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The Insurers Committee on Thursday said the the new guidelines on Bancassurance soon to be released by National Insurance Commission (NAICOM) would reposition the insurance industry for better performance.
Mr Segun Omosehin, Deputy Chairman, Publicity Sub-committee of the committee stated this at the end of the August meeting of the Insurers committee in Lagos.
The Insurers Committee consists of representatives of the National Insurance Commission (NAICOM) and Chief Executive Officers of all underwriting insurance companies in Nigeria.
The Committee is mandated to activate the industry’s change agenda and strategically reposition the insurance industry.
The News Agency of Nigeria reports that bancassurance is a relationship between a bank and an insurance company that is aimed at offering insurance products or insurance benefits to the bank’s customers.
Omosehin, also Managing Director, Old Mutual Life Assurance said operators were hopeful that the revised guidelines on bancassurance when released would address some of the concerns of operators on the guidelines currently in place.
“One of the issues raised is the constraint on an insurance company to have dealings with not more than two banks at a time.
“We are hoping that the regulator would consider some of the issues raised from the market and take them into cognisance in the new guidelines,” he said.
Omosehin said the insurance regulator also agreed at the meeting to implement the up-scaling of the Ecowas Brown Card and Third Party Motor Insurance policy in Nigeria.
He said: “What is left is to finalise an applicable premium to be charged for the policy and we are taking into consideration the views of all stakeholders before adopting an amout.
“Hopefully, that will be concluded on or before the end of September.
Omosehin hinted that the commission had commenced a pilot scheme of the Risk Based Supervision (RBS) in eight insurance companies and this was expected to set a yardstick that would enable final adoption on RBS guidelines across the entire insurance market.
The sub-committee spokesman stated that the regulator also urged operators to participate more in annuity business and design annuity products for the market.
He said NAICOM changed operators to prioritise claims settlement and always looked for reasons to pay claims even when there were reasons not to.
On the International Financial Reporting Standard 2017 ( IFRS 17) billed to replace IFRS 4 by January 2023, Omosehin explained that stage work towards the adoption of the standard had begun and underwriters were expected to work towards the full adoption of the standard before the effective date.
The sub-committee representative said NAICOM, at the meeting, also encouraged operators to update and upscale their technology to a level of on-the-spot online synergy with the NAICOM portal.
He noted that the committee also deliberated on the need for a new insurance industry’s Stategic 10 years plan that would harmonise the strategic plan of each arm of the industry.
“Representatives of trade association of the industry, such as the Nigerian Insurers Association (NIA), Chartered Insurance Institute of Nigeria (CIIN), Insurance Loss Adjusters of Nigeria (ILAN) and the Nigerian Council of Registered Insurance Brokers (NCRIB) would come together to form a committee.
“The committee with NAICOM involvement would come up with a strategic plan for the industry, which would help operators achieve the industry’s wide objective and set a pace for it,” he said.
Omosehin noted that the committee set up for the Africa Continental Free Trade Area (AfCFTA) gave a report of progress on how it was exploring opportunities, enhancing market integration, cross-border transactions for the benefit of the industry.
NewsSourceCredit: NAN
The National Insurance Commission (NAICOM), has explained the processes surrounding the purchase of its newly established Academy.
A statement by the Commission in Abuja on Thursday, said the management of the Commission through the Minister of
Finance, Budget and National Planning had made the presentation to the Federal Executive Council (FEC).
NAICOM said the presentation made to FEC was an uncompleted property for approval to be acquired as NAICOM Academy and office accommodation.
The Commission said the presentation followed the approval by its immediate past Governing Board.
The Commission said all documents relating to the property clearly stated that the property was in an uncompleted state.
NAICOM said the academy would address the knowledge gap in the insurance sector regulation and supervision not only in Nigeria but across Africa.
It said the academy would also address the problem of low insurance penetration, entrench the culture of insurance in every part of the country and enhance surveillance in the geopolitical zones.
The Commission said the building would also serve as the new head office of the Commission.
“The Commission had prior the FEC approval, obtained a “No Objection” from the Bureau of Public Procurement (BPP) following the valuation of the property by the Federal Ministry of Works and Housing.
