Presentation on theme: "THE NIGERIAN INSURERS ASSOCIATION (NIA) IN PERSPECTIVE."— Presentation transcript:
THE NIGERIAN INSURERS ASSOCIATION (NIA) IN PERSPECTIVE
PRINCIPAL OFFICERS OF THE ASSSOCIATION
History of the NIA For ten years beginning from 1919, an average of 2,900 commercial vehicles were registered in Nigeria annually. 1 It was against this background that the first insurance company - the Royal Exchange Assurance Company Limited, was established in Nigeria in February The Company which was, in fact, a Branch Office of a British Insurer, monopolised the market until 1949 when three other British insurance companies established their own Branches or Agencies in the country.
As soon as up to four insurance organisations started operating in Nigeria, the need arose for a body which would handle common problems on behalf of the industry. Consequently, the London West African Insurance Committee was formed with members drawn from insurance companies who had commercial interests in West Africa. The Committee, from time to time, rendered advisory services to the insurance companies operating in Nigeria.
The attainment of political independence in 1960 following which Britain, as an imperial power, ceased to determine the political and economic developments of Nigeria, created the need for a Nigerian based body which would protect the interests of insurers. A further reason for the founding of an association of insurance companies in Nigeria was the proliferation of insurers operating in the country. By 1960, there were about 25 insurance companies in Nigeria.
Establishment of Insurers Consultative Body In 1951, a Consultative Committee of insurance companies was formed based in Lagos. Under the aegis of the Committee, the chief executives or chief agents of Insurance companies operating in Nigeria met regularly to discuss common problems especially Government policies affecting the insurance industry. The body, however, became moribund after a couple of years.
As most of the earliest insurance companies established in Nigeria were specialised outfits, efforts were made to establish Life Insurance Offices Association and Accident Insurance Offices Association. Their establishment were influenced by the structure of insurance associations in the United Kingdom from where the business of insurance was introduced to Nigeria.
On the 9th August, 1962, the representatives of insurance companies operating in the country met at the Anchor Building, Lagos in a renewed effort to resuscitate the Consultative Committee. Those present at the meeting were: T.A. Braithwaite representing African Alliance Insurance Company Limited. R. E. Blair - African Insurance Limited and Employers Liability Assurance Corporation. A. A.Ayoola - Caledonian Insurance Company Limited.
C. MacWilliams - Century Insurance Company Limited and Friends Provident and Century Life Office. J. Akin-George - Dominion Insurance Company Limited. G. W Bisset-Lovie - Great Nigeria Insurance Company Limited. B. Land - Guardian Assurance Company limited, Lion of Africa Insurance Company Limited and London Assurance Limited.
J. W. Farnsworth - Guinea Insurance Company Limited, Legal & General Assurance Society Limited and Norwich Union Insurance Company Limited. V. B. Twyford - Law Union and Rock Insurance Company Limited, London Liverpool and Globe Insurance Company Limited and Royal Insurance Company Limited.
M L. King - National Employers Life Assurance Company Limited and National Employers Mutual General Insurance Association Limited. F.O. Ogunlana - New Africa Insurance Company Limited. J. H Day - Northern Assurance Company Limited. G. A. Bamford - Royal Exchange Assurance.. G. J. White-Parsons - South British Insurance Company Limited. G.W. Fox - West African Provincial Insurance Company Limited.
J. J. Gardner - White Cross Insurance Company Limited. The meeting which was presided over by Mr. J H. Day, unanimously decided to reform the defunct Nigerian Insurance Consultative Committee. A draft constitution presented by Mr. Day, was considered and, after some amendments, was adopted on a motion by Mr. T. A. Braithwaite seconded by Mr. J. W. Farnsworth.
In an election which followed, Mr. E. C. McNestry emerged as chairman of the body while the following were elected as members of the Management Committee: J. H. DayJ. W. Farnsworth G. W. FoxE.W. Bisset-Lovie, and F.O. OgunlanaV. B. Twyford At the same time, Mr. L. E. Lainson was appointed as the Secretary of the Association. He served in that capacity until January 1967.
At the time of its resuscitation in 1962, the Nigerian Insurance Consultative Committee consisted of 32 Insurance Companies operating in the country. With the exception of Great Nigeria Insurance Company Limited and Universal Insurance Company Limited, all the member companies were Branches or Agencies of British insurance companies. The Federal Government of Nigeria, Banks and Trade Missions were formally informed of the formation and objects of the committee. A General Meeting of members of the Committee took place quarterly while the Management Committee met every month.
The Committee maintained a relationship between the insurance industry and the Government and also liaised with Government Agencies such as the Police and the Board of Inland Revenue. The Committee also liaised with the few insurance brokers operating in the country. Since most of its members were branches or Agencies of British insurers.
the Committee received tremendous assistance from the British Insurance Association (now Association of British Insurers). The assistance took the form mainly of preparation of memoranda used by the Committee in communicating to the Government the implications of its policies on the insurance industry.
