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The College of Insurance and Financial Management (CIFM) says it has started receiving nominations for free sponsorship Actuarial programme of the National Insurance Commission (NAICOM).
Mrs Yeside Oyetayo, Rector of CIFM, told the Nigeria News Agency on Saturday in Lagos that the college was working with NAICOM and Nigerian Actuarial Society (NAS) on the selection criteria and other aspects of the programme.
She explained that the insurance companies were given two slots each and allowed to nominate two candidates for the programme.
“Part of the criteria is that the nominees must be currently engaged in the insurance industry, as the insurance companies has two slots each and are allowed to nominate two candidates,” she said.
According to her, processes for the commencement of the programme has commenced while assessment for the successful candidates will hold in March.
She said the assessment would be in collaboration with NAS and only successful candidates would be registered to partake in the examination.
The rector hinted that the first sponsored examination would hold in May.
NAN reports that NAICOM had on Jan. 23 announced full sponsorship of at least 100 practitioners in the insurance industry to be certified as Actuarial Analysts towards developing the market.
Mr Sunday Thomas, Acting Commissioner for Insurance, said that the decision followed the dearth of actuarial analyst in the country, as only few insurance companies had in-house actuaries.
Thomas said the initiative, in partnership with CIFM, was aimed at developing necessary professional skills set and talents to drive the insurance sector.
He said all expenses of the course and examination would be fully funded by the commission and at no cost to the selected participants.
According to him, beneficiaries of the programme would be bonded to work as an actuarist in the Nigerian insurance industry for at least five years post qualification and must be referred by a guarantor who should preferably be an employer.
“Part of our plans is that within the next five years, we want to produce at least 100 Certified Actuarial Analyst and we will take responsibility for the commitment,” he said.
Edited By: Abiodun Esan/Wale Ojetimi
Some stakeholders in the insurance sector have called on the National Insurance Commission (NAICOM) to create more awareness to enable citizens understand and key into insurance programmes.
They made the call at a retreat for members of the House Committee on Insurance and Actuarial Matters organised by the commission in Uyo.
Mr Darlington Nwokocha, the Chairman, House Committee on Insurance and Actuarial Matters, regretted that enough sensitisation was not being done to enable citizens understand the benefits of insurance.
He said that lack of adequate data was also a challenge to the growth of the insurance industry.
“You should involve the committee in your sensitisation programme because every one of us is representing members of his constituency who we can reach effectively and promptly in our local dialects,’’ he explained.
Mr Chinedu Ogah, a member of the committee, said that there was a need for the commission to liaise with relevant agencies to ensure that foreign visitor to the country possessed insurance certificates from their country.
“When anyone wants to travel from Nigeria to other countries, they ask for our insurance certificates but I do not think that they check for the same certificate when they enter our country.
“The commission should look into this,’’ he said.
Mr Onyeka Samuel, an insurance expert in a lecture titled: `Enhancing Insurance Regulation and Supervision in Nigeria, the Role of the National Assembly’, lamented that the country was the lowest in terms of insurance penetration when compared with other sub-Saharan countries.
Samuel noted that the country had about 0.6 per cent in terms of insurance penetration with South Africa leading with 16 per cent in the ratings.
“Our market has not been scratched. We have a lot of opportunities to make insurance work and to everybody’s advantage.
“By introducing flexibility in insurance regulation, by enlarging relevant insurance industry specific regulations and by carrying out proper over-sight on the insurance industry as required.
“The National Assembly will be enhancing the insurance regulation and this will translate to growth and development in the insurance sector,’’ he said.
Mr Alhamdu Sabo, a lawyer and insurance expert, in a lecture titled: `Legal Frame-work of Insurance in Nigeria’ called for a review of the motor vehicle third party insurance to accommodate emerging trends.
Reacting to the call, Mr Sunday Thomas, the Acting Commissioner for Insurance of NAICOM said that sensitisation was part of the commission’s plan for the year.
He disclosed that the awareness, which would be done in collaboration with insurance operators, would be in the six geo-political zones of the country.
Thomas, who said that most citizens lacked proper knowledge of their rights in insurance, noted that the sensitisation would help improve their knowledge.