“Adequate due diligence was conducted on the property for acquisition and all provision was made in the 2022 approved annual budget of the Commission for the purpose of acquiring the building for the Commission.
“The expansion of the Commission’s infrastructural facilities is inevitable thus the Commission requires a befitting office accommodation to curtail any future space crises,’’ the Commission said.
The News Agency of Nigeria reports that some media reports had alleged that the Commission deceived President Muhammadu Buhari and FEC into approving the purchase of a new office building in Abuja.
It was also alleged in the publication that the Commission said it was buying a ”ready to use magnificent office complex” rather than an uncompleted building at N4 billion.
NewsSourceCredit: NAN
Mr Ganiyu Musa, the outgoing Chairman of The Nigeria Insurers Association (NIA) said he was optimistic the Consolidated Insurance Bill 2020 would soon be signed into law.
Musa said this at a media briefing on Wednesday in Lagos, to give account of his stewardship for the past two years.
He assured that the bill would passed into law before the end of the tenure of the ninth National Assembly.
Musa said the association was closely monitoring developments on the insurance bill and would continue to pursue same doggedly until it was finally passed into law.
He explained that NIA had participated in all the processes thus far and would continue to monitor developments in respect of the bill.
“It is expected that the new law will have a positive impact on the insurance space in Nigeria and align it with global best practice.
“We must acknowledge the cooperation received from the Speaker, Federal House of Representatives, Rt. Hon. Femi Gbajabiamila, Chairman and members of the House Committee on Insurance and Actuarial Matters.
“Also, National Insurance Commission (NAICOM) and other stakeholders in the journey thus far,” he said.
The NIA chairman lauded President Muhammadu Buhari’s assent to the Finance Act 2021, which has now given a more acceptable definition of capital.
Musa, also Managing Director, Cornerstone Insurance Plc, noted that prior to this time, the definition of capital in Insurance Act 2003 was defective and highly restrictive.
“We appreciate the Honourable Minister of Finance, Budget and National Planning, Commissioner for Insurance, KPMG and members of our association for their support in seeing this process through.
“We are optimistic that this major milestone achievement has removed the major encumbrance on the recapitalisation exercise,” he said.
Musa stated that the association had begun engagements with Road Traffic Officers of the Federation to drive integration of the third-party motor Insurance across the states.
He pledged that the association would continue to partner relevant government agencies on the adoption of the Nigeria Insurance Industry Database (NIID) Insurance Industry Portal (NIIP).
The NIA chairman said the association was also working with Lagos State Building Control Agency as part of engagements on the implementation of Lagos State Building law – Occupiers Liability and Builders Liability insurance.
Musa said: “The Association is also working closely with the state vehicle inspection service on enforcement of Third-Party Motor Insurance in the states.
“Kaduna, Kogi, Rivers and Ogun states have already keyed into the project and more states are already discussing with the association to finalise arrangements on how they can join.
“Our aim is to achieve national coverage.
We remain hopeful that other states will appreciate the value of the platform and embrace it.
According to him, the association continues to scale up its engagements with the government with a view to creating more understanding on the importance and role of insurance in the national economy.
Musa said the leadership of the association had been engaging representatives of Federal Ministry of Finance, Budget And National Planning, the office of the Head of Service and the Accountant General’s Office on provision of appropriate data and payment of premium on insurance of government assets.
He stated that the association had continued to maintain a very cordial relationship with the National Insurance Commission (NAICOM ) in the overall interest of the market.
“This is to ensure that matters of common interest are discussed and agreed to avoid friction.
“We thank the Commissioner for Insurance and the entire management of the commission for the excellent relationship and support received,” he said.
Musa noted that the association would continue to complement the efforts of NAICOM in their campaign on domestication of compulsory insurances in the states.
Musa listed some of his achievements to include the completion of the Insurers House project, which commenced in May 2018, NIA’s 50th anniversary and hosting of the Africa Insurers Organisation (AIO).
