All Posts in "Insurance"

Caption

From left: Vice President, Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Tunde Oguntade; President, Mrs Bola Onigbogi; Managing Director, African Alliance Insurance Plc, Mrs. Joyce Ojemudia; Head of Finance, African Alliance Insurance Plc, Bode and the NCRIB Executive Secretary, Mr Fatai Adegbenro at the February Edition of NCRIB Members’ Evening

 

 

 

SPEECH DELIVERED BY THE PRESIDENT OF THE NIGERIAN COUNCIL OF REGISTERED INSURANCE BROKERS, DR (MRS.) BOLA ONIGBOGI, FCIB AT THE FEBRUARY 2021 EDITION OF NCRIB MEMBERS’ EVENING HELD ON TUESDAY, FEBRUARY 23, 2021 IN LAGOS.

• Distinguished members of the NCRIB Governing Board
• Top Management team of African Alliance Insurance Plc, ably led by the Managing Director/CEO, Mrs. Joyce Ojemudia,
• ,Our guest speaker, Mr. Obashola Alo, FCIB, Group Head, Insurance/Financial Risks, Dangote Industries Ltd
• Our guests here present,
• Gentlemen of the Press,
• Ladies and Gentlemen,

I am most delighted to welcome you all to the first edition of NCRIB Member’s Evening in 2021, holding here in Lagos. Permit me to use this opportunity to appreciate all members across the nation, especially, our living ancestors, distinguished Board Members and all other professional colleagues for your unflinching support for the current management team.

It is no more news that activities and events are taking different shapes and dimensions. Some of our members can now sit down at the corner of their various offices and houses and still be a part of Members’ Evening. This is one of the numerous opportunities that came with the advent of Coronavirus. I am convinced that this development has further enhanced participation of our members in our various events and activities, especially, members in the diaspora. Although, it would have been my utmost pleasure to have everyone physically present here, but we must adhere strictly to the Federal Government regulation to curtail further spread of the dreaded virus. It is on this note I like to encourage my distinguished professional colleagues, especially, those outside Lagos, to leverage on this opportunity and be a part of our activities. Your attendance and participation in our events are always a source of encouragement. May I implore all the Area Committee Chairmen to always encourage their members to attend and participate virtually in all programs organized at the national level.

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 identified two cardinal thrust of my leadership, which were Image Building and Strategic Engagement. I need not bother you on most of our landmark achievements within this period in spite of the challenge of Covid-19, 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 tips on how to package winning bids. This will be handled by Mr. Obashola Alo, Group Head, Insurance/Financial Risks, Dangote Industries Limited who incidentally is also a Fellow of our Council. Our choice of Mr. Alo is certainly hinged on his experience on the subject matters. I would like to encourage you all to take the full advantage of this educative and informative session.

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 officially congratulate Mrs. Joyce Ojemudia for her appointment as the Managing Director of a very progressive firm. I have no doubt in the ability of Mrs. Ojemudia to lead African Alliance to a lofty height of achievement. It will delight you to know that Mrs. Ojemudia in her personal capacity contributed towards the success of my investiture in 2019. She was also strong member of my Investiture Committee and she has again proved to us that she is Brokers-friendly. I have no doubt today that African Alliance Insurance Plc has etched its name in the golden book of record 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.

