Ensuring Insurance: 5th Annual Middle East and Africa Insurance Summit

Summit to address burning issues and challenges faced by the MEA region and brainstorm on solutions that will achieve the vision to have a regulated, consolidated and lucrative business model in the dynamic and ever-growing insurance sector.

Middle East and Africa promises astounding growth and potential in the insurance sector with the Middle East witnessing a rapid trend of mandatory health insurance in major countries along with an increased awareness for product innovations and enhancing the distribution channels.

Authorities and administrative heads of Middle East and Africa, are involved in a continuous effort to promote the growth and development of the region's insurance industry.

Laws have been passed to establish independent insurance regulatory authorities. Health and Automobile insurance have been made compulsory as an attempt to boost universal access to quality insurance services along with attracting leading market players and investment in the sector.

 

The authorities are also making efforts to address several other challenges such as building talent base, enhancing public awareness, developing takaful and promoting regional insurance market in order to avail a sustained growth in the insurance sector.

Considering all these facts, it is evident that the MEA region offers unprecedented opportunities for the global insurance leaders to reap the benefits of this emerging market. The region promises astounding potential in terms of sustainable growth, with an emerging trend of product innovations and enhanced distribution channels.

In the coming years, the MEA region will witness a sustained economic growth with the support of more and more investment in the insurance sector. Emerging countries in Africa are witnessing a liberalized economy and political stability thus promising a healthy financial growth.

Summarizing reports from different speculations, development in the insurance sector will ensure a diversified and modernized economy, creating sufficient employment opportunities, safer and stabilized standard of living, as well as FDI, safeguarding growth across all the sectors.

Keeping these crucial changes in the insurance sector in mind, and understanding the need to address the growth strategies of the sector, Fleming Gulf returns with the 5th edition of the Middle East and Africa Insurance Summit.

Taking place on the 19th and 20th of January, 2015 in Dubai, UAE, this summit will gather CEO's and insurance experts from across the region to address burning issues and challenges faced by the MEA region and brainstorm on solutions that will achieve the vision to have a regulated, consolidated and lucrative business model in the dynamic and ever-growing insurance sector.

Featuring dynamic CEO panel discussions, updates on hot topics such as alternative risk transfer, Credit and trade insurance, IT and Cyber risk, strategies on Takaful and Re Takaful, the summit will help gain insights on the future of this sector in the MEA region.

-Ends-

Media Contact:

Mohor Mukherjee

T: +971 46091570 | E: mohor.mukherjee@fleminggulf.com

W: http://finance.fleminggulf.com/middleeast-africa-insurance

© Press Release 2014

© Copyright Zawya. All Rights Reserved

Personal Accident and Health Insurance Claims and Expenses in Nigeria to 2018: Market Databook - New Market Report

New Insurance research report from Timetric is now available from Fast Market Research

This report is the result of Timetric's extensive market research covering the personal accident and health insurance industry in Nigeria . It contains detailed historic and forecast data for claims and expenses. "Personal Accident and Health Insurance Claims and Expenses in Nigeria to 2018: Market Databook" provides detailed insight into the operating environment of the personal accident and health insurance industry in Nigeria . It is an essential tool for companies active across the Nigerian personal accident and health insurance value chain and for new players considering to enter the market.

View Full Report Details and Table of Contents

Report Scope:

- Historic and forecast data for claims and expenses in the personal accident and health insurance industry in Nigeria for the period 2009 through to 2018.

- Historic and forecast data on gross claims, paid claims, change in outstanding reserves, incurred loss, loss ratio percentage, commissions and expenses, combined ratio percentage and insurance fraud and crimes for the period 2009 through to 2018.

Reasons to Get this Report:

- This report provides you with valuable data for the personal accident and health insurance industry covering claims and expenses in Nigeria .

- This report provides you with a breakdown of market data including data on gross claims, paid claims, incurred loss, loss ratio percentage, commissions and expenses and combined ratio percentage.

- This report allows you to plan future business decisions using the forecast figures given for the market.

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. 