NewsSourceCredit: NAN
By Rukayat Adeyemi of the News Agency of Nigeria One of the biggest problems confronting the insurance industry in Nigeria is the lack of trust in operators by many Nigerians who perceive insurance as a scam. To change that negative perception, experts believe that the federal government, through the National Insurance Commission (NAICOM), should begin enforcement of compulsory insurance to mitigate risks for both individuals and businesses. They insist there is need for the government and the insurance regulator to enforce compulsory insurance, firstly by embarking on awareness campaigns to awaken the interest of Nigerians in insurance. Compulsory insurance covers builders liability insurance or insurance of buildings under construction, aviation, third party insurance and marine insurance. These policies protect the third party in the event of death, bodily injury or damage to property. The rising cases of banditry, civil unrest, building collapse, fire outbreak and other mishaps across the country have reinforced the need for more Nigerians to embrace insurance, and for the government to enforce compliance. For instance, the #EndSars protest of 2020 caused insurers a colossal loss of over N20 billion of which over N11 billion was paid out as claims to victims as at February. The question now is, are the victims of the Iponri Bridge fire incident, several building collapses, the Abuja-Kaduna train attack, Owo Chuch massacre, banditry attacks and the recent Kuye jail break in Abuja, and other mishaps covered by insurance? Experts believe that government at all levels must show total commitment to insurance by insuring public assets and ensure enforcement of implementation of the compulsory insurance by the citizens to preserve national assets. Mrs Yetunde Ilori, Director-General, Nigeria Insurance Association (NIA), said compulsory insurance was for the good of the populace. Ilori cautioned Nigerians that their individual negligence could affect many people and their businesses. “We should all learn our lessons from the unfortunate incidences around us and not wait for the enforcement of the compulsory insurance before we know that it is for our good and go ahead to do it. “Payment of the #EndSars claims is a confirmation for people that have misconception that the insurance companies don’t pay claims to know that we actually do,” she said. According to her, insurance companies will continue to pay those affected by one form of disaster or the other, resulting to losses, once they lodged their claims and fulfilled all other obligations. The director-general stated that NIA had continued to create awareness on the need for Nigerians to embrace insurance. “If there is a mechanism that you should use to protect your assets, why not? Yes we pray and I believe in the efficacy of prayers but if there is something that you should do humanly, then you should do it. “We shouldn’t hide under any religion cover, which had not in any way prevented us from protecting ourselves,” she said. Also, Ms Adetola Adegbayi, Executive Director, Leadway Assurance Ltd., said it was essential to manage the risk of an individual within a community, either in terms of fire, flood, health, sanitation, accidents, among others. Adegbayi said the relevance of insurance could not be overemphasised when various risks were considered in terms of protecting national wealth and sustainability. She noted that managing risk was not about emergency, but about consciously assessing the risk faced by the citizens at the micro level and dealing with it. “We cannot talk about wealth protection, without looking at the risk that affects the wealth,” she said. According to her, gainfully employed individuals create assets and also liabilities; hence, the government must put this into consideration and properly manage it. “Most of the recent hazards happening across the country are clear examples of risks that were not properly managed. “We have created a market structure that is free for people, especially those at the lower end of the economic scale who are particular about their financial sustainability. “To this end, government should find a way to tax the use of public facilities, invest and insure the funds, such that when any unfortunate incident happens either to their goods or the national assets, the insurance fund is recalled to repair it. “We don’t need the government to be going into its treasury to manage the damage that may occur from the risks of even the cheapest liability,”she said. According to her, when managing risks and national assets is engrained into the consciousness of an average Nigerian, their attitude towards insurance and insurance operators will change positively. Adegbayi said Nigerians must see insurance companies as organisations that helped them to protect their wealth and provided succour when losses occurred, rather than organisations established to exploit them. The outgoing President, Chartered Insurance Institute of Nigeria (CIIN) Dr Muftau Oyegunle, charged the government to insurance all national assets and users of such facilities. He noted that the level of poverty in Nigeria, viz-a-viz the way Nigerians suffered unnecessarily was an indication of the dire need for the enforcement of compulsory insurance. “Unfortunately in Nigeria, people wallow in poverty just because of the lack of knowledge of insurance,” he said. Perhaps harkening to the calls, NAICOM on June 23 organised a sensitisation workshop for the joint task