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THE NATION WEDNESDAY, JUNE 8, 2011
INSURANCE
NAICOM settles N2.2b claims disputes T
HE National Insurance Commission (NAICOM) settled disputes over claims worth about N2.2billion within five years, its helmsman, Mr Fola Daniel, said. A statement by Assistant Director, Corporate Affairs, Mr Lucky Fiakpa, quoted Daniel as saying the feat was achieved because of the commission’s resolve to commit insurers to their responsibility on claims settlement. Daniel said in furtherance of this commitment, the commission’s Complaint Bureau was restructured and strengthened through the provision of required staff and working tools in line with its policy of zero-tolerance for nonpayment of claims. This, he said, compelled
companies to treat claims payment promptly. According to him, the expedition of the complaints resolution process has enabled NAICOM to monitor companies’ claims settlement excluding NICON Insurance Plc where complaints relating to pension matters are yet to be resolved. He said: “Through the bureau, a lot of claims that were proving difficult have been paid. Apparently excited at the way the commission handled his claim issue, an Assistant Director with the National Institute for Policy and Strategic Studies (NIPSS) wrote to the Commission: “… Let me respectfully thank you and your management for the prompt action that compelled the insurance company
Stories by Chuks Udo Okonta
to settle my claims after 987 days. It paid the sum of N338, 895.60 inclusive of the accrued interests for the period it held the money…..” A loss adjuster also wrote to the commission stating: “We … wish to confirm that we have received the insurer’s cheque for the amount involved in full and final settlement of their indebtedness to our organisation. We hereby register our profound appreciation and gratitude for your prompt intervention and immediate conclusion of the matter. “About 1,500 complaints valued at about N2.2billion was adjudicated and resolved between 2007 and April 2011. This development has increased insurance
consumer’s confidence on NAICOM and the industry.” He said NAICOM has also instituted cordial co-existence among the operators in the industry, adding that in the past, the industry was flooded with litigations, which deterred it growth. “Prior to this administration, the Nigeria Insurers’ Association (NIA) and the Nigerian Council of Registered Insurance Brokers (NCRIB) had instituted several suits seeking the intervention of the Court on several regulatory directives and actions. “These suits were capable of undermining the very essence of the Commission if not managed. Following dialogue between the Commission and the two trade associations – NIA and NCRIB, the
legal challenges were dropped, paving way for out-of-court settlement. “A major dividend of the dispute resolution with the NIA is the unconditional waiver of its claim to a return of about N1.5billion earlier collected from insurers. This money hitherto kept in a holding account pending court resolution became available to the commission for the purchase a permanent Head Office,” Daniel said. He noted in a bid to align with international best practice, NAICOM has initiated an initiative to drive the industry’s operation on a world class information technology platform, adding that the project, which is near completion would transform the way the industry presently operates.
Pension funds to hit $30b by 2015
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ENSIONS contributions will hit $30billion in 2015, the Director-General, National Pension Commission (PenCom), Mr Muhammed Ahmad, has said. Ahmad said the pension industry is growing at an average of 30 per cent per annum and could reach $30 billion over the next five years from about $13 billion as more people contribute to the scheme. According to him, less than 10 per cent of the total working population of about 42 million has pension accounts. Ahmad said the new pension guideline was needed to diversify pension funds from just government bonds and equities, adding that he had not received any deals for approval yet. “Even though it’s too early, I’m not sure there’s been any infrastructure bond that has been issued to date,” he said. He said pension fund managers could only invest 25 per cent of their assets in equities at the moment under two types of fund — a conservative and balanced fund and that the commission was considering a more aggressive fund. He said the commission has developed a comprehensive corporate strategic plan that involves building proactivity and transparency into the commission’s regulatory activities, developing skilled manpower and strengthening the internal operations to enable it effectively and efficiently discharge its duties and obligations. He said: “To accomplish these objectives, departments have been realigned and new ones created, with their functions and manning levels clearly spelt out and implemented. In the same vein, the commission in collaboration with other stakeholders is working assiduously to improve capacity in the industry. “The commission as the apex authority saddled with the responsibility of regulating and supervising the pension industry, has been making efforts to ensure the prompt payment of retirement benefits as well as promoting a vibrant and sustainable industry that will positively impact on the economic development of our dear nation. “Our regulatory and supervisory philosophy is risk-based and consultative, covering all activities of the commission, surveillance of licensed operators, compliance and enforcement, supervision of investment of pension funds and maintenance of a databank on pension matters,” he added. An institutional framework to protect the over N2trillion pension funds contributed has been devel-
oped by the National Pension Commission (PenCom). The Head, Communications Unit, PenCom, Mr Emeka Onuora, said the framework would checkmate sharp practices. He noted that two kinds of pension schemes are in place, namely, Pay As You Go (PAYG) and the contributory Pension Scheme (CPS), adding that the PAYG scheme covers pensioners existing before the pension reform Act 2004 and workers exempted from the contributory pension scheme. Onuora said the old scheme is administered by six pension departments, which are Civil Service Pension department, the Military Pension departments, Police Pension department, Custom, Immigration and Prison department, Security Agencies and Federal Capital Pension department. ”On the other hand, the new contributory pension scheme is based on individual Retirement Saving Account (RSA), that is managed by Pension Fund Administrators (PFAs) and funding for this scheme is on monthly deduction from the employees’ salaries and the equivalent contribution by the employer,” he added. “The alleged fraud in the office of Head of Service of the Federation, is unlikely to occur under the pension scheme administered by PenCom, adding that the new pension dispensation is predicated on structures that have adequate inbuilt control mechanism to prevent such occurrences. ”Under the new system, pension funds are not left with the employers, but are credited directly to the individual’s retirement saving accounts of the beneficiaries and neither the employer, commission nor even the pension fund administrator has access to the money,” he added.