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 800-844-8156

Browse all Insurance research reports at Fast Market Research

You may also be interested in these related reports:

- Personal Accident and Health Insurance Claims and Expenses in the Czech Republic to 2018: Market Databook

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- Personal Accident and Health Insurance Claims and Expenses in South Africa to 2018: Market Databook

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Insurance fraud, violent crime victim event set

The Registered Voters of East Texas invites the public to join them in a town house meeting tonight to discuss ways to help victims of insurance fraud as well as victims of violent crime.

“Anyone who has been impacted by these issues is encouraged to attend this meeting,” said Joyce Pipkins, coordinator of the event.

The meeting will be 5 to 6 p.m. at the Central Fire Station, 601 S. Grove St. Pipkins said Ray Wilson, district director for state Rep. Chris Paddie, will be in attendance as well as Felicia Rivers from the Texas Department of Insurance.

“If anyone has filed a claim on their home, auto, or personal property, and your insurance carrier failed to pay, slow by paying or underpaid your claim, then you are invited to attend this meeting,” said Pipkins.

“If anyone has lost a loved one due to violence and the system didn’t do enough to protect your loved one, then we encourage you to join us in this fight to help make a change in the laws in the state of Texas,” she said. “This is your opportunity to have a face-to-face meeting with Mr. Wilson about these issues.”

Pipkins said she also invited city commissioners as well as Marshall Police Chief Jesus Eddie Campa.

Insurance Companies Begin Writing ‘Ebola Exclusions’ into Policies

Remember the promise of universal health care with Obamacare, with no refusal for ‘pre-existing conditions’? It looks like your insurance company may not have to cover you if you get Ebola. U.S. and British insurance companies have begun writing Ebola exclusions into standard policies to cover hospitals, event organizers, and other businesses vulnerable to local disruptions.

While it is estimated that expenditures to treat the original Dallas Ebola patient, Thomas Eric Duncan, were approximately $100,000 an hour (though he passed anyway), it looks like insurance companies won’t be footing the bill.

President Obama originally refused to set up travel restrictions in and out of West Africa, too, even though the governments latest scare tactics and the CDC’s ineptitude have resulted in insurance companies creating new policies which exclude Ebola care. Renewals will also become costlier for companies opting to insure business travel to West Africa or to cover the risk of losses from quarantine shutdowns at home.

Gary Flynn, an event cancellation broker at Jardine Lloyd Thompson Group Plc in London said:

“What underwriters are doing at the moment is they’re generally providing quotes either excluding or including Ebola – and it’s much more expensive if Ebola is included.”

While Ebola has killed more than 4,500 people in West Africa and less than a dozen in the US, the arrival of a few isolated cases here in the states has insurance companies looking to shirk coverage responsibilities. As usual – its all about the bottom line.

Though liability insurance policies and workers’ compensation which covers medical care and lost time from work are unlikely to be affected if someone falls ill from Ebola since these policies are regulated at a state level, some property and casualty insurers, however, are considering Ebola before writing or renewing policies.

Read: Nurses and Hospitals Unable & Unprepared to Handle Ebola

ACE Ltd said on Wednesday that its global casualty unit, which offers coverage for U.S.-based companies whose employees travel or that have operations abroad, was using a policy endorsement to exclude Ebola on a “case-by-case basis” during the underwriting process on new policies and renewals.

Numerous insurance companies say that clients who travel to African countries comprise a “potentially higher risk exposure” and want to change their policies to reflect that.

The U.S. government just announced last Tuesday that travelers arriving from any of the three centers of the outbreak, Liberia, Sierra Leone, or Guinea, must fly into one of five airports that have enhanced screening in place. Britain is also screening arriving air and rail travelers.

I guess the medical mafia has more sway than U.S. voters. Obamacare caused health insurance premiums to rise for many, and now the Ebola scare is likely to do the same thing. It’s a great time to run a pharmaceutical or insurance company in America – ain’t it?

Read more: http://naturalsociety.com/insurance-companies-begin-writing-ebola-exclusions-policies/#ixzz3HitxwI9R 

Follow us: @naturalsociety on Twitter | NaturalSociety on Facebook

Insurance broker Aon launches Ebola liability cover

 U.S. insurance broker Aon has launched Ebola liability cover for hospitals and other health care institutions, the company said on Tuesday.

The Ebola virus has killed nearly 5,000 people worldwide, mainly in West Africa.