force on enforcement of compulsory insurance in the Federal Capital Territory (FCT), Abuja, as a pilot scheme. The task force comprised officers of the Nigeria Police, the Federal Road Safety Corp, the Federal Fire Service, FCT Fire Service, VIO, the Office of the Attorney General of the Federation and the Federal Capital Territory Administration. NAICOM said the workshop was aimed at sensitising members of the task force on the requirements of the law on compulsory insurances as well as the enforcement modalities. The commission said the enforcement exercise within the FCT was a prelude to a nationwide sensitisation and enforcement of compulsory insurance. NAICOM will surely have a tough time convincing Nigerians to embrace insurance, and for the government to implement compulsory insurance going by the reactions of some Nigerians. Mrs Joy Ayanwu, a trader at Idumota Market, Lagos Island, said while insurance was beneficial, it was not easy to comply with because of the current economic situation. Ayanwu explained that considering the rate at which inflation was affecting her business turnover, she could not afford to buy insurance policies from her profit, which was not enough to meet her immediate financial needs. “The policies are good but the current economic situation is not helping matters. “I cannot afford to buy any insurance policy for now but will continue to pray that no calamity befalls my business,” she said. Anyawu advised the government to add insurance to the tax they are charging business owners at subsidised rate to make it more affordable and accessible. Mr Olamilekan Oladele, an IT expert in Lagos, said while the insurance policies were laudable and designed for the good of the masses, the insurance operators and regulator needed to fine tune some grey areas. Oladele stated that NAICOM must begin enforcement of compliance with the operators because operators needed to be more committed and responsible to claims payment to encourage more Nigerians to buy insurance policies. He expressed disappointment that the industry was still at the stage of educating the populace on the importance of insurance when insurance was not negotiable for citizens of other countries because of the benefits therein. “It’s unfortunate that most Nigerians are still paying hospital bills out-of-pocket because they do not even understand or believe in the National Health Insurance Scheme. “How many of the houses we all built or live in are insured? “I have been buying the motor insurance policies for over 20 years since I started driving but have never made claims on my third party motor insurance policy. “The truth is, I have been buying the policy just to avoid harassment from road traffic officers not because I intend to make claims in the event of an accident. “This is the norm for an average driver on the Nigeria road. It is either we are too busy to go through the claim process or the other party in case of an accident is too impatient to wait for the insurance company,” he said. Like many others, Oladele urged the government to put in place mechanisms to ensure that both the citizens and insurance operators comply with compulsory insurance by playing their roles as expected to achieve risk mitigation. NewsSourceCredit: NAN
The National Insurance Commission (NAICOM), on Thursday, said it would soon release guidelines on insurance of government assets to ensure appropriate and adequate insurance cover for government assets.
The Commissioner for Insurance, Mr Sunday Thomas, said this while delivering a paper at the second edition of the Chartered Insurance Institute of Nigeria, (CIIN) 2022 Business Outlook Seminar, held in Lagos.
Thomas, represented by NAICOM deputy commissioner, Technical, Mr Sabiu Abubaka, said that the guidelines, which would soon be released, ensure that assets of Ministries, Departments and Agencies, MDAs would be fully covered.
He explained that the commission had collaborated with Ministry of Finance, Secretary to the Government of the Federation and Head of Service to come up with the guidelines.
He said that the guidelines would ensure that all MDAs comply with the requirements in the guidelines, while failure to comply would attract sanction.
“It is very worrisome to the commission that most assets and liabilities of government are never adequately and appropriately insured.
“This further accentuate the need for urgent measures to be put in place to ensure that government gets value for money in the purchase of insurance by MDAs,” he said.
On International Financial Reporting Standard (IFRS17), Thomas said the commission was determined on the proposed implementation of date as January, 2023.
According to him, the commission has set up sub-working groups to facilitate the migration.
The commissioner urged board members of each insurance firm to get prepared for the IFRS 17 implementation, as the deadline for migration was already close.
In his address, CIIN’s President, Mr Edwin Igbiti, said that the seminar was organised for key players in the insurance industry and other finance sub-sector to review the business environment in the country.
Igbiti explained that the review was for the performance of the industry in the immediate past year and way forward for the new year.
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NewsSourceCredit: NAN
The National Insurance Commission (NAICOM) has said that more insurance companies may be sanctioned through liquidation as part of its moves to reposition the industry.
