The youngest insurance company in the country, FBN Life Assurance Limited (FBN Life), said it has sold over 100,000 credit life insurance covers in its three years of existence.
The company said it would soon make a statement on its venture into general insurance business, recalled starting operation with only group life products and having introduced 6 individual life products and contracted 20 leading insurance brokers in the last three years.
The Managing Director of the company, Mr. Val Ojumah, stated this at the media launch of some of its ‘Family Shield’ covers in Lagos recently.
He said his organisation was not afraid of any foreign or local operator, adding that “we will welcome professionals who want to practice the business in a professional manner; this will help to deepen the insurance penetration.”
Ojumah observed that life insurance penetration in the country has risen from 0.5 per cent five year ago to 2 per cent at the last count and summarising the business experience of his organisation from inception, he said “the journey so far has been both inundating and refreshing.”
He recalled that the company started operation a few years back with only group life assurance products in line with the provisions of the Pension Reform Act, 2004, adding that currently, it has over 6 credit life assurance products on its stable.
At inception, FBN Life had no business relationship with any insurance broker in the country but in the last three years, the firm has contracted 20 leading insurance brokers who can attest to the firm’s exploits, he said.
Ojumah observed that FBN Life is the only insurance company licensed in the country in the last 20 years, adding that the young company now ranks 4th among life insurance firms operating, going by their 2011 premium income.
According to him, the company has already sold as much as 100,000 credit life products and still counting and doing very well with regard to individual life business which it distributes through its 12 branches and First Bank of Nigeria Plc branches across the country.
Ojumah also confirmed that his organisation has paid claims in excess of N900 million in the past two years and also gone ahead to declared profit to shareholders of the company only after two years of being in business.
Speaking on the family shield products with six variants, the FBN Life boss said they were meant to increase insurance penetration in the country. The variants include Family Income Protection plan; Extended Family Support Plan; Family Shield Plan; FlexiEdu; FlexiCash Flow Plan and FlexiSave Plan.
“The First Family Shield’ comes in multiple variants designed to provide protection to families in need. This policy and its variants have been structured to provide succour for majority of Nigerians who are exposed daily to the uncertainties of life. They come in Classic, Premium, Silver and Gold classes,” he said.
The products were in tandem with the underwriting firm’s commitment to deepening insurance penetration by providing low cost products through multiple distribution channels that would benefit the mass market in Nigeria, he explained.
According to him, the family shield products take care of the negative effects of premature death through illness and accidents also pays benefits for permanent disability.
“The First Family Shield has been designed to offer that financial security that would give the insured peace of mind to go about his daily activities without fear, and at the same time enable his family continue their life should the unexpected happen,” he said.
Licensed to transact life assurance business in the country, FBN Life is jointly owned by FBN Holdings Plc and the Sanlam Group, one of the largest financial institutions in South Africa.
The firm prides itself of drawing from the knowledge and experience of its parent companies and pioneering various initiatives to bring the benefits of insurance closer to Nigerians and ensuring the public are aware of how insurance could help change their lives for the better, particularly at times of financial losses.
FBN Life also prides itself of playing a significant role in the development of the insurance industry in the country through product innovations, efficient service delivery and prompt claims settlement.