All Posts in "Month: November 2022"

IICC holds Compulsory Insurance training in Edo State

By Favour Nnabugwu

 

 

The Insurance Industry Consultative Council (IICC) will hold a training on Compulsory Insurances on Thursday in Benin, Edo State

The training which is one of the initiatives of the IICC aimed at actively encouraging Insurance education and penetration, will see participants receive training and sensitization on the categories of compulsory insurances and the enforcement laws governing them.

In a statement made available by Helen Chiamaka Ajeamo, Manager, Communications and Corporate Affairs, the programme will deeply inform participants on the principles of insurance, liability/compulsory insurance, assessment and rating of compulsory insurance and insurance claims administration.

The Chairman of the Insurance Industry Consultative Council, Mr. Edwin Igbiti, In the statement said that the Council is focused on promoting the growth of the Insurance Industry and this is one of the platforms the IICC is leveraging on to achieve this goal.

Igbiti who also the President of the Chartered Insurance Institute of Nigeria, CIIN, said, This training further serves to reiterate the commitment of the IICC to achieving its objectives of Insurance awareness and adoption in Nigeria. With Insurance, you have the ultimate keys to live and work with freedom. A lot of Insurance products and offerings are not being patronised and enforced because of inadequate understanding of insurance Laws, we are passing across invaluable knowledge to the participants at the seminar that will aid the dissemination of their duties.

“The training on compulsory insurance has become a fixture in the Calendar of the Insurance Industry. Last year, it was held in Kano and this time, it is going to be held in Benin, Edo State. We will continue to rotate the regions where the trainings will hold in a bid to ensure that the message reaches every nook and cranny of the country,” he added.

Government parastatals in Edo State and the  Private sector are invited for the programme, according to the statement.

The Insurance Industry Consultative Council was formed in 2013 to act as the unifying voice of the Insurance Industry in Nigeria and to represent it on national issues while taking up and assuming roles that would serve the best interest of the Insurance Industry in Nigeria.

The Council is made up member bodies which include; The National Insurance Commission (NAICOM), Chartered Insurance Institute of Nigeria (CIIN), Nigerian Insurers Association (NIA), Nigerian Council of Registered Insurance Brokers (NCRIB) and the Institute of Loss Adjusters of Nigeria (ILAN).

 

Patoma Admin by — November 8, 2022 in Insurance 0
Federal Inland Revenues Services collects N7.5trn taxes in 2022

FIRS collects N7.5trn taxes

 

By Favour Nnabugwu

Chairman, Federal Inland Revenue Service, FIRS, Muhammad Nami says it has collected N7.5 trillion taxes in 2022 and also surpassed the Tertiary Education Tax, EDT fund target for the year with N4 billion.

Nami stated this during its 2022 Tertiary Education Fund, TETFUND/FIRS
joint interactive forum in Kano.

The FIRS boss who was represented by the Kano State Coordinator, Hassan Sule
said the Tertiary Education Tax, EDT target for 2022 was N305 billion but as at September 2022, it has collected N309 billion.

According to him, “It is noteworthy that despite the economic headwinds, particularly from the negative consequences of Covid-19, rising insecurity and the spill-over effects of the Russia-Ukraine war on the global economy, FIRS has continued to make progress in revenue mobilization for the three tiers of government, suffice to say that the FIRS is now funding a significant portion of the Federal Account Allocation Committee, FAAC in the last 2 years.

“Between January to September 2022, FIRS has collected N7.5 trillion which is a significant improvement on the total collection of N6.4 trillion for the entire 2021. Non-oil taxes accounted for N4.3
trillion while petroleum profits tax accounted for N3.1 trillion. It is clear that the reforms undertaken since 2020 have started yielding the desired results.

“Tertiary Education Tax also improved significantly since the beginning of 2022. We have collected N309 billion as of September 2022, which is above the total N305 billion budgeted for the full
year.

“I assure you that we will continue to ensure that no revenue gap is left uncovered in our quest to improve tax administration with particular emphasis on full deployment of technology across our service lines and internal operations,” Nami said.

