Nigeria: 48 Insurers Generate N117bn Premium Income - AllAfrica.com

Patience SaghanaLagos

Forty-eight Insurance companies operating in the state generated a insurance premium income of N117 billion in 2007, following the recapitalisation of the companies to N206 billion in the same year.

The N117 billion recorded by the 48 investment bankers stands for a 42 per cent addition over the N82 billion posted in 2006. Of the N117 billion, the Marine/Aviation Insurance raked in N32.3 billion; General Accident, N28.2 billion; Motor Insurance, N24.3 billion; Life Insurance, N18.1billion and Fire Insurance, N13.94 billion.

Mr Ibidolapo Balogun, the contiguous past times president of NIA, told newsmen yesterday in Lagos that the coverage industry recapitalisation was largely responsible for the immense insurance premium income recorded by the sector last year. "The industry witnessed a major milepost in regard of the successful recapitalisation of 48 coverage companies whilst the capitalization increased from N25.9 billion in 2006 to N206 billion in 2007," he said. Balogun who yesterday handed over the NIA chairmanship to Mister Wole Oshin added: "The significance of this transmutation is evidenced by the sector becoming the 2nd most active sector in the working capital market. The volume of concern written grew from N82 billion to N117 billion during the twelvemonth under review. This 42 per cent growing is expected to be surpassed in the approaching twelvemonth as the consequence of the pension reforms and Nigerian local content in the oil and gas sector impacts public presentation of the industry."

Balogun said the enforcement of Section 72 of the Insurance Act 2003 which qualifies that "no 1 shall transact concern with any foreign-based coverage company other than companies that are registered under this Act" helped to bring forth more than concern for companies operating in Federal Republic Of Nigeria The compulsory employer-paid life coverage policies for all employees in both the private and public sectors also helped to invigorate the life coverage concern in the country.

Meanwhile, the 48 insurance companies in the twelvemonth under reappraisal settled N35.2 billion claims. Of the N35.2 billion claims, NICON Insurance paid N6 billion claims of backdown benefits on pension to over 125 establishments across the state in 2007.

Medical insurance still a hurdle for senior citizens

Senior
citizens go on to experience short-changed in their medical coverage dealings. The
Insurance Regulatory and Development Authority of Republic Of India (IRDA) had recently
directed public sector coverage companies to crest the insurance premium burden on policy
renewals at 75% of the former year's rates. Senior citizens, however, state this
salvo was more than in the word form of an entreaty than directive. They kick that
instances of over 100% insurance premium burden go on to be
reported. Companies rationalise
the crisp addition on evidence that these are just higher rates that one pays
while moving to a higher age band, states Kelvin Second (Kaka) Samant, general secretary at
the general coverage pensioners' association (western zone). "They loading the
premiums in such as a manner that you have got no pick but to choose out of the
policy." Samant says
Insurance Regulatory and Development Authority of Republic Of India is supposed to set up
all its handbills on its website. This peculiar circular, though, cannot be
found anywhere on the site. "It was only a simple missive sent to CMDs of
companies requesting them not to raise their premiums," he says. Kelvin Normality Bhandari,
secretary-general astatine the general coverage council, too confirms, "It was not a
direction. It was an consultative issued to some companies." However, IRDA chairman
C Second Rao take a firm stands that it was a circular, albeit issued only to the four public
sector full general coverage companies. Two of them, states the regulator, were asked
to lodge to the 75% bounds while their merchandises were being cleared. The remaining two have got been
told to convey it in line with the others. Senior citizens convey up another
grouseâ€"they rarely have policy renewal letters from insurance
companies. "In 90% of the cases, renewal letters have got not been sent. Only agents
who have committees make the needful," states Samant. An industry perceiver adds:
"The coverage agent supplies the last statute mile connectivity between the insurance
company and the policy-holder. Some coverage companies have got snapped this link
by sharply reducing their committee levels." Samant points out that since
older consumers may endure from memory lapses, there are opportunities that they may
forget to renew their policies. Such a faux pas may intend loss of benefits and maybe
renewal altogether. Companies may reject a renewal proposal citing some
"pre-existing illness" that mightiness have got crept in during the break. "It is obvious that health
insurance is not profitable. Since it is human-centric, companies desire to save
as much as possible," states Samant. Bhandari, however, refutes
this complaint saying that it is in the companies' involvement to ask for renewal of
cases, as cost of keeping of the policy is less than referring a new policy
proposal. Interestingly, the companies confront no irresistible impulse to publish the renewal
letters. The regulator states that an hint missive for policy renewal is not
mandatory. To exceed it, the
industry perceiver states some coverage companies have got issued unfavourable
guidelines to their agents regarding senior citizens. They can convey in senior
citizen proposals only if the applier is known to them personally and they are
also aware of her or his medical history. This deters agents.

DRL eyes health insurance, organised pharma retail

HYDERABAD:
DR Reddy’s Laboratories (DRL) is eyeing an entry into wellness coverage and
pharma retail as portion of its ambitious program to diversify in the wellness business. The growth concern chances in both these sections could be the
trigger. “We have got taken
note of recent developments in wellness coverage where infirmaries are tying up
with foreign coverage companies for joint ventures as well as organised retail. Our board is still looking at ways to react to these developments, though the
deliberations are still at the preliminary stage,” Dr Reddy’s
vice-chairman GV Prasad told ET. Last month, the Phoebus Hospital Group and
Europe’s biggest private coverage company DKV joined custody to begin a standalone
health insurance company, the 2nd 1 in India. But this is the first ever
insurance venture of a infirmary grouping in the
country. The lower limit paid-up capital
requirement for companies entering coverage is Rs 100 crore. The existing
regulations let only up to 26% FDI in the coverage sector. This agency DRL may
have to look for a foreign coverage spouse if it makes not desire to bit in the
entire Rs 100 crore. At present, there are 15 general
insurers offering traditional wellness coverage policies. But new participants are
keen on entering the wellness segment, considering that less than 3% of the
country’s population is covered by wellness insurance. Analysts tracking
DRL, however, look sceptical on the core pharmaceutical maker’s possible
entry in new countries of business. “If DRL makes desire to come in organised
retail, it necessitates to do immense investings to put up iron and use trained
pharmacists. The company may have got to raise other working capital to fund a retail
venture. So is the lawsuit for an coverage venture,” said a senior industry
analyst. Some other analysts,
however, keep that Dr Reddy’s possible entry into the $5-billion
Indian retail space is logical from a branding position and the company can
leverage on its countrywide statistical distribution concatenation to drive sales. A host of participants are already
operating in the market, including Subhiksha, Phoebus Pharmacies, Master Of Education Asset and
98.4 degrees. In fact, Master Of Education Asset is also looking at starting a manufacturing unit
to develop it have trade name of pharmaceuticals that volition be sold through its
outlets. As of now, DRL is
pushing its rural gross sales hard. The rural marketplace contributed to a whopping
one-fifth of its sum gross sales in Republic Of India and the marketplace goes on to turn at a
rapid rate. “Now, there is no differentiation on drug ingestion patterns
between rural and urban areas. For instance, our bosom disease-related drugs
sell rather well in rural areas, as cardiac (heart-related) diseases are no more
rampant lone in cities,” said GV Prasad.