Fear of Ebola infections spreading to developed economies has prompted insurance companies to add exclusion clauses to their standard policies or to develop new products.

The U.S. broker's Ebola cover is for situations "where existing liability programs may not apply" and provides up to $25 million of liability coverage, Aon said in a statement.

"There are several areas where there has not been certainty about coverage for Ebola," Gigi Norris, managing director of Aon Risk Solutions' Western Region Health Care Practice, said.

"This is something our health care clients are extremely worried about."

The cover will protect hospitals from cases related to their response to Ebola brought by employees, patients, or even potential patients who have been refused admission, Norris said.

It has been designed for U.S. hospitals, but could be adapted for the international market, she said.

The policy has been developed with British insurance company Hiscox, and will be available through other brokers after 60 days, Aon said.

(Reporting by Carolyn Cohn. Editing by Jane Merriman)

Source: Reuters

Standard Alliance image maker loses mum

Mrs Egboboh

The Head, Group Corporate Communications at Standard Alliance Group, Nelson Egboboh, has announced the death of his dear mother, Mrs. Christiana Omonigho Nwankego Egboboh.

Late Mrs. Egboboh who lost her husband, late Mr. Egboboh Orukpe, in January 1982 died during the early morning hours of October 11 at a hospital in Uromi, Edo State, after a brief illness at the age of 108 years.

Mr. Nelson Egboboh explained that "Mama, as she was fondly called by all at our Ugboha community in Esan South-East Local Government Area of Edo State was the oldest person in the town until her death."

According to him, her burial ceremonies have been fixed for 4-6 December at her compound at Otokhimhin quarters in Ugboha.

She is survived by six children, several grandchildren and great grandchildren.

Pension transits from defined contributions to ambition

From left: Managing Director/Chief Executive Officer Financial Derivatives Company Limited, Bismarck Rewane and  Director-General National Pension Commission (PenCom) Chinelo Anohu-Amazu at the event.

Chuks Udo Okonta

A new phase known as defined ambition pension system will soon berth in the Nigerian Pension Industry.

The system according to an expert will enable pension contributors determine the amount they want at retirement, which is contrary to the present defined contributions where contributors do not know the amount they are entitled to at the time of retirement.

Ex-Commissioner, National Pension Commission (PenCom) and Principal Partner/Chief Executive Officer, Retirement Benefits Advisory Dr Musa Ibrahim, while speaking on the new system at the  Conference on Pension Reform Act, 2014, with theme: “Sensitising major stakeholders on Developments ushered in by the Pension Reform Act 2014” organised by PenCom in Lagos, urged pension stakeholders in the industry, especially PenCom and operators to begin to work out measures to align with this system which is being entrenched in other climes.

 According to him, the need for the new system has become necessary due to some deficiencies in the present defined contributions.

He said the new system allows people target what they want at retirement, stressing that that is missing in the present system.

Ibrahim also expressed misgivings over the making of pension a constitutional issue. He noted that pension ought to be a contractual agreement between employers and employees.  

Participants at the event

 

Photos: Faces at National Pension Commission (PenCom) conference on Pension Reform Act, 2014

Group Managing Director Pensionscope Group, Peter Tai Adediji at  the National Pension Commission (PenCom) conference on Pension Reform Act, 2014 theme: "Sensitizing major stakeholders on Developments ushered in by the Pension Reform Act 2014" organised by PenCom in Lagos.

From left: Compliance Officer Stanbic IBTC Pension Manager, Idu Okwuosa; Jamilu Dawaki of Central Bank of Nigeria (CBN) and a participant at the National Pension Commission (PenCom) conference on Pension Reform Act, 2014 theme: "Sensitizing major stakeholders on Developments ushered in by the Pension Reform Act 2014" organised by PenCom in Lagos.

Photos: Faces at National Pension Commission (PenCom) conference on Pension Reform Act, 2014

From left: Director General National Pension Commission (PenCom) Chinelo Anohu-Amazu and Director General Securities and Exchange Commission (SEC), Arunma Oteh at the conference on Pension Reform Act, 2014 theme: "Sensitizing major stakeholders on Developments ushered in by the Pension Reform Act 2014" organised by PenCom in Lagos.