From Consultative Forum to Trade Association Towards the end of the year 1970, members of the Nigerian Insurance Consultative Committee felt the need had arisen for the emergence of a stronger body of insurers and, consequently, proposed to form an association to be registered under the Companies Act as a non- profit making body limited by guarantee. This development must have been informed by two main factors, namely:
Governmental Control Prior to 1961, Government maintained a policy of laissez-faire towards insurance business. Thus, apart from the Motor Vehicles (Third Party Insurance) Act of 1945 (revised in 1950), there was no statutory control of insurance. In 1961, the Marine Insurance Act was enacted. This was followed by the Insurance Companies Act The statute distinguished between local and foreign insurance companies and demanded greater capitalization from foreign companies than that required from local ones
The statute distinguished between local and foreign insurance companies and demanded greater capitalization from foreign companies than that required from local ones. Another landmark legislation was the Insurance (Miscellaneous Provisions) Act of 1964 which-became effective from 4th May The Act regulated the investment operations of insurance companies and restricted the insurance of risks within Nigeria to underwriters who were incorporated in Nigeria. The Insurance Companies Regulations 1998 made detailed provisions for the enforcement of the 1961 Act.
The operation of foreign companies in Nigeria through Agencies and Branch Offices was a general feature in the Nigerian economy until 1968 when the Companies Act. (formerly Companies Decree) 1968 was enacted. Under the statute, all erstwhile alien companies were required to be incorporated in Nigeria. Many insurance companies complied with the law while those who were not willing to comply wound up their operations in the country. By 1969, membership of the Nigerian Insurance Consultative Committee had dwindled from 32 to less than 20. A number of small insurance companies were, however, emerging and operating outside the Committee.
Establishment of NICON The establishment of the National Insurance Corporation of Nigeria (now NICON Insurance PLC) in 1969 as a wholly-owned Federal Government concern with power to compete with other registered insurers and obtain 10% legal cession from them, marked a milestone in the annals of the Nigerian insurance industry. The establishment of NICON was a pointer to the desire of Government to control a commanding height in the industry. In line with its policy of mixed economy, NICON joined the Nigerian Insurance Consultative Committee shortly after its establishment.
Inaugural Meeting of the NIA The inaugural meeting of the Nigerian Insurance Association was held at Ikoyi Hotel, Lagos, on the 16th December The meeting, which was chaired by Mr. E. C. McNestry, the then Managing Director of Royal Exchange Assurance Nigeria Limited, was attended by the following: F. Taylor representing American International Ins. Co. Nig. Ltd. J. H. Day - Friends Provident & Century Group, and The United Nigeria Insurance Co. Ltd. F.O. Ogunlana"Great Nigeria Insurance Co. Ltd. A. T. Cain"Guinea Insurance Co. Ltd.
V H Twyford - Law Union & Rock Insurance Co.of Nigeria Ltd. M. J. S. Bedi - The Lion of Africa Insurance Co. Ltd. K. Wood- National Employers Life Ass. Co. (Nig.) Ltd. and National Employers Mutual Ins Co. (Nig.) Ltd.
E. C. McNestry - New Africa Insurance Co. Ltd. & Royal Exchange Assurance (Nigeria). K C. Matthew - New India Assurance Co. (Nigeria) Ltd. J. Acton - Phoenix of Nigeria Assurance Co. Ltd; M. H Black - Sun Insurance Office (Nigeria) Ltd. J. O. Irukwu - Unity Life & Fire Insurance Co. Ltd. D. MacPhee - West African Provincial Ins. Co. Ltd. B. Addinall - Niger Insurance Co. Ltd.
The meeting unanimously decided to invite Mallam Aliko Mohammed; Chairman of the National Insurance Corporation of Nigeria, to be the Chairman of the Association.
The following were then elected into various offices: Trustees F.O.Ogunalna, K. Wood and T. A. Braithwaite Vice Chairmen E. C. McNestry and J. H. Day Secretary A. A. Obakeye Treasurer P A. Dawodu Auditors. Akintola Williams & Co.
Other elected members of the Management Committee were: A. T. Cain F.O. Ogunlana V. H. Twyford T. A. Braithwaite and K. Wood The election of Malam Aliko Mohammed as the first chairman of the Association was a recognition of
the leadership status of NICON in the industry and the importance attached by the NlA to its liaison function with the Government especially in an era of Government control. Mallam Aliko served the Association effectively from December 1971 until he retired from the NICON Board in 1976.
In January 1981 the Association was incorporated under the Companies Act 1968 as a company limited by guarantee. The body thus acquired juristic personality and became capable of enforcing its rights including rights to acquire property in its own name rather through trustees. In 1990, the Association changed its name to Nigerian Insurers Association so as to clearly reflect its professional and business status.
MISSION STATEMENT Protecting and advancing the common interest of insurers in Nigeria by creating and sustaining a positive image for the insurance industry and contributing to legislation and decisions made by the Government and other Public Authorities in the best interest of the industry in particular and the national economy in general.
