BY NKECHI NAECHE—-The FBN Insurance Group a subsidiary of FBN Holdings and Sanlam Group on Friday said under the new Risk Based capitall model it will take it place as a tier- 1 insurance group in the country
The Managing Director/ CEO FBNInsurance Limited, Val Ojumah disclosed this today during a media briefing held in Lagos that the insurance group is bringing to the market better services as one of the top insurance group to reckon with in the industry.
He said the group have the financial muscle to play effectively in the tier- 1 category.
The FBN Insurance boss further said that with its plans to play in the tier-1 model the general insurance oil and gas portfolio will increase because they are injecting more fund into the business.
He said “Our aviation business which we started recently, will also increase because we are adding more money into the business and in other areas of our business.
” Our annuity portfolio is growing at astronomical rate and it will continue while our retail insurance penetration is equally growing.”
On its expansion plan, he said with the latest Risk Base capital model, FBN Insurance group will be seen across the country.
According to him, they are already in 46 locations in Nigeria, but assuring that within the next 16 months it will add 20 new locations to the existing ones.
He also applauded the National Insurance Commission( NAICOM) for the new RB capital model, noting that the development will help to reposition the industry financially.
He said: ” The new regulation will encourage insurance companies to work together to increase their financial strength and capabilities and be able to absorb more risk.
“It will also reduce the number of weak players and we will be able to retain more risk in Nigeria. I want to let you know that the regulator did not increase capital base. The minimum capital for general insurance still stands at N3billion and N2billion for life insurance. But the new RB capital model supervision is to ensure that operators cover those Risk that their financial strength can cover.”
He explained that the new development will also impact in insurance stocks which will in turn means appropriate pricing of insurance stocks, better returns on investment and better dividend for shareholders because the financial strength of the companies and the industry will be better.
While noting that with the RB capital model the issue of lack of trust, non payment of claims, inappropriate pricing of insurance policies, rate cutting and unethical practice which are majorly caused by marginal player will be reduced.
With the new RB capital, he said the ability to pay claims to policy holders will increase automatically and better relationship between the industry and the insuring policy will be achieve.
Speaking further, Managing Director, FBN General Insurance, Bode Opadokun, noted that the new model will give the industry the opportunity to be strong and secured industry.
He said although the RB capital model will reduce the number of players but assured it will bring about strong financial players in the industry.
He explained that the new model will enable corporate organization to price insurance businesses according to Risk on the table and most companies will love to associate with a tier-1 insurance company.
He stated that the development will open doors for the industry to employ other professionals in financial sector,hire skilled and rightful human capital to drive the business.
He assured that the move by the commission is the right step in the right direction and will benefit the industry in the long run.