From left: Tope Adaramola, Assistant Executive Secretary of the Nigerian Council of Registered Insurance Brokers (NCRIB); Fatai Adegbenro, Executive Secretary; Mr Shola Tinubu, President, Hon. Treasurer, Mrs. Ekeoma Ezeibe and Hon Auditor, Tunde Oguntade at the NCRIB Press Conference held today in Lagos.
SPEECH DELIVERED BY MR. SHOLA TINUBU, ACII, FCIB, PRESIDENT, NIGERIAN COUNCIL OF REGISTERED INSURANCE BROKERS (NCRIB, AT THE 3RD QUARTER PRESS CONFERENCE HELD AT INSURANCE BROKERS HOUSE, 58, MOLEYE STREET, ALAGOMEJI, LAGOS, ON MONDAY, AUGUST 20, 2018.
It is my delight and utmost pleasure to address members of the Press and members of the National Association of Insurance and Pension Correspondents (NAIPCO) at this 3rd quarterly Press Conference of the Nigerian Council of Registered Insurance Brokers. The Press Conference has continued to evolve, occupying a conspicuous space in the Council’s annual events calendar. The intention is to make it a regular interface between esteemed members of the press and the management team of Council, whereby issues of importance are discussed and relationship with the media is enhanced. I must appreciate you all for your continuous support and balanced reportage of events in the Council. Without your doggedness and determination to sustain the good image of the industry through your effective and balanced reportage, the industry will remain misunderstood and its public image less than par. I however, enjoin you to keep up with the good work.
May I use this medium to specifically felicitate with you on the successful hosting of the 3rd Annual Conference of your Association. The Executive Secretary who represented the Council reported to my absolute delight that you, as Journalist, joined operators to give gusto to the public awareness campaign for insurance industry. It was such a mind boggling and far reaching event that I believe will go a long way to address some issues bedeviling the Insurance Industry. I once again congratulate you all for a successful outing.
10 YEAR STRATEGIC PLAN
It is heartwarming to note that in a bid to chart enduring pathway for the Insurance Brokers and the NCRIB as a body, the Council’s management has almost concluded the 10 year strategic plan for the Council and Insurance Broking. The Council at its CEOs Retreat held recently in Uyo, Akwa Ibom State discussed the input of the strategic plan to allow members have a buy in. It is hoped that when operational, the plan will position the Council to extend the horizon of practice and combat the unfolding challenges that would confront the sector.
In Order to continually train and re-train members in line with the mandate of the current management, it is heartening to report that the Council has sustained its tempo of training. In the last quarter alone, the Council has organized no fewer than four professional trainings, namely: Advanced Oil & Gas Training; Contemporary Regulatory Issues training; Risk Pricing, and Bidding and Evaluation. The Council will not in any way relent on these trainings to position the members for the unfolding challenges of the profession.
As we are all aware, the country’s political process is gathering momentum towards the 2019 General elections. Though as a professional body, we must stay above party politics but are duty bound to positively impact on our political environment as it must not elude us that economy and politics are inextricably woven. The Council would like to use this medium to enjoin Politicians to endeavor not to overheat the polity in view of the potential negative effects of such actions on the socio-economic development of the nation. There is no better catalyst for investment in any economy than stability of the polity. Therefore, we enjoin our politicians to make the welfare and progress of the nation and its people their primary agenda and the focus of their noted actions.
ON FEDERAL GOVT’s RENT TO OWN HOUSES
The Federal Government recently announced that N197 billion has been spent to construct 26,002 houses across the country, while 13,953 homes across the country were also renovated. As a professional body, the NCRIB wishes to laud the Federal Government’s Rent-to-Own product designed to enhance affordability by eliminating the need for down payments and other costs associated with normal mortgage loan arrangements. Definitely, this will go a long way to address the housing deficit, a serious challenge that any government should tackle headlong. However, the Council wishes to enjoin the Federal Government, to ensure that in embarking on this laudable feat, insurance should be given its rightful place. Section 64 & 65 of Insurance Act 2003 stipulates a Compulsory Insurance for ongoing construction projects. It therefore behoves the Federal Government to insist that appropriate insurance policies be in place for these houses at the construction stage, and for the win-win benefits the project holds for government, the allottees and their families.
RECAPITALISATION IN INSURANCE INDUSTRY
It is noteworthy that in the bid to ensure a more virile insurance industry, the National Insurance Commission (NAICOM) recently announced new capital regime for insurance companies. The new capitalization system tagged, “Recapitalization of insurance companies, the tier-based minimum solvency capital,’ would be partially introducing the risk-based capital model in a three-tier recapitalization system, whereby firms would be graded as tier-three, tier-two and tier-one. However it is noted that the tier system or process is independent of the assessment for solvency. Such that companies classified as Top Tier could possibly have significant solvency issues.
Invariably, insurance companies would be looking at different options to respond before the deadline of January 1, 2019. It is definite that several options would be contemplated by the companies, including the options of injection of capital, mergers and acquisitions. Whichever strategy chosen and no matter how disruptive, I would like to enjoin the companies to focus on how to grow the insurance industry as well as how to make insurance an imperative.
On the part of our Council, we have set relevant Committees in motion to see extent to which this new policy thrust would affect our members as the end consumers have began to express concern as to the implications for them. Anytime the insurers market goes into flux the broking sector becomes challenged to guide clients to the best affordable security. The Ncrib will support our members through these emerging challenges.
ZERO DRAFT GUIDELINES FOR THE REGULATION OF INSURANCE BROKERS.
The leadership and membership of the NCRIB appreciate the NAICOM for the opportunity to make input to the Zero draft Guideline. The guidelines are currently being reviewed by the Technical and Legal Committees of the NCRIB for our final input. We believe that if our suggestions and input are favorably considered, the Commission will definitely come out with a more robust and acceptable document for all stakeholders.
Currently we are concerned that the guideline may be seeking to Tier Brokers which is not seen as required since Brokers are professional firms and not risk carriers. However we have confidence in the approach of the commission to ensure all aspects are fully discussed before decisions are made.
FELICITATING WITH CIIN, NIA
Permit me to seize this opportunity to congratulate the new Chairman of the Nigerian Insurers Association (NIA), Mr. Tope Smart, as well as the newly elected President of Chartered Insurance Institute of Nigeria (CIIN), Mr. Eddie Efekoha. The election of the two gentlemen to the exalted position of the two bodies was well deserved going by their pedigree in the industry. We promise that the Council will sustain the tempo of relationship with the industry bodies under their leadership and I wish them the very best.
Ladies and Gentlemen of the media, I would like to sincerely appreciate you once again for making out time to attend this press conference, in spite of your busy schedule. Definitely, this has again given credence to our promise to sustain the tradition of a quarterly media briefing for the Council.
SHOLA TINUBU, FCIB
President/Chairman, Governing Board