• From left: Managing Director, FBN Life Assurance Limited Mr Val Ojumah and Director, Marsh Enegry Insurance brokers Mr Jonathan Raven, at a seminar in Lagos.
Intercontinental Wapic gets company
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NTERCONTINENTAL Wapic Insurance Plc has named Mr Ephraims Akamihe its company Secretary and Legal Adviser. A statement from the company said Mr Samuel Adeniyi was also appointed the Head of Investment and Mr Adesina Sodeinde, Head of Information Technology. The statement said Sodeinde has a Bachelor of Science degree (combined honour) in Computer Science/Economics from the Obafemi Awolowo University, Ile Ife in 1995 and obtained a MBA in 1999. He worked at Intercontinental Bank Plc where he was, system
secretary, others administrator; head of Process Quality and Metrics; Head, IT Security; regional head of IT; and e-government Officer in the Bank’s E-Banking Group. Akamihe, a lawyer and notary public, holds a Law degree from the University of Nigeria, Nsukka (1990) and was called to the Bar in 1991. He practised with Obafemi Adewale & Co Solicitors between 1999 and 2004, where he rose to become the deputy head of chambers/managing counsel. He worked in IGI Plc where he was deputy manager (Legal) be-
Niger Insurance restrategises
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IGER Insurance Plc has taken steps to reposition its corporate image, the Managing Director, Justus Uranta, said. Uranta, who spoke at a media parley in Lagos, said the company has redeployed its erstwhile corporate affairs manager, Mr Tony Ojeme, back to head its corporate affairs department, adding that the decision was aimed at enhancing the company’s visibility. He noted that the company had to embark on restructuring to en-
sure that its customers get qualitative services at all times, noting that the company is in business primarily to meet the needs and satisfy the aspirations of its esteemed policyholders. Uranta said the company would always strive to ensure that the shareholders keep getting better returns on their investment and that the income generated by the firm justifies its capital base. He said the company has a policy to train and retrain its manpower since it is conscious
of the fact that human resource is the most valuable resource of the organisation. “Today’s business is knowledge-driven, so, you need to train and retrain your manpower to be able to compete globally having seen that the world has become a global village. As it is today, there is no difference between those of us operating in Nigeria and our counterparts in London if we are able to drive our knowledge some where close to their point. So, we need this funding to improve on our bottom line,” he said.
fore joining Intercontinental Wapic. Akamihe obtained a MBA degree from University of Calabar in 2006. He is also an associate of the Chartered Institute of Arbitrators (Nigeria and the UK), and has attended local and international. He was assistant secretary of the Lagos State Law Enforcement Committee. Adeniyi is a chartered accountant and an associate of the Chartered Institute of Bankers, Chartered Institute of Stockbrokers of Nigeria, Certified Pension Institute of Nigeria, and an authorised dealer at the Nigerian Stock Exchange (NSE). He has the Treasury Dealership Certificate-Financial Market Dealers’ Association of Nigeria (FMDA). He has experience in investment management, treasury, banking operations and financial reporting. Prior to his current appointment, he was at various times with GTB Asset Management Limited as head of Portfolio Management; Intercontinental Bank Plc as the security dealer from 2005 to 2008; and at CSL Stockbrokers Limited as equity dealer. Adeniyi is an astute financial expert. He obtained his MBA from the Business School, Netherland.