All Posts in "Insurance&Pension"

NAICOM: Nigeria’s Insurance Assets Now N2.3tr

The National Insurance Commission (NAICOM)says Nigeria’s insurance industry’s total assets grew to about N2.3 trillion in the second quarter of 2022.

This indicates an increased growth rate of 11.9 per cent over the first quarter,NAICOM,disclosed this in a bulletin on Insurance Market Performance made available by its spokesman, Rasaaq Salami.

It said gross premium income in the second quarter of 2022 stood at N369.2.8billion,indicating a 20.1per cent growth rate compared to the same period of the previous year and an impressive 65.0per cent, quarter on quarter.

It added that the continued steady growth from the first quarter of the year correlates with the current performance of the period under review.

The market data reveals that the industry grew 20.1% higher than the national real Gross Domestic Product (GDP) of 3.5% during the same period,indicating the industry’s impressive performance given the recent trajectory.

The industry’s financial position indicated a total of N1.2 trillion in assets in Non-Life Insurance while Life Insurance stood at about N1.1trillion, while the insured recorded gross claims of N174.8 billion in the second quarter of the year, representing 47.3 per cent of premiums collected during the period,the statement said.

It also noted that gross claims made in the second quarter of the year indicated a 0.2 per cent growth compared to the corresponding period of 2021, which reflects the professional underwriting capacity of the industry driven by the intensified regulatory activities of the commission,’’ the report stated.

The market report indicated that net claims paid were N148.2billion, signifying 84.8 per cent of claims made during the period,adding that:“This reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the commission,’’ the bulletin stated.

The non-life segment maintained its primacy at 59.3% of the total premium generated. Insights in the segment show Oil & Gas was the leading driver at 32.5% with a distant second at 20.7% for Fire.

Motor Insurance stood at 14.8%, while Marine & Aviation, general accident and miscellaneous reported a share of 12.3%, 10.9% and 8.9% in this order.Life business on the other hand recorded 40.6% of the insurance market production as its share contribution, gradually closes up.

The share of Annuity in the Life Insurance business logged at about Twenty-Five per cent (24.7%) while individual Life held a major driver position at 41.8% of the premium generated during the period.

It added that the insurance business recorded a near-perfect point of 88.9 per cent of claims settlement in Life Insurance as against 76.8 per cent in a non-life segment which stood at 76.8 per cent, while motor insurance retained its vanguard position- posting a claims settlement ratio of 92 per cent.

“Progress was more noticeable in the oil and gas sector with 85.7 per cent of claims settlement ratio, an increase of some 43 points compared to its position of 42.8 per cent recorded in the corresponding period of 2021.General accident claims recorded 75 per cent, fire claims recorded 76.2 per cent, while aviation and Marine claims recorded 61.9 per cent,” it stated.

The bulletin added that sustained market development and growing confidence in the industry would eventually improve the negative peculiarities and challenges of the market.

admin by — October 14, 2022 in Business 0
NDIC Publishes Final Dividend Declaration Notice To Depositors, Creditors Of 20 Failed Banks

The Nigeria Deposit Insurance Corporation, NDIC, has published a final dividend declaration notice to depositors of 20 failed banks.

The corporation also published a final dividend declaration notice to creditors of five banks in liquidation.

The notice published on its website on Friday, listed the banks to include ABC Merchant Bank Ltd., Commercial Trust Bank Ltd. and Continental Merchant Bank Plc.

Others are Merchant Bank of Africa Ltd., Pan African Bank Ltd., Kapital Merchant Bank Ltd., Eagle Bank and Allied Bank of Nigeria, among others.

According to the corporation,the creditors’ banks include Cooperative & Commerce Bank, Nigerian Merchant Bank, Rims Merchant Bank, Alpha Merchant Bank and Continental Merchant Bank.

It said that the director would after the expiration of the date proceed to make a final dividend payment without regard to such claims.

It added:“NDIC, the official liquidator of the under-listed defunct banks (in-liquidation), hereby notifies the general public of the final call for dividend declaration to depositors, creditors of these banks.We, therefore, advise all eligible depositors and creditors of these banks to either meet NDIC officials in any of the NDIC Offices.They can also visit the claims page on NDIC website on www.ndic.gov.ng for the verification of their claims, commencing from Sept. 5 till Oct. 14’’

The corporation also said it was in the process of paying insured and uninsured deposits to depositors of Eurobanc Savings and Loans, Grace field Microfinance Bank and Okporo Microfinance Bank, MFB.

It revealed that it was also in the process of paying liquidation dividends to the depositors and ex-staff of MFBs.

admin by — September 3, 2022 in Insurance&Pension 0
How To Protect Bank Depositors’ In Nigeria -NDIC

The Nigeria Deposit Insurance Corporation (NDIC), has said that effective resolution of banks in distress is critical to depositors’ protection.

