40 broking firms, six underwriting coys get penCom's compliance certificates

Chuks Udo Okonta

Six insurance companies and 40 insurance broking firms were among the 74 companies that got the National Pension Commission (PenCom) certificate of compliance last year, Inspen has learnt.

The commission in a circular, said only 74 companies which include, Creed Insurance Brokers Limited, Leadway Assurance Plc, Lasaco Life Company and others were able to meet the requirement for issue of certificate of compliance as at January 4, this year.

The Pension Reform Act (PRA) 2004, made it compulsory for companies seeking government business to present certificate of compliance which indicates that they are meeting the regulation on staff pension contributions.

The PRA 2004 also mandates all employer with minimum of five staff to subscribe to the new pension scheme.

To ensure enforcement of the law, the commission recently issued an order that employers who fail to remitted their pension contributions would pay two per cent charge two weeks after deductions have been made by them.

PenCom noted that employers are to remit employees contributions not later than seven working days from the day salary is paid. It noted that if default persist after three months, one per cent of the outstanding would be paid to the commission.

The commission said it would take legal actions on defaulters if violation persists, adding that employers who refused to give access to information about their staff would pay a fine not more that N200,000 and that every false or misleading information would attract N100,000 fine, each day the offence continues.

It said any employer who coerce employees to open RSA with Pension Fund Administrator (PFA) that is not their choice, would pay N1,000 after three months per employee for every month of violation.

The Commission also wants fait of Attorney General of the Federation, to enable it institutes criminal proceedings against employers for persistent refusal to remit pension contributions

PenCom called for the amendment of Section 11(7) of the PRA 2004, stressing that the present provision is clogged with limitations.

It said: "Power to Institute Criminal Proceedings against Employers for Persistent Refusal to Remit Pension Contributions: Section 11(7) should be amended to empower the Commission to institute criminal proceedings, with fait of Attorney General of the Federation, against employers who persistently fail to deduct and/or remit pension contributions within the stipulated time.
"Review of the Penalties and Sanctions: The sanctions currently provided under Section 85 are no longer sufficient deterrents against infractions of the PRA 2004. Consequently, Section 85 should be amended to provide for stiffer penalties that will serve as deterrents."
It said 172 debt recovery agents have been engaged to collected unpaid contributions from employers, addinga that the agents have commenced work and that they consist of lawyers and accountants.

It noted that 50 per cent of the interest penalty from outstanding contributions recovered through the efforts of agents will be given to employees with RSA, while the balance 50 per cent would be use to settle the agents.

PenCom said the balance 50 per cent would be paid to agent to defray the cost of recovery. It said that PFAs would not be allowed to charge administration fee on retirement savings accounts that benefited from the recovery in the arrears or in retrospect.

Brokers to send lists of genuine firms to clients

Brokers to send lists of genuine firms to clients
To close registration on March 31
Chuks Udo Okonta

The Nigerian Council of Registered Insurance Brokers (NCRIB) would send the lists of genuine broking firms to clients as a measure of checking activities of fake operators, its President Mrs Laide Osijo, has said.

She told Inspen that the council would also close registeration for members on March 31. She noted that by first week of April, lists of members would be published for the public to know genuine operators.

She said: "Our rule states that we should publish list of members every year. I must not forget to comment the effort of the Commissioner for Insurance for his efforts in promoting the affairs of the council.

"Our law says that registeration with NCRIB is requirement for licensing by NAICOM. Before this year, so many brokers have been going to NAICOM, for registeration. But since the beginning of this year, NAICOM has refused to give any body licence if they did not have the NCRIB registeration certificate. The Commissioner with his team have been doing a good job to ensure people comply with the rules."

She noted that the NCRIB's law allows members to renew their registeration every two years, adding that any operator who fails to observe that would have his/her registeration lasped.

Osijo said the renewer does not just centre on financial obligations, but that the operator must meet all the requirements stated in the law.

She added that the council has standard rule that is used for renewer, stressing that once an operator is able to meet the conditions, his/her license would be renewed.

"If a firm has a new chief executive, the person has to come to us to check if the person is fit and proper to run the organisation. This is because the new executive would be held liable for any thing that happened in the firm.

"If an organisation changes its executive, it has to write us and we would give it six month to present the excutive for examination. If an operator failed to meet up with his financial obligation, his membership will lapse that also is what NAICOM is doing."

She said members have beenn told to renew their membership before March 31, to avoid been shut out of the membership lists.

Insurers to raise budget on staff training

Chuks Udo Okonta

To effectively prepare their staff for more productivity, insurance operators have pledged to raise the budget on training this year Inspen, has learnt.

The President Chartered Insurance Institute of Nigeria (CIIN) Dr. Wole Adetimehin, who disclosed this, said underwriters and brokers have given assurance to improve on their budget on staff training, adding that they have realised that the best assets is their human capital.

