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Recapitalisation: Job Losses Loom in Insurance Industry

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  • Recapitalisation: Job Losses Loom in Insurance Industry

Many workers in the insurance sector may lose their jobs due to the loss of business by most of the underwriters.

Some of the operators, who spoke to our correspondent on the development, said the loss of insurance business, which many of them were currently grappling with might get worse and lead to the collapse of their operations.

According to them, the trend started when the National Insurance Commission decided to order a backdated recapitalisation in the sector.

NAICOM had announced new capital requirements of N6bn for Tier 3 operators, N9bn (Tier 2) and N15bn (Tier 1) for life, non-life and composite insurance companies from the previous N2bn, N3bn and N5bn, respectively.

Some of the operators, who spoke with our correspondent, said that while they were not opposed to the recapitalisation of the firms, they found the deadline of barely one month given to them to recapitalise as unacceptable.

They also kicked against the requirement that the 2017 solvency accounts of the companies should be presented for the recapitalisation when the announcement was only made on August 28, 2018.

NAICOM stated in the recapitalisation guidelines that only Tier 1 companies would be allowed to underwrite annuity, oil and gas (oil related projects, exploration and production), and aviation insurance, unlike before when all the insurance companies participated in the risks.

Operators told our correspondent that insurance brokers, who controlled over 70 per cent of the businesses in the industry, were already informing the Tier 2 and Tier 3 companies that they would not renew other businesses with them, as they were not sure of their survival if they continue to lose major deals that used to earn them huge premium.

Most companies with Tier 2 and Tier 3 capital lamented that they were already losing business to Tier 1 firms, and might eventually not be able to pay the salaries of their workers again.

In an open letter written to NAICOM by the Association of Senior Staff of Banks, Insurance and Financial Institutions, an affiliate of the Trade Union Congress of Nigeria, and signed by its National President, Oyinkan Olasanoye, and acting Deputy Secretary General, Yekeen Shitu, it warned the commission of the dangers of implementing an emergency recapitalisation in the insurance sector.

The ASSBIFI letter was titled, ‘An open letter to NAICOM on recapitalisation of insurance companies in Nigeria, the tier-based minimum solvency capital: A call for review of period of implementation in order to save the insurance companies and jobs’.

The association noted that its position was not to stop the government from implementing the recapitalisation, but that it should be done in a way that the concerns of all sides would be genuinely and thoroughly looked into.

“We call on the government to immediately extend the period of the implementation of this new tier-based minimum solvency capital regime. We request a genuine consultation with all the stakeholders in this matter with a view to fashioning out the most acceptable way to go about the government’s plans without job loss,” the letter read in part.

According to the association, the inconsistency in policy by the regulator and the hasty move to conduct the recapitalisation may cause some insurance companies serious problems and have negative effects on the economy.

Sources told our correspondent that some of the operators might take legal actions against the commission if it failed to listen to their cries.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Transcorp Hotels Expand into Marketplace, Launches Aura to Connect People, Hoteliers, Others

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Transcorp Hotels Plc, on Thursday, announced it has launched a new digital platform, Aura, through which people can book accommodation, restaurants and experiences.

Aura, Transcorp’s first in the alternative accommodation segment, is part of the company’s asset-light model, leveraging technology to deliver true hospitality, exciting experiences, and drive shareholder value.

It’s a new dawn in the hospitality industry! I am thrilled to introduce you to Aura by Transcorp, the digital platform we are using to connect people to quality accommodation, great food, and awesome experiences,” Managing Director and Chief Executive Officer of Transcorp Hotels Plc. Dupe Olusola said.

For more than 30 years, Transcorp Hotels Plc has been at the forefront of creating a superior guest experience at our locations. Today, our commitment to innovation has offered us an opportunity to extend this beyond the hotel premises,” Olusola added.

The launch of Aura by Transcorp is one of the most significant developments in the company’s history as it seeks to transform the travel and tourism industry in Africa by focusing on three important components of travel, whether for leisure or business — where you stay, what you eat and how you spend your time. With its people-driven hospitality model, Aura is set to revolutionise travel and help remind Africans of our deep history of hospitality.

Speaking on the launch of Aura, Obong Idiong, Chief Executive Officer at Africa Prudential Plc, Aura’s technology partners, expressed his excitement. “Finding the right accommodation when you travel can be incredibly complex. Options available for the right prices are often limited, and travellers sometimes end up with accommodation that taints the travel experience. Transcorp Hotels Plc has been able to fix that with Aura and we are proud to be associated with them.”

To ensure topnotch user experience, we built a solution to drive digital transformation through the adoption of shared living spaces for the Aura business. With an advanced search algorithm powered by artificial intelligence, Aura determines the relevance of locations taking into consideration, the customers’ preferences and requirements to meet them at the point of their needs,” Idiong added.

Priscilla Adeboye, a travel enthusiast and early adopter of Aura, said the global pandemic has pushed international travel down her list. “But I still want to be able to take some time off work or spend a weekend away from home with the family. I have found incredible homes on Aura that meet my need for space and privacy.

 

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Siemens Energy Nigeria Appoints Seun Suleiman as Managing Director

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Seun Suleiman is the New Managing Director of Siemens Energy Nigeria

Mr. Seun Suleiman is the new managing director of Siemens Energy Nigeria, the company announced on Wednesday.

According to the statement released by the energy company, Suleiman will be responsible for the entire management of operations and decisions on business policies and corporate strategy.

Commenting on his appointment, Suleiman said, “It is an absolute honor to lead the business for Siemens Energy Nigeria and I look forward to delivering on the brand’s promise of excellence.

Suleiman joined Siemens Energy in 2014, bringing over 15 years’ experience and deep expertise in the private sector across Europe and West Africa.

The statement said, “He is an accomplished business strategist and success-driven leader with strong business acumen. Suleiman has also been a core member of the executive management team at Siemens Energy serving in roles as Sales Director West Africa – Service Distributed Generation Oil & Gas and Vice President Service & Digital.

“Prior to this, he also held various functional and managerial positions with ABB Ltd UK, ABBNG Nigeria, Schneider Electric Nigeria and Dresser-Rand Nigeria Ltd.

It added that Suleiman was experienced in establishing operational excellence with specific competence in the power, oil and gas sectors.

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FG Reopens Osubi Airport Warri for Daylight Operations

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FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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