From left: Mrs Henry Odein Ajumogobia; former Minister of Petroleum, Henry Odein Ajumogobia and Chairman of the occasion, Chief Emeka Anyaoku at the event.
SPEECH DELIVERED BY HIS EXCELLENCY,CHIEF EMEKA ANYAOKU, CHAIRMAN OF INSURANCE BROKERS OF NIGERIA LTD’s BRAND IDENTITY LAUNCH, FEDERAL PALACE HOTEL, VICTORIA ISLAND, LAGOS, JULY 13, 2017
• The Commissioner for Insurance, Alhaji Mohammed Kari
• The Board & Members of Insurance Brokers of Nigeria Ltd
• Distinguished Guests and Invitees
• Ladies & Gentlemen of the Press
I am delighted at the kind invitation of Insurance Brokers of Nigeria Ltd as the Chairman of its Brand Identity launch today. I like to congratulate the Board, Management, Staff and Clients of IBN, led by my friend Otunba (Dr) Adekunle Ojora O.F.R. for the successful historical development of this company as the pioneer of insurance broking service in Nigeria since 1955. It is a thing of joy that this trailblazing company is still waxing strong as a leading Risk and Insurance advisory firm.
Importance of Insurance:
The important role of insurance in promoting enterprise and development of any nation is not in contention. But at this stage of Nigeria’s economic development, it is appropriate to ask: are the enterprises in Nigeria taking the optimal advantage of insurance to promote and protect their businesses? I believe that the general response is that while multinational companies, large scale indigenous commercial businesses, some Federal and State Governments agencies embrace insurance, majority of the Small and Medium Scale Enterprises who need protection most are yet to proactively engage insurance to protect their resources and assets.
The government in its wisdom to protect members of the public and the economy from some forms of losses, enacted laws which make the procurement of certain insurances compulsory. I like to refer to two examples: Insurance of Buildings above two (2) Floors under Construction and Insurance of Public Buildings – Sections 64 and 65 of the Insurance Act 2003. We must ask the question, what is the level of compliance with these insurance procurement requirements? I understand that the general response is that not much is happening in this regard. I believe that both the insurance industry and the government need to do more on this in the overall interest of the public especially as we read in the media from time to time of collapses of buildings under construction.
The role of an insurance broker:
A major issue of concern is the fact that several entities and millions of Nigerians are unaware of the important roles insurance brokers play for those who enjoy the benefits of insurance protection. An Insurance policy is a highly technical contract and not an overly simple transaction. This supports the need to procure insurance through “Insurance Brokers” who are professional experts in this business.
Insurance brokers help to negotiate best prices, secure more favourable coverage terms, process the payment of claims from insured losses and provide other relevant risk advisory services. Most importantly, several people do not know that the use of an insurance broker does not increase the cost of insurance premium paid for the insurance cover. I am told that whether a broker’s service is utilised or not, the premium paid for insurance already incorporates the brokerage commission. It would therefore be wise and prudent to procure insurance through insurance brokers as part of risk management strategy to improve enterprises and economic growth.
Enterprise Risk Management:
The world is in continuous flux of risks and Nigeria is not an exception. While traditional risks of fire, flood, accidents, natural disasters, fraud and war remain familiar to all, we are all faced with escalating challenges of emerging risks such as kidnap for ransom, terrorism and cyber-attacks to mention a few. Added to these are the risks of corporate failures. The general antidote to confront these challenges is voluntary adoption of Enterprise Risk Management as enshrined in Corporate Governance Codes.
Finally, it is important that Small and Medium Scale Enterprises in Nigeria which should be the drivers of the country’s economic growth and development, should in their own interest practice enterprise risk management which includes risks transfer to traditional insurance companies with the advice of a professional insurance broker.
I would like to conclude by congratulating IBN on the launch of its new brand identity. I am happy to note that IBN which was established as an insurance broking company before Nigeria’s Independence, has survived along with the history of Nigeria and has now developed into a leading integrated risk and insurance advisory company with a bright and very promising future.
I urge the Board, the Management and Staff of the Insurance Brokers of Nigeria Ltd to remain innovative, steadfast and committed not only to satisfying the needs of your various clients but also to remain in the forefront of taking insurance and risk management in Nigeria to loftier heights.
I thank you all,
Chief Emeka Anyaoku, GCVO, CFR, CON.