NCRIB President speech at Brokers’ Evening on February 22, 2022


 It is my great pleasure to welcome you to the first edition of NCRIB Members’ Evening in 2022, holding today. I like to appreciate you for finding time to attend this meeting in spite of the challenge of fuel scarcity which is just tailing off. I will not fail to acknowledge members who also join this meeting via Zoom application, most especially, those outside Lagos.
Your tenacity and unflinching support has continued to be our source of encouragement. I like to assure you that we are committed to building an institution that upcoming generation would be proud of. May I seize this opportunity to urge all members to be part of this dream of bequeathing a befitting industry that the next generation will be proud of.
 I like to reiterate that this leadership team is committed to the development of our noble profession. We are not stopping until all stones are turned. At the inception of this administration, I did identify “Brokers’ Centrism” as the cardinal thrust of my leadership. I like to reiterate that we will pursue this vigorously, with God on our side.
 I need not bother you on most of our modest landmark achievements within this period which had been eloquently presented at the last Breakfast Seminar with the President, but I need to stress that no leader is sustained without the followers. It is on this note that I crave more of your cooperation, suggestions and participation. Together we shall continue to stand.
We have endeavored to make our events most resourceful and educative. I am most delighted to inform you that before the end of this event, we will be learning more on recent developments in vehicle inspection sector. We have in our midst, the representative of Lagos State Vehicle Inspection Service, Ojodu Berger, Lagos, Engineer David Olufemi Famuyide, MNSE, MNIMechE.
Our choice of this topic and VIS is certainly hinged on the relevance of this sector to our insurance business and our daily living, especially, in Lagos State. It was recently reported that Nigeria Insurance Industry loses over N160 billion yearly to fake motor insurance racketeer. It is however, disheartening to note that an industry which had been contributing less than one per cent to the gross domestic product, in spite of its huge potentials, loses such whopping amount of money to fake vendors who contribute nothing to the growth of the nation.
Some of these fake racketeers have their offices in some local government secretariat across the nation, carrying out their unethical acts unabated. Aside from loss of revenue and premium, that should accrue to the industry, these criminals create for us bad image. Most of the unattended claims in Motor Insurance are victims of fake certificates. It is saddened to note that most motorists go about their daily businesses with certificate of moribund and deformed insurance companies, just because there is no proper enforcement. Some of these insurance policies flying around Local Government are just putting money into people’s pocket.
 I am certainly aware that the Nigerian Insurers Association deployed technology to curb proliferation of fake certificates. But I am of the opinion that enforcement is still at low ebb. May I use this medium to appeal to Government to wade into the situation and curb the perpetrators. Also, my plea goes to Vehicle Inspection Service (VIS) to see this as a clarion call. Your organization can as well increase your enforcement strategies to include Insurance Certificate in such a way that any motorist without genuine Motor Insurance Certificate should be made to face sanctions as stipulated in the law.
 Our economy continues to drag because we are not paying attention to the issue of insurance. At the appropriate time, Engineer Famuyide would be called to address this audience. I would like to encourage you all to take the full advantage of this educative and informative session about Vehicle Inspection Services and ask relevant questions.  Let me use this medium to profoundly appreciate African Alliance Insurance Plc team for its unrelenting determination to further deepen relationship with Registered Insurance Brokers, as evidenced by the resolve to host this landmark edition of NCRIB Members’ Evening.