The FIRS boss also reaffirmed the position of the service noting that
it is not relenting it effort towards achieving the N500 billion Education Tax fund annually target by the TETFUND.

Also, TETFUND Executive Secretary, Arc. Sonny Echono said the fund placed a very high premium on attaining and surpassing the target of N500 billion earlier set.

Echono represented by his Director, Human Resources and General
Administration, Bar. Adamu Abubakar applauded the FIRS for surpassing
the 2022 target noting that due to low EDT in 2021, it scaled down project implementation for the year in our beneficiary institutions in 2022.

“In year 2021, the fund received an EDT collection of N189 billion, which was considerably lower than the previous year’s collection. This posed a serious challenge to the intervention activities of the fund for the year 2022. We had to seriously scale down project implementation for the year in our beneficiary institutions and our
internal operations as well,” he said.

Meanwhile, the fund has a mandate of general improvement of education
in federal and state tertiary educations specifically for the provision or
maintenance of essential Physical Infrastructure for teaching and
learning, Instructional material and equipment, Research and Publications and Academic Staff Training and Development among others.

 

Patoma Admin by — November 8, 2022 in News 0
Industry operators yearn for redesign of Micro insurance & Pension plans 

CAPTION:

L- Director General/Chief Executive Officer, Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, President of the Chartered Insurance Institute of Nigeria, CIIN, Mr. Edwin Igbiti presenting plague to Mr Cyril Ajagu, Chairman of Africa Allianc at the event

 

By Favour Nnabugwu

 

 

Insurance and Pension practitioner have called for the redesign of the micro insurance and pension plans to accommodate both the Nano enterprise and Small and Medium Enterprises (SMEs).

Micro Pension Plan refers to an arrangement under the Contributory Pension Scheme (CPS) that allows the self-employed and persons working in organisations with less than three (3) employees to make financial contributions towards the provision of pension at their retirement or incapacitation.

Industry operators who spoke at the 7th edition of NAIPCO conference in Lagos, said that operators must recognize the segmentation of the informal sector and begin to offer products to suit their needs . This they said must be done in order to improve the adoption level of the plan.

This is even as the experts fear that this will further trigger old age poverty as huge percentage of SMEs are yet to onboard into the plan.

Speaking on the theme, ‘On-Boarding Small and Medium Scale Enterprises into Micro Insurance and Pension Space in Nigeria, Managing Director, Heirs Life Insurance Limited, Mr. Niyi Onifade, noted that MSMEs and SMEs have several risks that insurance operators must look into to provide a cover in order  to  limit old age risk.

According to him, insurers must begin to understand that SMEs are not just the artisans, vulcanisers on the road, but has expanded  to the technology guys, photographs including the well educated who control different kinds of businesses. 

He urged operators to improve on the awareness level to further deepen adoption of the plan.

“We must also have appropriate products services that meet the needs of the SMEs  because the needs are different. What you offer to the mechanic cannot be the same as what you offer to the professional photographer.The  requirements are different and we have to come up with specific products for each and every class.”

On her part, Chief Executive officer, Enterprise Risk , Mrs Funmi Omo said: “For us as insurance practitioners, there are a lot we should do. We have to start by engaging people at the level of which they are.

“Since we have a lot of educated and non educated people in the informal sector then we have to be diverse in our engagement.”

According to her, this can be achieved through adoption of technology adding, “using digital means is crucial because it ensures efficiency.”

On his part, Chief Executive Officer, Pension Fund Operators Association of Nigeria, (PenOp) Mr. Oguche Agudah lamented the low adoption of the plan while describing it as a national emergency scheme which will be used to save the future of the country.

According to him, operators must begin to look at how to make the scheme suitable, available and how to  incentivize them.

Patoma Admin by — November 7, 2022 in Insurance 0
Nigerian insurance industry performs above Egypt, Tanzania & Malaysia in 2021

* As Naicom reel out five year industry perfomance

 

By Favour Nnabugwu

 

 

The National Insurance Commission, Naicom reeled out five year performance of the insurance which reveals that the Nigeria is not doing badly compare to other emerging markets in Africa

Naicom at the one day seminar for Insurance Editors theme: “The Future of the Nigerian Insurance Sector in a Shifting Landscape’ revealed that the nation’s insurance sector’s remarkable experience is even better situated when pictured relative to other jurisdictions in a similar emerging insurance markets

The sector’s five year performance, from 2017 – 2022 showed the industry did well amidst challenges.

