All Posts in "Month: February 2022"

CFI speech in Kano during a 3-day retreat on mandatory insurance

ADDRESS BY THE COMMISSIONER FOR INSURANCE, MR. O. S. THOMAS AT THE RETREAT FOR MEMBERS OF THE COMMITTEE ON IMPLEMENTATION OF COMPULSORY INSURANCES IN KANO STATE HELD AT ROCKVIEW HOTEL, ABUJA FROM 9 – 11, FEBRUARY, 2022

Protocol,I will like to first appreciate his Excellency the Executive Governor of Kano State Dr. Abdullahi Umar Ganduje for giving the support to the Commission and to the sector to boost insurance penetration in Kano state. I welcome members of the Committee to Abuja for this important retreat and as well.

The speed at which the State Government has taken serious steps to implement this project has given us courage and confidence that insurance can indeed, thrive in Kano State in particular and, Nigeria in General.I have been reliably informed that his Excellency has not only considered our request for office accommodation but directed an allocation of a comfortable office accommodation to the Commission. We are indeed grateful. The objective of this retreat is to equip members of the Committee with requisite information and knowledge to enable them maximise opportunities that will help grow and develop insurance culture amongst Kano State citizens, boost internally generated revenue for the state and, as well serve as a social protection mechanism that will assist both Government and citizens in the event of any disaster.

The Committee is already armed with a robust and strong terms of reference to work; and the calibre of personalities saddled with this responsibility by his Excellency is not giving any room for doubts. It gladdens my heart that membership of the Committee cuts across various sectors of the economy and business community in the State.We have put together various topics that will enable members of the Committee understand the nitty-gritty of the task before the it and how best to approach the assignment.

The facilitators will take you through the carefully selected topics and I believe that at the end of the day, we will leave here better informed and prepared to carry out the assignment.While not pre-emptying the presentations to follow, let me quickly mention the mandatory insurances that the Committee will be enforcing in the state, among others;Third party motor insurance in respect of all mechanically propelled vehicles that ply the public roads;Liability insurance cover in respect of all Buildings under construction that are more than two (2) floors;Liability insurance Cover in respect of all Public Buildings including Schools, Offices, Hotels, Hospitals, market shops, Shopping Malls etc.;Professional indemnity for all medical practitioners and hospitals;Group life insurance cover by all employers of labour for all their employees where there are more than 3 persons;Annuity for retirees as provided under the Pension Reform Act 2014 as an option

.The above compulsory classes of insurance I believe should be adequately covered by the Committee. Beyond the compulsory classes of insurance, the Committee could also look at encouraging individuals and corporate entities within the state to embrace other non-mandatory insurances either through Takaful Insurance (otherwise known as Islamic Insurance) or Microinsurance which caters for the low income earners who constitute larger percentage of the population and businesses.

This will enable an all inclusive approach to the drive for insurance uptake and will address most of the sentiments against insurance in our society. I want to assure the members of the Committee that the Commission is ready to provide all necessary support especially in the area of publicity, knowledge gap about insurance and expertise to assist you carry out your assignment successfully. I therefore will urge you to refer any matter you may require further guidance to the Commission. Suffice to say that the success of this project surely depends on the success of this Committee.

It is my belief that once Kano State gets this right, the story is going to be same with other states in the region. As one of the leading commercial nerve centres in the country with huge population and business potentials, the adoption and enforcement of these compulsory insurances will no doubt boost insurance premium income in the country, create thousands of employment opportunities in the state, improve standard of living of the people and increase the state’s internally generated revenue. As I mention in Kano during our workshop recently, working out a fashionable mechanism will ensure Kano State an enviable status of a role model to other states in the country in the area of insurance penetration.Let me also reiterate my earlier call on the Committee to consider and make recommendations to the state government on ways of including insurance cover to secure funds disbursed either to farmers or traders in its poverty alleviation programs.

As we all know, it is only with insurance that the government can guarantee business sustainability and revolving of funds for the future.I want to once again commend His Excellency for this wonderful commitment and swift action to see that insurance takes its rightful place in Kano State.