NATIONAL ISSUES:
STATE OF SECURITY IN NIGERIA

As a critical player in the national economy, the onus is on the NCRIB to express grave discomfort about the increasing spate of insecurity in the country, in spite of government’s efforts to improve the national economy generally. There is hardly a day that passes by without reported cases of kidnapping, killing, terrorism and other criminal cases that is fast making our country dreadful to live in. This has reached a preposterous dimension and is adversely affecting the pace of economic growth as genuine foreign investors are scared putting their monies into the economy. Since there is a correlation between insurance and economic growth, it is most auspicious for the NCRIB to join its voices to the need to call on government to put in more efforts to combat security challenges in the country. We are using this medium to call on federal government to overhaul its security apparatus while at the same time enhancing collaboration with governments and institutions both within and outside the country to put an end to this menace. It is expedient to eulogize the federal government on its decision to change all the service chiefs, we enjoin the newly appointed service chiefs to brace up to the challenge and ensure the challenge of insecurity is tackled head-on. We also like to reiterate that the role of education and prompt information in tackling insecurity cannot be undermined. At this juncture, the National Orientation Agency (NOA) should be rejiged and repositioned to conscientize Nigerians continually on the need for them to be their brothers’ keepers by breaking down belief systems, be they religious or cultural, militating against peaceful coexistence and sanctity of human lives. Also, we implore government to join the league of developed Countries of the world who have resorted to using Information Communications Technology (ICTs) to combat crime. It is not out of place for the federal, states and local governments to deploy the use of CCTV in all towns and cities in the country. This device would assist the law enforcement agencies to keep better tap on criminal activities throughout the country.

CONGRATULATING DR. (MRS) OKONJO-IWEALA ON HER APPOINTMENT AS DG, WTO

Success does not come easy, but through hard work and determination. In the world that is often regarded as Men’s World, it takes courage for a woman to vie for an exalted position such as Director General of World Trade Organisation (WTO). The competition for the position of Director General, WTO was indeed fierce, but our own Dr. Ngozi Okonjo-Iweala succeeded in landing the new job. It is on that note that on behalf of the entire membership of the Council, I like to congratulate her on the accomplishment. We have no doubt in her ability to perform sternly in the new job. Her accomplishment as two terms Nigeria Finance Minister speaks volume of her ability to daze the world’s powers and perform beyond expectation. It is hope that with her emergence as the Director General of the Organisation, she would deploy her brain and brawn to evolve with laudable strategies that will boost and develop international trade in the world which will aid smooth flow of mobile trade between Nigeria and other Countries of the world thereby deepening insurance business in Nigeria and showcasing the structured practice of insurance that exist in our nation.

ADMISSION OF NEW ASSOCIATES, FELLOWS
Earlier today, the Governing Board of our noble Council met to ratify and approve the admission of new Fellows to the prestigious society of Fellows of the Council.
Definitely, admission of new members into the society of fellows will further increase the number of members who had been admitted since the inception. The screening process has begun and hopefully, the Board of Fellows, the Committee responsible to access the eligibility of members who had submitted their application forms, would come out with their report.

Barring all unforeseen circumstances, about 56 Insurance Brokers be inducted as new associates of the Council tomorrow, Wednesday, February 24, 2021. In compliance with the Federal Government directives on Covid-19, the induction ceremony will hold at the Council’s event hall with adequate provision to observe social distancing and other measures.

CONCLUSION

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.

Patoma Admin by — February 25, 2021 in Insurance 0

The SCOR group closed the 2020 financial year with a turnover totaling 16.368 billion EUR (20.1 billion USD), a 0.16 percent increase compared to the 16.341 billion EUR (18.3 billion USD) recorded in 2019.

SCOR Global P&C reported a 0.18 percent increase in gross written premiums with a total of 7.16 billion EUR (8.794 billion USD). The group’s property and casualty class of business generated a net combined ratio of 100.2 percent in 2020.

The SCOR Global Life entity posted a 0.15% increase in turnover in 2020. Life premiums went from 9.194 billion EUR (10.296 billion USD) as at 31 December 2019 to 9.208 billion EUR (11.309 billion USD) a year later.

The French reinsurer’s net result dropped by 44.5% percent to 234 million EUR (287.409 million USD) against 422 million EUR (472.581 million USD) at the end of 2019. The return on equity (ROE) stands at 3.8%.

The results were significantly impacted by the pandemic which cost the Group an estimated 640 million EUR (786.076 million USD) in 2020. SCOR is proposing a dividend of 1.8 EUR (2.2 USD) per share to shareholders for the financial year 2020

Patoma Admin by — February 25, 2021 in Insurance 0
Can technology change culture of Nigerians toward insurance

Just 1 percent of working Nigerian adults have an insurance plan of any type. Car insurance is supposed to be a compulsory requirement for owning and driving cars in Nigeria, but it has been a tough sell. Unless you are a landlord, housing insurance probably never crosses your mind.

