June 1, 2021

By Evan CHARLES InvestAdvocate

Lagos (INVESTADVOCATE)-Heirs Insurance Limited (HIL) and Heirs Life Assurance Limited (HLA), two insurance companies belonging to  Heirs Holdings Group are seeking to change the nations’ insurance landscape and boost its Gross Domestic Product (GDP), Tony Elumelu, Chairman of the company said on Tuesday at the formal launch of the two new insurance entrants.

“To the general public, we believe that our economy is the biggest economy in Africa, yet insurance to GDP is almost insignificant we need to work with the regulators, the finance minister with all stakeholders to make sure that insurance to GDP in the country becomes respectable like in South Africa and on other economies where insurance companies own even banks, here it is not the case, we need to, we can’t remain like this,” he said.

Elumelu said that Heirs Insurance and Heirs Life have entered the industry to provide simple, accessible and affordable insurance services and products, “Nigerians want an Insurance company with services that can be offered on a platter of excellence and superior service delivery, customer service that is digitally driven and above all they want an insurer at their side, affordable but reliable insurance products is what Heirs Insurance and Heirs Life Assurance will bring to our people,: he added.

He commended Thomas Sunday, Commissioner for Insurance and CEO of National Insurance Commission (NAICOM) for granting Heirs Holdings the dual licence to operate both in the general business and life subsectors of the insurance business and pledged to operate within strict regulatory guidelines and ensure high standard of corporate governance.

“You have contributed in making this possible and I want to say to you as our regulator and our other stakeholders that we have a track record of governance, best traditions of compliance and promise to make sure that when you look back both in service and even when you are retired, you will be very proud of the licence you granted us, we will uplift your commitment to highest regulatory and governance standards you will be proud of us,” the Heirs Holding chairman affirmed.

According to him, Heirs Holdings has a strong tradition and track record not just on governance; but business success. “We come with a strong tradition and track record not just of governance but of business success and business turnaround and most importantly wealth creation for all.  We believe that prosperity should be democratised, we believe that success for us in this business will not just be for the profit we make for shareholders, but will be the impact we made, how we helped to develop the community and create jobs for our people, our own role in helping to eradicate poverty , these are things that defines success for us and are things we are used to,” Elumelu said.

On November 29, 2020, NAICOM officially issued the operating licences for Heirs Holdings new Group insurance companies – Heirs Insurance Limited (HIL) and Heirs Life Assurance Limited (HLA).

In his address, Sunday commended Elumelu for his resilience, doggedness and determination to always add value and enjoined Heirs Insurance and Heirs Life to help build a new insurance sector that is posied to de-risk other sectors of the economy.

“The timing of this launch could not have been more auspicious in view of the fact that the NIACOM have being rolling out various developmental initiatives aimed at deepening insurance penetration in the country, with the level of capitalisation of Heirs Insurance and Heirs Life, I have no doubt that the Nigerian Insurance Market is poised to write big ticket risks, we want to minimise outflow and conserve foreign exchange for national development,” the NIACOM commssioner said.

He advised the new companies to conduct its businesses within the confines of the Commission’s corprate governance guildelines and other directives. “Let me quickly state that the Commission expects the affairs of these companies will be conducted in consonance with extant insurance sector corporate governance guidelines and other directives. The independence of the board and its committees including ensuring adequate disclosure and transparency and strict compliance with regulatory requirements are expected” he added

According to him, while collaborative efforts to reposition and rebrand the industry has become imperative, the Commission is now more determined to ensure professionalism, high ethical standards and to protect the integrity of the Nigerian Insurance Industry .

“It is important to this end that your dashboard with the commission must be unblemished through strict compliance with a regulatory requirements. I congratulate the board, management and staff of both companies and wished them the very best in future. I want to say thank you for coming into our industry making a difference, impacting on the economy of Nigeria and helping us in deepening the insurance sector is what we expect,’ the NIACOM CEO affirmed.

Babajide Olusola Sanwo-Olu, governor of Lagos State in his remarks praised Elumelu for all his accomplishments in the private sector which has boosted the Nigerian economy in no small measure and one area that people never tend to acknowledge well enough

Sanwolu said that what is required coming out of a very tough and rough pandemic year globally is for the private sector and government to reposition, “I think the  least we can do is to reposition ourselves as a government and as a people especially in the private sector. When we have businesses  being set up to add freshness in our economy, the least we can do as a government is to offer encouragement,” we need to encourage the private sector because they are the real engines of growth, ” the governor added.

Sanwo-Olu says no matter how well a government performs, certainly they cannot  offer job  to everyone that needs one. “And the private sectors are the real engines of growth, they are the ones that can create opportunities for our businesses, they are the ones that can indeed grow the GDP. I’m aware that the insurance industry had a bit of a shake at the end of last year because they asked all operators to increase their share capital . I’m aware that both Heirs Insurance and Heirs Life are one of the most liquid and well capitalised insurance companies in the country right now,” he noted.

The governor affirmed that the freshness both companies are bringing into the industry its a new beginning into the sector, “they have said to us its going to be simple, they are going to use technology as a strong enabler, its going to accessible and affordable, these are three strong words that businesses of today requires, you need to be very simple, it has to be something that people can get at the click of a button, it has to be accessible and affordable because everybody is now looking at the bottom-line, cost and affordability which is a clear strategy of entering a market that is already crowded ,” the governor added.

He called on all efforts to be on deck to develop Nigeria’s insurance industry to meet the levels as it is in other advanced economies in the world to ensure a significant contribution to the nation’s GDP.

 “I’m convinced that Heirs Life and Heirs Insurance would certainly change that landscape listening to the array of professional men and women that would be sitting on the board, its clear they would bring their wealth of experience to drive these new companies and to take this sector to greater heights,” the governor noted.

He also acknowledged the efforts of NAICOM, “it is important for us to thank them for holding forth, because at some point in time that sector was shaky. but with Mr. Thomas and the assurances he’s given us and the direction they have set in the last year or so for that sector, I think the dark days are behind them and we have seen a lot of improvements and better acceptability in that sector, we can assure you that as a government, we would continue to be an insurance complaint government  because we fully understand how critical to de-risk all of the variables and be able to stand,’ Sanwo-Olu said