Gov­ern­ment ap­peals for adop­tion of life in­sur­ance

The Guardian (Nigeria) - - FINANCE & ECONOMY - By Bankole Orim­isan

WITH var­i­ous de­vel­op­ment ini­tia­tives in the coun­try, Nige­ri­ans need to build up a solid fi­nan­cial plan for fu­ture through life in­sur­ance plan­ning, the Fed­eral Gov­ern­ment has ap­pealed. The Min­is­ter of Fi­nance, Kemi Adeo­sun, dis­closed this at the third NAIPCO con­fer­ence, with the theme: “The Role of Stake Hold­ers in De­vel­op­ing In­sur­ance and Pen­sion Sec­tors.

The min­is­ter, who was rep­re­sented by the Deputy Com­mis­sioner for In­sur­ance, Fi­nance and Ad­min­is­tra­tion, Ge­orge Onekhena, said life in­sur­ance holds the key to wise fi­nan­cial plan­ning and is panacea for poverty al­le­vi­a­tion among Nige­ri­ans at all lev­els, in­clud­ing grass­roots dwellers.

She urged Nige­ri­ans not to ne­glect life in­sur­ance, even as it is a com­mon habit, not­ing that it is equal to build­ing one’s foun­da­tion on a shal­low ground. Adeo­sun stated that cit­i­zens should rather be mak­ing en­quiries on a par­tic­u­lar life in­sur­ance pol­icy that would be ben­e­fi­cial, as well as how to go about it. She also said that those in doubt could en­gage the ser­vices of in­sur­ance brokers for pro­fes­sional ad­vise, adding that this has be­come nec­es­sary be­cause no­body knows the day of his death and it will be dis­as­trous for any­one to leave de­pen­dents with­out ben­e­fits.

“Ev­ery Nige­rian buys one house hold item or the other at any time and you don’t en­ter the mar­ket and start mak­ing your pur­chases.

“You make en­quiries be­fore go­ing to mar­ket, in like man­ner, in your life in­sur­ance de­ci­sions, you can take time to ask ques­tions on the life in­sur­ance pol­icy you want to buy. No­body knows the day of his death, so life in­sur­ance is crit­i­cal, life in­sur­ance is foun­da­tion to ev­ery wise fi­nan­cial plan­ning”, she stated. Speak­ing on the chal­lenge fac­ing in­sur­ance and pen­sion op­er­a­tors in Nige­ria, she said peo­ple hardly tell the pub­lic when they get ben­e­fit from these two sec­tors, cit­ing in­stance of quan­tum of re­tire­ment ben­e­fits paid on monthly ba­sis by Pen­sion Fund Ad­min­is­tra­tors (PFAS) to re­tirees and quan­tum of claims paid in yearly by in­sur­ance firms.

NAIPCO con­fer­ence is the only fo­rum that brings both pen­sion and in­sur­ance op­er­a­tors, their reg­u­la­tors and stake­hold­ers to­gether to dis­cuss their af­fairs.

The con­fer­ence played a key role in set­tling the cri­sis that arose last year be­tween the two sec­tors in an­nu­ity ad­min­is­tra­tion and man­age­ment.

ROYAL Ex­change Plc has re­ported a gross writ­ten pre­mium of N12.8 bil­lion from its busi­ness ac­tiv­i­ties in the year ended De­cem­ber 31, 2017, com­pared to N12.5 bil­lion in 2016.

The com­pany said its net pre­mium in­come for the 2017 fi­nan­cial year amounted to N7.1 bil­lion, while un­der­writ­ing profit amounted to N7.6 bil­lion in the fi­nan­cial year un­der re­view.

The to­tal as­sets of the group grew by five per cent from N31.7 bil­lion in 2016, to N33.3 bil­lion as of De­cem­ber 31, 2017.

AXA Mansard Plc has launched the First Re­spon­der Service, which aims to sup­port cus­tomers whose ve­hi­cles are in­sured with the com­pany when­ever they are in­volved in road ac­ci­dent. The service is an ini­tia­tive, meant to pro­vide im­me­di­ate as­sis­tance to cus­tomers on AXA Mansard’s re­tail mo­tor in­sur­ance plan at the scene Con­trast­ingly, net claims paid for the pe­riod un­der re­view dropped by four per cent to N3.4 bil­lion from N3.6 bil­lion in 2016, while net in­come be­fore man­age­ment ex­penses de­clined to N2.4 bil­lion from the N2.7 bil­lion that was gen­er­ated in 2016. The Group Man­ag­ing Di­rec­tor of the com­pany, Al­haji Auwalu Muk­tari, said de­spite the very harsh op­er­at­ing en­vi­ron­ment, the group was able to grow its fig­ures, by par­tic­i­pat­ing in large-ticket fi­nan­cial trans­ac­tions, as well as play­ing in the re­tail in­sur­ance mar­ket, which he said would be a key of an ac­ci­dent. The service also aims to re­duce turn­around time for service de­liv­ery to cus­tomers.

With the in­tro­duc­tion of the new service, cus­tomers with ve­hi­cles worth a min­i­mum of N3mil­lion will have ac­cess to trained First Re­spon­der Of­fi­cers. The of­fi­cers will pro­vide on-the-spot as­sis­tance to el­i­gi­ble cus­tomers at the growth driver in the years ahead.

“Royal Ex­change en­vi­sions a sit­u­a­tion where the re­tail in­sur­ance mar­ket should be able to con­trib­ute be­tween 50-60 per cent of our rev­enues in the fu­ture, as the re­tail mar­ket is the fu­ture of in­sur­ance in Nige­ria, con­sid­er­ing the pop­u­la­tion of the coun­try,” he said. He noted that with the re­cent ap­proval from the Na­tional In­sur­ance Com­mis­sion to un­der­take agri­cul­tural in­sur­ance, the com­pany had en­tered into strate­gic al­liances with var­i­ous stake­hold­ers in the sec­tor to drive in­sur­ance. scene of an ac­ci­dent, ac­cess dam­age to cus­tomers’ ve­hi­cles and start the claims set­tle­ment process with a view to con­clud­ing it rapidly. The Divisional Di­rec­tor, Re­tail So­lu­tions, AXA Mansard In­sur­ance, Mrs. Rashidat Ade­bisi, said: “We are de­lighted to in­tro­duce AXA First Re­spon­der service to our mo­tor in­sur­ance sub­scribers.”

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