The corporation said the effective resolution would also ensure the stability of the financial system.

It describes resolution plan as one put in place by regulators to facilitate the effective resolution of a distressed bank without any disruption or loss of the taxpayers’ money.

It added that the plan also served as a guide to regulators for achieving an orderly resolution in the event that recovery measures were not feasible.

 

admin by — August 26, 2022 in Business 0
NAICOM Board Moves To Sanitize Nigeria’s Insurance Industry

The Governing Board of National Insurance Commission, otherwise known as NAICOM is seeking the support of the Federal Government to effect major restructuring of insurance industry including the elimination of non-performing companies in the sector.
Dr. Abubakar Sani, the Board Chairman, National Insurance Commission, disclosed this this when he led members of the Governing Board on a courtesy visit to Minister of Finance, Budget and National Planning, Zainab Ahmed, on Monday.

He informed the Minister of the board’s plan to carry out specific exercises aimed at sanitizing the insurance industry in the country, stressing that enforcement of code of ethics for companies in the sector is underway.

He added:”We shall enforce the professional code of ethics among the insurance entities, strengthen their corporate governance, which the Board believes will sanitize the market. The NAICOM Board will in due course revisit the matter of recapitalization of insurance industry and will clean up it’s act with the enforcement of code of ethics of insurance profession and practice, and code of good corporate governance in companies. The board is working to sanitize the market and will be taking out companies that are not measuring up to expectations” .

Speaking,, Zainab Ahmed, the Minister of Finance, Budget and National Planning, implored the Board of NAICOM to develop and implement policies which will strengthen the insurance sector and reposition the industry to enhance its contribution to the nation’s Gross Domestic Product (GDP) and to the economy at large.

She urged advised members to be mindful of existing guidelines regulations and Circulars that guide the operation and conduct of Governing Boards of Federal Government Parastatals, Agencies and Commissions and strictly adhered to it.
“The initiative to pay this visit barely two months after your inauguration demonstrates your sense of purpose and desire to work closely with the Ministry towards realizing the mandates of NAICOM.
“At your inauguration, I called your attention to some issues of interest and concern in the Insurance Industry which require your urgent attention, This visit, therefore, affords me yet another opportunity to once more congratulate you on your inauguration and inform you that Government has very high expectation of this Board. You must build on the successes of the immediate past Board.
“In this regard, | wish to restate some of those issues and remind you of your role as Chairman and members of the Governing Board of NAICOM.
“The Board which also comprises the Management should develop and implement policies which will strengthen the insurance sector and reposition the industry to enhance its contribution to the nation’s GDP and to the economy at large.It is of utmost importance for the New Board and the Management of the National Insurance Commission to work harmoniously together in order to actualize the mandate of the commission.

“The Board has to develop strategies to systematically build the capacity of members through workshops, seminars, study tours, etc. to enable effective contribution towards the growth of the Industry, especially as some members were not drawn from the Insurance sector.Members to note that there are guidelines regulations and Circulars that guide the operation and conduct of Governing Boards of Federal Government Parastatals, Agencies and Commissions and should be strictly adhered to – frequency of meetings; entitlements of Board members, travel guidelines and related matters.

admin by — August 16, 2022 in Business 0
Nigerian Banks Safe, Sound -NDIC

The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mallam Bello Hassan said banks in the country are safe for business.

He advised Nigerians not to worry about the soundness of banks,just as he assured that Polaris Bank is healthy and safe for them to transact business with.

He spoke on the sideline of the 11th annual capacity-building workshop for law enforcement agencies, bankers and other stakeholders in Lagos on Wednesday to discuss ‘Effective Investigation and Prosecution of Banking Malpractices that led to the Failure of Banks’.

He said: “Polaris Bank and all banks that are operating within the country are safe and sound as long as the license has not been revoked by the Central Bank of Nigerian (CBN). The regulator that issued the license if there is any problem is the one that will not revoke the license. As long as the license is not revoked, you are free to continue to bank with those institutions.

“The bank is safe because CBN and NDIC do carry out stress testing to ascertain the soundness of banks. We do stress, in fact, we do it on a regular basis. We do it on a monthly basis to test-tress the financial soundness of those banks.My position here is that Polaris Bank is safe and Nigerians should continue doing business with it. The bank is safe”.

 

 

admin by — August 10, 2022 in Business 0
NDIC Gives PHC Facilities In Kwara Facelift

The Nigeria Deposit Insurance Corporation (NDIC) has rehabilitated the Basic Health Care Centre at Lanwa in Moro Local Government Area of Kwara.

