The Federal Government has mandated the National Insurance Commission (NAICOM) to ensure that its portal saves insurance data connected to government databases in the country.
Mrs Zainab Ahmed, the Minister of Finance, Budget and National Planning, gave the charge when she commissioned the NAICOM Portal recently in Abuja.
Ahmed told officials of the commission to cooperate with other agencies of government to enforce compulsory insurance in the country.
She urged stakeholders in the industry to consciously spread the reach of insurance from the major cities and few states to other regions of the country, especially the rural areas.
She called on NAICOM to ensure that low penetration in the retail end of the industry is also addressed through vigorous drive of inclusive Insurance like micro takaful.
While complaining about the low insurance penetration of 0.88 per cent contribution to the Gross Domestic Product (GDP), Ahmed urged NAICOM to take advantage of the opportunities for growth in the insurance market.
She called for the development of new products based on data and customer preferences.
She also called for introduction of new channels of distribution beyond the traditional channels to reach new segments of the market
The minister urged NAICOM to look into ways of increasing its revenue through the use of technology and the portal in particular.
“NAICOM should ensure that the portal is connected to other government databases like the National Identity Management Commission (NIMC) NIN Database,
“The Nigerian Immigration Service (NIS) Passport Database, Nigeria Integrated Customs Information system, FRSC’s National Vehicle Identification System, the National Vehicle Registry, State Licensing Databases, among others should also be connected.
“This will provide value-added services to all insurance industry stakeholders and enhance revenue generation, ” she said.
In his remark, Mr Oluwadare Thomas, the Commissioner for Insurance, said that the portal provided a platform for interconnectivity by all industry stakeholders
Thomas said that it would also support real-time aggregation of data on policies at the time of underwriting and policy issuance.
According to him, each policy will be issued with a unique policy ID that will be associated with the policy for its lifetime.
The commissioner assured that with the completion of the portal, there would be process efficiency and faster processing time as applications and supporting documents will now be submitted online
He added that applicants’ accounts would be updated with the status of the applications as they progressed, adding that there would be effective real-time communication between NAICOM and applicants .
The Federal Government has called on the National Insurance Commission (NAICOM) to put in place measures that will ensure insurance companies meet their obligations to policyholders by paying claims promptly. Dr Zainab Ahmed, the Minister of Finance, Budget and National Planning, made the call in Abuja on Friday when she launched the Commission’s portal. Ahmed, in a statement by the Commission, said that claims payment determined the valuable structure of the industry in the economy. According to her, prompt claims payment is the best advertisement for the industry, therefore all genuine claims that have been duly verified and due process followed, should be paid promptly. She advised that insurance education be introduced in the education curriculum of primary and tertiary institutions. ”I understand the portal will serve as a platform for interconnecting all industry stakeholders to support real-time aggregation of data and automate its business processes. ”It will also provide access to statistical data of the sector. ”The commissioning of the Portal should serve as a springboard for industry wide adoption of technology and innovation for efficient and effective service delivery. ”Massive sensitisation must be done on both traditional and new media on the benefits of Insurance,” she said. Mr Sunday Thomas, the Commissioner for Insurance, said the portal was one of the initiatives of the Commission to deepen the insurance market and increase the penetration to the level that is consistent with the country’s economy. Thomas said the portal was a customised solution designed to help the Commission manage complaints and handle issues seamlessly. He said it would also ensure that insurance companies were performing optimally and clients were serviced adequately. Thomas said the portal was expected to address the challenges of poor insurance penetration, public trust and confidence. He said that inadequate real time statistical data of the insurance industry would be resolved through the efficient deployment of the portal.
