Category Archives: Insurance

Non-performing loans of Insurance firms, others drop by N24.28bn

The non-performing loans of Nigeria insurance companies and other finance organisations granted by banks have dropped by N24.28bn.

Specifically, the loans dropped from N28.86bn in December 2018 to N4.58bn at the end of the 2019 financial year, according to the latest figures obtained from the National Bureau of Statistics.

The report also showed that the total non-performing loans in the banking sector stood at N1.05tn out of a total loan of N17.56tn as of the end of 2019.

Banking sector loans to the finance, insurance and capital market operators are about 7.4 per cent of the total loans in the sector.

As the underwriters beef up their capital to meet the new order, the National Insurance Commission has barred the regulated entities from borrowing money to meet their recapitalisation requirements.

NAICOM stated in a report on ‘Recapitalisation road map: Implementation, expectation and benefits’ that the features of paid-up share capital constituting the companies’ new capital in the sector’s ongoing recapitalisation would be absolute paid-up share capital, as distinct from solvency capital/capital fund/capital base.

The commission stated, “For the avoidance of doubt, and for an instrument to be treated as paid-up share capital, the following criteria among others must be satisfied.

“It must represent the most subordinate claim in liquidation of the insurer/ reinsurer; The investor is entitled to a claim, only on the residual assets that is proportional with its share of issued capital, after all senior claims have been paid in liquidation (such that it has an unlimited and variable claim, not fixed or capped claim);

“The principal is perpetual and never repaid outside of liquidation; distributions are paid out of distributable profit or retained earnings. There are no circumstances under which the distributions are obligatory; it must not be a loan on the company or margin facility whatsoever.”

Royal Dutch Shell Cuts Dividend For First Time Since WWII

Royal Dutch Shell on Thursday cut its dividend for the first time since the 1940s after a first-quarter loss – and warned virus-ravaged oil prices will take time to fully recover.

The Anglo-Dutch group sank into a $24-million ($29.5-million) net loss in the three months to March – when oil went into freefall on tumbling demand and a price war between producers Saudi Arabia and Russia

Insurance Companies In Nigeria Gets Recapitalisation Deadline

The National Insurance Commission (NAICOM) has extended the recapitalisation deadline for Insurance and Reinsurance Companies earlier slated for June 30, 2020 to December 31, 2020.

Insurers to raise N50 billion fresh capital for recapitalisation

Out of the 58 insurance companies in the nation’s economy, seven have reached to their investors to mobilise a cumulative sum of N50 billion new capital to meet June 2020 recapitalisation deadline.While others are still fine-tuning strategies to beat the fast approaching deadline to shore up their share capital to a new threshold, analysts are projecting a mixed outcome.

Prestige Assurance Plc Launches Online Self-Service Portal

Noting the trends in the global market in general and in the Insurance industry in particular the Managing Director, Prestige Assurance Plc, Dr. Balla Swamy has expressed the need to explore better distribution channels and technology to make insurance more accessible.

NAICOM approves two Takaful insurance firms

THE National Insurance Commission (NAICOM) has granted approval in principle (AiP) to Cornerstone Takaful Insurance Company Limited and Salam Takaful Insurance Company Limited as Composite Takaful operators to transact both family and general Takaful businesses in Nigeria.

According to NAICOM in a statement, this new development brings the total number of wholly Takaful operators to four, having earlier in 2016 granted licence to Noor Takaful and Jaiz Takaful respectively.

Experts task brokers to embrace technology tools for growths

The Nigerian Council of Registered Insurance Brokers (NCRIB) has been urged to deploy technology drive penetration in the Nigerian insurance market.

This was disclosed at the 2019 Mid-Year Workshop of the Lagos Area Committee of brokers and other stakeholders in the industry in conjunction with global tech giants, Microsoft Nigeria in Lagos.

How To Get the Best Value on an Insurance Policy

When you are looking for the best value in insurance, it is about more than just getting the cheapest insurance policy out there. While price is important, there is a lot more to the value of an insurance policy than just price. A valuable insurance policy provides the coverage you need at an affordable price. You also want a reputable insurance company that you can count on to be there when you need it. It is going to take a little time and research on your part to get the best value on an insurance policy.

1. Find a Reputable Company

8 Tips Insurance to Consider Before Buying a Car

Most people know they need insurance for their new car, but in the excitement of buying a vehicle they may not research it as carefully as they should. Skipping over this detail may cause financial problems almost as soon as you drive off the lot.