The entire cabinet have been so supportive and I must appreciate this hard work and resilience. I wish you fruitful and successful retreat.Long live Kano State

Long Live Federal Republic of Nigeria.O. S. Thomas Commissioner for Insurance/ Chief Executive Officer

Patoma Admin by — February 11, 2022 in Insurance 0
Kano govt to woo investors through compulsory insurance Policy

CAPTION:

L –  Hon. Mahmud Tofa, Special Assistant to the Kano State Governor on Intergovernmental Affairs; the CFI;  Kano State SSG and Chairman of the Implementation Committee Alhaji Usman Alhaji and Alh. Sabiu Bello, Deputy Commissioner for Insurance Technical.in Kano for a 3-day retreat.

 

 

 

 

 

By Favour Nnabugwu

 

 

The Kano State government has mapped a new way to attract foreign investors into the state through compulsory insurance.

The state government is optimistic that an entrenched insurance culture in Kano state will assure investors of the safety of their investments.

The Secretary to the Kano State Government, Alhaji Usman Alhaji, who represented the state governor Dr. Abudullahi Umar Ganduje said this in Abuja yesterday at a three-day retreat for members of the Technical Committee on implementation of Third Party Liability and other Insurances in Kano State.

Alhaji Usman Alhaji told journalists that the Kano state government is exploring and promoting insurance culture in the state to, among others, encourage Foreign Direct Investment (FDI).

He said, “In the long run, they (investors) will have to be insured as well and that will give them the safety required in case of any eventuality.
The compulsory insurance policy adopted by Kano state government is deliberate because we know that in the long run, we stand to mutually benefit: the insurance companies; the State government and the people of Kano.”

The Kano State Government Secretary added that the compulsory insurance policy was adopted by the state government in its quest “to make Kano a better state, develop economically and move to the next level”.

He said the policy will guarantee “the protection of the people of the state and their businesses, by ensuring they are insured and in the event of any eventuality, they can get relief”.

The National Insurance Commission host Kano State Committee on Implementation of Compulsory Insurances in the state to a 3 days retreat in Abuja. The Committee is headed by the Secretary to the Kano State Government Alhaji Usman Alhaji.

The Commissioner for Insurance and Chief Executive Officer of National Insurance Commission (NAICOM) Mr Sunday Thomas, said that the steps taken by the Kano state government on insurance was a testament that insurance could indeed thrive anywhere in Nigeria.

He said that the objective of the retreat was to equip members of the committee with requisite information and knowledge to enable them maximize opportunities that would help grow and develop insurance culture amongst Kano state citizens.

Thomas stated that the Kano state insurance policy would help the state “generate more revenue and serve as social protection mechanism that would assist both government and citizens in the event of any disaster.”

Patoma Admin by — February 11, 2022 in Insurance 0
Abdulquadir Dahiru now PenCom Media Chief

By Favour Nnabugwu
The National Pension Commission (PenCom) has recently announced departmental redeployment of staff.for which the former media Chief, Mr Peter Aghahowa was replace by Mr Abdulquadir Dahiru.
Also, Mrs Carol Alex-Uzomah is posted to Management Services Department respectively
Mr Abdulqadir Dahiru has been redeployed from Investment Supervision Department to Corporate Corporate Communications Department,as head of the department while Aghahowa has been moved to Research and Strategy Management Department
Mr Aghahowa in  a message to insurance and pension journalists announcing the latest development in the Commission said …”This is to inform you that Mr. Peter Aghahowa and Mrs Carol Alex-Uzomah have been redeployed from the Corporate Communications Department to Research and Strategy Management Department and Management Services Department respectively.
“The new Head of Corporate Communication Dept is Abdulqadir Dahiru. Please accord him all the necessary cooperation. I thank you all so much for the cooperation extended to me and Carol.”
Mr Abdulqadir Dahiru joined PenCom In 2007 as a Principal Manager.
Patoma Admin by — February 10, 2022 in Pension 0
NAICOM, FSD Africa to launch BimaLab programme for affordable insurance

By Favour Nnabugwu

 

Nigeria’s National Insurance Commission (NAICOM) and  FSD Africa are in collaboration to launch BimaLab, an accelerator programme designed to boost the development and adoption of digital solutions for the insurance sector.