In 2021,  the annual rate of premium growth in Nigeria stood at 19.7 percent, it was 18.5 percent for Egypt, 12 percent in Tanzania and 7.6 percent in the emerging Insurance market of Malaysia

Even in 2020, when compared, he said the Nigerian insurance industry recorded a retention ratio of about 71.6 percent higher than the advanced climes of Australia (69.4 percent) and Turkey (70.9 percent) and indeed the developing market of Egypt (58.1 percent) among others

In a paper present tagged the Facts Behind The Figures of the performance of the Nigerian Insurance Industry from 2017 through to 2022 in the recent past especially, the last five-years by Professor Umaru Baba, Assistant Director, Statistics & Research dept of the Commission, said the market as measured by the industry gross premium income (GPI) has maintained a steady growth throughout the period of 2017 to the current

Umaru said the increasing growth of 65.5 percent for the period when it grew from about N372.4b in 2017 to N616.6b in 2021, Year on Year during the period, the rate of growth was put at 14.2 percent for 2017, 14.5 percent in 2018 and, 19.2 percent 1.2 percent and 19.7 percent for 2019. 2020 and 2021 respectively

Umaru identified the major drivers during the period of 2017 – 2021 were the special risk insurance of Marine & Aviation at about one hundred and seventy (169.6 percent) per cent, Miscellaneous Insurance at 98.4 percent and Life Insurances at 71.3 percent

In 2022, he stated that the GPI stood at N223.8bn in the first quarter, which was 6% growth on YoY and, N369.2bn in the second quarter, indicating a 65 percent QoQ growth and at about 20 percent YoY

In 2022, however, he revealed that Fire Insurance stood at 32.5 percent and Life business stood at 24.5 percent recorded with highest rates at the end of first half of the year (H1) period, YoY.

“Interestingly the market recorded expansion in 2020 during the pandemic when the real GDP actually contracted (-1.9 percent) as was the case with most economies around the world

“Apparently outpacing the real economic growth which grew at just about 3.5 percent during same period

Retention Capacity within five years

“In tandem with the GPI growth, it recorded a positive trajectory in business retention from N265.5bn to N441.2bn (66.2 percent) over the period of 2017 to 2021, as expressed by the infographic (i)

The retention growth was highest for the Marine & Aviation, growing at 169.7 percent over the period while General Accident Insurance retention lagged at about 24.6 percent over the same period. This signifies growing retention capacity by Insurers as the aggregate five-year retention ratio of the industry stood at 72.1 percent as the portfolios of Motor (93.1 percent) and Life business (91.8 percent) led the market, he added.

The market has proven resilience not only with regards premium generation but the capacity to retain businesses which signifies sound financial stability and carriage capacity

Claims Settlement

Umaru said the claims is a primary factor for the quest of Insurance business and a cardinal element in its business model. Normally, Policyholders go for these services with the intent of filing for claims if/when the risk crystallises

“The Insurance market has continued to grow in gross claims reported reflective of the increasing policyholder enlightenment, market confidence from both demand and supply sides, and indeed effects of regulatory measures meant to ensure for claims settlement.

Industry Claims from 2017-2022

Baba posited that the gross claims reported a fluctuation over the period to peak at a growth proportion of 36.2 percent over the years representing N336.8bn in 2021 from N186.4bn in 2017.

“The percentage net claims paid has, owing to Improved market discipline and the approach of customer focused regulation, remained very high around the border of 70 percent, he added

He cited that In the pandemic year of 2020, despite macroeconomic challenges, about 70 percent of all reported claims were settled by Insurers within the specified period, the industry also remained profitable with loss ratios within the average range numbers, with highest in 2018 at 59.2 percent,  while lower net claims ratios, ceteris paribus, are good indicator of the desirable situation for profitability good returns on investment in Insurance business

The industry recorded a consistent expansion over the period despite market cyclicals recorded in the capital market especially, during the global COVID-19 pandemic.

