CIIN tasks underwriter on sound risk assessment systems

The Chartered Insurance Institute of Nigeria (CIIN) has urged the management of Staco Insurance Plc to ensure they have and maintain a sound risk assessment system to protect their shareholders’ funds.

The institute also urged them to take a position on the sound rating of businesses, as well as ensure there is no gap in their reinsurance programmes.

President of CIIN, Edwin Igbiti, gave the charge while speaking on ‘Insurance Contribution’ at the firm’s management retreat in Lagos.

He submitted that the management should ensure they meet regulatory requirements and ensure compliance in all their dealings.

This, he said, should include excellent customer relations; reflecting in prompt claims payment, delivery of policy documents, response to proposals and quotation, as well as prompt servicing of policyholders at all times.

The CIIN boss advised them to be up and doing so as not to be delisted from the Nigerian Stock Exchange, but rather attract and maintain big-ticket transactions outside government businesses.

According to him, ‘Insurance Contribution’ can be said to mean the part played by insurance in bringing about a result or helping the growth and/or advancement of the country.

“This has many facets and each company has its quota that makes up the contribution to the whole insurance space, which as of the Year 2021 financials is at 0.88 per cent of the country’s GDP.

“Of this less than one per cent, Staco must ensure that it continues to improve on its outputs to be a positive force to be reckoned with in the insurance industry,” he said.

He said at the Nigerian Stock Exchange (NSE) in the year 2007, the STACO share price was traded at N6.82 and made investors enjoy both capital gains and dividends, which made the company to pride itself as a market leader in that year.

During the period then, he said STACO boasted of a crack management team, dedicated/loyal staff, and a good network of branches across Nigeria, with an acknowledged welfare package for employees in the industry.

“The interruption, without saying much, which I believe as insiders you know more than me, brought a setback to the early glory days. But you did not allow issues to linger for too long. I think STACO listened to the advice of Richard Nixon in his famous quote “Failure isn’t falling. Failure is not getting up after you have fallen” I am glad STACO is up and running, and the fight for a refreshed brand and enhanced market share has intensified,” he said.