…Driving insurance growth through awareness
By EDDY JOHN
The Nigerian insurance industry over the years had been faced with several issues including low awareness, low penetration, unwholesome practices, unhealthy competition, quackery, price war, lack of public confidence on industry’s operators, among others resulting to the sector’s low contribution to the nation’s Gross Domestic Product (GDP).
Consequently, the industry’s operators and regulators such as the National Insurance Commission (NAICOM), the Nigeria Insurers Association (NIA), and Nigerian Council of Registered Insurance Brokers (NCRIB) among others have developed laudable programmes and strategic initiatives aimed at addressing these problems to enable the industry contribute significantly to the nation’s economic growth.As a company committed to the growth of insurance industry and the national economy, AIICO Insurance Plc is leveraging different initiatives and programmes among which are market storms, establishment of integrated customer-focus contact centre, sports sponsorships, close relationship with insurance brokers and agents and many other laudable initiatives to grow insurance market premium and deepen penetration that will enhance insurance acceptance in Nigeria.
In April last year, AIICO Insurance Plc, in a bid to create insurance market awareness and deepen market penetration, embarked on market sensitization and awareness programme tagged ‘Market Storm’ of some of the major markets in Lagos.The company’s Managing Director/Chief Executive Officer Edwin Igbiti, at a pre-Annual General Meeting (AGM) media briefing in Lagos noted that the firm would continue to engage with its partners to ensure that it finds mutually beneficial ways to work with one another to ensure the growth of the industry.
This initiative was aimed at educating the traders in the affected markets on the strategic role of insurance and its numerous benefits as well as bringing insurance closer to the market men and women who are involved in retail and micro businesses through the provision of tailored insurance services that suit the need of the traders. This programme also gives room for market feedback that can be used for further products development.To match word with action, AIICO stormed Tejuosho market in Lagos Mainland and offered basic retail products to the traders that guides against business and personal risks. Such products include the AIICO Fire Insurance policy tailored for Shop Owners; AIICO Shield Personal Accident Insurance, AIICO Householder (Home) Insurance and AIICO Auto Insurance.
Despite the fact that no one plans of losing their means of livelihood to fire, flood or any form of natural disaster, these occurrences happen daily resulting in loss of financial investments, revenue, closure of business, shock and grieve and sometimes inability to start again.AIICO Fire Insurance for Shop Owners provides compensation up to the tune of N2million in the event that stocks, materials and/or wares in trade are affected by fire. Benefits include compensation for fire and special perils, permanent disability, medical expenses and public liability.
AIICO Shield Personal Accident Insurance is designed to provide an accident only insurance whereby the Insured, in any mishap, has access to some level of compensations for death, disability and medical treatment for injuries following accident. Benefits include compensation for death, temporary and permanent disability & medical expenses.
AIICO Householder (Home) Insurance is designed essentially for those living in rented apartment to cover their contents only against loss as a result of fire & special peril and burglary. The benefits include compensation to the tune of N2million for fire damage, N1million for burglary, rent for alternative accommodation, public liability, permanent disability, death and medical expense as a result of the incidence.AIICO Auto Insurance is designed with flexibility to sooth the pocket of an insured and guarantees cover for accidental damage, theft, third party property damage, bodily injury and death, medical expenses, etc. This product comes in the following variants; Auto Regular, Auto Basic, Auto Classic, Auto Deluxe & Auto Royale.AIICO Insurance Plc integrated customer-focus contact centre is designed to deliver consistent positive experience across all its interactive platforms.
Speaking at the launch in Lagos, Mr. Igbiti explained that the contact centre is a strategic attempt to improve the firm’s brand equity and the associated customer experience that delivers on the promise.“We have restructured our business, invested in our people and in our overall operational efficiency in line with leading practice standards,” he added.He noted that with multi-channel interaction becoming the norm, the need for cross-channel integration can’t be over-emphasized, adding that the firm, leveraging its contact centre platform, will deliver an experience that spans multiple channels without a break in customer dialogue.AIICO Insurance is the largest Life Insurer in Nigeria and a major underwriter for General Insurance business; key player in Oil and Gas and rated in the top three for General Insurance business. AIICO Travel Insurance Unit is currently the market leader in the industry.