“You need to shop for insurance before you ever step foot on the lot to negotiate buying a car,” says Penny Gusner, consumer analyst at “Sure, look at cars and narrow down what exact make and model you may buy, but keep your car insurance costs in mind during this time as well.  When you have your choice of car narrowed down to a few, it’s time to shop around for insurance.”

Waiting to buy a vehicle until you’ve sorted out your insurance needs may save you hundreds of dollars because some vehicles, such as sports cars, can carry higher insurance rates. While a new vehicle payment might be affordable, you need to consider auto insurance as part of the cost. Protect yourself, your car and your finances by considering these key points from Gusner before you buy:

  1. Determine how long your current car insurance will cover your newly purchased car. “If you’re replacing a vehicle on your policy, typically the same coverage will extend to your new car,” says Gusner. “It can be as short as 24 hours or as long as 14 days, so check before you buy to find out what it is rather than assuming you have coverage. Also, if you’re not replacing a car, then you may not have any coverage at all.”
  2. Don’t assume the dealership will take care of the insurance paperwork for you. Not only is the staff busy, it is not its responsibility to call and add a car to your policy.  “If they look at your insurance card and let you drive off, it’s because they are assuming you checked and know that there is coverage under your current policy,” says Gusner. Keep in mind that, if you’re financing or leasing a car, the lienholder will mandate that you have not only liability insurance but also comprehensive and collisioncoverage,” she adds. ” So if you have liability-only coverage but need comprehensive and collision with your new car, get it added before you leave the lot – it doesn’t get automatically added for you.”
  3. Understand what’s needed. When buying a car, you need to know the cost of the car, of course, but you also need to understand what coverage, limits and deductibles you must buy. For example, lienholders usually ask for deductibles that are $500 or below, say Gusner. Talk to your insurance agent.
  4. Liability coverage is the basic insurance you need to drive on the roads. Most states require you to have this coverage to pay for damages or injuries to others you may be responsible for when driving your car, says Gusner.
  5. Personal injury protection (PIP) PIP is required in no-fault states as part of your basic car insurance policy. It pays for your medical expenses up to its limits, regardless of fault in an accident. Again, talk to your agent. Also, make sure you know what coverage, limits and deductibles are (comprehensive and collision have deductibles you must choose) when shopping for insurance so you get the correct rate quotes, she said.
  6. Gap insurance is a must if you owe more than your vehicle is worth. Cars depreciate as soon as you drive off the lot. There are many examples of car buyers having their cars totaled soon after purchase and owing thousands more than their insurance covers. “Gap insurance  pays the difference between the value of the vehicle at the time of its total loss and what you still owe on it,” says Gusner.
  7. Protect yourself with collision insurance. What if you drive off the lot and are hit by another vehicle or object such as a shopping cart? Collision insurance  protects your car. That’s why lienholders require that you carry it: the car is still the asset of the lienholder, says Gusner.
  8. Comprehensive insurance covers your car for weather-related damages. Live in an area often hit by tornados? In a flood zone? Comprehensive coverage  is a smart buy, even if you don’t experience extreme weather. It protects you in case the car is damaged by fire, theft or vandalism. Again, expect the lienholder to insist you have this coverage so the vehicle can be repaired or paid off if it is a total loss.

A great place to start is by working with your agent to help you identify the best coverage for you and your new car.

This New Treatment Could Save the Lives of Babies. But It Costs $2.1 Million

In exchange, Novartis is asking insurers to promise that they will cover the treatment and that they will quickly decide if a child qualifies. “We know that treating these kids quickly is really paramount,” Mr. Lennon said.

The payment plans will be administered through Accredo, the specialty pharmacy unit of Express Scripts, which is now owned by Cigna.

Dr. Steve Miller, the chief clinical officer of Cigna, said Accredo would collect payment for administering the arrangements with insurers, but declined to say how much, saying that each case would be different.

Cathryn Donaldson, a spokeswoman for America’s Health Insurance Plans, a trade group for insurers, said that while some arrangements — such as money-back guarantees — can be useful, they won’t solve the underlying problem, which is the high prices that the drug makers set.

And while treatments like Zolgensma are promising, she said in a statement, “the data collected on gene therapies is still relatively in its infancy, and they do not have the long-term evidence to confirm they are a lifetime cure.”

Because of the lifesaving nature of the treatment and because the disease is so rare, many insurers are likely to cover Zolgensma. But some experts worried about the cumulative impact should other drug makers follow Novartis’s lead. More than 60 gene therapies are expected on the market by 2024, according to EvaluatePharma.

“The drugs coming to market are going to be things that we will not want to walk away from,” said Dr. Steven D. Pearson, the president of the Institute for Clinical and Economic Review, an independent watchdog group.

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