Speaking at the commissioning of the project on Sunday , Mr Bello Hassan, the Managing Director of the NDIC, said the project was part of the corporate social responsibilities of the corporation, adding that it was among many of such projects being sponsored by NDIC across the country.

He was represented at the event by Mr Chima Onyechere, the Zonal Controller, NDIC Ilorin.

He explained that as far back as 1995, the corporation had instituted an endowment fund for several health institutions in the country and made generous donations through corporation’s project-based funding scheme.

“This initiative is part of the corporation’s pursuance of its corporate social responsibility to provide assistance in enhancement of the health sector, and to move the country forward, ” he said.

Hassan observed that most of the basic health institutions in Nigeria lacked functional infrastructure facilities, resulting in poor health standards.

He said that against this background, it had become necessary for corporate organisations, other well meaning groups and individuals within and outside the country to assist the health institutions.

He emphasised on the important roles the corporation played in the country, adding that Deposit Insurance Scheme (DIS) had become key component of moat financial systems worldwide.

“For over 25 years NDIC is charged with mandates of deposit protection, has remained active safety nets player in spite of many daunting challenges.

“Apart from guaranteeing bank deposits up to the limits permitted by law, the corporation has been involved in the supervision of insured institutions as well as resolving the problems of failing and failed financial institutions,” he said.

Speaking, Alhaji Issa Musa, the Officer in Charge of PHC Lanwa, commended NDIC for the humanitarian services to the community.

He noted that the timely interventions of the corporation was a prayer answered as the healthcare centre was in a dilapidated state.

According to him, the health facilities service about 40 communities within Lanwa and that this gesture came at the right time.

“NDIC has done wonderful job of renovating the facilities and providing the necessary equipment and consumables needed.

“However, we still have the challenges of under staffing. We don’t have nurses as I am the only qualified staff on ground, there are no lab technicians, pharmacists, nurses, midwives and doctors,” he lamented.

Musa lamented that the health centre even lacked cleaners and night guards, while appealing to the state government to complement the job done by the NDIC by providing health workers and necessary drugs for the welfare of the citizens.

The Officer in charge of the facility also reminded the government of the dangerous and bad road network linking many communities to Lanwa, while urging the government to reconstruct the roads for the development of the community and the state as a whole.

Dr Raji Razaq, Kwara Commissioner for Health, commended the corporation for the kind gesture, adding that state government alone could not take care of all the health needs of the citizens and solicited the contributions of all stakeholders.

Razaq, who was represented by Dr Stephen Arigidi, the Deputy Director of Medical Services and Training in the Ministry of Health, stated that Lanwa was an ancient railway community that served other surrounding communities with the basic health centre.

He assured that the government was committed to promoting the health of the citizenry as it had released counterpart funds for the Basic Health Care Provision Fund (BHCPF).

The commissioner disclosed that presently the state government had commenced the free medical, surgical interventions across the 16 local government areas of the state.(NAN)

admin by — August 9, 2022 in Insurance&Pension 0
NAICOM Moves To Enforce Compulsory Insurance In NigerIa

The National Insurance Commission (NAICOM) will soon begin enforcement of compulsory insurance in the country.

The Board of Directors of NAICOM led by its Chairman, Dr Abubakar Sani, gave the hint when they visited the Office of the Secretary to the Government of the Federation (OSGF), in Abuja, to secure the blessing of the SGF, Mr. Boss Mustapha.

Dr. Maurice Mbaeri who represented the SGF said that compulsory insurance was critical for the growth of the nation’s economy.

He implored the commission to take a firm stance on payment of claims by insurance companies, as a means of developing the needed confidence among members of the public.

He said:“Enforcement of compulsory insurance for the public and private sectors is good. It’s an area covered by your mandate. Government will help in this regard. The unseriousness of citizens towards insurance often springs from awful personal experiences.People lost interest in taking up policies because of lack of being indemnified. In some instances, insurance companies hide under funny circumstances to deny the insured their dues. Please look into this area to ensure people embrace insurance policies.

“The onus is on you, send a draft copy of that letter on compulsory insurance and let the SGF know how to issue service wide circular for MDAs’ compliance. Send us the circular capturing all what you want and once it meets the expectation of the government, we will issue it. We will do all that is necessary to ensure the board and management meet their mandates.”

The Permanent Secretary charged the board and management to keep to their roles to avoid conflicts, which he said was common across Departments and Agencies.

Speaking, the Commissioner For Insurance, Mr Sunday Thomas explained that the operational licences of two insurance companies were revoked due to poor claims payment.

He promised not to compromise the sanctity of claims payment and that any insurance company that failed in that regard would be sanctioned.

admin by — August 7, 2022 in Business 0
NDIC To Nigerians:  Beware Of Investments Fund Managers With Bogus Returns

The Nigeria Deposit Insurance Corporation (NDIC) on Tuesday disowned  investment fund managers promising excessive returns on such investments,  warning that the Corporation does not insure such investments.

