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THE NIGERIAN INSURERS ASSOCIATION (NIA) IN PERSPECTIVE

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Title: THE NIGERIAN INSURERS ASSOCIATION (NIA) IN PERSPECTIVE


1
THE NIGERIAN INSURERS ASSOCIATION (NIA) IN
PERSPECTIVE
2
PRINCIPAL OFFICERS OF THE ASSSOCIATION
3
  • 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 1921. 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.
  •  

4
  • 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.

5
  • 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.

6
  • 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.

7
  • 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.

8
  • 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.

9
  • 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.

10
  • 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.

11
  • 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.

12
  • 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.

13
  • 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. Day J. W. Farnsworth
  • G. W. Fox E .W. Bisset-Lovie, and
  • F .O. Ogunlana V. 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.

14
  • 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.

15
  • 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.

16
  • 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.

17
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

18
  • 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 1961. The
    statute distinguished between local and foreign
    insurance companies and demanded greater
    capitalization from foreign companies than that
    required from local ones

19
  • 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 1967. 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.

20
  • 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.

21
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.

22
Inaugural Meeting of the NIA
  • The inaugural meeting of the Nigerian Insurance
    Association was held at Ikoyi Hotel, Lagos, on
    the 16th December 1971. 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.

23
  • 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.

24
  • 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.

25
  • The meeting unanimously decided to invite Mallam
    Aliko Mohammed Chairman
  • of the National Insurance Corporation of
    Nigeria, to be the Chairman of the Association.

26
  • 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.

27
  • 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

28
  • 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.

29
  • 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.

30
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.

31
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.

32
  • 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.

33
  • 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

34
  • 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

35
  • 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.

36
  • 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

37
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

38
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

39
  • OYE HASSAN-ODUKALE, MFR
  • (Past Chairman)
  • Managing Director
  • Leadway Assurance Company Ltd.
  • PROF. J. O. IRUKWU, SAN
  • (Past Chairman)
  • Consultant to
  • ADIC Insurance PLC.

40
  • 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

41
  • SEUN AJAYI, ESQ.
  • Executive Vice Chairman
  • Sovereign Trust Insurance Plc.
  • A.A. FALADE, ESQ
  • Chief Executive Officer
  • Guardian Express Ins. Co. Ltd.

42
  • CHIEF THEOPHILUS EGESI-EKE
  • Managing Director
  • Union Assurance Company Ltd.
  • F . K. LAWAL ESQ
  • Managing Director
  • Sterling Assurance Co. Ltd.

43
  • OLUMIDE FALOHUN, ESQ.
  • Managing Director
  • Law Union Rock Ins. (Nig.) Plc.
  • S.O. OYEFESO ESQ
  • Managing Director
  • STACO Assurance Plc.

44
  • O. LADIPO-AJAYI, ESQ.
  • Managing Director
  • LASACO Assurance Plc
  • REMI OLOWUDE, ESQ.
  • Executive Vice Chairman
  • Industrial and General Insurance Co. Ltd.

45
  • DANIEL OKEHI, ESQ. .
  • Managing Director
  • Insurance PHS
  • A. N. OVIOSU, ESQ
  • Managing Director
  • Crusader General Ins. Plc.

46
  • DAVID SOBANJO, ESQ.
  • Managing Director
  • Aiico Insurance Plc.
  • J. C. URANTA, ESQ
  • Managing Director
  • Niger Insurance Plc.

47
  • GODWIN U. S. WIGGLE, ESQ.
  • Managing Director
  • Linkage Assurance Plc.
  • K. K. YUSUF, ESQ
  • Managing Director
  • Nigerian Agric. Ins. Corp.

48
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.

49
  • The insurance industry witnessed appreciable
    growth in the volume of business written in year
    2006. The industry recorded a gross premium
    income of N82.89billion in 2006 as against
    N76.3billion in 2005, an increaseof7.8.

50
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.

51
INDUSTRY PERFORMANCE
  • Gross Premium
  • 2002 2003 2004
  • N N N
  • 21,247,328 28,872,944 35,197,652
  • 2005 2006
  • N N
  • 42,149,876 44,461,037

52
CLAIMS PAID NON-LIFE BUSINESS
  • 2002 2003 2004
  • N N N
  • 4,628,746 6,073,094 7,810,243
  • 2005 2006
  • N N
  • 8,702,592 10,026,155

53
  • THANK YOU
  • References
  • COLLABORATION OF INSURERS IN NIGERIA
  • HISTORY, ORGANISATION AND ACHIEVEMENTS OF THE
    NIGERIAN INSURERS ASSOCIATION
  • BY REV. FUNMI ADEYEMI

54
  • 2007 NIGERIA INSURERS DIGEST
  • A STATISTICAL JOURNAL OF THE NIGERIAN INSURERS
    ASSOCIATION.
  • THE END
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