FBNInsurance Limited has displayed resilience in its business strategy despite the negative impact of the coronavirus pandemic on the Nigerian economy. The company recently paid the sum of N4.4 billion in claims to its customers in the first half of the year 2020. This represents a 26.7% increase year-on-year when compared to N3.4 billion paid during the same period in 2019.

While briefing news men at the company’s Lagos head office, the Managing Director/Chief Executive Officer of FBNInsurance, Mr. Val Ojumah disclosed that prompt settlement of customers claims is one of the underpinning business successes of the insurer as it strives to continually boost customers’ confidence and trust during the 10 years of the company’s existence.

According to Mr. Ojumah, “As a responsive and reliable insurer, we have -during this turbulent time- kept our promise to our customers by paying claims promptly. Our focus remains to provide financial security and relief to our esteemed customers especially at this trying time.”

On a related note, the company has unswervingly delivered on its promise to its shareholders by paying dividends promptly. At the recently held virtual AGM, the company announced a full year dividend of 97k per share for 2019 which represents a 49% increase over the 65k per share that was paid in 2018. The company has consistently paid dividend to its shareholders since 2013.

As at year end, the total assets base of the company grew from N70.5billion in 2018 to N109bilion in 2019. This represents a 55% growth year-on-year of which over 90% are in liquid assets.

In a bid to continue to deliver seamless service to its customers, the company has invested and upgraded its digital platforms.

FBNInsurance Limited, was incorporated in 2010 to transact life insurance business in Nigeria and currently operates in over 60 sales outlets and two branches in addition to its head office located in Lagos.

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April 28th, 2020

Nigeria’s insurance market boasts huge potential, but it is difficult to unlock because of the lack of trust between customers and insurance providers. FBNInsurance believes technology is about to change this.

With a young population and a rapidly growing middle class, Africa presents huge opportunities to insurers. But so far, this potential has been relatively untapped. In 2016, the whole continent of Africa represented only 1.5 percent of the global insurance market.

The insurance penetration rate is particularly low in Nigeria. There are a number of reasons for this, but perhaps one of the most significant is a lack of trust in insurance providers. Many people in Nigeria still struggle to believe that their claims will be paid quickly, fairly and accurately.

FBNInsurance believes the way to warm Nigerians to the concept of insurance is to build trust and enhance transparency through digital innovation. World Finance spoke with Val Ojumah, Managing Director and CEO of FBNInsurance, about how the company plans to make this a top priority over the coming years.

This year marks FBNInsurance’s 10th anniversary. How will the company celebrate? How has the life insurance space changed in this time?
In the last decade, the Nigerian insurance landscape has seen a significant shift away from the oversaturated world of corporate insurance and towards the retail space, where there are enormous opportunities for insurance providers.

The distribution strategy has also changed from a completely broker-dependent market to a multichannel system, where insurance products are distributed through various merchant representatives. Finally, we are finding that more products released to the market truly resonate with Nigerians. We are also seeing an increase in consumer awareness of insurance and its benefits.

To commemorate 10 years in the insurance industry, this year we are planning a host of celebratory activities with our numerous stakeholders who have contributed to our success story over the decade.

In 2019, FBNInsurance became the most profitable life insurance company in Nigeria. How did it achieve this?
The company achieved this by designing and marketing products that add value to the lives of Nigerians and by managing our costs very efficiently. At the same time, we maintained robust investment in our insurance funds. We were aware of the huge opportunities in the Nigerian insurance landscape and chose areas that were both high volume and low cost.

What innovations has FBNInsurance introduced recently and how have they improved the company’s services?
Last year, we rolled out our internal financial advisor app to two thirds of our 3,000-strong agency workforce. We positioned this platform to be more than just another sales tool – rather, we wanted it to act as a professional aide to our financial advisors. This ensures that when they are out in the field, they can give the best advice to customers and recommend products that actually fit their individual needs.

We have built artificial intelligence into our financial advisor app so that it has the capacity to recommend cross-selling opportunities based on data we already have on the customer. The app also provides a sales tracker feature for the advisor and their manager, as well as an appointment tracker and other messaging features. Meanwhile, customers can benefit from instant payment notifications and multiple processing options.

The app has great potential to transform our processes for the better. It reduces bureaucratic inefficiency by eliminating paperwork that can easily get lost in transit. Now, the underwriter can instantly receive a proposal, meaning there is a faster turnaround for policy conversion. The app will also allow us to operate with greater transparency.