Bashir A. Nuhu, NDIC’s Director, Communication and Public Affairs Department, in a statement, noted that the warning became necessary following recent increase in investment channels arising from innovative products.

The Corporation, said  ‘there has been an increase in illegal fund managers who have been using different platforms soliciting public to invest their funds with them, promising excessive returns on such investments.

He added:”With the recent increase in investment channels arising from innovative products, there has been an increase in illegal fund managers who have been using different platforms soliciting public to invest their funds with them, promising excessive returns on such investments. n order to protect unsuspecting depositors, it has become necessary for the Nigeria Deposit Insurance Corporation (NDIC) to continue sensitizing the public on the high risk associated with investing funds with illegal funds managers.

“Accordingly, as the deposit insurer, the NDIC would like to inform members of the public that contrary to claims by some of these funds managers, the Corporation does not insure investments with them. The NDIC insures ONLY deposits of financial institutions licensed by the Central Bank of Nigeria (CBN) to accept deposits from the public.

“To confirm whether a financial institution is covered by the deposit insurance scheme of the NDIC, please visit our website at www.ndic.gov.ng and click on Who We Cover for the complete list. You can also address any other enquiry to the Director, Communication & Public Affairs Department, Nigeria Deposit Insurance Corporation. Members of the public are also advised to report any entity suspected to be involved in illegal deposit mobilization to the law enforcement agencies” reads the statement in parts.

admin by — August 2, 2022 in Business 0
Why We Gave Licences To New Companies -NAICOM

 

The National Insurance Commission (NAICOM) says it granted FBS Reinsurance, Heirs Insurance Life and General, Enterprise Life licences on account of the profiles of the people behind them and their success rates.

The Commissioner for Insurance, Sunday Thomas, disclosed in Nairobi, Kenya, where he also noted that the commission would continue to encourage the development of the insurance sector by ensuring that capable players are welcomed into the sector.

He assured that the Commission would grant licence to more insurance and reinsurance firms that show and have capacity to impact the underwriting sector.

He said: “Insurance and reinsurance firms licensed over a year ago, were granted approval due to their capacity to impact the insurance sector. The last reinsurance company that was approved in Nigeria before we approved FBS Reinsurance, was approved more than 10 years ago and this was the case with insurance companies of which like Heirs and Enterprise were granted licence.

“These companies were not approved because of their numbers, but we looked at the profile of the people behind them and their success rates. We believed they have the ability to impact our sector. I will be happy tomorrow, if I see anyone that has the capacity to impact our sector, I will approve the licence.”

He described as untrue the alleged foreign dominance of the insurance sector, as Nigerians own most of the firms in the sector.

“The issue of foreign dominance should be put in the right perspectives. In terms of ownership, that may not be correct. But in terms of some level of operations, that may be right. For example, on special risks, rates are still determined abroad. But in terms of ownership the companies are owned by Nigerians.’’

He noted that though there are some foreign interest coming in, but that is not enough to tag them dominant factors.

Thomas maintained that NAICOM would continue to encourage insurance practitioners to explore opportunities in the retail market space.

He said efforts would also be intensified to create awareness on benefits of insurance, stressing that the people need to know more on the benefits of insurance.

He added:“We need to encourage and mop up individual lability. Another thing is that we have not been able to communicate the benefits of insurance to the public. Why should we be raising money for relations when a member of the family dies? That would have been done through insurance. We must begin to tell people about insurance. That would be the game changer,” he said.

 

admin by — July 19, 2022 in Insurance&Pension 0
NDIC Parleys ICPC On Anti-corruption War

The Chairman of the Nigeria Deposit Insurance Corporation (NDIC) Board, Mrs Ronke Sokefun, has advocated the need for stronger collaboration on the implementation of the National Anti-Corruption Strategy (NACS) towards strengthening the fight against corruption in the country.

She spoke in Abuja at a sensitization seminar for Board and Management of the Corporation facilitated by the NACS Secretariat,where she also explained that the partnership through effective sensitization on components of NACS, particularly the National Ethics and Integrity Policy, and the Freedom of Information (FoI) Act would enhance the buy-in and ownership of the anti-corruption campaign of the Federal Government amongst top cadres of government agencies.

She commended the initiative of NACS secretariat at embarking on sensitization of board and senior management of agencies on such an important national policy of the government.

The Deputy Director, Public Institutions Ethics & Values of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Mr. John Ode, lauded the NDIC Board for being the first institution in both the public and private sector to accept and also take the NACS sensitization to the board level.

admin by — July 1, 2022 in Insurance&Pension 0