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

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• 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.

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• 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.

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• 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

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• 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.

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• 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

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• 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

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• 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

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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

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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

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• 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.

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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 PAIDNON-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

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