NEM Insurance Plc has generated a gross premium of N27.8 billion for the financial year ended Dec. 31, 2021, indicating an increase of 26 per cent when compared with N22 billion achieved in 2020. NEM Insurance Chairman, Dr Fidelis Ayebae, announced this at the the 2021 Annual General Meeting (AGM) on Friday in Lagos. Ayebae said the underwriter during the period under review posted net premium of N19.3 billion from N15.8 billion recorded in the corresponding period of 2020, an increase of 23 per cent. He said the insurance firm incurred a gross claim of N11.6 billion during the review period as against N8.4 billion in 2020, an increase of 26 per cent. “In the same vein, the net claims expenses of N5.6 billion incurred in 2021 was nine per cent lower than that of the preceding period which was N6.05 billion. “The net claims ratio for the period under review was 20 per cent as against 27 per cent in 2020 due to good claims recovery during the period under review,” he said. According to him, though interest rate in commercial paper was low in 2021, the insurer was proactive enough to take the advantage of other investment opportunities to generate income on investment of N1.13 billion . The chairman said this resulted in an increase of about 13 per cent as against the previous income on investment in 2020 which was N1.004 billion. Ayebae hinted that investment in Associate (RegencyNem Insurance Ltd., Ghana) was fully impaired in 2021 because of going concern issues. He stated that the Group incurred the sum of N4.18 billion being an adverse variance of 30 per cent over year 2020, which was N3.22 billion. The chairman said that the parent company recorded a negative variance of 29.5 per cent over year 2020. “Specifically, N4.16 billion was incurred in 2021, N3.19 billion was incurred in 2020,” he said. Ayebae said that the group’s Earnings Per Share ( EPS) for the year under review stood at 89k in contrast with 96k in 2020. Ayebae said that the group’s Profit After Tax (PAT) stood at N4.45 billion in 2021 lower than N5.08 billion in the previous year, representing a decrease of 12.5 per cent. “This result is majorly due to sharp decrease in fair value gain,” he said. He stated that the board of directors had recommended a dividend of 22k per ordinary shares to be paid out of the profit for the year. On recapitalisation, Ayebae noted that inspite of the suspension of the process by the National Insurance Commission (NAICOM), NEM Insurance was poised to recapitalise and had enough reserve to do so. The chairman identified the rising inflation, insecurity, climate change, Ukraine war, hike in fuel pump price, unstable labour market and new waves of COVID-19, among others as part of challenges in the present year. Ayebae expressed optimism that the company would record enhanced performance in the current. He said : “As the situation continues to be very dynamic, the company has been working diligently to assess the potential risks posed by COVID-19 to its business on an ongoing basis and to realign its strategies accordingly. “We are of the opinion that our business operations will not suffer any major setback on account of these major challenges. “The board and management will continue to leverage its robust technology infrastructure and maintain a healthy result and asset base,” he said. In his address, the Group Managing Executive Officer, NEM Insurance, Mr Tope Smart, said that the company recorded positive performance in the review period. Smart explained that the global health crisis in year 2020 which further compounded the fragile economic situation in Nigeria took its toll on households and corporate bodies. He said: “Despite this difficult terrain, our company showed resilience and we were able to post impressive results.” The managing director expressed gratitude to all brokers and clients for their unalloyed support over the years. “To our board members, words are not enough to express our appreciation to you for creating the right environment which assisted us in delivering value to all stakeholders, we are grateful. “I want to equally thank all our staff who in the midst of difficulty, brought about by COVID-19 remained undaunted and have continued to deliver superior services to our numerous brokers and clients. “To all our shareholders, thank you for keeping faith with us in this journey. “As we look forward to the future, we are confident that more than ever before, our goal of industry leadership is within reach.
Mrs Zainab Ahmed, the Minister of Finance, Budget and National Planning, has urged the inaugurated Governing Board of National Insurance Commission to re-position the insurance industry to attract investors.
Ahmed gave the charge while inaugurating the Board Members of NAICOM on Friday in Abuja.
She said that government had put in place key policies aimed at promoting the growth of the insurance industry as well as deepen insurance practice in Nigeria.
According to her, it is imperative for the board members to familiarise themselves with the functions, procedures, rules and regulations in the industry, adding that it would help them function effectively.
She listed some key policies put in place by government as “The repeal of S16 of CITA 2007 as amended by Finance Act ,2019; the review of the minimum capital requirements to enable insurance and re-insurance companies acquire enough capital for their business as contained in Finance Act, 2021, and the Consolidated Insurance Bill to replace the 2003 Insurance Act which is undergoing legislative action.
She added that these guidelines would help the board achieve its mandate.
She, therefore, charged the board members to bring their wealth of experience to bear on the activities of the commission and insurance industry at large.
“It is your responsibility to ensure that good corporate governance is entrenched in the commission, support management on creating enabling environment for both members of staff, and stakeholders and also ensure harmony within the board.
“There is need for the board and management to evolve policies and create new insurance products and build the desired trust and confidence in Nigerians with a view to enhancing insurance penetration.
Responding, Dr Abubakar Sani, the board Chairman of NAICOM assured commitment of the Board to encourage necessary strategic framework and peer review mechanism that would uphold regulatory global best practices.
Sani said that the board would also align with the mission of NAICOM to conduct effective supervision, support management and members of staff to enforce discipline in the market.
He added that members would ensure compliance with the code of ethics of the insurance profession by practitioners and also collaborate with due process office and other relevant agencies of government on insurance services procurement.