“Sustained Assets growth of the industry even during economic recessions, highest in 2020 (34.6 percent) indicates the immense investment flow and, due to recapitalisation measures taken during that period

For these the industry’s total Assets, almost doubled over the five-year period of 2017 to 2021, this depicting a positive interest of investors in the market at a time associated with macroeconomic volatilities.

“In 2022 as illustrated in figure (j), it recorded an expansion to about N2.3 trillion at the end of first half (H1) which is growing at 12.0 percent Year on Year

Professor Umaru stated that based the ongoing performance, the insurance sector should be the future redeemer of the Nigerian economy given its growth rate, pattern, resilience and yet untapped potentials

Umaru noted that data has shown that, the industry sustained a higher growth rate than most other sectors of the economy and, always higher than the real GDP growth.

said for the need to sustain and improve on the current trend, the market deepening drive which is already yielding results, must be unrelenting in the sector

“Sustaining the current rapid rate of Insurance market growth and ensuring for economic growth, safety, stability, inclusion and development in Nigeria”

Patoma Admin by — November 7, 2022 in Insurance 0
Faces @ 25th NIA Chairman, Segun Omosehin’s investiture in Lagos

Investiture of the 25th Chairman of the Nigerian Insurers Association, NIA, Mr. Olusegun Ayo Omosehin at Oriental Hotel, Lagos

.CAPTIONS

L- Tope Smart, past Chairman, Nigerian Insurers Association (NIA); Ganiyu Musa, immediate past Chairman, NIA; Wole Oshin, past Chairman, NIA; Olusegun Omosehin, new Chairman, NIA; Godwin Wiggle, past Chairman; Eddie Efekoha, past Chairman, and Modupe Omosehin, wife of the NIA Chairman, during the investiture of Mr. Omosehin as the 25th Chairman of the association, in Lagos on Thursday.

L- Edwin Igbiti, CIIN President; Olorundare Sunday Thomas, Commissioner for Insurance/CEO, NAICOM; Darlington Nwokocha, Chairman, House Committee on Insurance and Actuarial Matters; Lucky Orimisan Aiyedatiwa, Deputy Governor, Ondo State; Olusegun Omosehin, Chairman, Nigerian Insurers Association (NIA), his wife, Modupe; Prof. Pat Utomi, Chairman of occasion, and others, during the investiture of Mr. Omosehin as the 25th Chairman of the association, in Lagos on Thursday.

R- Commissioner for Insurance, Mr Olorundare Sunday Thomas, Mr Pat Utomi and another guest at the investiture

Patoma Admin by — November 7, 2022 in Insurance 0
Corporate Governance: Naicom to ban unapproved person in decision-making of companies

By Favour Nnabugwu

 

 

 

The National Insurance Commission, (NAICOM) has made it clear to insurance companies operating in the country that if by any means, companies incorporate a person not approved or known to the commission in decision making of a company will be ban from operating in insurance industry ever again

The Commissioner for Insurance, CFI who made this known at a seminar organised by Naicom for Insurance Correspondents in Lagos on the theme: “The Future of the Nigerian Insurance Sector in a Shifting Landscape,” said Naicom will not for whatever reason tolerate such in the insurance industry.

He said such actions is against corporate governance

Corporate Governance is a system specifying the division of duties, rights, and responsibilities among various participants in a corporation, such as the board of directors, the various committees within the board of directors, operating managers, and shareholders.

Anybody that is not known to the Commission and is participating in a critical role in any of the insurance companies will be banned from participating in the insurance sector henceforth. We will make sure that the person does not participate in the insurance business in this country anymore,” he stated.

We shall consciously pay due attention to issues of corporate governance practice in our industry. Enough of unguided practices by some unknown persons. Anybody not known to the Commission who is playing a strategic role in any insurance company will be dealt with. We will make sure that such persons does not participate in the insurance business in this country anymore. We shall not tolerate any form of abuse of corporate governance in insurance industry,”

The Commission said its current position is clear that where such influence exists, such person unapproved privilege positions to abuse corporate governance in companies .