The Deputy Commissioner, Technical, NAICOM, Mr Sabiu Abubakar, made this known at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar in Lagos on Thursday.
The theme of the seminar was: “Economic Policies of the Government in 2022: Challenges, Issues and Prospects’’.
“Recently two insurance companies’ licences have been withdrawn and these are: Niger Insurance and Standard Alliance Insurance.
“Though managing the death or failure of financial institution is very demanding, nevertheless more may still be liquidated in order to sanitise the insurance sector,” he said.
Abubakar noted that NAICOM had strengthened its regulatory oversight to ensure that operators discharge their obligation by settling genuine claims timely.
The deputy commissioner said that insurance regulation and supervision were always the bedrock of national economic development.
He noted that NAICOM’s reforms and regulatory initiatives would positively impact the insurance industry and the industry would witness tremendous development and growth.
Abubakar urged insurance practitioners to comply with and support the commission’s efforts.
In his address, CIIN’s President, Mr Edwin Igbiti, said that the seminar was organised for key players in the insurance industry and other finance sub-sector to review the business environment in the country.
Igbiti said that the review was for the performance of the industry in the immediate past year and way forward for the new year.
“The programme among other things, examined the national budget, reviewed the thrusts of the fiscal and monetary policies of the government and estimated how these would influence the insurance industry in particular and the economy in general,” he said.
According to him, the seminar was important considering the challenges bedeviling the country such as; insecurity, high inflation rate, debts, oil subsidy as well as the upcoming elections.
Igbiti stated that even though there was a positive projection of the global industry at the beginning of the year, the deliberation would have its effect on the insurance industry and the economy in general.
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NewsSourceCredit: NAN
Allianz Nigeria Insurance on Monday said it had the right quality of expertise, experience, technology and manpower to make a difference in Nigeria and Africa.
The Managing Director of the firm, Mrs Adeolu Adewumi-Zer, said this in an interview with News Agency of Nigeria in Lagos.
Adewumi-Zer said this would be possible following the firm’s years of experience and expertise in insurance technical matters.
“We are commited to drive insurance growth in Nigeria through innovative products, professional expertise and excellent service delivery with cutting-edge technology, to guarantee a sustainable future and prosperity for the people.
” Allianz Nigeria is well positioned for profitability and growth and we are here to stay in order to expand the frontiers of insurance in Nigeria and Africa at large,” she said.
According to her, the underwriting firm is fully recapitalised to the tune of N18 billion as required by the National Insurance Commission (NAICOM).
The managing director stated that one of the missions of the company was to be a preferred insurer in Nigeria, Africa and globally in line with its recent joint venture collaboration with Sanlam.
She said the Allianz-Sanlam joint venture agreement was a long-term commitment that would engender positive growth in Africa.
Adewumi-Zer explained that the joint venture was part of the company’s plans to outperform the market by combining Allianz global expertise and capabilities and Sanlam deep local knowledge.
She said Allianz and Sanlam had agreed to combine their current and future operations across Africa to create the largest Pan-African non-banking financial services entity on the continent.
The joint venture allows Allianz to accelerate its growth by meaningfully expanding the local reach and market penetration while establishing leading positions in key growth markets.
“Allianz and Sanlam will leverage each other’s strengths to unlock synergies and provide clients with best-in-class, innovative insurance solutions and technical excellence and improving value creation for all stakeholders,” she said.
According to her, there are a lot of opportunities in Africa and the future of insurance business is in Africa and particularly Nigeria.
” So if the future is Africa, the future is Nigeria, as you cannot have a strategy for Africa, if you do not take Nigeria seriously.
NewsSourceCredit: NAN
An Aviation Insurance expert, Mr Babajide Agbeja, has been elected the new President of the African Insurances Brokers Association (AIBA).
Mr Ikechi Uko, the Publisher of Atqnews, in a statement on Monday, described Agbeja as a thorough bred insurance guru of many years and an experienced aviation insurance expert.
According to him, Agbeja, who is also the Chairman of BOFF &Co Insurance Brokers, will use his epitome of wisdom to advance the association to greater height.
Uko commended the speech of Agbeja, while speaking on “ The role of Insurance in Aviation Business“ at the first ever Chinet Aviation and Cargo Conference in Nigeria in 2021.