 Also, I like to congratulate Mrs. Joyce Ojemudia for numerous achievements recorded since her appointment as the Managing Director of  this progressive firm. I have no doubt today that African Alliance Insurance Plc has again, etched its name in the golden book of Registered Insurance Brokers in Nigeria. Customarily, at the appropriate time in the course of this event, we shall have the opportunity to ask questions from Mrs. Ojemudia and interact with the management team of the company on issues that are germane to the company’s growth and survival.
 I want to urge our members who have opted to join us virtually to also make their observations and comments at the appropriate time. You can also drop your comments at the comments section and it would be attended to.NCRIB 60TH ANNIVERSARY: For the benefit of our guests here today, our great Council will be celebrating its 60th Anniversary this year, with a lot of funfair.
The Nigerian Council of Registered Insurance Brokers, established by an Act of the National Assembly on 4th July, 2003, succeeded the Nigerian Corporation of Insurance Brokers which was founded in 1962. The Council has continued to grow in leaps and bounds. It is expedient to celebrate the existence and legacies of our legends. Activities heralding the celebration will commence in March, 2022 with launching of Anniversary Logo and Mascot.
Other activities lined up for the celebration include presentation of 60th Year Book, Presentation of Council Compendium, Insurance Walk, Awards and Endowment in Schools, commissioning of Corporate Social Responsibility Project, Sports and Corporate Visitation. At the appropriate time, invitations would be extended to all our partners and well-wishers. It is on that note I will like to personally invite African Alliance Insurance to be a part of this celebration, most importantly, though sponsorship.
 IMPROVED VALUE FOR MEMBERSIf there is anything that has occupied the minds of many members of the Council for a while now, it is how the NCRIB could accelerate its value rendition to members. I like to note that the agitation of members in this regard was not wrongly placed, considering the challenges they face on all ends, necessitating immediate collective solution from the Council. It was in sync with this that this administration coined its Thrust around “Brokers’ Centrism”.
 In addressing this, our team would be quite strategic in first identifying in clear terms the immediate and future challenges threatening Brokers. We shall be building on the legacies of our Past Presidents. With an all-inclusive administration, we shall take time to provide opportunities for resourceful members. BIBA CONFERENCE We shall continue to strengthen the ties of the Council with other relevant international bodies.
 One of such is the British Insurance Brokers Association (BIBA). It has become our yearly ritual to attend the BIBA conference, an international conference of insurance professional that draws participation from over 50 countries of the world.This year, our target is not less than 50 insurance professionals across the various arms of insurance industry. I must inform you that preparations are on top gear. I therefore enjoin you all to register your interest to be enriched in international ways of handling insurance business.
 The 2022 edition of the Conference, as usual, holds in Manchester, the United Kingdom between May 11 and 12, 2022. The theme is “Our Insurance Community”. Happily, the NCRIB delegation would also have the benefit of interacting with a team of professionals from Aon and Lloyds Brokers who have consented to meet with the Nigerian delegation at a special session in London.
One of our statutory responsibilities every year is to publish names of all eligible members of the Nigerian Council of Registered Insurance Brokers in National Dailies. I would like to inform you that the Council would definitely carry out this statutory obligation.
 However, our experiences in the past have shown that many Brokers that failed to meet up with the requirements for the publication often face lots of challenges in business due to the attendant negative image that non-inclusion attracts. I am urging you to regularize your membership status with the Secretariat without further delay, pay your subscription to merit the list.
Delay they say is often dangerous!
In conclusion, please permit me to appreciate African Alliance Insurance once again for electing to host this evening and affirm that by so doing the company has again etched its name as one of the Most Brokers-Friendly underwriters in the market today. I thank you all for coming and God bless.
MR. ROTIMI EDU, mni, FCIBPresident/Chairman Governing Board
PenCom kicks against exit of Police from CPS