CFI said if in the course of Inspection of companies, the Commission discovered a person not known to the regulatory body, is involved in critical decisions made by the company, will be banned from insurance industry in Nigeria.

“

The NAICOM boss said the Commission is encouraged to believe in a new dawn in all facets of regulatory policies, leveraging technological innovations, and a positive paradigm shift focused and poised to meet the anticipated surge in the demand side of the economy.”

We shall consciously pay due attention to issues of corporate governance practice in our industry. Enough of unguided practices by some unknown persons. Anybody not known to the Commission who is playing a strategic role in any insurance company will be dealt with.

“We will make sure that such persons does not participate in the insurance business in this country anymore. We shall not tolerate any form of abuse of corporate governance in insurance industry,”

Thomas stressed that the Commission is engaging stakeholders including state governments towards ensuring the domestication of the laws to ensure compliance with compulsory insurances and improve the business of insurance in their respective states.

Patoma Admin by — November 6, 2022 in Insurance 0
ThisDay Correspondent, Ebere Nwoji Wins NAICOM’s maiden award of excellence

By Favour Nnabugwu

 

 

 

The National Insurance Commission (NAICOM) has conferred on ThisDay Newspapers’ Correspondent, Mrs Ebere Nwoji, its maiden Award of Excellence in insurance sector for analysis and features writing in Nigeria.

NAICOM while announcing the award among Journalists from various print and electronic media organizations during the Commission’s annual training programme for Journalists held in Lagos, observed that Mrs Nwoji’s critical analysis of issues and trends in insurance sector remains remarkable and unparalleled.

Further, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Sunday Olorundare Thomas, noted that her feature articles have not only helped to educate the public on value and relevance of insurance also enlightened members of the public on policies, developments and challenges in the nation’s insurance sector. He also said Nwoji’s writings on insurance issues also assisted to deepen insurance penetration and kept the practitioners on their toes to embrace modifications in line with international best practices.

While applauding Mrs Nwoji for her painstaking efforts and dedication to ensure fairness and balance reporting through research as reflected in her writings, assured to institute the award as an annual event. In addition, Thomas urged all Journalists in Insurance Sector beat to emulate the exemplary disposition of the ThisDay Correspondent in educating the public on insurance matters.

Earlier, the Deputy Director .and head corporate communications and Market Development of NAICOM, Rasaaq ‘Salami, while announcing the maiden award winner, noted that through Mrs Nwoji’s consistency in well researched analytical writings, she educates the Nigerian masses on insurance by analysing sensitive and critical issues in the insurance sector .

According to him, “the Commission gives this award of excellence in insurance sector analysis and feature writing in recognition of her uncommon and extra effort in critically following and analysing developments in insurance sector.”

Mrs Nwoji received a sybolic plaque with an inscription: “Federal Republic of Nigeria. National Insurance Commission (NAICOM) with the compliment of Commissioner for Insurance” and cash award.

It would be recalled that prior to joining ThisDay, Mrs Nwoji started her Journalism career in Champion Newspapers Limited in 1997. She had also worked at the defunct Financial Standard and Daily Neswatch.

Mrs Nwoji who brings to bear her wealth of knowledge and experiences in discharge of her job, is a graduate of Mass Communication and holds Masters in Business Administration (MBA) with specialty in Marketing.

Patoma Admin by — November 5, 2022 in Insurance 0
Insurance, pension operators propelled for incentives to NMSMEs

By Favour Nnabugwu
Director General/Chief Executive Officer, Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona has advised insurance and pension operators to come with incentives to attract micro clients
Almona while delivering paper on the “Onboarding MSMEs into Micro Insurance and Pension Space in Nigeria,” at the 7th Annual Conference of the National Association of Insurance and Pension Editors (NAIPE) in Lagos, Thursday gave the advise.
“Although the Insurance and pension sectors have been doing a lot in driving the financial inclusion initiative of the Federal Government, there is need to incentivize and encourage those in the informal sector, the Nigerian Nano, Micro, Small and Medium and Enterprises NMSMEs operators to embrace micro insurance and join the micro pension plan,” Dr. Almona said.
While calling on Insurance underwriters and pension administrators to take advantage of numerous opportunities that abound in the NMSME sector, she said “NMSMEs presents huge opportunity for the micro insurance and pension industry due to the size of the workforce.”
Other opportunities include Large MSMEs employment/labour force, large willing adult population, expanding distribution channels, favourable regulatory environment, mature financial services sector and revolution in information technology and digital

