Stakeholders Explore New Opportunities For Reconnecting With Customers - Insurance September 2019

Sunday, September 29, 2019 /  02.00PM / Bukola Akinyele for Proshare WebTV

The 'Insurance September' an annual event held last week in Abuja with the theme, "5G Insurance". The gathering was an opportunity for professional insurers , and key players to discuss critical issues that will shape the Nigerian insurance  industry particularly developments around industry recapitalization and the application of technology (Insurtech). 

Convener of the event Mr Ekerete Ola-Gam Ikon believed the forum served as a platform to proffer solutions to the Nigerian insurance industry, which is experiencing a low penetration level and needs a reset to unlock growth and prosperity for the nation.

Takeaways From The Event

• Digital solutions, specifically insurtech, are necessary for the survival and growth of the industry, so NAICOM should proactively consider developing guidelines that will enable the insurance industry in Nigeria connect with other economic sectors from the point of value;
• There is need for NAICOM to urgently produce a strategic plan with a view to having insurance take its place in the economy as we have in other countries;
• NAICOM should take unavoidable bold decisions to sanction operators that are failing to honour their obligations to policyholders and employees thereby eroding whatever value other leading insurers are adding;
• They expect to see more efforts towards the adoption of digital transformation to enable more transparency that will give policyholders more confidence;
• Insurance companies are expected to have their proof of concept for any ideas they believe will enhance their offerings to the insuring public
• Stakeholders expect to see more efforts towards the adoption of digital transformation to enable more transparency that will give policyholders more confidence;
• NAICOM should be more visible and communicate its actions especially via social media which has become the most active means of reaching the populace.

UPDATES FROM THE SECTOR

NSE Lifts Suspension on Guinea and Niger Insurance Companies 

The Nigeria stock exchange issued a notice to the investment public that it has lifted its suspension on Guinea Insurance Plc and Niger Insurance Plc, two (2) of the eleven (11) companies that were suspended on 2 July 2019.

It stated that both insurance companies  have now filed their Audited Financial Statements for the year ended 31 December 2018 with The Exchange. 

In view of the Companies' submission of their Audited Financial Statements, and pursuant to Rule 3.3 of the Default Filing Rules, which provides that: "The suspension of trading in the Issuer's securities shall be lifted upon submission of the relevant accounts provided, The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange. 

Recapitalization: NAICOM Issues Update On Insurers and ReInsurers 

The National Insurance Commission, NAICOM further to the circular issued on May 20, 2019 increasing the paid up share capital of Insurers and reinsurers in Nigeria and, the subsequent directives to companies to submit their recapitalization plans by August 20, 2019 notified all insurance stakeholders that it has received plans  of Forty-Seven (47) insurers and two (2) reinsurers. 

In keeping with the recapitalization roadmap, the Commission concluded the review of the submissions and communicated individual companies on their positions as detailed below:

• Twenty six (26) companies have been granted "No Objection " to proceed with their plans;
• The plans of 17 companies were corrected and have been advised  to resubmit their new plans using paid-up capital and not shareholders fund;
• Four (4) companies do not have the requisite 2018 financial statements and are thus, advised  to review their plans of using IPO;
• One (1) company has litigation issues and has been advised to resolve them as soon as possible to enable its progress;
• One (1) company's submission was noted to have met the necessary requirements,
• The review of submissions from two (2) companies is ongoing while,
• Three (3) companies are yet to submit their recapitalization plans. 

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