TEXT OF THE SPEECH BY THE CHAIRMAN OF THE NIGERIAN INSURERS ASSOCIATION (NIA) Mr. G.U.S. WIGGLE, AT THE PRESS BRIEFING HELD AT THE NIA SECRETARIAT ON TUESDAY, JUNE 23, 2015

TEXT OF THE SPEECH BY THE CHAIRMAN OF THE NIGERIAN INSURERS ASSOCIATION (NIA) Mr. G.U.S. WIGGLE, AT THE PRESS BRIEFING HELD AT THE NIA SECRETARIAT ON TUESDAY, JUNE 23, 2015

Gentlemen of the press

I warmly welcome you to this press briefing which is essentially to keep you abreast of developments in the insurance industry and the steps we are taking as an Association to address the challenges we face as an arm of the insurance sector.

In the past one year, a lot have happened to redefine the shape of insurance business by way of NAICOM regulations, Guidelines and circulars. I can assure you that our members are adapting to the changing dynamics of insurance operations.  As an association, we are not resting on our oars but constantly engaging NAICOM and other regulators whose oversight functions impact on our business to ensure smooth transition and hitch free implementation.

Some of the achievements we have made in the past one year are:

Nigerian Insurance Industry Database (NIID)

In the year under review, the Association continued to make giant strides in the implementation of the NIID. The association is not relenting in its efforts to extend the areas to be covered by the device.

More verification devices were distributed to member companies to enhance their marketing activities.   As a fall-out of the public acceptance of the device, the number of uploads has increased significantly over the past few years.

As at May 2015, over 3million vehicles have been uploaded by the 41 member companies underwriting motor insurance business.

The Association will continue its drive to extend the states covered by the NIID device in order to bring more motor vehicles into the NIID net.

We implore motorists to make sure that they buy genuine insurance certificates from insurance companies, brokers or accredited agents and to resist the temptation of patronising touts, and other unauthorised sources as they do not sell genuine motor certificates and cannot be guaranteed any benefit in the event of a loss.

Marine Module

Following the observed leakages in marine business, the NIID was extended to curb the fraud of fake marine certificates. The marine module of the NIID has become fully functional and member companies have started uploading their marine certificates.

The Association has sustained engagement with the relevant stakeholders such as CIBN, NCRIB, Nigerian Customs Service and NAICOM to seek their support for the initiative. We intend to reach out to other relevant institutions.

The aim is to plug the leakages in import business resulting in loss of billions of naira premium accruable to the insurance industry. I am indeed delighted to report that till date, over 7,000 marine policies had been uploaded. This attests to the general acceptability of this project and the need to support it in the interest of the industry and the national economy. 

Energy and Allied Insurance pool of Nigeria EAIPN

In furtherance of the Association’s desire to further take advantage of the Nigerian Content Act 2010,  curb capital flight, build local capacity in Oil and Gas underwriting and increase retention of oil business locally, the Energy And Allied Insurance Pool of Nigeria promoted by the Association has become fully operational.

The Technical Management Board led by a past chairman of the association, Mr. Wole Oshin has been inaugurated while Africa Re has been appointed as the Pool Manager.  Twenty (20) member companies have so far subscribed to the Pool.

CITA 2007

You will agree with me that the Companies Income Tax Amendment Act 2007 (CITA) has placed a heavy tax burden on insurance companies. It is not only anti- investment, it constitutes a big clog in the operations of insurance companies as claims are capped thereby defeating the whole essence of insurance business.

In our determination to address the issue of the heavy tax burden placed on Insurance Companies by the law, a delegation of the Governing Council met with the former Hon. Minister of State for Finance, Ambassador Bashir Yuguda in September last yearto seek ways of getting a Presidential waiver for the insurance sector on theimplementation of the law pending necessary amendments. 

As a follow up to our presentation at the meeting, the Association is engaging with the Federal Inland Revenue Services (FIRS) with a view to charting the way forward on the matter.

We are optimistic that the new government will address the issues raised.

Relationship with NAICOM

The Association made input into the various guidelines and circulars released by NAICOM to enhance greater market discipline, promote ethical conduct and position the market to cope with the changing dynamics of business and in line with global best practices.

Let me make a solemn promise that our Association will increase its interface with all relevant government regulatory agencies to ensure that members are treated fairly and in line with the law.

Gentlemen of the press, today is not a day for long speeches. I thank you for your honouring us with your presence and take this opportunity to formally invite you to our 44th Annual General meeting taking place this Thursday.