Connect with us

General News

Analyst Decries Nigerians low Appreciation of Life Insurance

Published

on

Kindly share this post

Spending in the Life insurance sector has dropped significantly in the last two year. This according to experts is not unconnected with the general decline in the economy which cannot be detached from the insurance industry. According to an analyst and consultant on insurance and pension, Barrister Sylvester Oyatun, Nigerians hre yet to embrace life insurance and the obvious gains from it as it is done in the developed economies. He stated that the drop in life insurance premium base, though low but warned that it could have had a greater toll on the industry but for the group life insurance under the reformed pension Act which has reduced the anticipated impact. Corroborating the drop along the line of general economic downturn, Business Monitor International (BMI), an international research agency, Nigerians unlike the developed nations ,do not use insurance to provide for their long term income needs, a situation that makes insurance unable to meet the needs of the people over the years. "Most products do not provide protection against inflation, which has traditionally been a problem in Nigeria with the result that lapse rates are extremely high," the report added. Oyatun had noted that the bane of life insurance premium growth, had been partly due to the fact that some life insurance policy holders had to cancel their policy due to their inability to meet premium payment demand. It would be recalled that out of the total insurance industry premium of N200.6 billion generated by member companies of the Nigerian Insurers Association in 2009, life business contributed only N39.2 billion with the chunk of the remaining N161.4 billion coming from non-life business. This, he noted is contrary to the dictates in the developed economies where life insurance contributes a higher premium than the general insurance category. He stated that spending on insurance is on the least of priority list for most Nigerians, especially as its benefits are largely not immediate. With this finding, it is obvious that some life insurance policyholders who could not meet their premium payments decided to withdraw or cancel some of their policies, while others who sought loans but were unable to access same opted to sell off their life policies for cash. The result is a significant drop in many insurers’ premium income. It will also be recalled that, Mr.Akin Laguda, chairman, Continental Reinsurance plc, while recently explained that there was a drop in the company’s life insurance premium. The premium, he noted dropped by 27 percent from N1.2 billion in 2008 to N901 million in 2009, stating that the company was notified of “a substantial policy cancellations relating to previous years on individual and group life assurances." While calling for caution in the area of large volume transaction due to this ugly situation, the analyst said "most products do not provide protection against inflation, which has traditionally been a problem in Nigeria with the result that lapse rates are extremely high," they add.  Oyatun therefore call on insurance companies to brace the storm by adopting innovative new products formulation that are people friendly and could stand the test of time. Industry analysts therefore suggest that insurers must not underestimate the importance of product feature and strategy, even as they pursue their distribution network. But especially significant, they add, is the need to innovate as conditions change and service goes unmet.


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

General News

MultiChoice Secures 12 Warner Bros. Discovery Channels in New Multi-Year Deal

Published

on

Kindly share this post

MultiChoice, a CANAL+ company, has retained the distribution rights to 12 Warner Bros. Discovery thematic channels following the signing of a new multi-year, multi-territory agreement between CANAL+ Group and Warner Bros. Discovery, marking a significant expansion of their long-standing partnership.

MultiChoice Secures 12 Warner Bros. Discovery Channels in New Multi-Year Deal

MultiChoice

The new deal, which spans several regions across Africa and Europe, covers the distribution of HBO Max as well as the renewal of selected Warner Bros. Discovery thematic channels. It represents a major milestone in the companies’ international collaboration and strengthens content offerings across MultiChoice Group territories.

MultiChoice disclosed that this agreement builds on earlier partnerships concluded in Europe. “It builds on the landmark agreements concluded in France in 2024,including the renewal of the exclusive pay-TV window for Warner Bros. Pictures films just six months after their theatrical release in France and the integration of HBO Max within select CANAL+ group offers – as well as in Poland in 2025, with the renewal of the distribution agreement for 22 thematic channels (including TVN 24 and Eurosport) and 4 free-to-air channels (including TVN).”

Under the renewed arrangement, MultiChoice Group will continue to distribute 12 Warner Bros. Discovery thematic channels across its territories, with some channels offered on an exclusive basis. CNN International and Cartoon Network will remain exclusive to South Africa while being distributed non-exclusively in other markets. Cartoon Network Porto will be exclusive in Angola and Mozambique and non-exclusive elsewhere. Other channels such as Discovery Channel, TLC, HGTV, Food Network, TNT Africa, Travel, ID and Cartoonito will be offered on a non-exclusive basis.

