The on-going reforms in the Nigerian Insurance sector being driven by the industry regulator, the National Insurance Commission (NAICOM) would increase industry capacity for big ticket accounts, greater contribution to GDP and more value creation for shareholders.
According to Dr Pius Apere, Managing Director/CEO, Linkage Assurance Plc “one of the reforms, ‘Risk Based Capital Regime in the Risk Based Supervision Framework’ would further redefine the way insurance is delivered in this country and offer more rewarding benefits to the generality of Nigerians.
Dr Apere made the remarks at the Nigerian Stock Exchange during the closing gong ceremony on the floor of the NSE.
Apere who led other directors and executive management to the NSE said insurance in Nigeria is now better positioned to reward investors, as capacity for business has grown as well as increased consumer awareness.
“The Risk-based Capital supervision (RBS) about to be introduced by the insurance regulator (NAICOM) in the near future, when fully implemented, will increase the need for capital injection within the Nigerian insurance industry in order to underwrite more special and/or large risks.”
“This is likely to increase mergers and acquisitions within Nigerian insurance industry. Consequently, the drive to inject new capital (through foreign and local investors) will surely increase the trading activities of most insurance companies’ shares/stocks on the Exchange.”
He told stockbrokers and management of the NSE that Linkage Assurance Plc has repositioned to deliver increased value to all stakeholders, assuring its investors that the company going forward would continue to enhance returns on investment for its shareholders.
Apere further informed the stockbrokers that the future looks bright for the company, given the result of its restructuring which is beginning to impact on the company’s overall performance.
“Linkage Assurance Plc is currently underwriting only non-life insurance business with 14 branches operating across the regions in Nigeria. The Board of Linkage’s current strategic direction is to diversify the company’s business activities in order to achieve a sustainable growth in gross premium income (GPI) thereby increasing market share and adding more value to its shareholders in the nearest possible future.”
He also stated that the strategic business plans of the company may include underwriting of life insurance business in order to become a composite insurance company leading to enhancement of its competitive advantage.
“The above would require new capital injection in order to achieve this strategic decision. Thus, we are likely to engage the services of the stock brokers to raise the required capital.”
Linkage Assurance Plc recently unveiled seven new products as part of its strategy to deepen penetration and gain larger market share.
“Linkage has recently repositioned itself to demonstrate innovation and creativity by designing and launching budget-friendly insurance products in order to deepen the insurance penetration required within the Nigerian insurance industry, Apere said.
“We are poised to become more competitive and that is why we have developed these products to meet customers need.”
The new products include Linkage Estate Insurance Plan; Linkage Events Insurance Xclusive; Linkage SME Comprehensive Plan; Linkage Shop Insurance Cover; Linkage Citadel Shield Plan; Linkage Purple Motor Plan and Linkage Third Party Plus.