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Low Insurance Penetration in Nigeria not Good for Economy—Expert

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Low Insurance Penetration in Nigeria not Good for Economy—Expert

By Dipo Olowookere

Chief Executive of Stanbic IBTC Insurance Brokers Limited, Mr Anselem Igbo, has expressed worry over the low penetration of insurance in Nigeria, saying this does not augur well for the wellbeing of individuals, businesses and the economy.

He therefore urged Nigerians to protect themselves against unforeseen mishaps by investing in insurance products.

Speaking recently in his office in Lagos, Mr Igbo said the insurance business is a unique one, which has been set up to help clients effectively manage their risks, including theft, accidents, robbery, injuries, manmade and natural disasters, and even death, thereby ensuring peace of mind through risk transfer and efficient insurance claims.

“Insurance is an essential part of everyday life. Contrary to what currently obtains, where insurance penetration in the country is low, every adult Nigerian ought to see insurance as a necessity, one that helps them mitigate all forms of unfortunate situations such as theft, accidents, robbery, manmade and natural disasters, and even death by taking on these risks so that they can have peace of mind knowing that someone is there to assume the risks for them,” Mr Igbo said.

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“The insurance industry has numerous bespoke products and services to cater for the insurance needs of all strata of society, including individuals, families, groups, associations, businesses, and large organizations. I therefore urge Nigerians to protect themselves, their families and valuables by investing in insurance coverage,” Mr Igbo urged.

The insurance chief stated that one of the reasons the Stanbic IBTC Group established the Stanbic IBTC Insurance Brokers was to fill this perceived gaps in the industry and ensure Nigerians are adequately protected.

Mr Igbo said the company commenced full operations sequel to the granting of a licence by the National Insurance Commission (NAICOM) in January 2016, paving the way for the firm to offer the full spectrum of insurance brokerage services, a development that will help in deepening insurance penetration in the country.

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According to the chief executive, Stanbic IBTC Insurance Brokers, building on the brand strength of the Standard Bank Group, to which Stanbic IBTC Holdings belongs, will continue to adopt global best practice in its operations, including exceptional quality of service and facilitating prompt payment of claims for clients.

“Our services apply to individuals and corporate entities, existing customers and non-customers of the Stanbic IBTC Group.

“As insurance professionals with a vast knowledge of the workings of the insurance market, we are able to arrange the most suitable policies for our individual and corporate clients. We proffer advice on the management of risk, secure protection against such risk and reduce exposure to the risks of business disruption, injury and death.

“We also deliver creative risk management solutions that enable our clients create, protect and preserve wealth,” Mr Igbo restated.

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Stanbic IBTC Insurance Brokers Limited is a subsidiary of Stanbic IBTC Holdings Plc, a member of Standard Bank Group, a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management.

Standard Bank Group, to which Stanbic IBTC Holdings belongs, is the largest African bank by assets and market capitalization. It is rooted in Africa with strategic representation in 20 countries on the African continent, including South Africa.

Standard Bank has been in operation for over 155 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa and connecting other selected emerging markets to Africa and to each other, applying sector expertise, particularly in natural resources, globally.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Economy

Stanbic IBTC Enlightens Investors on Available Safe Investment Options

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Stanbic IBTC Asset Management Safe Investment Options

By Ashemiriogwa Emmanuel

Following the strokes of economic uncertainties from the COVID-19 pandemic, Stanbic IBTC Asset Management, a subsidiary of Stanbic IBTC Holdings Plc, recently organised a webinar to proffer guidance on investing in uncertain times.

The webinar via Instagram was themed Investing in Uncertain Times and experts at the Stanbic IBTC enlightened the investing public about the available transparent and safe investment options.

Some of the in-house were Ms Fadekemi Obasanya, Head Investment Management and Ekene Nwaokoro, Fund Analyst.

In her presentation, Ms Obasanya emphasised the importance of gaining needful knowledge from investment professionals about the best investment options per time.

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She also pointed out the various investment options offered by Stanbic IBTC which both current and prospective investors can take advantage of, leveraging on the well-informed financial guidelines provided by the organisation.

She said some of the investment options include Stanbic IBTC Money Market Fund, Stanbic IBTC Dollar Fund, Stanbic IBTC Enhanced Fixed Income Fund, Stanbic IBTC Bond Fund, among many others under the mutual funds.

Ms Obasanya further stated that many people become victims of fake investment platforms due to misinformation and indiscipline, urging investors to do due diligence before parting with their funds.

