All Posts in "Insurance&Pension"

How Micro-insurance Can Deepen Financial Inclusion In Nigeria-CBN

 The Central Bank of Nigeria and other stakeholders  in the nation’s  financial sector,have advocated the need  for partnership among microfinance banks to promote the expansion of micro-insurance as a tool for deepening financial inclusion.
They spoke  at the sixth annual symposium of the Nigerian Microfinance Platform organised by the Microfinance Learning and Development Center with the theme ‘Expanding the frontiers of financial inclusion: The micro-insurance option’.
Mrs Aisha Ahmad, the Deputy Governor, Financial Sector Surveillance, CBN, Mrs Aisha Ahmad, emphasized the need for a collective strategy to re-emphasise the importance of micro-insurance as a financial service.
According to her, it  was necessary to re-align it as a vital tool in attaining a higher level of financial inclusion within the Nigerian microfinance sub-sector through the security of micro- businesses.
She added: “Financial inclusion, which entails affordable and available access to financial services by every adult in any given country or area, also includes insurance; however, this aspect of financial servicing has been under-emphasised for too long.I consider it vital for us, through collaborative efforts, to look deeper into this shadowed aspect of financial inclusion, exchange ideas with our counterparts from other countries, build regulator/operator capacity and tackle issues within the sector to enhance the provision and availability of affordable financial services in Nigeria.”
Online Editor by — May 3, 2021 in Insurance&Pension 0
Why FG Retirees Didn’t Get Pension For A Year-Pencom

FG retirees not paid pensions since March 2020 – PenCom - Punch Newspapers
 Most  Federal Government workers that retired from March 2020 and this year could not get their pension on the non-payment of their accrued pension rights,the Director-General, National Pension Commission,Aisha Umar has said.
“This challenge, which started in 2014, was essentially triggered by the appropriation of insufficient amounts for payment of accrued pension rights of FGN retirees and further aggravated by late or non-release of full appropriated amounts,” she said
She disclosed  this in  her welcome remarks during the oversight visit of the Senate Committee on Establishment and Public Services to the commission in Abuja,where she also said the challenges included the Federal Government’s non-compliance with the new minimum statutory rate of pension contribution of 18 per cent since 2014; non-payment of approved 15 per cent and 33 per cent pension increases to pensioners under the CPS.
According to her,others are non-payment of shortfall for payment of full retirement benefits of retired heads of service and permanent secretaries; and non-payment of Federal Government pension protection levy.
“These have created sad and negative impression on the full realisation of the objectives of the CPS in Nigeria,” she said.
She said that PenCom appreciated the role played by the Senate committee in the past to move the National Assembly to intervene in the matter of payment of outstanding pension liabilities of the Federal Government.
However, she noted, the challenge had not been because pension liability was a moving target that increases on monthly basis as FGN employees retired.
She said, “Another issue that is worth mentioning to this distinguished committee is the persistent complaints against certain sections of the Pension Reform Act 2014, which need amendments.
“This is normal with every new system and the experience of the CPS in Nigeria is bound to be the same. Consequently, the commission had obtained inputs from critical stakeholders and cataloged their proposed amendments of provisions of the PRA 2014.
“However, as was done in the first review exercise that birthed the present Act, it is imperative to subject the proposed amendments to extensive experts’ and stakeholders’ engagements prior to presentation to the Federal Executive Council and then National Assembly for further legislative action.”
Online Editor by — April 20, 2021 in Insurance&Pension 0
Universal Insurance Diversifies Operations 