OUR OBJECTIVES The objectives of the Association are embodied in the Constitution of the Association. Some of them are highlighted as follows: To protect, promote and advance the common interest of insurers in Nigeria To advise members on any action or proposed action by Government or any other authority in connection with any legislation or policy. To advise or cons un with the Government regarding any act or thing done or being contemplated by it or its agencies or other statutory bodies with regard to any matter relating to Insurance business.
To guide and assist members in complying with laws, regulations, orders and Government directives relating generally to the business of Insurance To create better understanding of Insurance by all sections of the community including the furtherance of knowledge and research on Insurance and related matters.
To collect, collate and disseminate statistical, economic and other information relating to Insurance. To maintain constant dialogue with other trade associations in the Insurance industry with a view to fostering good relationships between them and the N IA as well as the insuring public. To confer, consult, maintain contact and co- operate with individuals, associations, societies
institutions or bodies within or outside Nigeria having objectives similar to those of the Association. To promote personal and friendly relationship among members of the Association. The above objectives are achieved by:
Regular meetings of the specialized committees of the Association every month where issues affecting the industry are addressed. Maintenance of a well equipped research and statistics department.
Organizing conferences, seminars and training courses for employees of member companies and interested public. Maintaining highly skilled manpower conversant with modern information and communication technology Interacting positively with the media and other interested groups Interacting with supervisory authority and the entire membership of the Association
NIA TECHNICAL COMMITTEES ACCIDENT OFFICES COMMITTEE ACCOUNTING TECHNICAL COMMITTTEE CORPORATE AFFAIRS COMMITTEE FIRE OFFICES COMMITTEE HUMAN CAPITAL COMMITTEE INFORMATION TECHNOLOGY COMMITTEE LEGAL COMMITTEE LIFE OFFICES COMMITTEE MARINE OFFICES COMMITTEE
NIA GOVERNING COUNCIL I. A. BALOGUN mni Chairman Managing Director Equity Assurance Plc WOLE B. OSHIN, ESQ. Vice Chairman Managing Director Custodian and Allied Ins. Plc
OYE HASSAN-ODUKALE, MFR (Past Chairman) Managing Director Leadway Assurance Company Ltd. PROF. J. O. IRUKWU, SAN (Past Chairman) Consultant to ADIC Insurance PLC.
GBENGA AFOLAYAN, ESQ. Hon. Treasurer Chairman/Chief Executive Officer Goldlink Insurance Plc. BODE AKINBOYE, ESQ. Hon. Asst. Treasurer Group Managing Director Standard Alliance Insurance Plc
CHIEF THEOPHILUS EGESI-EKE Managing Director Union Assurance Company Ltd. F. K. LAWAL ESQ Managing Director Sterling Assurance Co. Ltd.
OLUMIDE FALOHUN, ESQ. Managing Director Law Union & Rock Ins. (Nig.) Plc. S.O. OYEFESO ESQ Managing Director STACO Assurance Plc.
O. LADIPO-AJAYI, ESQ. Managing Director LASACO Assurance Plc REMI OLOWUDE, ESQ. Executive Vice Chairman Industrial and General Insurance Co. Ltd.
DANIEL OKEHI, ESQ.. Managing Director Insurance PHS A. N. OVIOSU, ESQ Managing Director Crusader General Ins. Plc.
DAVID SOBANJO, ESQ. Managing Director Aiico Insurance Plc. J. C. URANTA, ESQ Managing Director Niger Insurance Plc.
GODWIN U. S. WIGGLE, ESQ. Managing Director Linkage Assurance Plc. K. K. YUSUF, ESQ Managing Director Nigerian Agric. Ins. Corp.
INSURANCE INDUSTRY UPDATE The insurance industry has just successfully completed its consolidation exercise and is positioned to improve its contribution to economic development and remain competitive globally. It is therefore expected that the present state of the insurance industry will no doubt help to stem foreign exchange outflow and boost domestication of special risks such as Oil & Gas, Energy and Aviation business.
The insurance industry witnessed appreciable growth in the volume of business written in year The industry recorded a gross premium income of N82.89billion in 2006 as against N76.3billion in 2005, an increaseof7.8%.
CHALLENGES FACING THE INSURANCE INDUSTRY Most post consolidation challenges facing the insurance industry, such as gradual increase in market capitalization, judicious application of new capital, human capital development, cultural integration of merged companies, threats of insurance fraud, threat of soft market practice and unethical behaviour will receive great attention so that the insurance sector can play its role as catalyst for national economic development.
INDUSTRY PERFORMANCE Gross Premium N N N 21,247,32828,872,94435,197, N 42,149,87644,461,037
CLAIMS PAID NON-LIFE BUSINESS N N N 4,628,7466,073,0947,810, N 8,702,59210,026,155
THANK YOU References COLLABORATION OF INSURERS IN NIGERIA: HISTORY, ORGANISATION AND ACHIEVEMENTS OF THE NIGERIAN INSURERS ASSOCIATION BY REV. FUNMI ADEYEMI
2007 NIGERIA INSURERS DIGEST A STATISTICAL JOURNAL OF THE NIGERIAN INSURERS ASSOCIATION. THE END