By Favour Nnabugwu



The National Pension Commission (PenCom) has condemned move by the Nigerian Police Force (NPF) to exit the Contributory Pension Scheme (CPS).

The Director General of PenCom, Aisha Dahir-Umar, on Tuesday in  a statement in Abuja during a public hearing on two pension-related Bills by the House Committee on Pensionll.

Dahir-Umar explained that the exemption of the NPF from the CPS would result in the dismantling of the institutions, systems and processes that Government had put in place in the last few years towards the implementation of the pension reform programme.

“Exemption of the personnel of the NPF would imply additional financial burden on the Federal Government by way of unsustainable pension obligations. For instance, as at September 2021, there were 304,963 Police personnel based on IPPIS data. An actuarial valuation revealed that the retirement benefits (pension and gratuity) liability of these personnel under the defunct Defined Benefits Scheme would amount to about N1.84 trillion.”

The PenCom boss was of the view that liability under the CPS for the same NPF personnel is made up of N213.4 billion as accrued pension rights and monthly employer pension contributions of about N2.2 billion.

PenCom FG stated that to address the concerns of Police Personnel on pension, the employer can review upwards its current contribution rate of 10%.

In addition, the PRA 2014 further provides that notwithstanding the pension contributions made by employer and employee into the employee’s RSA, the employer may agree on the payment of additional benefits to the employee upon retirement.

“Accordingly, the Federal Government may wish to provide additional benefits in the form of gratuity to personnel of the NPF upon their retirement.”

On 75 percent lumpsum payment, she said the amendment, if approved, would be contrary to the provision of Section173 of the 1999 Constitution of the Federal Republic of Nigeria (as amended), which guarantees the right to pensions for all public officers as the payment of “at least 75 percent of the balance of the RSA” as lump sum at retirement.

She added that this will significantly deplete the pension savings such that the contributions will not be sufficient to provide meaningful pensions during retirement.

“That converts the pensions into a provident fund and leaves such a retiree with no periodic pensions, which is contrary to the requirement of Section 173 of the 1999 Constitution.”

She was of the view that the proposal is based on a misunderstanding of the concept of pension payment under the CPS.

She also disclosed that the CPS has provisions that can address the challenges being faced by personnel of the Nigeria Police and other Federal Government Agencies on the administration of their retirement benefits.

“The solution to the pension challenges of the personnel of the Nigeria Police does not reside in their exemption from Contributory Pension Scheme and reversion to the Defined Benefits Scheme, which is clearly unsustainable,” Dahir-Umar, said.

She noted that absence of other social security benefits in Nigeria is partly responsible for the clamour by the retirees for exemption or to access substantial amounts as lump sum from their RSA balance.

Speaking further, the Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PENOP), Oguche Agudah, said the exemption of the Nigeria Police Force from the CPS would take Nigeria back to the dark ages before the pension reforms.

“This was a time when retirees had to depend on a defined benefit system; where the federal government paid monthly pensions to retirees directly from its coffers,” he said.

Agudah said at the time of the reform, it was estimated that the Federal Government had a pension liability of over NGN 2 trillion.

“Past experiences have proven that this system puts a lot of burden on the federal government, making it unsustainable. The sustainability of moving the police back to the pay – as – you – go Defined benefit scheme under their proposal is near impossible, given the Federal government’s struggling finances at the moment.,” he said.

He recommended that from the rank of Assistant Inspector General of Police (AIG) upwards, their pensions should be treated under the category of political appointees who retire with full benefits as stated in the PRA 2014 as their appointments are political in nature.

On the Bill to allow contributors take at least 75 percent of their RSA balance at retirement, the PENOP’s CEO said the people that have issues with the lump sum that they collect at the moment are those who have not been able to accumulate enough funds in their RSAs prior to retirement.

He said what the 75 percent essentially is looking to achieve is a gratuity type payment to retirees, adding that the PRA in its current form does not preclude the payment of gratuities by employers as many Department and Agencies of the Government already pay gratuity to their staff on retirement.

“What we suggest is that employers should be encouraged to pay gratuities at retirement and/or increase their level of monthly contributions in order to boost the balances and subsequent pension payout of their staff,” he said.

Nigeria’s GDP to grow above Angola, South Africa in 2022 – Allianz  Report

By Favour Nnabugwu


Nigeria is expected to grow slightly above Angola and South Africa in the Gross Domestic Growth as Africa will register mild growth in 2022 after being the slowest growing regín in 2021 with +3.5 percent.

According to Allianz Economic Outlook Report, said that the growth in  Angola (2.2%) and South Africa (2.0%). This is even more as vaccination rates will remain very low at 32 percent on the overall continent but only 4 percent in Sub-Saharan Africa.