The acting commission for insurance appealed for the support of the committee and the National Assembly in general to exploit the full potentials of the industry to increase its contributions to the country’s economy.
Edited By: Felix Ajide
The National Insurance Commission (NAICOM) says annuity market currently contributes about 40 per cent investment to the growth of the insurance sector.
Annuity is a long term investment, issued by an insurance company designed to help protect one from the risk of outliving his/her income; through annutisation.
What one contributes is converted into periodic payment that can last for life.
The Acting Commissioner for Insurance, Mr Sunday Thomas, said this at a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Uyo on Sunday.
He said that the business which was an aspect of life insurance had recorded a significant boost and showed positive growth in trust and confidence to the sector.
“In recent times, annuity has recorded significant boost with an increase in its contribution to the sector.
“Before the last four years, annuity business was insignificant as far as the portfolio of the industry was concerned. Thanks to the Pension Reform Act.
“Today, annuity business which is categorised under life business is in the neighbourhood of 35 to 40 per cent contributing to the total portfolio.
“We have over N10 trillion in contributions to pensions. Now, it is expected that part of this will empty itself in the insurance business.
“These are some of the reasons we are pursuing the recapitalisation with vigour because anybody who is going to write the future of somebody else must have what it takes to be able to carry the portfolio.
“The public is becoming more exposed and knowledgeable about the workings of annuity.
“ For life annuity, once you retire and you make it your choice, it is for life, until death do you part and there is a shift now from programme withdrawal to life annuity.
“So, we have the responsibility as regulator to strengthen the life operators so that they will be more alive to their responsibilities,’’ he said.
Mr Darlington Nwokocha, Chairman, House Committee on Insurance and Actuarial Matters, said that the insurance industry was faced with some challenges and irregularities.
Nwokocha, however, called on NAICOM to step up action toward ensuring the insurance of citizens.
“The insecurity situation we have in this country today is hinged to a very great extent on certain things that happens within the insurance industry that is not properly done
“The security personnel, paramilitary, the police and the like, if the personnel is not properly insured and he knows that if anything happens to him, the family will not be protected, he will not put in his best to make sure he will defend the nation.
“If he considers himself effectively insured, that anytime he is either in the war-front or he is carrying out his assignment the way the constitution has provided for him to do, that will motivate him into action.
“That will make him feel that if anything happens in the cause of this his action that his family will not be left in the cold,’’ he said.
Nwokocha said that there was a need to amend the Act governing the insurance industry to meet international standards.
Edited By: Tayo Ikujuni/Felix Ajide
National Insurance Commission (NAICOM) says it has commenced the process of digitising all its operations.
Mr Sunday Thomas, Acting Commissioner for Insurance, said this at a retreat organised by the commission for members of the House of Representatives Committee on Insurance and Actuarial Matters in Uyo on Sunday.
Thomas said the move was part of the commission’s efforts to develop the insurance market to keep tap with current realities.
“The commission is now more prepared to drive the Information Technology (IT) revolution in the sector starting with itself.
“It is on this premise that NAICOM is working assiduously to see that all its operations are done online and in real time by digitalising its processes and encouraging the industry to imbibe same.
“Appropriate steps are being taken to launch the commission’s portal which will go a long way in blocking leakages in the sector,’’ he said.
Thomas said that the total investment in the insurance industry as at 2019 stood at N1.1 trillion representing 71.9 per cent, while claims paid total N330, 369.18 representing 31 per cent.
He said that gross premium paid in 2019 was N490, 994. 99 representing 15.2 per cent, noting that the figures showed that there were some cases of delays in the payment of claims by some insurance operators.
The acting commissioner said that the commission had strengthened its complaint bureau to effectively address consumer complaints within the shortest possible time.
Edited By: Tayo Ikujuni/Ali Baba-Inuwa
Mr Sunday Thomas, the Acting Commissioner for Insurance, National Insurance Commission (NAICOM), has reiterated call for the amendment of some laws governing insurance practice in the country.
Thomas made the call at a retreat organised by NAICOM for members of the House of Representatives Committee on Insurance and Actuarial Matters, in Uyo, Akwa Ibom on Saturday.