– Universal Insurance Assures Stakeholders of Return to ProfitabilityTHISDAYLIVE
Universal Insurance Plc,has applied to the National Insurance Commission, NAICOM, for an operating license to commence micro insurance business.
Ben Ujoatuonu,the Managing Director of the company, told newsmen that the board has approved that Universal Insurance apply for micro insurance licence because of its success in retail line.
He added:”As part of expansion and business development, we have also sought licence to underwrite agric insurance.” Justifying the new direction, he said “despite the challenges, there is a serious revolution that is going on in the agric sector. It becomes very important for us to key in and take advantage of opportunities coming from that sector. We will ensure that our agric department create value”
The  company which was listed on the floor of the Nigerian Stock Exchange in 2008 had been growing since then from strength to strength.
According to him, “We are happy because some that started with us are no longer there. Universal has travelled through thick and thin. Like every other organisations we have our problems, but have been surmounting them. With an asset base of over N11 billion, we have no doubt that Universal Insurance will continue to meet its client’s obligations.”
Speaking on the company’s e-business rating, the Managing Director said that in the last one year, Alexia Rating report shows that Universal Insurance moved from 30th to 5th position.
He said: “We are a leading player on the social media because we developed a good e-channel. The retail businesses are sold through the e-platform. Soon we are going to launch our USSD code
Online Editor by — April 3, 2021 in Insurance&Pension 0
How To Grow Nigeria’s Insurance Industry-Stanbic IBTC Insurance Boss

Stanbic IBTC Intruduces Insurance Subsidiary - SuperNewsng
Akinjide Orimolade,the  Chief Executive Officer of Stanbic IBTC Insurance,has emphasized the need for operators to partner with telecommunication companies in order to improve on the present low level of insurance penetration in the country.
Orimolade, who gave the advice  at a press conference to  introduce his new licensed company, Stanbic IBTC Insurance,noted that there are  less than 10 per cent of the population have insurance cover in Nigeria.
He expressed optimism that there are huge  opportunities in Nigerian insurance market, just  as he advised the National Insurance Commission (NAICOM) to collaborate with service providers in the use of technology in insurance product distribution.
According to him,more small and medium enterprises (SMEs) are seeking out insurance solutions, which  was a clear indicator of room for growth in the industry.
“The industry will develop as there will be an increasing need for business owners to prioritise insurance to protect their properties and lives,” Orimolade added
He expressed the  the need to innovate and evolve to meet the changing needs of the insurance ecosystem, adding that this is where Stanbic IBTC Insurance comes in.
“The birth of Stanbic IBTC Insurance can be described as meeting a pressing need at the right time. The journey of a thousand miles, they say, begins with a single step and for us, several giant strides have been made.We are positive that this venture will bring smiles to the faces of our customers,” Orimolade stated.
He said the Stanbic IBTC insurance was established to expand the group’s ever-growing bouquet of financial services available to the public.
“The addition of the insurance subsidiary followed regulatory approvals as well as the issuance of a license from the NAICOM which granted the new entity the right to commence its business operations,” he added.
He explained that the new business would continue in the vision and tradition of the Group through the provision of innovative and customer-friendly insurance products.
He added:“Stanbic IBTC Insurance has developed a variety of simple Life insurance products that will address the unique insurance needs of its customers.It will also facilitate long-term insurance for individuals by offering them innovative and seamless insurance solutions that can be accessed electronically with ease.
“This means that consumers will be able to purchase insurance products, make timely claims submissions quickly and efficiently from wherever they are,” he added.
Online Editor by — April 2, 2021 in Insurance&Pension 0
Naira Devaluation Weakens Insurance Industry’s Capital-Agusto & Co