BimaLab Nigeria aims to address gaps in the insurance market by educating, nurturing and promoting innovators and Insurtech start-ups. The programme will borrow from Kenya’s BimaLab I, BimaLab II and global best practices with a focus on local experience to provide Nigeria with the most competitive and attractive start-up accelerator programme.

Ten companies will be selected to participate in the ten-week programme that will provide them with the expertise, resources, and support to develop and scale market-ready solutions that bring social and/or commercial value to Nigeria’s insurance sector.

Across the continent, little knowledge of the insurance industry coupled with low income has affected the rate of insurance penetration in the mass market. Yet, a recent report by Deloitte indicates that affordable insurance products play a crucial role in mitigating the effects of negative financial shocks and in doing so reducing financial vulnerability.

To widen insurance coverage, FSD Africa has recently rolled out a similar accelerator programme in Ghana (InnoLab). The solutions being supported through the accelerator programmes will be expected to also speak to the needs of populations beyond their borders of origination.

Among the success stories from previous BimaLab Accelerator programmes include Bismart, a Kenyan insurance agency that has partnered with Britam to launch a short-term school fees insurance cover called Elimu Smart. The cover protects school-going children from dropping out of school in the event their parent or guardian becomes critically ill or dies, safeguarding the future of the children even in cases of incidents.

Commenting on the launch of the BimaLab Accelerator Programme: Kelvin Massingham, Director – Risk and Resilience, FSD Africa said: “We believe that this programme will enhance the development of a vibrant ecosystem of start-ups; through collaboration with corporate partners, investors and research institutions to accelerate and scale innovation in the insurance industry in Nigeria. We have successfully implemented the programme in Kenya, and are commencing the same in Ghana.”

Commissioner For Insurance/CEO National Insurance Commission (NAICOM), Thomas Olorundare Sunday said :“As a key driver of change in the financial sector, innovation has led to immeasurable efficiency and gains. Even though these changes can sometimes be accompanied by uncertainty and hesitation, there is evidence of great success. I have no doubt that with such collaborations, Nigeria is set to be a successful case study on insurance innovation across the continent.”

UK’s Deputy High Commissioner,  Ben Llewellyn-Jones in Lagos said: “As a result of Covid-19’s negative impact and the resulting need for improved resilience against economic shocks, innovative insurance becomes increasingly important in addressing emerging vulnerabilities among businesses and households.

The UK government has long been enthusiastic about leveraging technology and innovation as major vehicles for making impact and supporting the Nigerian government so the partnership between UK Aid funded FSD Africa and the National Insurance Commission (NAICOM) is crucial in fostering the development of an Insurtech ecosystem that focuses on growth, inclusion, and strategic alliances.”

Applications for BimaLab Nigeria are now open on https://bimalab-nigeria.azurewebsites.net/. The deadline for submission is 23 February 2022.

About FSD Africa

FSD Africa is a specialist development agency working to reduce poverty by strengthening financial markets across sub-Saharan Africa. Based in Nairobi, FSD Africa’s team of financial sector experts work alongside governments, business leaders, regulators, and policymakers to design and build ambitious programmes that make financial markets work better for everyone. Established in 2012, FSD Africa is incorporated as a non-profit company limited by guarantee in Kenya. It is funded by UK aid from the UK government.

About the National Insurance Commission, Nigeria

The National Insurance Commission (NAICOM) was established in 1997 by the National Insurance Commission Act 1997 with responsibility for ensuring the effective administration, supervision, regulation and control of insurance business in Nigeria and protection of insurance policyholders, beneficiaries and third parties to insurance contracts.

Patoma Admin by — February 10, 2022 in Insurance 0
Google to train 5000 SMEs in Nigeria, South Africa, Kenya

By Favour Nnabugwu

 

No fewer than 5000 Small and Medium Enterprises, SMEs, in Nigeria, South Africa and Kenya will receive free training from Google to help their businesses thrive through it’s newly launched programme, Hustle Academy.

Google Hustle Academy is a bootcamp-style training program designed to help entrepreneurs and small businesses owners position their businesses for investment opportunities and building viable business models for the future.