From left: Compliance Officer Stanbic IBTC Pension Manager, Idu Okwuosa and Jamilu Dawaki of Central Bank of Nigeria (CBN), during the National Pension Commission (PenCom) conference on Pension Reform Act, 2014 theme: "Sensitizing major stakeholders on Developments ushered in by the Pension Reform Act 2014" organised by PenCom in Lagos.

'Lloyds muddled up my home insurance policy'

When a reader accidentally paid for a household policy with Lloyds twice, it took considerable time and trouble to get the bank to reimburse the money

　

By Jessica Gorst-Williams

　

Four months before writing to me you sent off a cheque to renew you home insurance.

Nearly two months after that, you received two letters from Lloyds Bank Insurance. One was dated a week earlier and advised there was an outstanding amount against the policy. It requested that you get in contact.

The other was dated the day after the other one and said you had not replied to the other letter and the policy was now cancelled. The bank was adamant the first cheque hadn’t been received so you paid the amount again, this time by debit card.

You went to the branch to cancel the cheque but were told it had been cashed two weeks after you had sent it. The bank would not help you identify who had cashed it or where the money had gone.

I took up the cudgels for you but it was a while before it transpired that the money represented in the cheque payment had actually been credited to your credit card by mistake. Presumably this is a card you don’t use much, otherwise surely you would have noticed it.

Lloyds Bank Insurance told you it was due to an error occurring in the banking system.

You have been given £200 for the time you have expended over this and the trouble you have been put to.




Source: The Telegraph

Pension assets now over N4.5tn

From left: Managing Director/Chief Executive Officer Financial Derivatives Company Limited, Bismarck Rewane and  Director-General National Pension Commission (PenCom) Chinelo Anohu-Amazu at the event.

·         Begins review of investment regulations

Chuks Udo Okonta

The Contributory Pension Scheme (CPS) has accumulated a large pool of investible fund of over N4.5 trillion pension assets as at June 2014, the Director-General National Pension Commission (PenCom) Chinelo Anohu-Amazu, has said.

She disclosed this today at the Conference on Pension Reform Act 2014 organised by the commission to sensitise stakeholders in the South West geopolitical Zone on the new provisions and developments ushered in by the PRA 2014 in Lagos.  She noted that more that 6.2 million contributors have been registered into the CPS since inception.

Anohu-Amazu appealed to States and Local governments in country that are yet to adopt the CPS to do so to enable their employees’ benefits from the scheme.

She said the Commission has established functional offices in the six geo-political zones in Nigeria and is now strategically positioned to facilitate and offer the needed technical assistance to state and local governments that their efforts to adopt and implement the CPS.

She however said that despite the achievements achieved with the PRA 2004 there is need to amend the act to suit the present situation and address the issues inherent in the PRA which necessitated the amendments of the PRA 2004.

The PenCom boss added that the amended act has provided wider coverage for private sector employee and upward review of the minimum rate of pension contribution, adding that the PRA 2014 has also reviewed upwards the sanctions and penalties against infractions of the provisions of the Act.

According to her the application of the CPS by States and Local government has also received a boost under the PRA 2014 Act 2014, by setting a standard which state government are required to comply with for the benefits of their respective employees.

The PenCom boss further said that the new amended act made provision for voluntary participation in the CPS thereby paving the way for the coverage of the informal sector.

Furthermore the PRA 2014 made provision that allows contributors seeking to own their primary homes, to apply part of their retirement savings account balance balances as equity contribution for residential mortgage, subject to the guidelines issued by the commission.

She assured that when the act is implemented the development would assist in bridging the housing deficit in Nigeria.

She noted that the commission has commenced the process of reviewing its investment regulations with a view to facilitating the investment of Pension funds in bankable infrastructure in the country.

From left: Group Chief Executive Officer, UBA Capital Plc, Oluwatoyin Sanni; Managing Director/Chief Executive Officer Financial Derivatives Company Limited, Bismarck Rewane and  Director-General National Pension Commission (PenCom) Chinelo Anohu-Amazu at the event.

Group Chief Executive Officer, UBA Capital Plc, Oluwatoyin Sanni, urged Pencom to drive compliance and ensure that more channels of investing the pension funds are created.