The most tantalizing health and life insurance packages face the assured “God forbid” rebuttal, with a sprinkling of “it’s not my portion” on top.

Insurance is future relief against unforeseen events. By paying a fixed regular amount every month or so, an individual buys an ability to start, not from scratch, but from the point of last use when something wrong happens. Insurance preserves value and removes the fear of starting over, which can be crippling at times.

So why has it been difficult to get Nigerians interested in insurance plans? Adia Sowho doesn’t think this is a complex question.

During her time at Etisalat Nigeria, she attempted to partner with insurance companies to offer insurance to the telco’s customers. Those conversations fell through for different reasons but the experience helped form her current view of the difficulty in the market.

“Insurance is a product that carries quite a bit of sophistication,” Sowho said on Digital Identity Matters, a recent live discussion on the intersection of identity technology and insurance organised by VerifyMe Nigeria.

This sophistication shows up in the value users place on their possessions. An ideal insurance buyer would be seriously disturbed by the possibility of loss that they would do anything possible to minimise the future impact of such a loss.

However, the majority of Nigerians are just “not at that level of sophistication in our thinking just yet,” Sowho says.

Bayo Adesanya, the chief digital officer at AXA Mansard, a Nigerian insurance provider, agrees with Sowho’s framing of the problem. He is convinced that growth in insurance will be driven by retail adoption by an emerging type of consumer who has high expectations for convenience and familiarity.

“That segment will not buy a lot of the products that are on offer today because those products were not designed for them,” Adesanya says.

To correct this, he believes insurance products should be tailored to meet potential customers at points of contact that they are already used to.

That would mean integrating USSD functionalities for people who use feature phones, in place of paper-based enrollment and access systems. There is also room for practitioners to learn from traditional rotational savings and credit associations (ROSCAs), like the ajo system.

It’s a train of thought that appeals to Esigie Aguele, co-founder and CEO of VerifyMe. Changing present habits around insurance is a move to influence the culture and there’s no way to do so effectively without adapting formal insurance terminologies (like “premiums”) in ways that will be familiar to people who already have various forms of alternative insurance.

However, Aguele believes there is a great opportunity for accelerating adoption by using digital identity technology of the sort VerifyMe provides.

Founded in 2013 and evolved to a Know Your Customer tech company in 2017, VerifyMe provides digital verification services that comply with the Central Bank of Nigeria’s tier-3 standards for verification as well as requirements for anti-money laundering tracking.

At the moment, VerifyMe does tens of thousands of address verifications in a month, including for about 16 banks in Nigeria. Aguele says this ‘verification engine’ has shown an optimum capacity for verifying insurance customers’ assets in every local government area in Nigeria.

“The technology is there, the APIs are there today. But with the market we have, there’s a lot of need for regulation and enforcement so we can grow that market, while we work on the economic issues that will change cultural perceptions.”

Aguele’s optimism for insurance in Nigeria borrows from the state of the market in South Africa, which is worth $50bn and contributes 17 pecent  to GDP. In his view, Nigeria – which has 3 times South Africa’s population, should be doing much better than the paltry sub-one-percent contribution to GDP.

Sowho is skeptical about the view that insurance will grow in Nigeria by a reliance on more regulation. Also, it will not be possible to try to innovate by circumventing existing regulations.

But she is confident that a reimagined approach that starts small and moves gradually up the user case scale will move the needle quicker. Of course, enabled by digital identity systems for crucial insurance components like address verification.

Patoma Admin by — February 25, 2021 in Insurance 0

By admin

AIG recorded 15 percent commercial rate increases in the fourth quarter of last year and believes market hardening will continue through 2021.

Announcing fourth-quarter and full-year 2020 results, Peter Zaffino, AIG’s president and chief operating officer, said the insurer’s general insurance business continued to see “considerable” rate increases and tighter terms and conditions in the fourth quarter.

