Governor as a devastating blow to women empowerment in the country.

She described her as a thorough bred professional in government who utilised her position to bridge the gap between professionals and government to enrich governance in Ekiti State.

Standard Alliance Insurance promotes staff

Chuks Udo Chuks

　

Standard Alliance Insurance Plc, said it has promoted not less than 49 of its staff.

A statement by the company’s Head of Corporate Communications, Nelson Egboboh, said the promotion is in line with the firm's policy of continually rewarding outstanding staff, adding that the promotion took effect from March, 2013.

He noted that of the 49, 10 staff were elevated to Assistant Manager’s position and above.

Egboboh explained that whereas Miss Anietie Udoh, the company’s South-South Regional Head and Ekundayo Mobayo, the Divisional Head, Financial Institutions, were elevated to the positions of a General Manager and Assistant General Manager from their earlier Deputy General Manager and Principal Manager’s cadres respectively, Messrs. Akanni Oladele, Jide Fasanmi who heads the company’s South-West operations and Koko Adewale who were Senior Managers before now are Principal Managers.

According to him, other officers promoted to management level included Mr. Aiyeola Ayodeji of the company’s Abuja Office who is now a Manager, Messrs. Iranloye Samson (Ibadan Office), Ajibare Rotimi and Morakinyo Roland now Deputy Managers while Miss Fubura Ibiene Waribo (Port Harcourt Office) got Assistant Manager’s promotion.

He expressed the company’s good wishes to them, noting that management was of the confidence that all promoted staff will work to justify its gesture.

Meanwhile, the company has appointed Mrs. Jatto Fidelia Omodoro and Mr. Ifidon Jonathan to head its Multi-Clients/General business and Mid-West/South-East operations respectively.

Mr. Egboboh said that Mrs. Omodoro, a well-rounded Marketer, joined SA Insurance Plc as the Divisional Head, General Business/Multi-Clients in February this year from AIICO Insurance Plc where she had resigned as Group Head, Multi-Clients and the Hospitality/Services Units respectively.

She holds an MBA from Edinburgh Business School (Heriot-Watt University, United Kingdom), a National Diploma in Law and HND in Public Administration both from Kwara State Polytechnic.

According to Egboboh, Mr. Ifidon Jonathan joined the company in March, 2013 from Union Assurance Company Ltd where before his resignation, he was the company’s Regional Director for its South-South/South-East business.

An Associate of the Chartered Institute of Insurance of Nigeria, Ifidon is a graduate of Ambrose Alli University, Ekpoma, Edo State.

From left: Director General Chartered Insurance Institute of Nigeria (CIIN) Adegboyega Adepegba and President Wole Adetimehin at the 2013 Media Retreat Organised by CIIN, for members of National Association of Insurance Correspondents (NAICO) in Ibadan.

From left: Director General Chartered Insurance Institute of Nigeria (CIIN) Adegboyega Adepegba and President Wole Adetimehin at the 2013 Media Retreat Organised by CIIN, for members of National Association of Insurance Correspondents (NAICO) in Ibadan.

NAICOM issues guidelines on Takaful Insurance

Chuks Udo Okonta

The Nation Insurance Commission (NAICOM) has released the guidelines on Takaful Insurance which it said is in line with the provisions of the 1997 Insurance Act, and the need to complement the current drive for Financial Inclusion to increase insurance penetration in Nigeria.

A circular signed by Deputy Commissioner for Insurance (Technical) NAICOM Ibrahim Hassan, noted that with the guidelines, all intending applicants seeking license from the Commission to transact takaful-insurance business in Nigeria must possess the followings: Certificate of Registration as a full-fledge takaful-insurance company in accordance with International best practice, adding that such a company must have, as part of its name, words or terminologies that connote takaful operations.

It said the the company must maintain a minimum deposit in a non-interest financial institution at all times and that the provision for the establishment of an Advisory Council of Experts (ACE) must be made in the articles of the Company and there should be establishment of investment policy for the participants’ Risk Fund.

Takaful means joint gurantee or share responsibility in Arabic, it operates in according to Islamic laws, the products are designed to carter for muslims and non- moslims. The products are meant to encourage saving culture and build capital, over a period of time to meet personal or business needs.

Under takaful plan, people can save regularly for a fixed period that is convenient for them. The accumulated targeted amount can be used to fund obligations such as purchase of land, house, marriage or hajj. It could also be used to meet other long term financial objectives, such as retirement, children education, travelling expenses as well as expected commitment

Mutual Benefits issues over 250,000 policies in 3 years.