He noted that the CIIN leadership had engaged the operators on the need to see the institute as theirs, adding that the institute has continued to find new ways of enhancing the human capital of the industry.

Director General CIIN Adegboyega Adepegba, said o
ver the years, there have been scaling down on budget for training by most companies.

He said: "I want to suspect, that the budget for training has being falling, I do not have the the figures, but I suspect, that there might been some scaling down of budget for training, this is a major challenge. This is because no matter how good and eraborate a training programme is, if we do not have more of our members attending it would not be well."

He said members of the industry are getting the best on training from the institute, stressing that operators are also encouraged to seek knowledge from every reputable sources to develop and re-develop themselves.

Pension operators invest over N1.8 tr in Fed Govt’s securities

Chuks Udo Okonta


Over N1.8 trillion pension funds has been invested by operators in Federal Government securities Inspen has learnt.

The information obtained from the National Pension Commission (PenCom) noted that the amount represents over 61 per cent of the about N3 trillion so far contributed by workers.

The commission noted that over N370 billion (13 percent) has been invested in money market, while N335 billion (12 per cent) was invested in ordinary share and real estate got N167.89 billion (six per cent).

It said state government securities got N109.24 (four per cent), corporate debt security got N72.10 billion (two per cent), unquoted securities N24.67 billion (one per cent) and other investment portfolio N23.49 billion (one per cent).

It noted that the regulation on investment of pension fund assets was revised to expand the allowable investment outlets to include alternative asset classes such as: Private Equity (PE) funds, infrastructure financing (Debt instruments and funds), supranational bonds, amongst others.

The commission said it would continue to review investment regulations, adding that multiple funds would be established and ethical fund introduced, adding that its guidelines on offshore investment being worked out to encourage operators explore foreign investment windows.

President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo

Why there are prolification of broking firms - Osijo

Chuks Udo Okonta

Some insurance broking firms were established just to secure a particular business and for quest for ego, the President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, has said.

She told Inspen that the council has observed that some people just register a broking firm because they want to secure a business through their relatives who occupy a position of authority.

She noted that these individuals abandon the firms once they get the business. She added that some brokings firms were also established because people want to be known as managing director.

She said: "Instead of 10 people joining hands to form a strong firm, they want to be managing directors. We have always encouraged mergers and acquisition. If you have a formidable team, it is better than been alone."

She noted that the council is colloborating with the National Insurance Commission (NAICOM) to ensure that only genuine and professionals operate in the sector, adding that presently the council has to give approval before a firm is licensed by NAICOM.

"The NCRIB law says that registeration with NCRIB is requirement for licensing by NAICOM. Prior to last year, so many brokers do go to NAICOM, for registeration. But, from last year, NAICOM has refused to give any body licence if they did not have the NCRIB registeration certificate. The Commissioner with his team have been doing a good job to ensure people comply with the rules," she said.

NAICOM, operators to fine-tune 'no premium no cover' policy

Chuks Udo Okonta


The National Insurance Commission (NAICOM) will soon be meeting with representatives of underwriters and brokers to find solutions to some challenges observed in the no premium no cover policy that commenced 1st of this month, Inspen has learnt.

Our investigations revealed that the meeting would help to resolve the growing mis-trust between underwriters and brokers on the implimentation of the policy.

It was learnt that brokers are worried that underwriters may by-pass them to provide cover for businesses rejected due to non payment of premium.

President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, said the operators have agreed with NAICOM to call the stakeholders in the industry - representatives of the brokers and underwriters to sit and chart the way forward for the implimentation of the policy.

She noted that the operators have to agree on the modalities on the implimentation of the policy, adding that during the meeting all challenges that may clogged the policy will be ironed.

She said: "These issues are foundament to the operations of brokers, for 80 per cent of insurance business in the country is done through brokers. If we follow the law and underwriters refuse to follow, the whole thing would be a mess. We would try to ensure we get the modalities as to how to go about the policy."

She lauded the decision by NAICOM to bring sanity in the industry through the policy, adding that the idea of underwriters accusing brokers of non remittance of premium will now be a thing of the past with the introduction of the policy.

"According to the Commissioner for Insurance Fola Daniel, when they were doing verification of accounts of brokers and underwriters, they observed that most of the outstanding premium that brokers were accused of, were not actually true. Some of the underwriters raised their books to cover their expenses.

"NAICOM observed the mis-representations and sanctioned the errant underwriters. Some brokers who erred by keeping premium beyond the stipulated date were also sanctioned. I am not saying that brokers are perfect, but most of the accusation by underwriters are not really true. NAICOM observed that most of the withheld premiums are receivables," she said.

She said brokers have been enjoined to report underwriters who by-pass them to take a business they rejected, stressing that the operators have all agreed to abide by the policy, which would bring sanity to the industry.