Agusto & Co. 2021: Nigerian insurance industry forging ahead amidst
The pan-African Credit Rating Agency, Agusto & Co, has  said that the persistent naira devaluation in Nigeria has reduced the strength of the insurance industry’s capital since the last recapitalisation exercise in 2007.
At the unveiling of the 2021 edition of the insurance report,the agency noted that although some insurers have strengthened their capital base through earnings retention, the ability of most industry operators to solely underwrite large ticket transactions have dwindled based on the lower value of the capital in USD terms.
It said:”As of December 31, 2020, Agusto & Co. said the industry had an estimated capital base of $1billion, significantly lower than $2.2 billion recorded as of December 31, 2007.As a result, the National Insurance Commission (NAICOM), the apex regulator in the industry raised the minimum capital to ₦8 billion (from ₦2 billion), ₦10 billion (from ₦3 billion), ₦18 billion (from ₦5 billion) and ₦20 billion (from ₦10 billion) for life insurers, non-life insurers, composite insurers and reinsurance firms respectively”.
Agusto & Co. estimates a 15 per cent growth in Gross Premium Income (GPI) for the financial year ended December 31, 2020. Innovation in product distribution induced by the pandemic, regulatory-backed opportunities including the digitisation of marine insurance certificates and increasing awareness of the benefits of insurance products were some of the GPI growth drivers during the 2020 financial year.
According to the agency, the violence that trailed the #EndSARS protest in October 2020 adversely impacted the Industry in terms of additional claims, which in turn impaired profitability for the 2020 financial year and would moderate the performance of some insurers in 2021.
The report said nonetheless, the riot that trailed the protest emphasised the importance of insurance products, particularly with the absence of a robust social security system in Nigeria. Agusto & Co stressed that the violence/riot trailed the protest could be a catalyst for insurance uptake, given that the insurance penetration rate has remained less than 1 per cent in Nigeria.
The report noted that recapitalisation exercise has suffered some setbacks particularly as the COVID-19 pandemic ravaging global economy, Nigeria inclusive. Consequently, NAICOM postponed the deadline for the recapitalisation exercise, which was later stratified into two phases; December 2020 and September 2021.
Besides, the report said the litigation by some industry operators and aggrieved shareholders resulted in the postponement of the December 2020 deadline for the first phase of the recapitalisation exercise.
According to the agency, the violence that trailed the #EndSARS protest in October 2020 adversely impacted the Industry in terms of additional claims, which in turn impaired profitability for the 2020 financial year and would moderate the performance of some insurers in 2021.
The report said nonetheless, the riot that trailed the protest emphasised the importance of insurance products, particularly with the absence of a robust social security system in Nigeria. Agusto & Co stressed that the violence/riot trailed the protest could be a catalyst for insurance uptake, given that the insurance penetration rate has remained less than 1 per cent in Nigeria.
Notwithstanding, the setbacks, Agusto & Co. believes the recapitalisation exercise could be a watershed in the industry. In addition to the benefits accruing from a larger capital base from a risk underwriting perspective, improved investment management practices will be upheld by a larger investment portfolio driven by a need to generate adequate returns.
Online Editor by — March 22, 2021 in Insurance&Pension 0
Why Nigeria’s Insurance Industry Is Not Doing Well— PwC

PWC | ContactCenterWorld.com
PriceWaterHouse analysts have deplored low patronage of insurance services in Nigeria
In a report titled: Insurance penetration in Nigeria,the analysts explained that the industry growth is  stunted due to the apathy of investors who believe that insurance firms are not well managed, thus affecting profitability.
They said aside from the regulatory issues which operators in the industry are grappling with, poor patronage of insurance in Nigeria could be blamed on relationship management by some insurance companies which sometimes is below par because an average customer simply wants to be comfortable.
They said such relationship challenges have their basis in weak corporate governance and risk management framework which sometimes make the companies seem unfriendly particularly when there are claims to be made by customers thus creating doubts about how well the insurance companies may be trusted.
They added:”At the heart of this, customers often complain about the lack of flexibility and technology-driven innovation in terms of the kind of insurance policies and packages that meets today’s upwardly mobile audience of contemporary insurance,.
“The implications of these challenges on the industry are rife. For instance, in 2018, the Enhancing Financial Innovation & Access, EFinA report stated that of the 99.6 million adult population in Nigeria, only 1.6% have insurance covers even though nearly 40% of them have access to financial services. According to the survey, lack of awareness remains a key barrier as a massive 77.2% of the adult population are not aware of insurance. Although largely due to the knowledge gap, the low-income level of the citizens makes it difficult to be convinced of buying insurance on a risk that may not happen, the benefits notwithstanding.
They maintained that if the growth in the insurance industry can be achieved, it will aid development and growth in the economy, encourage savings and investment, aid job creation and growth in capital markets and financial assets.
Online Editor by — March 15, 2021 in Insurance&Pension 0