She charged Pension Fund Administrators (PFAs) to integrate individual in the Small and Medium Enterprises (SMEs) into the scheme.

Insurance consumers told to demand more from underwriters

From left: Former President Chartered Insurance Institute of Nigeria (CIIN) Sunny Adeda; Chief Executive Office Almond Productions Faith   Ughwode and Former Managing Director Continental Re Plc, Adeyemo Adejumo at the event.

Chuks Udo Okonta

Insurance Consumers have been urged to always put insurers on their toes by demanding for improved services and engaging on regular appraisals of their performance.

Former President Chartered Insurance Institute of Nigeria (CIIN) Adeyemo Adejumo, gave this charge today in Lagos, at the Insurance Consumers’ Forum organised by Almond Productions.

He noted that Insurers will do well, if they are closely checked by consumers who buy their products, adding that consumers have the mandate to analyse the financial accounts of insurers to determine those doing well and should be patronised.  

Stanbic IBTC Pension Managers harps on safety of pension assets

From left: Nigeria’s former High Commissioner to the United Kingdom, Dr. Christopher Kolade and Chief Executive Officer, Stanbic IBTC Pension Managers Limited, Dr Demola Sogunle at the event.

Crosses N1tn asset under management

Against the backdrop of the recently enacted Pension Reform Act of 2014, Nigeria’s Stanbic IBTC Pension Managers Limited, a subsidiary of Stanbic IBTC Holdings Plc, has stressed that Nigeria’s pension industry now stands on a stronger foundation, providing safety for the over N4.4 trillion pension assets under management.

The company, Nigeria’s biggest Pension Fund Administrator (PFA), boasts of over one million retirement savings account (RSA) holders and assets under management in excess of N1 trillion, paying approximately N1.8 billion to almost 33,000 retirees monthly. Over N190 billion has been paid to retirees seamlessly since the PFA commenced operations in 2006.

Speaking at a conference on pension and corporate governance organised by the company in Lagos, Chief Executive Officer, Stanbic IBTC Pension Managers Limited, Dr Demola Sogunle, said the new law had expanded the scope of participation in the pension scheme by Nigerians as well as strengthened compliance with its provisions, especially relating to enrolment and remittance of pension contributions.

"The Pension Reform Act of 2014, among its very many laudable provisions, will be instrumental in expanding coverage of the Nigerian pension system and strengthening compliance, while building a vibrant pension industry capable of supporting economic growth and development," Sogunle stated.

Sogunle explained that private sector organisations with 3 employees or more are expected to register under the scheme. The law also compels an employer to open a Temporary Retirement Savings Account (TRSA) on behalf of an employee that fails to open a Retirement Savings Account (RSA) within three months of being employed.

Sogunle added that whatever gaps existed in the old pension regime had been effectively plugged in the new law, making the incidence of ghost pensioners and widespread mismanagement of pension funds almost impossible. Very stiff penalties for pension funds fraudsters and employers who persistently fail to deduct and/or remit pension contributions of their employees within the stipulated time are expected to checkmate abuse.

Guest speaker and former Nigerian High Commissioner to Britain, Dr Christopher Kolade highlighted passion for high quality, productivity and integrity as key drivers for success in business, while urging every business to strive to achieve effectiveness through best practice.

Sogunle described as erroneous the impression often bandied in the public space that pension funds are left to PFAs, employers, individuals or operators to handle as they wish. Instead, he emphasized that pension fund assets are held by Pension Fund Custodians (PFCs) who execute benefit payments and investment instructions from the PFAs and are duly licensed by the National Pension Commission (PenCom). "The PFAs manage and administer the funds, while the PFCs have custody of the pension fund. There are sufficient legal and institutional bulwarks to protect pension funds," he stated, adding that funds are directly credited to the RSA of beneficiaries who enjoy unhindered access to any information relating to their pension contributions.

From left: Chief Executive Officer, Stanbic IBTC Pension Managers Limited, Dr Demola Sogunle; Head Business Development Nike Bajomo; Nigeria’s former High Commissioner to the United Kingdom, Dr. Christopher Kolade and Head, Research and Corporate Strategy Department PenCom, Dr Farouk Aminu at the event.