Disclosing this today, Google Head of Brand and Reputation, Sub-Saharan Africa Mojolaoluwa Aderemi-Makinde, said: “SMEs are the engine that drives growth for any economy. In Africa, SMEs account for around 80 percent of jobs and are a significant source of economic growth.
“In order to grow the economy and increase employment, it is crucial that small businesses have access to the right tools, training and funding to scale up.

“The Hustle Academy’s mission is to assist entrepreneurs navigate the business challenges they face by providing them with the appropriate tools and knowledge.

“Our hope is that through the Hustle Academy training this year, we will be able to assist 5,000 SMEs and entrepreneurs across Africa take their business to the next level and find ways to scale our efforts to help even more businesses going forward,” added Aderemi-Makinde.

According to Google, the participants wil get one-on-one mentorship, access to industry leaders and keynote events.

It said: “Business owners will undergo five days of hands-on training and receive 3000 hours of training on fundamental aspects of business to help them navigate the challenges faced by SMEs in Africa.

“The training curriculum includes strategic growth sessions including business growth strategy, building digital marketing roadmaps, discovering and evaluating funding routes and how to pitch for success among other topics.

“The program is open to businesses that have been in operation for more than a year, have developed a business strategy and defined their product or service offering, and are aiming to grow.

“They must also have made a profit in the previous 12 months or be within 1-3 months of breaking even,” Google emphasized, while advising interested and qualified businesses to apply.

Commenting on the development, Executive Secretary, Lagos State Employment Trust Fund, Teju Abisoye, said: “The Google Hustle Academy Program is a laudable initiative that will help improve business prospects and also create the impact we desire at the Lagos State Employment Trust Fund.
“I recommend this program to business owners and SMEs, to improve results and growth in Lagos business ecosystem.”

Patoma Admin by — February 9, 2022 in Industry, Trade & Investment 0
NIA Chairman, Ganiyu Musa’s Speech on achievements, projects for 2021, 2022

ADDRESS BY NIA CHAIRMAN, MR. GANIYU MUSA AT THE PRESS BRIEFING
WITH INSURANCE CORRESPONDENTS ON TUESDAY, 8 FEBRUARY 2022.

Gentlemen of the Press,Good morning once again and welcome to this maiden Press briefing for year 2022.

This is an opportunity to bring you up to speed with developments around the insurance space especially as it relates to the activities of the Association. It is also an opportunity for us to look at the economic landscape and voice our expectations in the new year.I thank you for your support to the Association especially during this period of my chairmanship; I am happy to note the very warm and cordial relationship which we do not take for granted and I want to encourage us to continue to support the Association in all its programmes and activities.Some of the initiatives being undertaken by the Association are:

1. CONSOLIDATED INSURANCE BILL 2020 & FINANCE ACT 2021

The Consolidated Insurance Bill 2020 is still receiving legislative attention in the National Assembly and the Association is on top of developments on it. We are optimistic that the Bill will be passed into law before long.We are happy to note that the Finance Act 2021 has been signed into law and this has resolved a major issue with regards to the definition of the components of minimum capital. The Association is engaging the National Insurance Commission with a view to determining the next steps

2.. NAICOM PORTAL

We are happy to note that our members have increased upload on NAICOM Portal. We have encouraged those who have challenges to escalate them so that a solution can be provided.

3. MARKET DEVELOPMENT

The Association will continue to complement the efforts of NAICOM in their campaign on domestication of compulsory insurances in the States It is our expectation that laws on compulsory insurance can be domesticated in other States just as Lagos State has done.

1. Beyond the efforts of the Commission, the Association has also upscaled its market development initiatives through strategic engagements with the various states. Some of them include:

A. LAGOS STATE MINISTRY OF TRANSPORT – LAGOS STATE VEHICLE INSPECTION SERVICE (VIS)

The Association is working with Lagos State government in the enforcement and validation of genuine compulsory third Party insurance made mandatory by Law through Automatic Number Plate Recognition (ANPR) device of VIS through Nigerian Insurance Industry Database (NIID) Verification Platform

.B. MINISTRY OF PHYSICAL PLANNING AND URBAN DEVELOPMENT – LAGOS STATE BUILDING CONTROL AGENCY (LASBCA)