He added that commercial saw “strong” rates momentum of about 15 percent and improvement across all lines expect workers compensation, according to results service  Seeking Alpha.

International commercial rates were up 14 percent in Q4 and accelerated in the second half of last year, explained Mr Zaffino, who will be taking over as AIG’s CEO from Brian Duperreault on 1 March.

North America commercial rate increases were 21 percent in the fourth quarter, compared to 14 percent in the prior-year period, explained Mr Zaffino. He said this improvement was driven by excess casualty that saw rates increase of 45% and financial lines that were up over 25 percent, led by a 35 percent rise in D&O. North American retail property and Lexington wholesale property both saw rates increase by about 30 percent and Lexington casualty business was up 25 percent

Mr Zaffino expects the commercial market hardening to continue in 2021.

“We expect to see these rate increases be above loss costs. We expect that these rate increases will be balanced across our global portfolio and across multiple lines of business,” he said.

He added that AIG is going to be “very disciplined” about where it deploys its capacity for P&C risks and ensure it gets the “right price for the exposure”.

AIG’s CFO Mark Lyons agreed that there are no signs of price increases decelerating. He added that price rises started a little bit later for international business, so its market trajectory is slightly different to North America.

Patoma Admin by — February 24, 2021 in Insurance 0
Cyber crimes hit Nigeria, Morocco as countries scamper for cyber insurance

By Favour Nnabugwu

Cybercrime, the phenomenon that does not believe in geographical boundaries, threatens every country in the world.

Today it poses a major threat to the stability of all states, as it feeds on the fruits of the exponential evolution of information and communications technology, such as the Internet.

The Internet has become an essential means of economic development and social transformation.

This is the case in Nigeria and Morocco as in most countries that have opted for economic openness and transformation towards an information and communications society.

The use of work tools (computers, laptops, tablets) for personal use is seen as a major risk to the security of information systems. Teleworking and the use of the Cloud are also considered to be among the factors exacerbating the risk

Nigeria is said to have lost $649 million to cyber attack. According to Hiscox, cyber attacks cost organisations about $200,000 on the average. The NotPetya attack for example cost pharmaceutical giant, Merck $870,000,000 and Danish shipping company, Maersk $300,000,000. The above underscores the Impact of cyberattack to an organisation or a country as a whole.

Only insurance can ameliorate the lost to cyber crimes. A cyber insurance policy, “also referred to as cyber risk insurance or cyber liability insurance coverage (CLIC), is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event.”

Cyber insurance is fast becoming an integral part of survival for organisations. According to PwC, the cost of premium is predicted to be $7.5 billion by 2020.

Cyber insurance policy characteristically covers expenses related to first and third parties claim. The cover include cost of the breach, infringement of data protection and privacy laws, and cost of recovery. When there is a claim, the insurance company is expected to indemnify the assured the cost of forensic investigation; computer and data restoration costs; business interruption; public relations cost; notification of victims of the breach cost; electronic theft and fraud protection; and cyber extortion. In the event that a third party suffers from the loss occasioned on the assured, the insurance company will be expected to indemnify the third parties in accordance with the terms of the insurance policy.

Threatened by the phenomenon of cybercrime, Morocco is also aware of the duality of the need for digital transformation and cyber risk.

Morocco has updated the wording of its laws, especially the penal code, and has implemented new decrees and laws regarding digital regulation such as Law 53-05 regarding electronic exchange of legal data and Law 09-08 regarding automated processing of personal data.

The fight against cybercrime requires certification of human skills in analysing and understanding advanced coding, programming and information technology development techniques. .

The fight against cybercrime also certainly involves raising awareness among Internet users and providing continuing education to information systems security managers.

Patoma Admin by — February 24, 2021 in Insurance 0

By Favour Nnabugwu

Third-party liability motor insurance sales through the Unstructured Supplementary Service Data (USSD), channel, otherwise known as mobile insurance, are being undermined by rate cutting.

This is due to the fact that some insurance companies still sell third-party motor policies below the standard price of NGN5,000 ($13.12).