Chuks Udo Chuks

Mutual Benefits Plc has through retail marketing strategy sold over 250,000 insurance policies in the last three years, its Group Managing Director Akin Ogunbiyi, has said.

Ogunbiyi, at a media parley in Lagos, said the company would continue to chart the course for development of the nation and insurance industry, adding that since 92 to 93 years, that insurance came to the shores of Nigeria, the industry has not been able to issue up to 1 million individual policies - be it motor policy, life policy or householder, putting everything together.

He noted that the new goal of the company is impacting development and growth of Nigeria economy through creating dynamism, partnership and of course empowerment, stressing that the firm has through its micro finance bank reach-out to insured at the grassroots.

He said: "Mutual micro finance bank in Nigeria today is into micro insurance and we have devised products and services that Nigerian common people can actually buy. We have products as low as N50.

"Our products are affordable and it meets the needs of this people and of course we approach the micro insurance association of Nigeria. We discussed our idea with them and how we can use insurance to create value and empower the people, but all our plea and presentation never saw the light of the day.

"That was how we approached the National Insurance Commission (NAICOM), we made a presentation to them as to the objective we want to achieve using micro finance banks to drive micro insurance. As God will have it they gave us the approval to invest in the bank.

"Today the bank alone has given us about 65,000 individual policies. These are N10, N5 policies hanging somewhere, which the insurance industry would never have captured as premium. But we are very happy the micro finance bank is doing very well. It is through this we have been able to actually meet the objective of creating value and empowering the masses."

"It is a success story today in Lagos state. I remember, we have a group of people who are selling jotters. We approached them and put them in cooperative units, we empowered them as well encouraging them. Today they are accessing up to N10 million from the micro finance bank and they are paying back. The same applies to those selling textbooks, pure water, this is what we have done to use insurance to create value, empower them to be able to buy our products and services."

He noted that the firm has through its investment in transportation raised the bar in insurance and created wealth and job opportunities for the unemployed. He said the firm has also been able to capture the northen market through well researched strategy.

Annuity: PenCom urges insurers to step-up marketing

Chuks Udo Okonta

The National Pension Commission (PenCom) has called on life insurers to intensify efforts in marketing annuity business instead of complaining of demarketing by Pension Fund Administrators (PFAs).

A staffer of PenCom who asked not to be named, told Inspen that the complain by some life insurers that they are denied annuity business by PFAs is uncalled-for as the Pension Reform Acts (PRA) 2004, has spelt out the roles to be played life insurers and PFAs in managing retirement funds.

Life insurers were asked to double their efforts in marketing the retirees who have been mandated by the pension Act to choose where to invest their retirement benefits. They were enjoined to stop complaining and reach-out to the retirees who would not on their own come to them to invest their benefits.

Some Life Insurers have alleged that only insurance firms with pension subsidaries are the ones enjoying annuity business.

An insurers said annuity business is out of reach of some of them due to the attitude of some PFAs. He noted that the money life operators ought to obtain from annuity is being withdrawn by the PFAs, adding that instead of PFAs to focus on programme withdrawal, they go about marketing the same person an insurance company is prospecting.

" We expected annuity product to be thriving in this economy. But as far as the business is concerned, it is still out of reach for insurance companies. The major reason is the money that need to be withdrawn from the PFAs are being held on.

"I have done many proposal, I have done many presentation with oil companies and construction companies, but the PFAs are saying, let the money stay with us. "Whatever insurance companies can do for you, we will do it for you and the Act covers it for them.

"Annuity is still very low in our market, except insurance companies that has a PFA are the one enjoying it. It is a product that suppose to be thriving well. That which is suppose to be brought to insurance companies are being held on to by the PFAs. It is not a case of saying they withheld it. It is a case of PFAs marketing the same person an insurance company is marketing, that is the experience.

"And when you think you have close a deal, the man comes to you and said my PFAs said they could still give me the same thing. The same structure that you said you will pay me on monthly basis, they said they will pay it.

"When I said withheld, I did not mean that they will not release the money, but they are ready to give them whatever you have proposed to them. It is like indirectly, the PFAs is accepting the annuity too," he said.

　

NAICOM,brokers,agents colloborate to promote MDRI

Chuks Udo Okonta

Barely unforeseen circumstances the Market Development and Restructuring Initiative (MDRI) would soon receive a boost as brokers are chating a new course on how to leverage on the programme to deepen insurance awareness at grassroots, Inspen can authoritatively reveal.