GDP growth expectations in countries are as follows: Senegal (6.1%), Kenya (5.6%), Ivory Coast (5.5%), Ghana (5.4%), Egypt (4.6%), Mozambique (4.6%), Namibia (3.7%), Morocco (3.3%), Tunisia (3.2%), Gabon (3.2%) and Algeria (2.4%),

In 2022, oil exporters such as Angola and Algeria will continue to benefit from the commodity up cycle tailwind

On the other hand, amid rapidly rising inflation to double digits in most countries, monetary policy rates are expected to increase in Kenya, Nigeria, Ghana, South Africa and Egypt. In an environment of continued sanitary uncertainty, this monetary tightening is expected to put a brake on growth.

In addition to rising energy prices, food inflation has soared to hardly bearable levels in Angola, Ethiopia, Nigeria and Ghana.

The food security situation is likely to deteriorate in 2022 in southern and eastern Ethiopia, Kenya and Somalia as a result of adverse climate events. The deteriorating security situation in Ethiopia entails significant risk of spillovers to the region, including migration flows to the Kenyan border. Tunisia, Ghana, Mozambique, Kenya and South

Africa are hot spots regarding debt sustainability. Tunisia, Morocco, Egypt and Burkina Faso will see current account deficits only improve slightly in 2022 after deteriorating in 2021.

Global growth should remain robust but uneven, with rising divergence between advanced and emerging market economies

Our 2022 GDP forecast remains broadly unchanged, with the Eurozone and the US expected to grow by +4.1% and +3.9%, respectively, while growth in China slows to +5.2% due to ongoing disruptions in the real estate sector and the government’s focus on financial stability.

China’s lowest contribution to global GDP growth since 2015 is likely to have negative spillover effects on emerging markets whose recovery will be shallower compared to past crises.

Global trade is expanding once again above the long-term average but will be disrupted by labor and supply chain bottlenecks, amplified by omicronWe expect global trade in volume to grow by +5.4% in 2022 and +4.0% in 2023.

Allianz grows aggregate reinsurance and lifts catastrophe budget for 2022

By Favour Nnabugwu


Global insurance carrier Allianz has expanded its aggregate reinsurance protection for 2022 and also raised its catastrophe budget for the year, after the company experienced a particularly high burden from nat cat losses in 2021.

Allianz’s recently published full year 2021 financial results show that the insurer recorded net natural catastrophe losses, after reinsurance, of €1.637 billion, up significantly on the €880 million seen in 2020.

Last year was another above-average year of catastrophe losses for the industry, and Allianz was mainly impacted by flood and storm events across Europe in the summer months.

All in all, nat cats made up 3.1% of Allianz’s 93.8% combined ratio for 2021, which is up from 1.7% in 2020 and above the ten-year full year average of 1.9%. Weather-related losses, so excluding nat cat, were 1.2% of the combined ratio for 2021, compared with 1.3% for 2020.

In response to the higher nat cat bill, Allianz has renewed its aggregate reinsurance cover at a larger size for 2022, and also increased its catastrophe budget for the months ahead in order to reduce volatility.

Speaking during an analyst call last week, the company’s Chief Financial Officer (CFO), Giulio Terzariol, explained: “When we look at nat cat, internally, we look at nat cat and weather-related losses. So, overall, in the past, for the sum of nat cat and weather-related losses, we had a budget of about 3% of premium and we moved this budget up already, in the last two years, to about 3.2% of premium. Now, for 2022, the way I look at that is 3.5 percentage points.”

He went on to note that when compared with three-four years ago, Allianz’s catastrophe allowance, including weather-related, is now 50 basis points higher.

To further minimise the volatility of its property and casualty (P&C) book, the company has also increased the size of its aggregate excess-of-loss reinsurance protection at the recent renewals. This layer has grown in size by €200 million, year-on-year, to €500 million.

“So, I will say that if we see more nat cats that are included in this 3.5 budget, I would say, when we start getting to 4.5 percentage point of load, that’s the point where the aggregate should come into play,” said Terzariol.

“So, think about that combined budget of nat cat and weather-related of 3.5%, which is 50 basis points higher compared to what we had a couple of years ago and then I will say, at 4.5%, we should be capped in terms of nat cats load, because the aggregate will come into play,” he added.