Are there any digital technologies that will continue to disrupt and evolve the insurance market in the coming years?
The biggest challenge we have to overcome in the industry is the lack of transparency between insurance providers and customers. It’s crucial that we enhance transparency across all aspects of our business model, from product features and terms and conditions to payment arrangements and policy statuses.

Digital technology is helping us achieve this. Through our online platforms, we can show customers that we will fulfil our promises to them by insuring their most valued assets and safeguarding their future. In this way, customers don’t have to simply take our word for it – they can verify our performance for themselves. This can be done anywhere, at any time and by any digital means, from quick codes and WhatsApp to other web and mobile apps. Even calling one of our customer service centres has become a completely new experience: thanks to technological advances, we know exactly who the caller is before they say a word.

Through data collection and artificial intelligence, these platforms allow us to better understand our customers and their preferences. This helps us personalise our interactions with clients and ensure that our products are relevant to them. In this way, we fulfil our ambition to secure the future of Nigerians and their families. At FBNInsurance, we truly understand that the future is digital, so we have made it our mission to embrace the latest technological innovations to drive success.

To what extent are environmental risks a consideration for your employees?
Environmental risks and the impact they could have on our employees are a major concern to our organisation. Because of this, we’ve included action plans for dealing with environmental exposure in our enterprise risk management framework.

What is the current state of Nigeria’s insurance sector? How do you expect it to achieve further growth?
In Nigeria, insurance penetration has remained at less than 0.5 percent for over two decades. This positions the Nigerian industry among the least-penetrated insurance sectors in Africa (see Fig 1). While this is an indication of the current weak performance of the country’s insurance industry, it also highlights Nigeria’s potential, particularly for companies that are willing to exploit opportunities in the retail segment.

Awareness of the value of insurance is still relatively low in Nigeria. This inevitably limits the demand for products and services offered by insurance companies. Furthermore, Nigeria’s National Insurance Commission has identified that some cultural and religious beliefs act as a hindrance to the uptake of insurance. In fact, some consider them to be critical factors in the underdevelopment of the insurance sector.

Consequently, an aggressive consumer education campaign is a strategic priority for the insurance sector. From a regulatory perspective, new recapitalisation plans are expected to result in the emergence of stronger insurance companies that would be capable of underwriting bigger risks.

Can you talk us through FBNInsurance’s strategic outlook for 2020-23?
In the past 10 years, FBNInsurance has emerged as a leading life insurance company in Nigeria, becoming one of the top three life insurers based on market share. Our strategy is based on the fundamental premise that insurance penetration in Nigeria, which still stands at less than one percent, must be improved.

Because of the low penetration rate, the opportunities for first-time buyers of life insurance are huge, and the retail market is open to all players that possess the capabilities and stamina for it. Therefore, between 2020 and 2023, we will strengthen our capabilities in this regard, with a view to reinforce our foothold in the retail segment.

Specifically, our focus will be on the following strategic initiatives: sustaining agency expansion and enhancing productivity; establishing bancassurance partnerships with key banks; and leveraging digital technology to enhance our operational efficiency and service delivery.

Could you explain some of the key differences between your corporate and retail products?
Given that FBNInsurance is a retail-focused insurer, meaning most of its offering is developed for the retail market. These products are designed to address the particular needs of various types of retail customers while taking into consideration the specific customer’s income level. From time to time, we conduct research on the evolving needs of Nigerians, with a view to develop groundbreaking products based on what they tell us.

The primary corporate product of FBNInsurance is group life insurance. This is a mandatory life insurance product that companies with five or more employees are required to purchase on behalf of their workforce.

How important is corporate social responsibility at FBNInsurance?
Our corporate responsibility and sustainability strategies reflect our vision of becoming Nigeria’s first choice in wealth creation and financial security. This is an undertaking that can only be achieved by nurturing strong long-term relationships. This is a core value of the company and something that influences the way we go about our work. It means not just engaging with our stakeholders and striving to meet our customers’ needs, but also cherishing our workforce and the communities in which we operate.

The business of insurance revolves around trust. As a leading insurance company, it is imperative that we inspire trust and confidence in everything we do. It is with this in mind that we move into a bright new decade in Nigeria’s insurance industry.

Source: https://www.worldfinance.com/wealth-management/fbninsurance-digital-innovation-can-help-build-trust-in-the-nigerian-insurance-industry

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April 11th, 2020

At FBNInsurance, prompt settlement of customer’s claims is key to the success of their business; this has also continually boost customers’ confidence and trust in the company.

