The Nigerian Stock Exchange (NSE) ended 2019 bearish as All-Share index posted a loss of 14.09%. This marks the second year straight of losses after it ended 2018 with a loss of 17.81%.
However, the top ten stockbroking firms on the NSE traded N1.35 trillion worth of shares in full-year 2019 (January and December).
The report, which was obtained from the Stock Exchange by Nairametrics, disclosed that top 10 stockbroking firms accounted for 53.85% (85.5 billion shares) of the total volume of stocks traded on the NSE and N1.35 trillion (70.14%) of the total value of traded shares in 2019.
The nation’s insurance industry has made reasonable headway in implementing the referral model of the bancassurance model approved in 2017 between the National Insurance Commission (NAICOM) and the Central Bank of Nigeria (CBN).
NAICOM disclosed Monday that it has approved 18 applications out of 20 applications sent in by operators to enable them drive the retail business through bancassurance platform.
Adewale Motoja, deputy director/head of Research, Statistics and Strategy in NAICOM made the disclosure in Kano, Kano State during the Insurance Journalist Seminar organised by the Commission.
Speaking on the topic “Strategic focus of the Commission in the year 2020: From Compliance to Development: Recapitalisation; Annuity; Enforcement of Compulsory Insurance and Financial Inclusion”, he said a lot will happen in that space in the coming year.
According to him, the remaining two applications are going through approval process and will be concluded soon.
Following the release of the operational guideline on bancassurance by the National Insurance Commission, insurance companies have commenced the process of getting regulatory approval to sell their products through banks.
Pius Agboola, director, Authorisation and Policy, NAICOM had said during the maiden bancassurance certification workshop for insurance employees at the College of Insurance and Financial Management in Ogun State that “NAICOM shall approve the referral bancassurance agreement between the bank and insurance company, subject to obtaining references from the Central Bank of Nigeria,” he said.
According to Agboola, bancassurance is a model by which insurance products are distributed through experts who are generally employees or representatives of an insurance company.
The bank, which was partnering the insurance company, he explained, would through its employees, identify prospects who would then be contacted by an insurance expert.
Doug Sumner, owner and principal of Third Sector Capital Management who lead discussion on a master class on the theme “Strategy and Global Best Practice for Banks and Insurers” A FEW years back said “for bancassurance to succeed, the bank branch staff must understand the benefits and basic operations of insurance, and so will require training by insurance companies to give soft landing in selling the products, he said.
The CBN in letter with Reference No: BSD/DIR/GEN/ LAB/08/014 titled ‘Guidelines On Bancassurance Products- Referral Model’ dated March 16 and addressed to all banks, stated that the guidelines were issued based on recent developments and the need to ensure synergy in the financial system in exercise of its power.
“The guidelines set out the regulatory framework for the offering of bancassurance products through the non-integrated referral model. The choice of this model is premised on the fact that it does not preclude banks from focusing on their core banking businesses and does not undermine the essence of the CBN’s New Banking Model.” The banking watchdog explained that the Bancassurance refers to an arrangement in which insurance companies leverage on the customer base of banks to sell insurance products to banks’ customers.
It further stated that the referral model is the arrangement in which the bank refers its customers to its partner insurance companies. In return, it receives a commission on each lead closed by the insurance company. Under the guidelines, banks are not to engage in any other model of bancassurance other than that spelt out by the CBN and for which the regulator has given its approval. In addition, banks are not expected to offer banking products that incorporate insurance features.
SOURCE: NIPC INTELLIGENCE