The SUNU Group, the parent company of the SUNU Assurances Nigeria Plc, has vowed to meet any recapitalisation thresholds that would be set by the authorities.
This was disclosed by the Deputy Chief Executive Officer of SUNU Group, Karim-Franck Dione, in Lagos at a recent business dinner for insurance brokers and in honour of SUNU Group executives who visited the country.
The Nigerian Insurance Industry Reform Bill, which is currently awaiting presidential assent, increased the minimum capital for life insurance businesses from N2bn to N10bn and non-life insurance firms from N3bn to N15bn and provides for reinsurance companies to have N35bn, up from the previous N10bn.
The bill also strengthened consumer protection, thus safeguarding the interests of policyholders and promoting transparency and fairness in insurance practices and an enhanced regulatory framework, among other things.
Speaking with The PUNCH about the interest of the SUNU Group in Nigeria, Dione said, “We believe in Nigeria, and we are in Nigeria to stay. So, SUNU is a group with financial resources. If we have to face recapitalisation, SUNU will face recapitalisation. Whatever the level of capitalisation, we will meet it. It’s a commitment that the major shareholders took in the presence of the Board, the whole management, and the whole team.”
Dione asserted that while doing business in Nigeria may be daunting, the country holds great potential: “Doing business in Nigeria is not easy, but for an insurer like me, we’re looking for a real market, real power, numbers, and economic strength. And that’s why I said, Nigeria makes sense to come as an African, to come and to invest in the country. I believe in the future of Africa. There is no contest; Nigeria is the biggest market for banks, insurance, and surely lots of other things in sub-Saharan Africa, except South Africa, of course. The potential is huge, the people are competent, and the resources are just crazy. So, of course, Nigeria is the place to be for an African if you want to do business.
“We are really excited about being on the ground. If you find the right people and you work with good intelligence, you can only make progress, despite all the little challenges that we can face daily in this country.”
Sharing his thoughts on some of the daily challenges of doing business in Nigeria, Dione highlighted poor power supply and infrastructure: “I will start with power. Which I think is an issue for a lot of industries and other businesses here in Nigeria. I will talk about infrastructures and the roads. If you want to export, if you want to import, if you want to produce and move goods from one place to another, you need to have good infrastructure to fast-track it.
“Of course, it’s not always easy for a foreigner like us to understand how we should do business here. So, if you are not well-accompanied, you may find things difficult. This is a challenge. For us, we have identified the right people on the ground to join and carry the SUNU vision. After that, of course, is the regulation, which is very strict from my point of view, compared to where I’m coming from. The competition is just crazy in this market. You have 56 players in a country for general business. It’s just amazing. It’s even more than France. That’s your strength.”
On ways to drive insurance penetration, Dione said enforcement is key: “Enforcement is key, and insurance should be made compulsory. More products should be in the market as well. Every single building here must be covered against fire. Public buildings must be covered in some way. And this must be compulsory and enforced. If not, we will not make progress. Because the industry will be based on the goodwill of people who understand the benefits of insurance.”
Concerning insurance penetration, the Managing Director/Chief Executive Officer of SUNU Assurances Nigeria PLC, Samuel Ogbodu, noted that a lack of awareness of the value of insurance was a major driver of the low penetration figures.
He said, “You know the issue is awareness. Most people are not aware of the benefits of insurance, and SUNU is out there to create awareness. It is one of the reasons we host this type of thing; we are circulating proposals to everybody who came to show them that we will provide benefits. If you have motor accidents, we will compensate you. If you are injured under the general health care policy, we will compensate you. So, most people don’t know the benefits of insurance. We are one of the insurance companies that pay claims regularly. We pay our claims.
“I remember when they (the Group) came; when we met, the first thing they said was that the SUNU policy is payment of claims. They don’t want policyholders to suffer. If they have paid their premium, you must compensate them. If the claim is genuine, you must pay immediately. And the human resources must be well taken care of. So all those things are areas we are building on, and you can see the results.”
Ogbodu, however, lauded insurance brokers for finding the company worthy of doing business with, noting that they are open to doing more business with them and ensuring that Nigerians are served well in their insurance needs.