Investigation revealed that brokers have written the National Insurance Commission (NAICOM) seeking a guideline that would enable them colloborate with agents to sell compulsory insurances provided in the MDRI at the grassroots.

A source from the broking arm, said the move is to activate the provision in the MDRI that gives room for sub-brokers in the implimentation of the programme.

Though the move by the brokers is still rapped, as the strategies have not been fully developed, it was learnt that when operational, brokers would be enabled to employ agents to market their products, especially the compulsory ones on their behalf.

It was also gathered that the move would help deepen the retail market, which is presently left untapped.

MDRI is a medium term industry development plan by NAICOM, with the first phase covering the period of 2009-2012. It was 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 year 2012: 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.

Going by the inability of the industry to achieve the set targets last year, NAICOM is making frantic effort to reveiw the programme to pave way for attainment of the set projections.

The Managing Director Riskguard-Africa Nigeria Limited and Consultant to NAICOM on MDRI, Yemi Soladoye, said NAICOM would soon come out with a fully repackaged programme for the initiative.

"I know that NAICOM is repackaging to come back and hit the thing very well to address the problems sofar encountered. I also know that some insurance companies, that have embraced the initiative," he said.

'How budgetary issues shattered insurers expectations in first quarter'

Chuks Udo Okonta

Insurance operators expectations for a better business in the first quarter, has been shattered by the delay witnessed in the signing into law of this year's budget, Inspen can reveal.

It was learnt that most operators had hinged their expectations on the president's early presentation of the budget to the National Assembly. But the forward and backward movement of the budget between the presidency and the national Assembly, robbed the operators of their expectations as they watched the first quarter went with little or nothing to hold on to.


The President Chartered Insurance Institute of Nigeria (CIIN) Dr. Wole Adetimehin, said the operators had high hope for improved business when the president took the unusual step to present the budget to the national assembly before the end of last year, adding that the expectations were trucated when the budget was kept to the end of the end of the quarter before it was singned into law.
He noted that the delay in the signing of the budget stemmed the activities of government, making it impossible for production and other economic activities to thrive.

He said the delay in signing the budget, will also affect insurance operations in the secord quarter, noting that due to bureaucry in government, most government's ministries, department and agencies would not be able to access and release funds for projects as expected in the second quarter.

"That the budget was tabled before the upper and the lower house in November last year is enough to raise the hope of any sector of the economy, that yes, the basis for planning in the new year is firmly in place. Without economising words, I would say all those hopes and expectations became shattered, because the budget was not signed into law as expected."
Adetimehin called on the government to improve the state of the economy, stressing that businesses including insurance is low due to the high level of poverty in the land.

He noted that lack of basic infrastructure stemmed the productive capacity of the nation, adding that when the economy improves, people would have enough to partake in businesses.
He maintained that in spite the challenges, operators would continue to strive in making their contributions to the development of the economy through the provision of measures to mitigate risks.

Takaful insurance gains 70% penetration in northern Nigeria

Chuks Udo Okonta

Takaful insurance is gradually being embraced by Nigerians as reports have revealed that it has attained about 70 per cent penetration in the northern region.

It was learnt that takaful products are doing well because they are designed to carter for the low income earners and that its simplicity, makes it attractive to the public. Investigations revealed that motor cyclist, teachers, farmer and more are the major buyers of the products.

The cultural belief of the north is another factor said to be driving the sales of the products, as investment of takaful funds is done in compliance with sharia law which prohibits gambling and profiteering and consumption of alcohol. The fund are not invested in economy activities that negates islam and sharia, including brewing alcohol.

The insurance product line which was awakened by the development of economic activities and establishment of Islamic banks in the seventies and known as joint gurantee or share responsibility in Arabic, operates in according to Islamic laws. The products are designed to carter for muslims and non- moslims, and are meant to encourage saving culture and build capital, over a period of time to meet personal or business needs.

The Vice-Chairman Chartered Insurance Institute of Nigeria (CIIN) Oyo State Chapter, Babatunde Omosola, said under takaful plan, people can save regularly for a fixed period that is convenient for them, adding that the accumulated targeted amount can be used to fund obligations such as purchase of land, house, marriage or hajj and that it could also be used to meet other long term financial objectives, such as retirement, children education, travelling expenses as well as expected commitment.

He noted that reports have shown that in many countries, takaful products have been bought by non muslims due to some of its attractive features, which are not offered under conventional products, adding that the implication of this trend is that there is a promising market and potential growth for takaful business.