According to the partners, the deal reinforces CANAL+ Group’s channel portfolio on the continent. “This agreement enables CANAL+ Group to strengthen its entertainment, kids, news, and documentary channel offerings in African markets.”

The agreement is also expected to improve access for CANAL+ Group subscribers to Warner Bros. Discovery’s premium content through HBO Max and selected channels, including globally recognised series and films, further extending the studio’s international reach while consolidating MultiChoice’s content offering in key markets.

 


Kindly share this post
Continue Reading

General News

Nigeria Police suspends tinted glass permit enforcement over court injunction

Published

on

Kindly share this post

Nigeria Police Force has suspended nationwide enforcement of its tinted glass permit policy, hours before its scheduled rollout, in compliance with a Delta State High Court order.

Nigeria Police suspends tinted glass permit enforcement over court injunction

Tinted glass permit

The policy, set for January 2, 2026, aimed to curb vehicle-related crimes but faced legal challenge from a private citizen against the Inspector-General of Police, the force, and Delta Police Commissioner.

An ex parte injunction issued in December 2025 restrained enforcement pending suit determination, prompting the hold announced by spokesperson Benjamin Hundeyin on January 1.

Police entered appearance, filed preliminary objections, and sought injunction vacation; hearing adjourned to January 20, 2026.

The Nigerian Bar Association condemned initial police plans as “executive recklessness,” accusing disregard for rule of law, while police insisted no permanent bar existed on statutory duties.

IGP Kayode Egbetokun reiterated adherence to law while prioritising public safety via intelligence-led strategies during proceedings.


Kindly share this post
Continue Reading

General News

NDIC Reinforces Full Oversight Compliance to Safeguard Depositors

Published

on

Kindly share this post

Mr. Thompson Sunday, the Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), has reaffirmed the Corporation’s strict compliance with fiscal and financial regulations, including the provisions of the Fiscal Responsibility Act (FRA) 2007, noting that the NDIC has consistently remitted the required percentage of its earnings to the Federal Government.

Mr. Sunday made this known during a courtesy visit to the Managing Director/Chief Executive of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, as part of NDIC’s ongoing engagement with key stakeholders following his formal assumption of office in July 2025.

According to him, NDIC takes financial accountability and transparency seriously, stressing that the Corporation complies fully with statutory remittance obligations, including the payment of 20 per cent of gross earnings or 80 per cent of net surplus to the Federal Government, as applicable. He added that NDIC also submits its financial statements ahead of statutory deadlines.

The NDIC MD/CE explained that this culture of compliance aligns with the Corporation’s role as a key institution within Nigeria’s financial safety-net, charged with protecting depositors and promoting confidence in the banking system. He emphasized that adherence to fiscal discipline remains central to NDIC’s credibility and effectiveness.

Mr. Sunday further disclosed that NDIC also complies with the Federal Government’s 50 per cent cost-to-income ratio policy, although he noted that the policy poses operational constraints. He explained that the deductions affect NDIC’s ability to build a strong Deposit Insurance Fund, which is needed to respond effectively to bank failures.

He stressed that international best practices under the Core Principles for Effective Deposit Insurance issued by the International Association of Deposit Insurers (IADI) require deposit insurers to maintain adequate funds to reimburse depositors when banks fail without recourse to government, adding that the NDIC is seeking an exemption to strengthen its capacity in this regard.

Mr. Sunday described MOFI as a critical stakeholder, noting that the Federal Government, through MOFI, holds a 40 per cent equity stake in NDIC. He said sustained collaboration with MOFI is essential to ensuring that NDIC continues to meet its obligations to government while effectively safeguarding depositors’ funds.

In his remarks, Dr. Takang commended the NDIC for its exemplary collaborative spirit and acknowledged the Corporation’s compliance with fiscal regulations. He assured that MOFI would continue to engage the Federal Ministry of Finance on NDIC’s behalf, noting that a strong NDIC is vital to sustaining confidence in Nigeria’s financial system.

Both institutions reaffirmed their commitment to continued cooperation, transparency and accountability, with Mr. Sunday reiterating that NDIC remains focused on balancing regulatory compliance with its overriding mandate of depositor protection and financial system stability.


Kindly share this post
Continue Reading

Trending