Also speaking, Executive Director, Investment Stanbic IBTC Pension Managers Limited,  Eric Fajemisin, said the stakeholders’ forum was specifically designed to appraise recent trends and developments in the industry as part of a multi-pronged enlightenment campaign to deepen pension practice in Nigeria and to have more people enlist in the Contributory Pension Scheme. The company, he said, would always spearhead the quest for global best practice in the industry.

"Our aim is to continue to set higher standards of service delivery and ensure that our retirement savings account holders have peace of mind and derive maximum value from their investment. We believe that the support, experience and capabilities of the Standard Bank Group, to which Stanbic IBTC belongs, have been instrumental in enhancing our expertise, resource base and general service delivery. This initiative is part of a long-term commitment that defines Stanbic IBTC Pension Managers Limited’s value proposition to its customers and to the industry in general," he said.

Fajemisin said innovations introduced by the PFA to enable clients experience excellent and convenient service delivery include the Stanbic IBTC Pension Managers mobile office; the first 24-hour multilingual call centre manned by personnel who speak the three major Nigerian languages - Yoruba, Igbo and Hausa; as well as Pidgin English; a footprint of over 200 branches of Stanbic IBTC Bank where RSA clients can access pension service; Stanbic IBTC Pension Managers’ regional offices; as well as selected branches of Zenith Bank PLC. Other access points include Stanbic IBTC Bank ATMs, online service for RSA holders, email, SMS and the Pension Notes, which accompany hardcopy RSA statements sent to customers quarterly.

Stanbic IBTC Pension Managers is a subsidiary of Stanbic IBTC Holdings Plc, a member of Standard Bank Group, a full service financial services group with a clear focus on three main business pillars - Corporate and Investment Banking, Personal and Business Banking and Wealth Management. Standard Bank Group is the largest African bank by assets and earnings.

Photos: Faces at the Maiden Public Lecture organised by the National Association of Insurance Correspondents (NAICO) in conjunction with Lagos State Government.

Insurers with Ben Akabueze 5th left

Pension operators with Ben Akabuze 5th from left

 

Cover of new edition of THE OMBUDSMAN JOURNAL OF INSURANCE LAW

Cover of new edition of THE OMBUDSMAN JOURNAL OF INSURANCE LAW. The major thrust is the Interview with MS P.M.G Soares Secretary-General of AIO. Other topics in the edition include the following:

1. Legal perspectives to Micro Insurance Business by Adetola Adegbayi. Executive Director. Leadway Ass Co Ltd.

2.Insurance Act 2003.A review by Barr Olusola Ladipo Ajayi. Managing Director Lasaco Ass Co.

3.Company Directors Duties by Adegboyega Adepegba. Managing Partner,Adegboyega Adepegba&Co.

4.Dispute Mananagement in Claims by Mr Obinna Chilekezi,an Insurance Researcher and Analyst.

5.The Old Man on my street by Mr Niyi Onfade,Managing Director,Wapic Life.

6.Insurance in America by Mr Sam Adepegba AON Washington D.C USA and,

7.OLOWUDE,A Tribute.

Photos: Faces at the Maiden Public Lecture organised by the National Association of Insurance Correspondents (NAICO) in conjunction with Lagos State Government

From left: Hon Commissioner for Economic Planning and Budget, Ben Akabueze and DG LASPEC Rotimi Hussain

Photos: Faces at the Maiden Public Lecture organised by the National Association of Insurance Correspondents (NAICO) in conjunction with Lagos State Government.

DG NIA Sunday Thomas; President CIIN Bola Temowo and Bankole Olabisi of NAICOM

 

 

MD AIICO Pensions PFA, Longe Egwaide and DG LASPEC Rotimi Hassain

 

 

Lagos renews support for insurance industry



From left: Hon Commissioner for Economic Planning and Budget, Ben Akabueze and President National Association of Insurance Correspondents (NAICO) Modestus Anaesoronye at the event.

Chuks Udo Okonta

The Lagos State Government has pledged to sustain its support for the growth and development of the insurance industry by working with the operators on enforcement of laws.

Governor Raji Fashola, who was represented by Hon Commissioner for Economic Planning and Budget, Ben Akabueze, disclosed this today at the Maiden Public Lecture organised by the National Association of Insurance Correspondents (NAICO) in conjunction with Lagos State Government. He noted that the government will partner the Nigerian Insurers Association (NIA) to enforce compulsory insurances,   adding that the state is often impervious to the risks people face on a daily basis.