The 2018 Most Profitable Life Insurance Company in Nigeria, FBNInsurance Limited, paid the sum of N9.92bn claims in 2019 as against N4.31bn in 2018.

According to the Managing Director/Chief Executive Officer of FBNInsurance, Mr. Val Ojumah, “As a responsive and reliable insurer that keeps its promises, we promptly paid claims to our clients to the tune of N9.92bn which is a 130% increase from N4.31bn paid in 2018. Our strategy remains providing financial security for our esteemed customers and as always, we will not fail to exceed our customers’ and stakeholders’ expectations.”

Commenting on the company’s commitment to customers’ satisfaction at the 5th Customer Forum organised by the insurer in Uyo, a customer who pleaded anonymity said, “FBNInsurance is one insurer I am proud to be associated with because of their commitment in ensuring customer’s satisfaction and happiness. I can boldly say I have no regrets buying insurance policies from this reputable insurance company, FBNInsurance. With them, I go to sleep without worries.”

Recall that FBNInsurance recently won the 2019 Best Life Insurance Company in Nigeria Award at the World Finance Award held in London.

FBNInsurance Limited is an FBNHoldings Company associated with the Sanlam Group of South Africa.

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March 23rd, 2020

The 2018 Most Profitable Life Insurance Company in Nigeria, FBNInsurance Limited, has presented its 2019 audited Annual Report to stakeholders at the company’s Annual General Meeting (AGM) held in Lagos recently.

Speaking at the AGM, the Managing Director/Chief Executive Officer, FBNInsurance Limited, Val Ojumah, stated that the company closed the year with positive results and also made prompt claims payment to customers.

Reviewing the year, Val Ojumah said “We grew Gross Premium Written (GPW) by 45% to N37.63bn in 2019 from N25.98bn in 2018; while Profit Before Tax (PBT) appreciated by 28% from N6.13bn in 2018 to N7.82bn in 2019.” The performance, he said, was driven by the company’s sustained growth and continuous penetration into the retail segment of the industry. “Over the same period, as a responsive and reliable insurer that keeps to its words, we promptly paid claims to our clients to the tune of N9.92bn which is a 130% massive increase from N4.31bn paid in 2018. Our strategy remains providing financial security for our esteemed customers and as always, we will not fail to exceed our customers’ and stakeholders expectations.” He added.

Commenting on the company’s financial returns, the Chairperson of the Board of Directors, FBNInsurance Limited, Kehinde Adenrele, attributed the sporadic growth and sterling performance of the company in 2019 to its technical competencies, commitment to customers’ satisfaction and resilience in achieving remarkable milestones.

Recall that FBNInsurance recently won the Best Life Insurance Company in Nigeria Award at the World Finance Award held in London.

FBNInsurance Limited is an FBNHoldings Company associated with the Sanlam Group of South Africa.

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March 9th, 2020

On January 15th, 2020, the World Finance Magazine announced the winners of its 2019 World Finance Global Insurance Award. The spotlighted insurance firms according to the magazine are transforming the global insurance sector, with their use of technology and their desire to have a relationship with their customers; one that would be long-lasting.

FBNInsurance, once again claimed the World Finance Global Insurance Award as the Best Life Insurance Company in Nigeria. This 2019 win would make the fourth time that the company would be claiming this award as they were given the same award in 2014, 2016 and 2017.

The Managing Director/CEO of FBNInsurance, Mr. Val Ojumah expressed his satisfaction at the win, attributing the accolade to the company’s continuous commitment to customer satisfaction, and investment in customer-centric technology, aimed at meeting their customers’ needs. “We are happy to have won this award yet again. We will not rest on our oars even as we set our sights to recording more successes.”

Since its inception in 2007, the World Finance Global Insurance Award has celebrated innovative, resilient, and forward-thinking insurers who have learned to adapt their practices to suit the rapidly changing, more digitally driven market. Mr. Val Ojumah, in a bid to keep his company at the top, shared the plans of the company for 2020. “In 2020, we would be celebrating our 10 years of operations. This is no mean feat as we have continually responded to customer needs with a view to providing customer tailored services in meeting the ever changing need of the consumer.”

In a statement, obtained from their website, World Finance Magazine stated, “The successful adoption of new technology, is undoubtedly key to future success in the insurance sector, and if firms cannot effectively exploit systems such as AI and the IoT, they risk being left behind.” Clearly, FBNInsurance, is one firm, that does not want to be left behind, and if their fourth win is anything to go by, they will not be.

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March 5th, 2020
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