The company offers a wide range of products and services in General Insurance for Retail and Institutional customers. Today the company is enjoying solid global support which enables it provide sophisticated and high profile options for its clients. The company’s stability, strength, security and trust over the years have placed them at a better advantaged position in all classes of Life Assurance.AIICO Asset Management business is supported by a team of experienced professionals, industry analysts and Risk Management specialists who are focused on creating investment strategies that reduce risk and are responsive to client needs. AIICO Asset Management is a specialist business structured to provide the most appropriate investment solutions and strategies for clients.
Established in 1963, AIICO Insurance Plc is an insurance, pensions management, and asset management Group in Nigeria with market-leading positions in its key business lines which include: Life assurance and annuity; General insurance and Special Risks; Pension Management; Health insurance and Asset management.AIICO commenced operations in Nigeria in 1963 as an Agency office of American Life Insurance Company (“ALICO”) – at the time, a subsidiary of American International Group (“AIG”).The Company was incorporated, registered and licensed in Nigeria as American Life Insurance Company Limited – as a wholly owned subsidiary of ALICO/AIG – in 1970 – to offer Life and Pension products and insurance services. The Company was renamed American International Insurance Company Limited (“AIICO”) upon the acquisition of a 60% stake by the Federal Government of Nigeria, and later listed on the Nigerian Stock Exchange in 1990, after which both shareholders – the Federal Government of Nigeria and AIG divested.
Following the insurance industry’s consolidation in 2007, the Company acquired NFI Insurance Plc and Lamda Insurance Company Limited (both cumulatively accounting for less than 30% of AIICO’s pre-acquisition gross premiums).The Company subsequently recertified as both a General Insurance and Life Assurance Company – taking advantage of its legacy, brand, franchise and strong retail distribution network to grow a leading General Insurance business.As an insurance company, AIICO’s goal is to be the insurer of choice and the leading insurance company in Nigeria – providing life insurance and retirement services as well as risk underwriting to a substantial and diversified client base, which includes corporations, financial institutions, governments and individuals in Nigeria.AIICO is the market leader in the life insurance and retirement services and is a market leader (top 3) in Non-Life insurance in Nigeria. The core insurance franchise is complemented by its leading insurance asset management, pension, and health management businesses.In recognition of this sterling qualities and domineering leadership capabilities in the industry in various segments, AIICO Insurance Plc was recently awarded four of the prestigious Pearl honours at Pearl Awards ceremony in Lagos.
The Executive Director, AIICO Insurance, Babatunde Fajemirokun while sharing the cheering news with journalists in a media parley in Lagos, said the company emerged winner in two categories of the awards, which were the Sectoral Leadership Awards and the Market Excellence Awards.He said the company was also shortlisted for the overall/highest award, The Pearl. According to Fajemirokun, the Pearl Awards, an acronym for Performance, Earnings and Returns Leadership, is an organisation that is endorsed by the Securities and Exchange Commission, SEC.In order to consolidate its vast experience as a financial service company, AIICO takes advantage of the opportunities presented by the Pension Reform Act of 2004, (repealed in 2014) through AIICO Pension Managers Limited (“APML”). APML was incorporated in February 2005 and licensed in April 2006 as a Pension Fund Administrator (“PFA”) by the National Pension Commission (PENCOM), and commenced operations in May 2006.
AIICO also owns valuable financial and strategic assets including a controlling stake in Multishield Limited, and a 19percent stake in Healthcare International Limited (both healthcare management organizations (“HMOs”), and AIICO Capital Limited (an asset management wholly-owned subsidiary).AIICO Brand is driven by a desire to develop an intimate relationship with its numerous customers, anticipate their needs and leave them with a memorable experience. AIICO has a rich heritage grounded and deeply rooted on integrity. They are a dream that never fades and a story that is timeless. They enable the creation and protection of things of value; those things that matter most to people.
AIICO is anchored on the philosophy that people deserve better solutions, better results, drawing inspiration from raising the satisfaction level of their people and organizations by enhancing their performance through delivering superior financials solutions and future value. The purpose of their existence is to give people the confidence to live by enabling the growth and protection of things of value by taking what already exists and make it better.As a brand, their mission is to fight to instill genuine confidence, dispel fear and enable people enjoy a better life by instilling the confidence to pursue dreams without fear leveraging their resources and core abilities to continuously offer and deliver financial solutions through diverse offerings that help people live better.AIICO Insurance Plc is a sophisticated, vibrant, prudent and caring partner driven by a commitment to ensure prime satisfaction of those they serve. As an organization, they play a father figure but contemporary in style, dogged and ethical even deeply rooted in their values and determined to help their customers and clientele bounce back in the face of any setback.