He said: “Risk here being the probability or the threat of damage, loss, injury or any other negative occurrence that is caused by external or internal vulnerabilities, the consequences of which may be avoided through preemptive action.

“In other words, it can simply be described as the probability of losing something of value for example physical health, property or social status.

“Risk management refers to the steps we take to mitigate or eradicate the risk. As a government, we are responsible for the wellbeing and welfare of the people we serve. We have a responsibility to provide social security for both the young and the elderly; a responsibility to provide security of life and property and also a responsibility to ensure that the Infrastructure put in place are properly maintained in a way and manner that the State can be described as having a ‘developed economy status’.

“Where we fail to take pre-emptive steps to attend to the risks that come with the responsibilities that have been placed on us, we would be failing in a part of our duty as Government.

“The Lagos State Government has always been in the vanguard of identifying risks and taking steps to mitigate/eradicate those risks, as much as possible. To list a few, the Climate change risks which could expose the State to flooding and other natural hazards but which we have successfully mitigated in the past few years; Health Risks such as that recently posed by the incursion of Ebola Virus Disease to Nigeria, against which prompt steps were taken by the State Government to curtail the spread of the disease.

“We also face security challenges: kidnapping, ritual killings, armed robberies etc. These are threats to peaceful co-existence of inhabitants of the State. To mitigate those risks, the Lagos State Government equipped the Rapid Response Squad and other Law enforcement agencies.

“Our youth and the elderly are exposed to social protection risks which if not addressed could result in poverty, and other security hazards in the community.

“Furthermore, risks of danger to lives and property of the citizens exist where, due to unprofessional practices on the part of those involved in construction, substandard materials are used in construction.”

Director-General NIA, Sunday Thomas, urged the state government to empower its people so that they can afford to purchase insurance.

Former Commissioner for Insurance Oladipo Bailey, called on the government to do more in helping insurers enforce compulsory laws.

ADDRESS DELIVERED BY HIS EXCELLENCY, MR. BABATUNDE RAJI FASHOLA, SAN, GOVERNOR OF LAGOS STATE, AT THE 1ST PUBLIC LECTURE ON ‘THE ROLE OF GOVERNMENT IN MANAGEMENT OF RISKS IN THE SOCIETY’ ORGANIZED BY THE NATIONAL ASSOCIATION OF INSURANCE CORRESPONDENTS AT THE ABORA-MAZONIA SUITE, EKO HOTELS & SUITES, VICTORIA ISLAND, LAGOS

Fashola

ON TUESDAY, 28TH OCTOBER, 2014

Protocols

I am deeply honoured to be the Guest Speaker at this public lecture because I see it as a forum that will enhance public awareness of the existence of risk as a natural phenomenon to human existence. It should also draw our attention to the fact that we all -- individuals and governments -- have a responsibility to manage risk, for the betterment of our lives and those of the people we serve.

We are often impervious to the risks we face on a daily basis. Risk here being the probability or the threat of damage, loss, injury or any other negative occurrence that is caused by external or internal vulnerabilities, the consequences of which may be avoided through preemptive action.

In other words, it can simply be described as the probability of losing something of value for example physical health, property or social status.

Risk management refers to the steps we take to mitigate or eradicate the risk. As a government, we are responsible for the wellbeing and welfare of the people we serve. We have a responsibility to provide social security for both the young and the elderly; a responsibility to provide security of life and property and also a responsibility to ensure that the Infrastructure put in place are properly maintained in a way and manner that the State can be described as having a ‘developed economy status’.

Where we fail to take pre-emptive steps to attend to the risks that come with the responsibilities that have been placed on us, we would be failing in a part of our duty as Government.

The Lagos State Government has always been in the vanguard of identifying risks and taking steps to mitigate/eradicate those risks, as much as possible. To list a few, the Climate change risks which could expose the State to flooding and other natural hazards but which we have successfully mitigated in the past few years; Health Risks such as that recently posed by the incursion of Ebola Virus Disease to Nigeria, against which prompt steps were taken by the State Government to curtail the spread of the disease.

