The Nigerian Insurers Association (NIA) and the Nigerian Council of Registered Insurance Brokers (NCRIB) have been talking to the National Insurance Commission (NAICOM) on the need for the supervising body to assure insurance consumer of the protection of the policies in case of liquidation.

NIA and NCRIB have for the past 10 months been trying to convince the commissioner to go on air and assure policy holders that their insurances in the various companies are secure even if those companies fall to recapitalise.

In a joint letter to NAICOM, NIA and NCRIB's Director General, Mr. Ezekiel Chiejina and the executive secretary, Mr. Jide Aminu wrote, at a joint meeting of members of NIA and NCRIB held in March 15, 2006, the interest of consumer and the need to take consumer protection measures under the insurance industry reform and consolidation was considered."

"Currently, both insurance policy holders and insurance brokers are concerned about the number of companies that would meet the recapitalization deadline. The pains has brought about placement of short-term risks by insurance brokers who should be held liable for settlement of claims against insurance companies that might not be able to recapitalise."

Both trade group said, "After reviewing the whole situation, the two bodies concluded that there was need for NAICOM to make public pronouncement preferably on both print and electronic media information the public that adequate provision has been made to guarantee the performance of all policies issue between now and February 28, 2007.

The noted, "such statement should indicate that security fund on the custody of NAICOM, the aggregate of the statutory deposits of all insurance companies and specified fund form the Federal Government will be available to guarantee settlement of all claims that are supposed to be paid by any insurance company that failed to meet the capitalization deadline."

NIA and NCRIB told NAICOM that the commission should also indicate that the life insurance fund held by any company that could not comply with the capitalization would be transferred to consolidate insurance companies under the supervision of NAICOM.

Both bodies were hopeful that the commission would make the announcement by March ending but NAICOM has been silent on the request for over 10 months now.

Commissioner for Insurance, Chief Okechukwu Chukwulozie in an interview with Vanguard on the issue said that NIA and NCRIB could make the assurance of consumer protection on behalf of the entire industry, adding that NAICOM was more concerned about delivering recapitalised companies to the consumers.

According to the NAICOM boss, "my job is to deliver to Nigerians. It is too late to tell Nigerians about security when we have less than six weeks to go".

He said, "NAICOM's job is to deliver the companies that made it to Nigerians. I am not a half measured person.

NCRIB president, Chief Babajide Olatunde-Agbeja said that it was imperative for NAICOM to assure insurance consumers of security of their policies.

Olatunde Agbeja noted that it would rid the industry of bad image and recurrence of five years ago during the liquidation of 14 insurance companies that did not meet the previous recapitalization.

He recalled that insurance brokers had to pay claims to their clients because of the pressure from those clients while some consumers have still not recovered from the shock of lost policies in those dead companies.

NCRIB Boos said, "It keeps up the ambiance of sanity in the industry if NAICOM assured policy holders of their insurances in the various companies."

"Shareholders of the 14 liquidated companies are still suffering till date and it must not repeat itself in five years.

He continued, "A recurrence of such insecurity in a spate of five years is going to be a blow on the policy holders that is why we want NAICOM to tell policy holders that they have nothing to worry about but NAICOM is foot dragging on the matter."

Insurers Support NAICOM On Ban Of Self-appraisal

Some insurance companies chieftains have thrown their weight behind the National Insurance Commission (NAICOM) over the commission's ban on self appraisal of companies on recapitalization

Mr. Sakuru Oyefeso Managing Director of Staco Assurance said that the flaunting of figures by companies on the pages of newspapers was becoming a monopoly over those companies that were still making progress on recapitalization hence supported NAICOM on the issue.

Oyefeso stated that it was not in the best interest of any company to flaunt its figures more so that companies still have five weeks grace period to go.

He said that it was a flagrant disabuse of the rules of recapitalization for any company that has not been cleared by NAICOM to display figures that might afterall not be true.