The USSD is a simple self-service solution that enables car owners/users to purchase authentic third party motor insurance via their mobile phones.

The platform guarantees customer convenience, easy and secure access, real-time interaction and speedy service.

Consequently, most customers would rather buy at the reduced rate than through the USSD channel.

The Nigerian Insurers Association (NIA) took a bold steps in the fight against fake motor insurance policy in Nigeria as it launched the Unstructured Supplementary Service Data (USSD) code *565*11# that would enable motorists verify the authenticity of their insurance policies.

The former Chairman of the NIA, Mr Tope Smart, at the launch in Lagos, said the device was designed to bring insurance closer to the people and ultimately eliminate fake insurance certificates in the market.

He noted that in 2010, the association took a major step towards eliminating fake insurance certificates in the market, as it initiated the Nigerian Insurance Industry Database (NIID), stressing that the database went live in 2011 and insurance policies obtained by motorists could be checked real time online on the internet and through dedicated hand held devices

He said the objective of the NIID is to serve as an authentic database of the Nigerian insurance industry, providing qualitative statistics/analysis of the industry data, as well as a vehicle for easy verification of genuine insurance certificates by all stakeholders and to reduce incidences of fraudulent insurance transactions, especially for motor and marine policies.

Smart posited that the industry has continued to reap the benefits of the scheme, adding that prior to the establishment of the platform, cloning and faking of insurance certificates was a thriving business, but the establishment of the database has assisted the industry in reducing the incidents of fake insurance certificates in the market and that presently, there are over three million vehicle details on the platform.

“The NIID platform had been operational nationwide, but with challenges in verification in areas with poor internet coverage.

Verification of motor certificates through the dedicated devices became highly impaired due to the vicissitudes of internet operations in the hinterlands. This led to the introduction of the USSD technology.

“The USSD is a Global System for Mobile Communication (GSM) technology used to send text between a mobile phone and an application programme in the network. It works independent of internet connectivity. In this instance, any mobile phone (not necessarily a smartphone) would communicate with the NIID system to retrieve policy status whenever required.
“It is hoped that with the USSD, we would have fully overcome the problems associated with the dedicated devices as it guarantees uninterrupted service throughout the country and on all networks. Our existing and prospective customers now have the opportunity to confirm the genuineness of their respective policies at the time of purchase to avoid any embarrassment should claim occur,” he said.

The Acting Managing Director, Nigeria Inter-Bank Settlement System, Niyi Ajao, said the device will assist motorists in acquiring genuine policies and getting claims whenever there is problem with their insured vehicles.

He said the device operates on platforms of the major mobile telecommunications providers in the country, stressing that it is a win-win for insurance operators and motorists.

Managing Director, Courteville Business Solutions Plc, Dr. Adebola Akindele, said there is huge insurance potentials in the country and urged insurers to take the campaign on the device to states where there are presently less enforcement and millennials who are mostly consumers of technological devices.

He told insurers to redouble efforts in ensuring that the number of insured vehicles surpass what it is presently.

Patoma Admin by — February 22, 2021 in Insurance 0
India Life Insurance record 12.75% rise in turn over March 2020

By admin

The Indian life insurance market recorded a 12.75 percent turnover increase during the fiscal year 2019-2020, ending 31 March 2020.

The premiums went from 5 080 billion INR (73.01 billion USD) at 31 March 2019 to 5 730 billion INR (76.15 billion USD) one year later.

Life Insurance Corporation of India (LIC), the only state-owned company in the market, accounted for 66.22 percent of life premium income in the year 2019-2020. The remaining 33.78 percent were achieved by the 23 other private life insurers. This percentage is roughly equal to that of the previous year set at 33.58 percent

During the period under review, the net profit reported by all Indian life insurance companies amounted to 77.28 billion INR (1.02 billion USD), a decrease of 8.4 percent compared to the 84.36 billion INR (1.21 billion USD) recorded one year earlier.