The Association is in discussion with LASBCA with a view to using the Nigerian Insurance Industry Database (NIID) Verification Platform for enforcement,verification, and validation of genuine compulsory Buildings Under Construction Insurances made mandatory by Law through Insurance Act 2003 (SECTION 64),and Lagos State Urban and Regional Planning and Development (Amendment)Law 2019 (Lagos State Urban and Regional Planning and Development Law,CAP U2 Lagos State Building Control Agency Regulations, 2019)

C. LAGOS STATE SAFETY COMMISSION (LSC)

The Association is collaborating with LSC, NCRIB and Courteville on the Implementation, enforcement and validation of genuine compulsory Occupiers Liability Insurance made mandatory by Law for all public buildings through Nigerian Insurance Industry Database (NIID) Verification Platform.The exercise will be launched on 28 April 2022 and Enforcement will commence in May 2022. We are building capacity of its members to enhance compliance inline with the emerging regulations.

4. NATIONAL INSURANCE CONFERENCE 2022

The Association will host this year’s IICC International Insurance Conference inAbuja from 3 – 5 July 2022.

The Deputy Chairperson of the Association, Mrs. Ebelechukwu Nwachukwu is Chairperson of the Organising Committee. We solicit the cooperation of the Press to give it the required publicity.5. UNVEILING ON NEW NIA HOUSE The New NIA House is nearing completion and Building Committee chaired by Mrs. Ebelechukwu Nwachukwu has been saddled with the responsibility of organising the unveiling of the New NIA House. We also plan to use the occasion. 2.
to mark the Association’s 50th Anniversary Celebrations. We will apprise you with details as we plan along.6. #ENDSARS RIOTS AND CLAIMS PAYMENT I am indeed happy to report that Insurance companies have paid over N11billion claims to insureds that suffered losses from the Endsars riots in 2020. The Association will continue to emphasize the need for insurance companies to pay all genuine insurance claims and will not hesitate to sanction erring membercompanies.During the last year, the Gross Premium Written stood at about N508billion while claims paid by member companies amounted to about N224billion which is 44%of the total industry premium.

7. NIGERIAN SHIPPERS’ COUNCIL CONTAINER INSURANCE PROJECT (PACKAGE POLICY)

Discussion is ongoing between the Association, NAICOM, Nigerian Shippers Council, Project IT Vendor-Brand One and all other stakeholders in the maritime value chain including Shippers/ Importer, Clearing Agents, Track Owners, Guild of Marine Surveyors, PRAN and Tracking Companies on provision of cover for containers. This will be a risk management substitute for container deposits being made by the importer to the shipping companies thereby eliminating capital flight from the country.

8. NEXIM BANK EXPORT INSURANCE PROJECT

The Association with the help of her team of actuaries is presently discussingwith NEXIM Bank, MNK Re Limited (Broker at LLOYD’S), PRAN, and the Guildof Marine Surveyors view to developing cover for Export Credit GuaranteeInsurance and Political Risks

Patoma Admin by — February 8, 2022 in Insurance 0
Insurance companies settle 44% of premium income as claims in 2020 – NIA

CAPTION
L- Mr. Lanre Ojuola, Director of Operations, Nigerian Insurers Association (NIA); Mr. Ganiyu Musa, Chairman, NIA, and Mrs. Yetunde Ilori, Director-General of the association, during the body’s Chairman press briefing in Lagos on Tuesday.

By Favour Nnabugwu

The Nigerian Insurers Association (NIA) said the country’s insurance industry paid 44 percent of the sector’s gross premium income of N508billion in the year 2020
The Chairman of the Association who doubles as the Group Managing Director of Cornerstone Insurance Plc, Mr. Ganiyu Musa, disclosed this at media briefing to highlight the industry achievements in 2020 and expectation to 2022.
Musa emphasised that the Association will continue to emphasize the need for insurance companies to pay all  genuine   insurance   claims   and   will   not   hesitate   to   sanction   erring   member companies.
“During the last year, the Gross Premium Written stood at about N508billion while claims paid by member companies amounted to about N224billion which is 44 percent of the total industry premium”
On #Endsars he said the Industry paid over N11billion in claims to customers who suffered losses during the public protests against police brutality in October last year.
The NIA Chairman revealed that the claims payment is still counting because there are still unsettled pending claims, adding that the industry claims payment might get to the tune of N20bilion.
It will be recall that insurance companies settled claims on 718 cases of vandalisation; 93 cases of looting; 113 cases of theft; and 136 cases of loss of cash.
While it was also revealed that 99 claims were settled on malicious damage; eight on business interruptions; 455 on burglary attacks; and 912 on fire and burnt sites.
He said that the Association had encourage it’s members to upload their details into Naicom portal, “We  are happy  to   note  that  our  members  have  increased upload on  NAICOM Portal. We have encouraged those who have challenges to escalate them so that a solution can be provided”
Patoma Admin by — February 8, 2022 in Insurance 0
CHI settles accident claims to NAIPCO member