He said that the laws needed to be amended to meet with international best practices.
Thomas said that a bill to amend the laws was being worked on and appealed to the House to give attention to the bill for quick passage.
“The Commission as a statutory regulatory agency derives its powers from the National Insurance Commission Act 1997 and the Insurance Act of 2003, to primarily oversight insurance practice in Nigeria.
“I believe this event provides me the opportunity to bring to your attention the fact that these laws in some of its provisions are fast becoming obsolete and thus requires urgent amendments.
“It is imperative to note here that a bill to amend the insurance laws has been in the works for some years now.
“We are however, optimistic that when the bill is eventually presented to the 9thAssembly, it will enjoy an accelerated attention,’’ Thomas said.
He said that the country’s insurance sector had two segments of underwriters comprising insurance and re-insurance companies, intermediaries which consisted of insurance brokers, loss adjusters and agents.
He said there were 55 insurance companies, two re-insurance, two micro-insurance operators, as well as over 500 insurance brokers and 2,000 agents operating in the country.
Mr Darlington Nwokocha, the Chairman, House Committee on Insurance and Actuarial Matters, said the nation’s insurance industry when compared to the international community had a lot to catch up with.
“In spite of the fact that we are lawmakers, we have the sole responsibility to defend the laws we make.
“Today, the insurance industry when you compare it on the same platform with the international community, you will find out that Nigeria still has a lot to meet up with. We are trying our best to see what we can do.
“There are certain ingredients in the law that finds little hitches for proper implementation.
“Certain infractions are being ignored and some of the stakeholders and operators find it now more or less like a rule or norm without considering the infractions.
“There are loopholes they may rely on trying to give it a different interpretation but as a responsible House, we are trying to make sure that the content of every act is defined appropriately.
“The committee will find it interesting for us to kick-start the process of the amendment of the insurance Act and to give it a quick and accelerated attention and passage.
“We are ready; one thing is sure, there is a common denominator which we must make sure we hold tenaciously and that is making sure that Nigerian economy revolves effectively within the plan of the insurance industry,’’ he explained.
Edited By: Johnson Eyiangho/Maureen Atuonwu
The first stand-alone microinsurance company licensed by the National Insurance Commission (NAICOM), Goxi MicroInsurance Company Limited, was on Tuesday officially launched for operations in Lagos.
Dr Godwin Ehigiamusoe, Chairman of the company, said at the event that the establishment of Goxi MicroInsurance was in line with its institutional mandate of improving lives and supporting micro and small businesses.
“It is our conviction that low-income people and owners of micro and small businesses require robust risk mitigation service by the nature of their slim economic base.
“The targets of Goxi MicroInsurance Company Limited are the low-income people and micro and small enterprises that are highly vulnerable.
“The death of a bread winner in a low-income household can be devastating.
“Fire in the market place can wipe out the entire assets of an owner of micro and small businesses.
“Access to insurance cover is therefore vital to efforts to address poverty and expand the frontiers of finance, ” he said.
According to him, microfinance and microinsurance are complementary services that are very effective in addressing the challenge of poverty.
Ehigiamusoe said that while access to finance assists low income people to build up assets, insurance services protect their micro-assets.
He said: “Goxi MicroInsurance Company with the support of NAICOM is set to blaze the trail with delivery of responsive insurance policies through flexible and innovative structures.
“Low income Nigerians in rural and urban communities need a bouquet of insurance cover for their lives, farms, shops and assets for viability and effectiveness, serving low-income people require partnership and collaboration.
The chairman said the company would draw heavily on the cumulated skills on how to reach, engage and serve low-income people that is domiciled in the LAPO System.
He explained that Goxi MicroInsurance would be open to partnership with community-based associations and co-operative societies.
“We are not unaware of the challenges of providing insurance cover for persons at the bottom end of the society.
“The Board and Management of the company is poised to address these challenges through community engagement and enlightenment.
“We will strive to address the challenge of ‘God forbid’ and other cultural and psychological barriers, ” he said.
Ehigiamusoe commended NAICOM for the introduction of the micro insurance guidelines and appealed for support and encouragement from the regulator to address emerging issues.
