NAICOM lauds Coronation Insurance’s Bank-Assurance novel initiative for SMEs

The National Insurance Commission, (NAICOM), has commended the Bank – Assurance model, initiated by Access Bank Plc and Coronation Insurance Plc, for Small and Medium Enterprises (SME’s) sector in Nigeria.

Commissioner for Insurance (NAICOM) Mr. Sunday Thomas, said “The Bank Assurance scheme aligns with the campaign of the Commission, in terms of financial education and inclusiveness, and it will give the insuring public an opportunity to be able to get enlightened as to what insurance products they need to have at any point in time to protect their assets.”

Thomas in a keynote address during the company’s webinar themed ‘Managing Business Risks at a Time of Uncertainty’ urged the insuring public, especially small business owners, to take up insurance products in the management of their businesses.

“It is good to have a good risk management framework as well as be able to manage our insurances and assets. Many are left with the option of cutting cost, however not all cost-cutting will measure success and some might even end up hurting our businesses”

“As business owners and as businesses spring up, we must ensure that we put the right processes in place in trying to manage our assets and ensure that we have more strategic thinking.

“Risk is part of our business endeavours and the best thing is to evaluate and see what part of the risk you can transfer. The insurance industry has proven its relevance in the affairs of the economy”, the Commissioner said.

He applauded Coronation Insurance Plc collaboration with Access Bank Plc, adding that their partnership had come to align with the commission’s campaign of financial education and inclusiveness.

The Group Managing Director of Continental Reinsurance, Dr. Femi Oyetunji, earlier in his presentation stated that risk is anything that brings uncertainty into the achievement of objective.

Oyetunji, represented by the Technical Advisor to the Commissioner, Mr. Taiwo Adeoyin said, “At this time we are in now, what comes to the mind of everyone is how do I reduce cost, how do I reduce the amount of the expenses I incurred as a business, because there are high inflation and recession.

“However, the rationality paradox theory tells us that sometimes, what we gain in terms of reducing costs could even be more in terms of what we lose.

“ You could say that , Oh, this is not the time to take up insurance, this is not the time to insure some assets, but I tell you that at the end of the day, you might end up eating down into your portfolio and into your bottom line, to be able to find your feet in sustainability.

“At this point in time, it is good to reduce costs but in terms of insurance, we should ensure that all our assets are adequately insured. It’s also important to have a good management framework and be able to manage our insurance assets.”

Deputy Managing Director, Access Bank Plc, Mr. Roosevelt Ogbona, stated that the year 2020 has proven to be very uncertain and unfriendly year to everyone irrespective of the industry or economic level within the market, stressing that the bank decided to partner with Coronation Insurance, to evolve the Bank Assurance scheme for the purpose of  “fulfillment of our promise to our customers, that we want to be more than a bank to you.

We want our customers to experience the best of underwriting and claims experience.

“I believe that this partnership makes that possible. Coronation is a natural partner for us. First, because of our history we have just shared, and more importantly, it meets all the criteria that we wanted in an insurance partner.

“First, the speed of response and the level of customers that Coronation Insurance brought to the table .Second, and more critically, its financial strength and capitalization of the company.

“We believe that by coming together, We would define and set new standard for quality service delivery within the insurance industry.

“More importantly, we will alleviate the level of insurance services to the Micro, Small and Medium Enterprises, MSMEs., matching those that we saw within the banking sector, and to propel the industry to what it is to be – a bench mark for service within the Nigerian space,” Ogbona said.

Another speaker, Managing Partner, Crowns & Lyord, a chartered Accoutant firm, Mr. Omotayo Gbede, also urged the SMEs operators, to use the Bank Assurance to boost their business success.

Gbede noted in a discourse, tagged “How Inflation could impact on your business ‘, stated that “2020 is a year that the like may not come in a long time. It has brought us to the reality that we must always be on our feet. We didn’t plan for inflation and increase in foreign exchange and interest rates.

“We didn’t plan for a lot of things and yet we are in it, and who are the most impacted? They are the SMEs, because of their lower financial capacity, and their reliance on keyman who may be the owner of the business.”

He stressed that we are in a new normal and without effective risks management, it will be difficult for any company.

The Managing Director of Coronation Insurance Plc, Mrs. Yinka Adekoya, said, “We hope the webinar has been impactful, and will help you in planning for 2021, and the uncertainty we all face.

“We are extremely excited at this transformational Bank Assurance partnership with the Access Bank, and we hope it will establish us at the point of reference in the insurance industry in Nigeria, and Africa”.