Statistically, the LCCI DG said the total number of employment by MSMEs stood at 61.9 million representing 87.9% of the total labor force in the country, adding that the number of employment generated by the informal sector was 16 million while the formal sector generated 7.5 million in 2020.

On the need to step up awareness and enlightenment of the NMSMEs on the benefits of micro insurance and micro pension and application of technology Dr Almona said “investment in enlightenment campaigns and enabling technology are required.”

The benefits, according to her, include a safety net at retirement, alignment with the current social empowerment programmes, minimizes old-age poverty, Improves standard of living for the elderly

While calling on the National Insurance Commission (NAICOM) and the National Pension Commission (PenCom) to provide necessary regulatory framework that supports NMSMEs, said stated “With regulatory support, Nigeria is well placed to achieve meaningful micro-pension coverage rapidly as well as enhance insurance penetration.

Speaking on the micro insurance Industry, Dr Almona said the ratio of insurance assets to gross domestic product (GDP) has remained stagnant at 1%, noting that Microi-insurance in Nigeria is at a very early but growing phase.

On the Nigerian Micro Pension Industry, she said the percentage ratio of pension assets to GDP remains low, stating that the total pension contribution remitted by the public sector is slightly higher than that of the private sector which, according to her, further justifies the low penetration of pension in the private sector of the economy.

Also, the Head, South West Office of PenCom, Dr Tunde Alayande that the on-boarding SMEs into the Micro Pension scheme is one of the strategies in which the pension industry has been contributing to the financial inclusion initiative of the Federal Government.

He said the micro pension plan was designed for those in the informal sector including the SMEs

Dr Alayande said that PenCom In collaboration with the Pension Operators Association of Nigeria (PenOp), has come up with lots of initiatives for the SMEs for the benefit of the industry.

In his goodwill message on behalf of all members of the Nigerian Insurers Association (NIA), the Chairman , Sugun Omosehin commended NAIPE for the conference., noting that the conference the conference is not only significant to the insurance Insurance Industry but also to the entire financial services industry.

According to him, “the reason personally I am here today is that significant. NAIPE is not only projecting the image of the industry but in such a manner of making people get to understand what we do, what we represent and how he can impact our economy”

Earlier in her welcome address, the Chairman of NAIPE, Mrs Nkechi Naeche Esezobor said the theme of the conference Onboarding MSMEs into Micro Insurance and Pension Space in Nigeria,” was considered because of the importance of SMEs as driver and engine of growth of the Nigerian economy and the need to support it to continue to contribute to the growth of the economy.

She urged micro insurance and micro pension operators to see SMEs as their growth assets by ensuring that they are properly captured .
Patoma Admin by — November 5, 2022 in Insurance 0
Faces @ Naicom’s seminar for Insurance Correspondents in Lagos

National Insurance Commission, Naicom organised a seminar for Insurance Correspondents at Oriental Hotel in Lagos

CAPTION:

R- Deputy Commissioner, Technical, Abubakar Saliu, Commissioner for Insurance, Mr Olorundare Sunday Thomas, Mr Adamu Bailanti, Director, Research & Statistics and Mr Pius Aghola, Director Inspectorate

Commissioner For Insurance, Mr Olurundare Sunday Thomas delivering his KeyNote Sddress

Insurance Correspondents at the seminar

Deputy Director, Naicom’ Communication & Market Development, Mr Abdul Rasaaq Salami

Director, Supervision of Naicom, Mr Barineka Thompson

Assistant Director, Research & Statistics, Mr Umar Baba

Patoma Admin by — November 4, 2022 in Insurance 0