By Favour Nnabugwu

 

Consolidated  Hallmark Insurance (CHI) Plc has paid accident claims to a member of the National Association of Insurance and Pension Correspondents(NAIPCO), who was involved in an accident last year.

The said member was crossing the road when a motorcycle riding against traffic hit her from behind which led to her being hospitalised.

The insurance firm, had, in October, renewed the Group Personal Accident Insurance cover worth N24 million Sum Assured given for free to insurance journalists in the country.

However, covered under the free group personal  accident cover issued to NAIPCO, CHI stepped in to pay the hospital bills of the member while the victim  has been discharged from the hospital and she now in good health.

This gesture, according to the company, is part of its Corporate Social Responsibility (CSR) project, to ensure that journalists who are exposed to danger and hazard in the discharge of their civic duties are adequately protected.

Reacting to this development, the group managing director/CEO, CHI, Mr. Eddie Efekoha, said, this gesture is to show the kind of values and respect his insurance firm has for journalism, believing, journalists, who are the shaper of the society, and by extension, the insurance industry, must be protected.

Journalism, he said, is a risky profession, hence, the need to adequately provide insurance for those covering the insurance industry.

Applauding the initiative, NaIPCO chairman, Mr. Chuks Udo Okonta,  thanked the insurance firm on the claims it paid, stating that, this is a testimony that insurance works and that insurers are actually paying genuine claims.

He applauded the insurer for its prompt response to the claim request, pointing out that, the company was cooperative through out the claim processing.

Okonta also noted that similar claim was paid to a member who was involved in an accident in the past.

The Group Personal Accident Insurance covers death, permanent disability and medical expenses.

The policy, now in its 10th years, has been running since 2012, and is renewed annually by the company. The cover, was renewed on the 1st of October, 2021 and it is due to expire on 30th of September, 2022.

The policy cover all members of the National Association of Insurance and Pension Correspondents(NAIPCO) across the country while the company has promised to continue to renew the coverage for the journalists every year.

Patoma Admin by — February 8, 2022 in Insurance 0
Custodian Investment grows revenue by 14% in 2021

By Favour Nnabugwu

 

Custodian Investment Plc, a diversified non-bank financial institution, has reported that its gross revenue increased by 14 percent to N85.5 billion in 2021 despite operating in a challenging environment.

The company, which disclosed this in its unaudited result for the year ended 31st December 2021, added that after adjusting for non-recurring one-time gain from prior year’s result, profits from continuing ordinary operations recorded 18 percent growth.

The result also showed that the Custodian Group’s shareholders’ fund grew by 14 percent from N47.6 billion to N54.3 billion after paying dividends totalling N3.24 billion or 55k per share during the year.

Speaking on the result, the company’s Group Managing Director, Mr. Wole Oshin, said the result can be attributed to the resilience of the Group, the diversity of its product offerings, commitment of its staff and the unwavering support of its Board of Directors.

Oshin expressed optimism for a brighter future for the Custodian Group, which has investments in life and non-life insurance, pension fund administration, trusteeship and real estate businesses.

He expects the incremental contribution that will flow in from the Group’s real estate business segment, which is being restructured, to boost the fortunes of the company.

While recognising their contribution, Oshin appreciated the steadfastness of its clients, agents, brokers and all other stakeholders in the insurance, pension, and investment value-chain to the Custodian Group.

Patoma Admin by — February 8, 2022 in Insurance 0