Economic Confidential, November 2008

BUSINESS

Govt to Partner with NICON Insurance

The minister of state for Transportation (Aviation), Mr. Felix Hayat said that the federal government is prepared to partner with NICON Insurance following its recapitalisation and track records in the insurance sector, insisting that, “we need such gaps to be filled by competent and strong insurance companies. On our own part, we will definitely give our support that is required. We are operating a free economy where we accept competition. Therefore we expect that for us to be in good side in recommending your organisation; we need to see real and solid service provision that will convince anybody that the decision was taken purely out of the need to move the aviation industry forward not just an effort to assist an organisation.”

The minster who made the remarks when the management team of NICON Insurance Plc led by the Group Managing Director, Mrs Catherine Okpareke, paid him a courtesy call called to question the integrity of insurance companies in Nigeria, saying that the industry could only move forward with the provision of quality services by the insurers to get public confidence.

He disclosed that two out of the three airlines involved in air crashes still have not been able to get the insurance companies that gave cover for the passengers to pay claims.

He said: “Insurance policy in this country needs a lot of public confidence. That has been the brand of the insurance industry. Even as we are talking now, we know that two of the three airlines that had problems are yet to pay the compensation of two victims in the crash and we have been negotiating and discussing with the insurance companies that took the covers. We are hoping that they would soon pay.”

Speaking earlier, the Group Managing Director of NICON Insurance, Mrs Catherine Okpareke, a former President of Institute of Chartered Accountants of Nigeria (ICAN), who led the team said they were in the office to present a revitalised NICON to the minister towards collaboration in providing underwriting services and insurance covers for the staff and air passengers as well as for aircrafts.

She said, “Our mission is to invite your ministry to partner with NICON insurance. We are aware that the insurance businesses are controlled from your office and are normally handled by a consortium of underwriters. Our plea is that NICON should lead that consortium. There is also the compulsory group life insurance which has been instituted by the federal government. We are appealing that the entire parastatals under your ministry would come under a unified insurance scheme to be managed 100 per cent by NICON insurance including the compulsory building insurance.

“We wish to also partner with the ministry to be involved in the under writing of aircrafts and airlines’ risks in the country.

“NICON Insurance has over 60 branch offices all over the country, and N50billion in asset. Recently, it re-capitalised and injected N17.3billion into NICON insurance and N7.1 billion into the Nigeria Re. The shareholders fund is to be over N25 billion.