“The board will proactively seek to promote different policies and initiatives to deepen insurance penetration, thereby ensuring that more Nigerians and assets are insured.
“Trade credit and Guarantee insurance policies are currently untapped and this could be instrumental to improving market penetration.
“The board will aggressively support staff training and encourage collaboration with other regulatory agencies in knowledge sharing. We will make NAICOM a place of pride to work,” he said.
Sani, on behalf of the board members, appreciated President Muhammadu Buhari for the opportunity and pledged to add tremendous value to the insurance industry.
The Securities and Exchange Commission, SEC, has expressed optimism of capital market growth in 2022 due to its various initiatives.
SEC Director General Lamido Yuguda said this in a statement issued by the Commission in Abuja on Sunday.
He expressed hope that as restrictions on COVID-19 and its variants are relaxed, the market will witness renewed confidence that is expected to introduce investments from domestic and foreign investors.
Yuguda said that the SEC will also unveil the revised version of the 10-year Capital Market Master Plan during its next conference.
He said the plan would reflect the dynamism of the market and developments in FinTech, among others.
“As we expect improvements both in economic activities and in the capital market, we must remain committed to the development of the market in accordance with the 10-year Master Plan.
“Some of the key initiatives to be pursued in 2022 are the repeal of the Investments and Securities Law (ISA) of 2007 and the approval of the Investment and Securities Law Project of 2021.
“Together with the platform of the National Association of Securities Dealers (NASD), we will provide the necessary incentives and support to attract SMEs to go public.
“Rules on crowdfunding have already been developed to encourage new sources of finance for SMEs.
"The SEC will continue to improve the existing regulatory framework that guides market operations by keeping up with evolving changes in market practices," he said.
Mr. Yuguda said that the Commission would improve coordination with other stakeholders such as the National Assembly, CBN, PENCOM, NAICOM, DMO and FIRS to create synergies to ensure that the objectives of the master plan are met.
He added that the SEC would carry out advocacy efforts with the relevant government agencies to secure the listing of its shares.
He explained that policies would also be defended to encourage companies, such as the new Dangote Refineries, to offer their shares to the public and list on any of the commission's registered platforms.
"We also plan to provide additional support to registered commodity trading platforms to complement the government's renewed diversification efforts in agriculture," he said.
The joint committee addressing the violation of consumer rights in the money lending industry will shut down illegal businesses at the beginning of its application, says the Federal Commission on Competition and Consumer Protection (FCCPC).
Babatunde Irukera, executive director of the FCCPC, told the Nigerian News Agency in Abuja on Sunday that the application would start soon.
reports that the joint committee was made up of representatives from the FCCPC, the Central Bank of Nigeria (CBN), and the Economic and Criminal Crimes Commission (EFCC).
Other agencies involved in the committee are the National Information Technology Development Agency (NITDA) and the National Human Rights Commission (NHRC).
Irukera said the committee would also write interim regulations that money lending companies must comply with.
“The joint committee is meeting and agreeing on how to proceed, but I can say that two of the joint committee entities will go to the field and do the compliance work now, very soon.
“They will close deals and involve app stores to shut down certain abusive and infringing apps.
`We are also going to write interim regulations and some basic information for all these lenders to provide information so that people know who they are.
“Some of them are just Apps for which we don't even know who the promoters are.
"So we are going to provide them with certain frameworks to comply with before we do business," he explained.
On the growing number of consumer complaints about services, Irukera said the commission was moving forward on its Memorandum of Understanding (MoU) with the National Insurance Commission (NAICOM).
According to him, we anticipate that when we finalize that MoU early next year, we will have more interventions across the industry in that space.
"We get a lot more complaints about policyholders who have paid their premium and they have not been resolved, so we are involving NAICOM in that."
The Senate on Tuesday passed Finance Bill 2021, transmitted to the National Assembly by President Muhammadu Buhari, on December 7, 2021.
Approval of the bill two weeks later followed the consideration of a report from the Joint Finance Committee; Customs, Special Taxes and Duties; Trade and Investment.
The Chairman of the Joint Committee, Solomon Adeola, in his presentation, said that the bill seeks to support the implementation of the Federal Budget for Economic Growth and Sustainability 2022 by proposing tax, customs, special, fiscal and other key specific relevant laws.
According to the legislator, a total of twelve laws were amended under the finance bill that contains thirty-nine clauses.
He added that the bill seeks to promote tax equity, align national tax laws with global best practices, introduce tax incentives for infrastructure and capital markets, support small businesses, and promote increased government revenue.