We also face security challenges: kidnapping, ritual killings, armed robberies etc. These are threats to peaceful co-existence of inhabitants of the State. To mitigate those risks, the Lagos State Government equipped the Rapid Response Squad and other Law enforcement agencies.

Our youth and the elderly are exposed to social protection risks which if not addressed could result in poverty, and other security hazards in the community.

Furthermore, risks of danger to lives and property of the citizens exist where, due to unprofessional practices on the part of those involved in construction, substandard materials are used in construction.

On this front, the Lagos State Government realized that the risk faced is in two folds: i.e. risk to life and property and secondly the risk of the construction being delayed or never completed due to a variety of reasons which would have an ultimate negative effect on the environment.

The Lagos State Government’s risk mitigation response to this was the establishment of agencies to regulate/supervise building projects in the State. In order to ensure that delays in construction projects do not create severe adverse occurrences, it embraced Insurance as a risk transfer mechanism.

The business of Insurance, simply put, is to ensure that full or partial financial compensation is made for loss or damage caused by events beyond the control of the insured.

It is a contractual agreement between two parties i.e. the insurer and the insured, under which the insurer covenants to indemnify the other party against a specified amount of loss, occurring within a specified period, provided that the premium is paid. It is designed to put the insured back in the position, or at least as close as possible, in which he or she was before the occurrence of the loss.

In essence, it is expected that gains are not made from Insurance arrangements and to be able to insure a risk, the insured must have insurable interest over the tangible or intangible asset.

In Lagos State, largely based on the Nigerian Insurance Act 2003, certain insurance policies are specified as compulsory insurances that must be arranged and these are:

1. The Group Life Assurance Scheme in line with the 2004 Pension Reform Act.

2. Builders Liability Insurance

3. Occupiers Liability Insurance

4. Motor Third Party Insurance

5.Health Care Professional Liability Insurance under the National

Health Insurance Act of 1999

On the issue of pensions, you will agree with me that before the Pension Reform by the Federal Government in 2004, our pensioners faced the risk of a life of penury due to the unfunded nature of the Pay as you Go Pension Scheme in the public service and the lack of provision of pension arrangements for employees in the private sector.

The risk of the elderly not having financial independence and dying in poverty was real and to eradicate this risk, on the 19th the Lagos State Government subscribed to the fully funded Contributory Pension Scheme.

It imposed on us a huge liability as we needed to pay of 7.5% of basic salary, housing and transport allowances as monthly pension contribution; fund the Retirement Bond Redemption Fund Account with 5% of employees monthly total emolument figure to provide for accrued

pension rights, being entitlements for years spent in service before the commencement of the contributory pension scheme. monthly; pay the annual premium to guarantee the life assurance cover as stipulated in the Law and which is intended to provide a death benefit of at least 3 times the annual total emolument of each employee.

We are, however, committed to making Lagos State Government a government that cares for the welfare of the people, and is prepared to stand with them through difficulties that are occasioned when certain risks crystallise. We remain resolute in our desire to identify areas that may hinder the peace of mind of the populace and hence we have invested billions of Naira towards ensuring that the retirees receive monthly income as pension from their pension provider who could be the Pension Fund Administrators or the Life Assurance Companies who provide annuity for the lifetime of the retirees.

The Lagos State government has also sought to support the growth of a viable insurance industry by ensuring that it keeps its own insurance policies current and settles its premiums as and when due.

But beyond our role as government, in order to ensure that more people embrace insurance, even beyond the compulsory, the Insurance Industry needs to do a lot more to create awareness of the benefits of transferring risks through Insurance.

A lot of trust also needs to be built and this will only be achieved where the principle of utmost good faith and duty of disclosure, which are key Insurance Principles, are practiced by the Insurance Companies.

In conclusion, I wish to commend the National Association of Insurance Correspondents on this 1st . This I believe is a step in the right direction and should be sustained. The Industry needs the awareness; the people need to develop the confidence; the Industry needs to rise more stoutly to her responsibility as risk bearers; we need a re-orientation and a re-definition of core values for which our society will be the better.

Thank you for listening.

Eko o ni baje o.

Babatunde Raji Fashola, SAN

Governor of Lagos State