Their corporate vision is to become the indisputable leader in all markets they choose to play in whilst their mission is to create and protect wealth for their customers.At the Company’s 2016 Annual General Meeting (AGM, AIICO Insurance underwriting profit for the year ended December 31, 2016 grew by 326 percent. The figure increased from a loss position of N5.5 billion to a profit of N12.45 billion across the group driven by slight underwriting improvements in the non- life business and release of the reserves in the life business. Its gross premium for the period, however, witnessed a 17.8 per cent decline to N27.1 billion from N32.9 billion in 2015.
Announcing this to shareholders, Managing Director, Mr. Igbiti, gave reason for reduction in the company’s gross premium during the period saying it was due to its strategic decision to reduce premiums written in the long-term business (retirement product) as a result of higher market risks.“Our decision to diversify the long-term business to include protection and endowment products – this increased by N3.4 billion (36 per cent) in 2016. Actual investment income rose by 27 percent in 2016 to N7.2 billion from N5.7 billion. Our asset management capabilities continue to be a key strength for the company as we recorded a significant leap in investment income due to high yield, ”he said.The company’s life products include: Annuity Plan; Cash Accumulation Plan; Children Education Plan (CEP); Education Legacy Assurance Plan (ELAP); Group Life Assurance; Income Investment Plan; Life Celebration Plan; Mortgage Protection Plan and Term Assurance.
AIICO Non-Life Products are: Auto Insurance; Aviation Insurance; Boiler Insurance; Bond Insurance; Builders Liability; Burglary & House Breaking Insurance; Cash-In-Transit Insurance; Consequential Loss Insurance; Contractor-All-Risk Insurance Electronic Equipment Policy; Employer’s Liability; Erection-All-Risk Insurance Fidelity Guarantee; Fire & Burglary Insurance.Others include Fire & Special Perils; Goods-In-Transit Insurance; Home Insurance Machinery Breakdown Insurance; Machinery Loss of Profit (MLOP) Insurance; Marine Cargo Insurance; Marine Hull & Machinery Insurance; Occupiers Liability Insurance; Personal Accident Insurance; Plant All-Risk Insurance; Professional Indemnity; Public Liability Insurance and Travel Insurance.
Leading other professionals working with the company in providing visionary leadership which has seen the company continuously occupying enviable position on the industry’s hierarchy is no other person than Mr. Edwin Igbiti, a consummate insurance professional with many years of cognate experience.As a good corporate citizen, AIICO Insurance Plc. has consistently improved upon the foundation laid by its founders over 50 years ago. In today’s business environment, it is imperative that a market leader such as AIICO Insurance Plc abide by a set of Corporate Governance Codes and Practices which will further reassure all stakeholders that its business practices have been institutionalized and that the Enterprise has been positioned to deliver value to its Stakeholders.Having adopted the Codes of Corporate Governance set out by both the National Commission for Insurance (NAICOM) in 2009 and The Securities & Exchange Commission of Nigeria (SEC) in 2011, AIICO has been fastidious in adhering to those codes in addition to also evolving certain business practices which have enhanced our Corporate Governance stature and culture.
AIICO Insurance Plc developed a framework for the business which guarantees the independence and authority of both management and Board of Directors. The Board of Directors maintains its oversight function and effectiveness in the discharge of its responsibilities through a number of Board Committees set up for that purpose.These committees are: Board Establishment and Corporate Governance Committee, Board Finance & General Purpose Committee, Board Real Estate Committee, Board Audit Committee and Board Risk Management & Investment Committee.According to the Managing Director, “AIICO is not just a company but a true companion for life. We are committed to our promises. Anybody can make promises to you. We are more committed to helping you grow and protect things you value most in life and business.
“Our service delivery goes beyond story telling. Without long talk, we’ll help you manage risk and deliver service that provides protection today and support for growth in the years ahead. In AIICO, we embrace simplicity not complexity. If you think insurance is some complex stuff for special people, think again. We make it simple for you to be insured today and enjoy its future benefits.
“The reason we are more of a companion to you is the empathy we bring to bear on responding to you in your time of need. It’s all about relationships, not formalities. Your protection is of high priority and we would never leave you stranded when you need help.“Everybody is in pursuit of happiness. At AIICO, we don’t play to the gallery; we support you as you take every little concrete step towards your happiness. As a timeless partner that inspires people to live their best lives; we help create, grow and protect things of value. AIICO is more than just a company; we are your steadfast companion for life”, he added.AIICO has 21 branches and five retail outlets nationwide.
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