“The Finance Law of 2020 was essentially based on having no new taxes or new incentives due to the impact of COVID-19 on the economy, as such, it was structured in four broad thematic areas; Promulgate counter-cyclical measures and crisis intervention initiatives; Tax, fiscal responsibility and public procurement reforms; Reform tax incentive policies for job creation; Ensure closer coordination of monetary, trade and fiscal policies; and Improvement of the tax administration ”, said Adeola.
Accordingly, the Joint Committee, based on its observations, recommended that a capital gains tax of 5 per cent be imposed on share alienation transactions where the proceeds exceed N250 million in 12 calendar months.
He recommended that gambling and lottery companies be taxed, as well as oil and gas companies.
He underscored the need for Midstream and Downstream oil and gas companies to be subject to corporation tax without the benefit of tax breaks for companies that export goods to earn foreign exchange.
The Committee noted that doing so would avoid double dipping by gas utilization companies, so they cannot claim both (1) 3-year tax holidays; as well as (2) Incentives from the Oil Income Tax Law or (3) pioneering tax holidays under IDITRA.
The Joint Committee advocated qualification of capital expenditure rules for small and pioneering companies, in order to avoid double-dip by requiring companies to not be able to deduct qualified capital expenditures to reduce their taxable profits when using the capital expenditures. qualified capital expenditures to generate tax-exempt income.
He sought more powers for the Federal Internal Revenue Service (FIRS) to collect NPTF levies from Nigerian companies on behalf of the fund and expedite the collection of taxes from Nigerian companies in accordance with the ease of President Buhari's administration to do business reforms.
The Joint Committee also insisted on the need for the Federal Government to ensure that FIRS implements both proprietary and third-party technology applications to collect taxpayer information, improve confidentiality and nondisclosure, and allow them to investigate tax evasion and other crimes and sanction no - compliant taxpayers.
In addition, it requested that FIRS be empowered to assess non-resident companies to tax on a fair and reasonable billing basis on billing obtained from digital services to Nigerian customers, with an additional mandate to designate individuals in order to collect and send to non-residents. taxes.
The Committee demanded the necessary reforms in securities lending operations, Minimum Tax for Insurance Companies and Companies in general, Taxation of Trust Unit Income, Real Estate Investment Trust and Capitalization of Insurance Companies by NAICOM in line with the Fiscal Equity.
He urged the government to direct FIRS as the Lead Tax Revenue Collection Agency to collaborate with other law enforcement MDAs in streamlining tax collection through improved Public Finance Management reforms.
According to the Joint Committee, doing so would reduce revenue leakage and better track actual expenditures based on revenue performance in accordance with the provisions of the 1999 Federal Republic of Nigeria Constitution (as amended), tax rules and other laws on existing money.
He also called for the diversification of Nigeria's income from the oil sector to other sectors to finance critical expenditures.
The Committee, while demanding a 0.5 percent increase in the education tax, lobbied for closely monitoring development and policies on VAT, tax incentives, a projected rate increase for tobacco, alcohol and beverages. carbonated to fund vital spending on health, education and security, with a possibility of introducing new taxes, duties and levies as the economy recovers.
Meanwhile, the Senate also passed a bill Tuesday to amend the Appropriations Act of 2021.
The bill sponsored by Senate Leader Yahaya Abdullahi went to a second and third reading after it was considered during plenary.
The 2021 Appropriations Act (Amendment) bill seeks to extend the implementation of the Capital aspect of the 2021 Appropriations Act from December 31, 2021 to March 31, 2022.
By Ginika Okoye / Rukayat Adeyemi
The National Insurance Commission (NAICOM) has unveiled its 2021-2023 strategic plans for efficient service delivery, protection of trust and confidence in the industry.
The head of NAICOM, Department of Corporate Strategy and Special Tasks, Mr. Usman Jankara, announced the plan at a conference at the annual seminar for insurance journalists in Lagos on Friday.
The theme of the 2021 seminar was “NAICOM Corporate Strategic Plan 2021-2023: Goals, Objectives and Key Deliverables”.
Jankara explained that the strategic plan was built around five objectives, including establishing effective and efficient service delivery, ensuring a safe, healthy and stable insurance industry.
Other objectives are to adequately protect policyholders and the public interest, to improve confidence in the insurance industry, to encourage innovation and to promote the development of the insurance market.
According to him, the objectives will consolidate the 2016-2020 strategic plan with new milestones required to allow the commission to accomplish its mission.
Jankara noted that some of the commission's 2016-2020 strategic plans had not been met due to the current COVID-19 pandemic, among other factors.