Omosola, said claims in takaful business are paid to those unfortunate policyholders/shareholders who suffer some insured losses within the period of cover, noting that they are compensated from the pool and reinstated accordingly.

Takaful products thrive in South-East

Chuks Udo Okonta

Contrary to the belief that Takaful insurance are solely for moslims, reports have shown that the South-Eastern part of the country which is predominantly christians now has the highest subscribers rate of the products.

The Vice-Chairman Chartered Insurance Institute of Nigeria (CIIN) Oyo State Chapter, Babatunde Omosola, who disclosed this at the 2013 Media Retreat Organised by the CIIN, for members of National Association of Insurance Correspondents (NAICO) in Ibadan, said South-Easterners have embraced takaful insurance products because of its simplicity.

He noted that though takaful which means joint gurantee or share responsibility in Arabic, operates in according to Islamic laws, the products are designed to carter for muslims and non- moslims, adding that the products are meant to encourage saving culture and build capital, over a period of time to meet personal or business needs.

He said: "Under takaful plan, you can save regularly for a fixed period that is convenient for you. The accumulated targeted amount can be used to fund obligations such as purchase of land, house, marriage or hajj. It could also be used to meet other long term financial objectives, such as retirement, children education, travelling expenses as well as expected commitment."

He noted that reports have shown that in many countries, takaful products have been bought by non muslims due to some of its attractive features, which are not offered under conventional products, adding that the implication of this trend is that there is a promising market and potential growth for takaful business.

He said investment of takaful funds is done in compliance with sharia law which prohibits gambling and profiteering and consumption of alcohol, noting that the fund should not be invested into economy activities that negates islam and sharia, including brewing alcohol.

The President CIIN Dr. Wole Adetimehin, said the institute has over the years remained focused in supporting the industry through building the human capacity. He noted that aligning with the transformation agenda of the present government, the institute is poised to ensure that the insurance potentials in the nation are harnessed.

He called for the infrastructural development, adding that it is when the economy thrives people would buy more insurance products.

'How we are driving MDRI with electronic devices'

Chuks Udo Okonta

In spite the belief in some quarters that the objectives of the Market Development and Restructuring Initiative (MDRI) are not harnessed by insurance operators, some underwriters have started reaping from the programme.

One of the underwriting firms that have position itself and is harnessing the benefits accruable from the MDRI programme is Royal Exchange Insurance Group which said it is using electronic platform to sell insurances identified in the initiative.

Managing Director, Royal Exchange General Insurance, Olutayo Borokini,

said: "What we have done in Royal Exchange, is to use electronic platform to sell some of the compulsory insurances. For example, we are about the first to start using scratch cards to sell third party insurance policies through the various licensing offices and other distributing channels.

"We recruited agents nationwide to sell these products through the use of scratch cards to members of the public. Apart from the third party insurances, we also created the variants of comprehensive policy. We find out that there are some people that don’t have money to purchase the comprehensive policy.

"So we have the variants of comprehensive policy whereby you can decide to purchase third party and damage only which we also sell through scratch card system."

He noted that the company has also introduced the sales of public buildings policies through the use of scratch cards, adding that the firm is mapping out strategies to sell these policies using various channels that may be available to it.

He said the firm is embarking on strategies to reach out to the poor and owners of public buildings on the need to insure them.

Borokini maintained that though, government is making efforts to get the people to insure their properties, there is the need for more enlightment.

He said the firm would put in foot soldiers to actually go into the market place, enlighten the people and convince them on the need to have these insurance policies.

NAICOM automates processes to enhance operations

 Chuks Udo Okonta

The National Insurance Commission (NAICOM) would soon commence work on the second phase of its Information Technology (IT) automation which is targeted at enhancing regulatory processes, Inspen can reveal.

Assistant Director Inspectorate NAICOM Sam Onyeka, who confirmed this, said the commission is automating its processes not just for anti-money laundering reporting, but to enhance operational efficiency.

He said the information technology project is in phases, adding that the commission has gone far with the first phase and that work on the second phase would soon commence.

Onyeka noted that completion of the automation process depends on a number of issues, including the speeds employed by the consultants on the work. He maintained that the consultants are working assiduously, to meet the specified time for the project completion.

As part of the commission's re-engineering process, it has redesigned its website to make its user-friendly.

NAICOM said the new site is designed encourage more social media presence and enhance interaction with the public.