Mr Shina Gbadegesin, Managing Director of the company, also said that the firm would operate as a Composite Microinsurer and was licensed as Lagos State Based.
Gbadegesin said that while the concept was not completely new in Nigeria, the only new development was the licensing of the MicroInsurance as a stand alone company under the guideline of NAICOM .
He lauded the Chairman of Goxi MicroInsurance for taking the step to be first company to key into the initiative to significantly improve the services rendered to the low income people.
The Managing Director said the firm had assembled a team of brilliant professionals with adequate experience to service the target customers.
“We have also made substantial investment in Technology to enable smooth partnership in delivering value to our customers, ” he said.
Gbadegesin urged different associations, aggregators, cooperative societies, MFB and MFIs to give the company an opportunity to access their members in order to offer Microinsurance services to them.
He disclosed that the company commenced Microinsurance Partnership with LAPO Microfinance Bank few months ago and the experience of offering service to the large number of their customers had been wonderful.
In his address , Mr Sunday Thomas, Commisioner for Insurance congratulated the Board and Management of Goxi MicroInsurance for the remarkable feat.
Thomas, represented by Mr Jibola Bankole ,an official in the Commision, said that the MicroInsurance unit of NAICOM had put in a lot of effort to ensure that only the right companies were licensed.
“Goxi is our first child in terms of Microinsurance and like every family is always happy to receive the first child ,we are happy to welcome the company into operation.
“It is expected that the operation of the company will be simple, understandable, accessible and affordable, efficient, and add value to its targeted audience,” he said.
Edited By: Oluwole Sogunle
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Some shareholders in the insurance industry on Thursday urged the Federal Government, through the National Insurance Commission (NAICOM), to enforce policies that would promote insurance penetration in the market.
The shareholders spoke in separate interviews with the Nigeria News Agency in Lagos.
Mr Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria, said that NAICOM and the insurance operators must collaborate to develop a framework for the government to enforce policies that would promote insurance.
Okezie said that the government must come up with a law that would make it impossible to build storey buildings or own vehicles without insurance.
“While the law prescribes insurance for storey buildings, it is only the government that can enforce its compliance, because it owns the police and other security parastatals that can enforce compliance.
“This will enable the insurance firms to aggressively market their products to the owners of the buildings and make sure that they comply with the rules.
“Also, if you are a driver in Nigeria, either by third party or comprehensive, it is compulsory that you insure your vehicle,” he said.
He, however, projected a brighter future for the sector, urging the insurance operators to be straightforward in their dealings and not undercut their services in order to gain advantage against each other.
Also, Mr Shehu Mikali, National President, Constance Shareholders Association of Nigeria, urged NAICOM to assist the industry by ensuring that all government infrastructure and assets are insured.
” The Government, through its agencies, should set an agenda and also invest its quota in the insurance sector.
“Even the Local Government authorities must also ensure that all markets within their locality are insured ,” he said.
According to him, this will encourage policy takers in other quarters to follow suit and the insurance companies will no longer have to solely depend on the oil and gas sector for patronage.
Mikali also advised the regulator to beam its searchlight on the insurance operators and composition of the Board of Directors of the firms, and to ensure competence and transparency in their appointment.
He advised the operators to collaborate with the Federal Road Safety Corps (FRSC) in charge of inspecting insurance cover to ensure compliance by vehicle owners.
“The operators should develop a digital code that enables the FRSC officials to verify the authenticity of an insurance cover presented, ” he said.
According to him, insurance operators must also be mandated to develop data-based programming monitored by NAICOM that enables a policy holder to send an alert on payment of their premium as and when due.
“NAICOM has been campaigning for ‘no premium, no cover’, but this can only be monitored through data-based programming, ” he said.
Edited By: Kamal Tayo Oropo/Oluwole Sogunle
The National Insurance Commission (NAICOM) on Thursday announced full sponsorship of 100 practitioners in the insurance industry to be certified as Actuarial Analysts, toward developing the market in next five years.
Mr Sunday Thomas, Acting Commissioner for Insurance, said this at the Actuarial Development Sensitisation Workshop organised by the commission in Lagos.