Mr. Yomi Rufai, Chief Executive of Phoenix Assurance also corroborated Oyefeso stating that it was not right for any companies whose figures have not been verified to pronounce itself capitalized. Rufai said that some of the companies add up fictitious figures in a bid to gain policy holders' confidence whereas they have not been cleared by the insurance regulatory body.

He said that NAICOM had good reasons to stop companies from displaying figures including those that have made it in order to maintain some sanity in the industry.

Chief Okechukwu Chukwulozie Commissioner for Insurance at a meeting with insurance industry representatives in Lagos recently reiterated its stand on the fact that the commission would no longer tolerate companies announcing their figures without due clearance from NAICOM.

Henceforth, any comp- any(ies) found to be involved in the flagrant abuse of simple instruction shall be adequately penalized. We need good order for a successful conclusion of the exercise which is paramount not only to the survival but continued good performance of the insurance industry."

"It is important to state here that in as much as we share in the enthusiasm of all concerned to see that companies meet the recapitalization, NAICOM will no longer tolerate a situation where companies announced their self perceived recapitalization status on the pages of newspapers or via electronic media -TV and Radio without receiving the clearance and due verification of NAICOM.

Chukwulozie stated that it was the intention of the commission to ensure that all insurance companies meet the new capital requirement within the stipulated time.

He however, applauded those companies that have made the recapitalization exercise and urged the others to step up their efforts in ensuring that they meet the deadline.

He assured the industry that the commission would not mention names of companies that have made it in order to avoid panic from insurance consumers.

He said that the commission would endeavour to attend to companies that have written to NAICOM for verification, adding that the commission was working tirelessly to make sure that all the companies that are ready for verification are verified as soon as possible.

Meanwhile, NAICOM warned that the commission would not entertain borrowed funds by any company in the name of recapitalization.

Chukwulozie also cautioned that NAICOM would penalise any company that present figures that cannot be verified while he advised those companies that are still battling to recapitalize to give themselves up for acquisition.

STACO projects N3.5bn premium income for 2007

STANDARD Trust Assurance Plc has projected a gross premium income of N3.5billion for 2007 financial year.

Managing Director and Chief Executive Officer of the Company Mr. Sakiru Oyefeso who spoke in Lagos at the weekend had hinted of the institution of some structures in STACO which will enable the company unbeatable services.

Mr. Oyefeso said that the turn around time in the company's provision of services has been greatly improved, thanks to the company's enhanced information technoloy systems as well as its enlarged human capital.

According to him, "STACO is now gearing towards grossing a premium of N3.5 billion for 2007. This came N900 million higher than the N2.6 billion gross premium forecast made by the company during its share offer conducted last year.

But the Chief Executive Officer who was recently conferred with the fellowship of the Chartered Insurance Institute of Nigeria (CIIN) revealed that the STACO's acquisition of summit insurance has helped in raising the stakes to the benefit of all stakeholders.

It would be recalled that STACO stands fall as the only insurance company to record an over subscription of its shares under the soon-to-be concluded consolidation programme.

"Our scare card has remained our strength. Our turn around schedule makes us the most efficient in work processes. We have done the right giving of our staff," Mr. Oyefso had said.

He had gone further to disclose of plans to establish no fewer than six branch offices within the first quarter of this year. The branches he said will be located at Owerri in Imo State, Warri in Delta State and Jos in Plateau State. Onitsha and Victoria Island will also get the right to host branch offices of STACO Insurance Plc.

Mr. Oyefso said that the growth strategies of STACO are such that the company's shares will be listed on the floor of Nigerian Stock Exchange before the end of this year.

Commend on industry issues, the STACO boss observed that the reconfiguration of the nation's insurance market courtesy of the consolidation programme will culminate in the drastic reduction in outstanding premium. He was however quick to appeal to the commissioner for insurance to intervene by making brokers see the reason in not holding on to insurance premium.

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By Patience Saghana
Lagos

Copyright © 2006 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com).