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“A lot of people fell prey to fake investment platforms in the previous year. It is wise to stay disciplined and informed about credible investment outlets to avoid losing money, as the main objective of the investment is to generate regular income and capital appreciation.

“People need to be mindful of the type of investment they put their money in. This is why we designed a tool called ‘InvestBeta’ for intending investors to identify their risk appetite, which simply means the amount of risk they are willing and able to take, as well as the available investment options that can help them achieve their investment objective.

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“There are also well-experienced financial advisors on standby to help investors decide on the most suitable options for them,” she said.

Also discussed at the session was the advantage of investing in the Stanbic IBTC Dollar Fund, a dollar-denominated mutual fund, which was a response to how investors can hedge against Naira devaluation.

Individuals were educated on the fundamentals of investing and viable investment options, especially amid an unstable economic terrain.

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Economy

Capital Importation into Nigeria Falls to $875.6m in Q2 2021

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capital importation

By Aduragbemi Omiyale

Nigeria has recorded a quarter-on-quarter decline of 54.06 per cent in the total value of capital importation into the country in the second quarter of 2021, the National Bureau of Statistics (NBS) has revealed.

In a report released by the agency, it was disclosed that the FX inflows from April to June 2021 stood at $875.6 million in contrast to $1.9 billion recorded in the first quarter of this year.

On a year-on-year basis, the capital importation went down by 32.38 per cent as the inflows in the same period of last year was $1.3 billion.

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Business Post observed that the decline in the period under review was because of lower inflows from foreign direct investments (FDIs), foreign portfolio investments (FPIs) and other investments.

However, in the report, the stats office said the largest amount of capital importation by type was received through portfolio investment, which accounted for 62.97 per cent ($551.4 million) of total capital importation, followed by other investment, which accounted for 28.13 per cent ($246.3 million) of total capital imported, with FDIs accounting for 8.90 per cent ($78.0 million) of total capital imported in Q2 2021.

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By sector, capital importation by banking dominated in Q2 2021, reaching $296.5 million of the total capital

importation in Q2 2021, followed by financing with $205.9 million and shares with $194.6 million.

By source of the capital investment, the United Kingdom was on top with $310.3 million, accounting for 35.43 per cent of the total capital inflow in Q2 2021.

It was trailed by South Africa with $212.4 million and the United States with $83.4 million and by destination, Lagos State emerged as the top destination of capital investment in Nigeria in Q2 2021 with $780.1 million, contributing 89.09 per cent to the total capital inflow in Q2 2021 and by bank, Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria in Q2 2021 with $310.2 million, accounting for 35.43 per cent of the total capital inflow in Q2 2021.

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Standard Chartered Bank followed by attracting $282.4 million, while Citi Bank attracted $94.2 million in the second quarter of this year.

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Economy

PenCom Drags 120 Firms to Court for Pension Act Violation

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pension assets

By Adedapo Adesanya

The National Pension Commission (PenCom) has disclosed that it was in court with about 120 companies that have refused to comply with the dictates of the 2014 Pension Reform Act (PRA).

The Director, Corporate Communications of the commission, Mr Peter Aghahowa, stated this in Lagos at the 2021 PenCom workshop for journalists in Lagos.

According to him, the organisation was working assiduously to ensure all pension laws as they affect various policies are totally complied with.

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He noted that compliance varies according to the sector, adding that recovery agents have been engaged to ensure that funds that ought to be remitted to PenCom are not diverted under any guise.

“For the private sector, we engaged recovery agents. By the PRA, any company with more than three workers must key into the Contributory Pension Scheme (CPS).

“So, the recovery agents have been empowered. Once they check the books of companies, they will determine their liabilities.

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“We have the employee and employer portion remittances. For those not remitting at all, there is a penalty.

“We have 120 cases in court and these are organisations we tried to work with and they were just recalcitrant.

“Going to court is the last resort because the goal is for the money to the RSAs. We always try to engage.

“In states, they have to enact and implement the CPS. We work with them in coming up with a bill and setting up a pension bureau.

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“Most states have not implemented this well. In enforcing compliance here, you should tread softly. Accrued rights have been paid up”, he said.

The agency has, therefore, called for compliance on contributory pension remittances by employers across the country.

On her part, the PenCom DG, Mrs Aisha Dahir-Umar, disclosed that the commission has deepened technological innovation as it seeks to navigate through the challenges imposed by the pandemic.

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