“The second edition of the event will hold on the Sept. 7 to Sept. 8, in Lagos. This year’s event theme is: “The Role of Insurance and Regulation in Growing Aviation and Cargo Business in Nigeria”.
“It is expected to build on the successes recorded at the last event by addressing the challenges thrown up during the last conference, “ he said.
He said the annual conference brought exporters, cargo managers, fogistics firms, airlines, airport, Customs, Insurance firms and everyone in the Aviation and Cargo ecosystem to chart a pathway that enables Nigerians to export more through airports.
According to Uko, Nigeria is still categorised as a high risk country for aviation and the insurance premiums because airlines operating in Nigeria are higher than in other country.
He said that the impact led to increase in the cost of doing aviation business in Nigeria.
“Furthermore, stakeholders opined that the National Insurance Commission (NAICOM) should fine-tune their tier-based proposal for insurance companies so that their risk appetite will be determined by the capital they deploy for business.
“Also, insurance practitioners should start to specialise for improved technical knowledge and robust underwriting of aviation policies.
“In addition, stakeholders at the first edition of Chinet noted that Nigerian laws on cargo exportation and importation are not in tandem with the development around the world, “ he said.
He said regulation in Nigeria’s export environment was inhibiting the growth of the sector.
According to him, insurance is an integral aspect of any business ecosystem that plays vital role in mitigating the inherent risks associated with running the business, especially as it relates to aviation and cargo.
He said Nigerian airlines had been a victim of high insurance premium due to some factors bedeviling the aviation sector regarding complaints of exploitation of airlines by Nigerian insurance companies.
“Nigerian Airlines allege that the law preventing Nigerian Airlines from using foreign insurers is prohibitive and is now a weapon of intimidation by Nigerian Insurers who lack the capacity to insure a brand new aircraft but charge high premium.
“It is alleged that Nigerian airlines pay the highest premiums in Africa. The role of air accidents and investigations on high insurance premiums will be examined and addressed, “ he said.
According to him, 2022 Chinet conference will bring experts to help exporters take advantage of the emerging availability of capacity and airports to grow export capabilities.
He said the conference had been broken into three section; the role of insurance in aviation; the inherent opportunities of cargo airports to support export in Nigeria and the regulation of air cargo in Nigeria.
Uko said that the 2022 edition would have foreign participants for the first time. (wwwnannes.ng)
Editted by AbdulFatai Yussuf
NewsSourceCredit: NAN
The second edition of Aviation and Cargo Conference (CHINET) is to hold from Sept. 7 to Sept. 8. Mr Ikechi Uko, organiser of the conference, said this in a statement on Monday. Uko also said that conference would engage experts who would help exporters take advantage of the emerging opportunities at the airports, to grow export capabilities. He said the event had been broken into three sections to address: “The Role of Insurance in Aviation”; “The inherent Opportunities of Cargo Airports to Support Export in Nigeria” and “The Regulation of Air Cargo in Nigeria”. “The session on airports will give opportunity to the cargo airports in Nigeria to make presentations on their capacities and inherent opportunities in the airports. “In 2022, over six new cargo airports have opened or about to open across the country, mostly owned by states. We will be addressing the enterprise plans for these airports and how they grow Aviacargo using their business plan. “The 2022 edition will have foreign participants for the first time. “This year’s event with the theme: “The Role of Insurance and Regulation in Growing Aviation and Cargo Business in Nigeria”, is expected to build on the successes recorded at the last event and also to address the challenges thrown up during the last conference,” he said. According to Uko, the conference is such that brings exporters, cargo managers, logistics firms, airlines, airport, customs, insurance firms and everyone in the aviation and cargo ecosystem to chart a pathway that enables Nigerians to export more through airports. “We learnt a lot from the last event, and we are planning to work on the observed issues to help improve the situation. “We have already engaged stakeholders to find a profitable route to growing and scaling the aviacargo value chain in Nigeria through the airports. “The last communique threw up many challenges and observations which will be addressed at the year’s event. “It was observed that Nigeria is still categorised as a high risk country for aviation. “The insurance premiums for airlines operating in Nigeria are higher than in other countries, this increases the cost of doing aviation business in Nigeria,” he