Thomas said that the initiative was in partnership with the College of Insurance and Financial Management (CIFM), Nigeria, and it was aimed at developing necessary professional skills and talents to drive the insurance sector.
He said all expenses of the course and examination would be fully funded by the commission and offered at no cost to the selected participants.
“Part of our plans is that within the next five years, we want to produce at least 100 Certified Actuarial Analysts (CAA) and we will take responsibility for the commitment.
“We must analyse our job, role and the need to change our focus on how to develop the market and ensure compliance with regulatory policies.
“Part of the development is the human capital development, as the growing potential of the industry is built on the capacity to have the required capital that will drive it forward.
“The issue of measuring and taking necessary steps for effective pricing have made the Actuarial profession to be more pertinent more than ever before.
“There is need to develop young professionals and give them a future in the insurance industry and we are determined to develop their potential and make them relevance to the sector,” he said.
According to him, only a couple of the insurance companies have in-house actuaries and this is why the commission has intervened to stem the tide.
Thomas said actuaries were also needed to manage the Annuity business which was becoming quite significance and almost accounting for 35 to 40 per cent of the industry portfolio with an output of N10 trillion.
He urged the potential beneficiaries to be committed to the programme to succeed, as the commission would only give candidates the opportunity to re-write a failed course twice.
“This programme requires sharp, determined, qualitative- minded and serious individuals. So, think critically about it before opting for it.
“We are ready to give you all the necessary support and will persuade the Chief Executive Officers of the Insurance companies to give the candidates adequate time to study,” he said.
Thomas also noted that the NAICOM Academy would kick-off operations within the year in Abuja to train and empower its in-house staff.
He said the academy would be the first of its kind for regulators in West Africa and would be structured to acquire and share more knowledge to promote the industry.
In her address, Dr Yeside Oyetayo, Rector, CIFM, lauded NAICOM for offering full scholarship for the programme as a way of giving back to the industry.
Oyetayo noted that processes for the programme commenced immediately and the college would be developing an Actuarial development policy in collaboration with the Nigerian Actuarial Society (NAS) to train the candidates home- based.
She said among other roles, the college would conduct an assessment of candidates for the sponsorship, register selected candidates, offer free registration for CAA examination twice a year.
“We will also offer two weeks intensive tutorial and mock examination before the actual examination and arrange for a compulsory 160-hour study leave for candidates with their employees,’’ Oyetayo said.
The rector noted that the prerequisites for admission into the programme include that a candidates must be citizens of Nigeria with a valid identity card and must possess analytic skills.
She said the beneficiaries must also be engaged in the industry, either as an underwriter, loss adjusters or academia, among others.
According to her, beneficiaries must be interested to work as an Actuary in the Nigerian insurance industry for at least five years post qualification and must be referred by a guarantor who is preferably an employer.
In a lecture, Mr Tola Fakoya, an Actuary with Mansar Insurance, listed the functions of the Actuaries to include risk assessment, product development, product pricing, liability valuation, asset liability matching and experience analysis.
Fakoya also mentioned profitability assessment, solvency, financial reporting, reinsurance optimisation, capital adequacy, expenses analysis, among others.
In his remarks, Mr Pius Agboola, Director, Policy and Regulation, NAICOM, described Actuarial Analyst as a noble, enviable and rewarding profession qualification.
He urged the potential candidates to put in their best and take advantage of the opportunity offered by the commission.
Edited By: Adeleye Ajayi
19’ signed by Mr Pius Agboola, Director, Policy and Regulation, of the commission, announced the extension of the recapitalisation deadline from June 30 to Dec. 31.
Agboola said in the circular that the decision for the extension followed a review of the recapitalisation plans submitted by the operators.
He also said that the decision was sequel to the various levels of compliance observed and inputs from various engagements with relevant stakeholders.
Also, Mrs Yetunde Ilori said that following the extension, insurance companies had now been given ample time to comply with the directive.
She advised that insurance companies should not rush into the exercise without adequate preparation and diligent execution.
She added that the extension would also help to facilitate a seamless reinsurance arrangement which she said was an annual programme.
According to her, it will be absurd to conclude the recapitalisation by mid-year, as this may cause a lot of disruptions.