“Our strategic plan has simplified what we are going to focus on and we are now more confident that we will do much better this year.
“We want to have a stable insurance industry to be globally competitive and contribute to the country's economy,” he said.
Jankara said the plan would also ensure policyholder complaints are dealt with better and faster.
Mr. Abiodun Aribike, head of the information technology department of NAICOM, said the commission has upgraded its portal to eradicate bogus insurance and deepen insurance penetration.
Aribike added that the commission will continue to upgrade its technology to meet the global industry trend. (NAA)(NAN)
By Ginika Okoye
The National Insurance Commission (NAICOM) and the Federal Ministry of Transportation is to collaborate to ensure adequate insurance for road transport owners and users within Nigeria and ECOWAS member countries.
The commission and the ministry agreed to collaborate when the Minister of State for Transportation, Sen. Gbemisola Saraki, paid a visit to the Commissioner for Insurance, Mr Sunday Thomas, in Abuja on Thursday.
A statement by the commission said the ministry and NAICOM agreed to immediately establish a joint committee to look into different areas of interest to ensure a mutually beneficial relationship.
The statement said Thomas assured the minister of the readiness of NAICOM to collaborate with the ministry of transportation to ensure adequate insurance coverage in the sector.
He said the commission was ensuring order in the insurance sector particularly, in the vexed issue of fake insurances in the road transport sector.
The commissioner disclosed that NAICOM had developed technology for verification of insurance policies.
While speaking, Saraki said the ministry had embarked on a transformation programme of the road transport sector that would have tremendous impact on the lives and wellbeing of citizens.
She noted that insurance was a critical aspect of transportation hence, the need to collaborate with NAICOM to ensure success of the programme. (NAN)(NAN)
The National Insurance Commission (NAICOM) has issued its first licence in 35 years to a reinsurance company.
The commission also issued licences to four insurance companies and two takaful insurance companies for the first time in 10 years.
The Commissioner for Insurance, Mr Sunday Thomas, who issued the licences on Friday in Abuja, said it was to deepen the insurance market and expand operations in the country.
He urged the companies to focus on products that would meet the insurance needs of the people, saying that the commission would not hesitate to recall the licence of any company which failed in its responsibilities.
“The last licence issued by NAICOM was about 10 years ago and so, what we are doing today is historic.
“Some of the actions were deliberate, especially with respect to life underwriters and non-life underwriters because we had wanted people to acquire the existing companies.
“Now, we have gotten to a point where there is need for us to deepen the market. Every day we live and go to bed with risks all over us and therefore there is the need for us to expand the scope of our operations.
” The only thing we can do is to increase the supply side.
“The demand side is yearning for products that they can buy in and secure their future. We believe that the team will do what will ensure the sustainability of the companies,’’ he said.
The commissioner, who expressed regret over the current poor rating of the country in insurance, urged the companies to help get more people involved in the sector, especially at the micro level.
The Chief Executive Officer of FBS Reinsurance Limited, Mr Fola Daniel, assured the commission that the company would comply with its regulations.
“We don’t have a reason not to be compliant, we will be self-regulating in a way that the commission will not suffer headache on account of the company.
“We will be your worthy ambassador, thank you for giving us this opportunity to add value to the insurance industry particularly, capacity to the reinsurance world,’’ he said.
Mr Tony Elumelu, the Chairman of Heirs Insurance Limited (General), assured the commission that the company would surpass the insurance expectations of the people, saying that it looked forward to working with NAICOM to engage the National Assembly on necessary legislation to move the sector forward.
“We understand market research, we understand what consumers want, we know how to reach them and surpass their expectations and there is always room for improvement, especially with technology.
“We will work with this leadership of NAICOM and other industry leaders to bring about the change that will help the industry grow so that the contribution to GDP will move to three per cent under your leadership.
“We want to make sure we take insurance to our people, have better understanding of insurance, assurance products, make sure that they embrace it and the stereotypes that exist; we will work together to educate and create awareness,’’ he said.
The Chairman of Stanbic IBTC Insurance Limited, Mr Yinka Sanni, commended NAICOM for the speed with which the company’s application was processed.
Hajia Saadat Mohammed, a representative of the Chairman of Salam Takaful Insurance Company Limited, said that the issuance of the licence to the company was an opportunity to encourage financial inclusion.
The News Agency of Nigeria reports that other insurance companies that were issued licences include Heirs Life Assurance Limited, Enterprise Life Assurance Company Nigeria Limited and Cornerstone Takaful Nigeria.
Edited By: Modupe Adeloye/Mufutau Ojo