The private sector posted results degrading by 12.7 percent set at 50.16 billion INR (666.69 million USD). The net profit generated by LIC during the year 2019-2020 amounted to 27.13 billion INR (360.59 million USD

Patoma Admin by — February 22, 2021 in Insurance 0

According to rating agency, “The stable outlook reflects AM Best’s view that the balance sheet strength is expected to remain underpinned by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR).

Over time, increasing capital requirements stemming from strong business growth are likely to be adequately supported by retained earnings, bolstered by the company’s robust underwriting profitability.”

With excellent liquidity as a result of cash and equivalents comfortably covering net insurance liabilities, the rating agency pointed out that Custodian has moderate exposure to local equities and real estate, which account for approximately one-fifth of invested assets, even as it has high reliance on reinsurance, primarily for the oil and energy line of business.

On the operating performance of the insurer which the rating agency rated strong, it stressed that, it’s good and improving overall earnings that significantly exceed inflation are underpinned by robust underwriting profitability and investment income, as operating performance is expected to remain strong over the medium term.

With reference to the Enterprise Risk Management of the company, the report further states that “Internal risk management expertise has improved in recent years. There is an ongoing process of risk identification and monitoring through the use of specific risk management tools. An internal economic capital model has been developed and incorporated into the company’s strategic decision-making process. High economic, political and regulatory risk exposures are expected to remain a significant challenge for the company’s risk management”.

Patoma Admin by — February 19, 2021 in Insurance 0

By admin

AICA Reinsurance Corporation Plc (WAICA Re) has donated 39 air conditioners; 12 desktops and 5 laptops as office equipment  to the Chartered Insurance Institute of Nigeria.

The Group Managing Director of WAICA Re, Ezekiel Ekundayo, at the presentation of the equipment which are estimated to cost over N10 million were presented to the institute in Lagos.

He noted that the presentation of the equipment was a further demonstration of the company’s commitment to the Nigerian insurance industry.

Represented by the Regional Director/Nigeria, WAICA Re, Mr Steve Odjugo, Ekundayo maintained that the firm believes in the values and ideas of the CIIN and have over the time provided support to the institute in different form.

Odjugo said that it is the firm’s fervent hope that the equipment would go a long way to improving the working condition of both staff and visitors to the institute’s secretariat

He urged other organisations to borrow a leaf from WAICA Re and lend their supports to the institute which belongs to the entire insurance industry.

On areas the institute needs urgent support, he asserted that aside the Victoria Island building, the institute needs a well equipped e-library that would support its research initiatives.

Director, WAICA Re, Mr. Adeyemo Adejumo, appreciated WAICA Re for the CSR project and its excellence performance within its short time of operations. Whilst calling on other organisations to continue to support the CIIN.

Director-General of the CIIN, Mrs. Abimbola Tiamiyu, said the donation was a booster and that it would assist the institute to sustain its stride in producing professionals that would take the insurance industry to lofty heights

From left: Adeyemo Adejumo, Director, WAICA Reinsurance Corporation Plc; Abimbola Tiamiyu, Director General, Chartered Insurance Institute of Nigeria (CIIN); Muftau Oyegunle, President, CIIN; Steve Odjugo, Regional Director (Nigeria)/representative of Group Managing Director, WAICA Re; Toyosi Alabi, Director, WAICA Re, and Edwin Igbiti, Deputy President, CIIN, during WAICO 10th year anniversary CSR donations and infrastructural upgrade at CIIN Secretariat in Lagos.

Patoma Admin by — February 18, 2021 in Insurance 0

By admin

Allianz Nigeria is planning to roll out a cyber insurance policy, since working at home raises the stakes in cyber security.

Discussions with regulators are close to reaching a conclusion and the policy is likely to be available before the end of the first half of this year, Allianz Nigeria CEO Adeolu Adewumi-Zer tells The Africa Report.

A risk barometer published by Allianz based on a survey of 193 Nigerian corporate respondents shows cyber incidents as the second-biggest perceived risk in 2021, second only to Covid-19. A year earlier, cyber incidents were only seen as the eighth-biggest risk

Patoma Admin by — February 18, 2021 in Insurance 0