The D-G said, “Now that the commission has provided the needed impetus for members to go about the exercise, it is my appeal that member companies must give the exercise all the seriousness it deserves.
“We need to appreciate the commission’s gesture by working hard to achieve the recapitalisation threshold set for our various businesses.
“That way, we will encourage the commission to churn out more market friendly policies.’’
She also advised her members to take advantage of the new date to complete their recapitalisation plans.
She added that with the extension granted by NAICOM, some of the initial challenges thrown up by the first date had been addressed.
“It is our hope that whatever recapitalisation option they have to take, the new timeline will give them the ample opportunity to do so, “she said.
She wished all the members of her association success in their recapitalisation plans and prayed for a hitch- free exercise.
Ilori also commended NAICOM for the extension of the recapitalisation deadline granted the Insurance and Reinsurance Companies in Nigeria.
She noted that the commission had taken a bold step in the right direction by acceding to the requests of the insurance companies for an extension of the deadline for the exercise.
“The association appreciates the Acting Commissioner for Insurance, Mr Sunday Thomas and management of the commission, for acceding to our request.
“This singular move has no doubt portrayed the commission as one with a listening ear.
“It has proven to be responsive to the yearnings and aspirations of the insurance operators and shown that the interest of the market is uppermost in its considerations,” she said.
According to her, the market expects more cheery news from NAICOM by way of palliatives and incentives, especially, for those that are within its control.
The director-general said this was necessary because the cost of recapitalisation would be too heavy on the companies.
She said that with palliatives coming from the commission, they would assist the firms to reduce their costs and increase their shareholders’ values.
NAN had reported that NAICOM, in exercising its statutory powers and regulatory functions, had on May 20, reviewed the minimum paid-up share capital requirement for all classes of insurers , that is, insurance and reinsurance companies.
The directive was with the exception of Takaful operators and Micro-insurance companies who are doing businesses in the country.
Following the review, the existing minimum paid-up capital share for Life Insurance business was raised from N2 billion to N8 billion.
That of the General Insurance business was raised from N3 billion to N10 billion and that of the Composite business was raised from N5 billion to N18 billion.
The d Reinsurance business was raised from N10billion to N20 billion.
The new paid-up share capital requirement takes immediate effect for new applications made to NAICOM by companies seeking to carry out insurance businesses in the country.
Edited by: Chioma Ugboma/Peter Dada
The National Insurance Commission (NAICOM), says the extension of renewal of licences of Insurance Brokers and Loss Adjusters to two years will ensure they transact their businesses with ease.
Mr Pius Agboola, the Director, Policy and Regulation, NAICOM said this in an interview with Nigeria News Agency in Kano on Tuesday.
Agboola spoke on the sidelines of the 2020 Seminar organised by the Commission for Journalists covering the Insurance sector.
NAN reports that NAICOM had on Dec. 30, 2019 extended the licensing renewal period for Insurance brokers and Loss Adjusters from one year to two years.
The two-year new licensing regime is expected to commence from April.
The Commission had in the past withdrawn the licences of some Brokers and Loss Adjusters due to their inability to meet the annual deadline for submission of documents for renewal.
Agboola said that the primary objective of the new policy was to key into the Federal Government’s policy of the Ease of Doing Business (Executive Order One).
“With this, the problem of coming to the Commission every year and the commencement of preparation almost six months after their last visit for renewal has been phased out.
“The renewal usually requires processing of data, documents such as Tax clearance, among others. The brokers and loss adjusters have also been complaining of the burden they have to go through.
“That is why we decided to address the problem by minimising the rate at which they have to come to the Commission.
“The new policy is good for them and also for NAICOM because of the capacity and man power required from us for the renewal,’’ he said.
According to him, the new policy will among others ensure proper monitoring and regulation of the Brokers and Loss Adjusters within the year.
Agboola said that part of the requirements as stipulated in the new policy was that Insurance companies submit their Annual Returns to the commission yearly.
He noted that they were also expected to pay their one per cent levy to the commission while the managing directors of the companies must be such that were fully available at work and not just an Ad-hoc staff.
Edited by: Gregg Mmaduakolam/Ese E. Ekama