said. According to him, stakeholders said that the National Insurance Commission (NAICOM) should fine-tune their tier-based proposal for insurance companies. This, he, noted would help to determine their risk appetite based on the capital they deployed for business. He said it was also suggested that insurance practitioners should start to specialise for improved technical knowledge and robust underwriting of aviation policies. He recalled that stakeholders at the first edition of Chinet, noted that Nigerian laws on cargo exportation and importation were not in tandem with the development around the world. “He said this was giving investors massive challenge and was killing cargo exportation in the country. “Moreso, over regulation in Nigeria’s export environment is inhibiting the growth of the sector. “Insurance is an integral aspect of any business ecosystem and it plays a vital role in mitigating the inherent risks associated with running the business, especially as it relates to aviation and cargo. “Nigerian airlines have been a victim of high insurance premium due to some factors bedevilling the aviation sector. “Also, there is growing complaints of exploitation of airlines by Nigerian insurance companies. “Nigerian airlines alleged that the law preventing them from using foreign insurers is prohibitive and now a weapon of intimidation by Nigerian Insurers who lack the capacity to insure brand new aircraft but charge high premium,” he said. Uko noted that it was alleged that Nigerian airlines pay the highest premiums in Africa. He said the role of air accidents and investigations on high insurance premiums would be examined and addressed. Uko congratulated Chief Babajide Olatunde-Agbeja of BOFF &Co Insurance Brokers on his Election as the new President of the African insurances Brokers Association AIBA. Olatunde-Agbeja, a co-partner for the Aviation and Cargo Conference is a thorough bred insurance guru of many years and an experienced aviation insurance expert.
NewsSourceCredit: NAN
The Nigerian Content Development and Monitoring Board (NCDMB) and the National Insurance Commission (NAICOM) have signed insurance services guidelines
which would oblige the oil and gas industry to patronise the local insurance sector.
A statement issued on Monday by the NCDMB’s Corporate Communications Department, said the guidelines would help to retain insurance spending by operators in the economy.
The statement said the Executive Secretary, NCDMB, Mr Simbi Wabote and the Commissioner for Insurance, Mr Sunday Thomas, signed the guidelines recently on behalf of their organisations in Bayelsa.
It said the guidelines would address loopholes that had been identified while implementing the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, particularly sections 49 and 50, which deals with insurance of oil and gas activities.
The statement quoted Wabote as saying that the sections required all operators engaged in any project in the oil and gas industry to insure all insurable risks related to their business with an insurance company, through an insurance broker registered in Nigeria.
He said the Act provides that where an operator seeks to place an insurable risk offshore, a written approval of NAICOM must first be sought and obtained.
Wabote added that that NAICOM before the issuance of the approval must also ascertain that local capacity has been fully exhausted.
He maintained that the Insurance guidelines would strengthen the board’s local content drive.
He said it would ensure that a greater portion of the spend in the Insurance industry as it relates to oil and gas activities in Nigeria was retained in-country.
Wabote said: “The insurance guidelines being launched today was developed by the two regulatory bodies.
“It is to ensure that government’s intention of promoting insurance services within the country is achieved so as to capture significant financial spend under oil and gas insurance services in country.”
He said the collaboration between NCDMB and NAICOM would further ensure the successful implementation of the Insurance guidelines and every other activity.
According to him, this will lead to the attainment of the objectives of the NOGICD Act, 2010 as well as 70 percent Nigerian Content by 2027 under the Board’s 10-Year Strategic Roadmap.
He added that finer details of the guidelines would be released at the Nigerian Content Seminar at the 2022 Nigerian Oil and Gas Conference scheduled for July 2022.
On his part, Thomas charged all stakeholders engaged in any form of business, operations or contract in the Nigerian oil and gas industry to ensure compliance with the relevant laws and the insurance guidelines.
He expressed optimism that the partnership between the board and NAICOM would realise the benefits of increased local content, in-country value retention, job creation, employment generation and Gross Domestic Product growth.
Thomas also reiterated the agency’s commitment to create an enabling environment that would consistently enhance increased capacity of the insurance institutions both financially and technically.
(NAN)
