National Daily

Insurers to improve quality of human capital

By GBENGA AJAYI

AS the nation prepares for the international summit on insurance slated for April 7 and 8 at the nation's capital Abuja, a major item that will be on the agenda will be the way forward for the industry. The summit is expected to help industry operators confront the challenges of investment, capital acquisition, regulation, modernisation, adoption of global industry practice as well as international expansion. Other market challenges that the conference may address include corporate governance, technology acquisition, advanced training and human capital building.

A major focus of many insurance firms post-consolidation in Nigeria is the determination to take leadership position in the market by improving the quality of their service delivery, claims settlement, underwriting and risk management by improving the quality of the productivity of their personnel.

At a triple launch recently organised by International Energy Insurance in Lagos, former Commissioner of Insurance and Chief Executive of National Insurance Commission (NAICOM) Mr Oladipo Bailey, charged the insurance industry to give adequate attention to human capital development. Speaking on the importance of deluxe personnel in business, he said, “If you have adequate capital and all the resources and you don't have manpower to manage, it is of no value”. He implored insurance operators to make good use of the huge capital at their disposal, while ensuring that human capital which is the greatest asset is given a high preference.

Nigeria's highest institute for training insurance professionals, Chartered Insurance Institute of Nigeria (CIIN) is aware of the deficiency in the quality of practitioners' skills. It has developed new academic programmes that will help insurance practitioners acquire relevant knowledge for the modern times. Already aware of the major problem of the dearth of quality expertise in the industry is Mr Adeyemo Adejumo, President of CIIN, who in a comment he made on the low number highly trained personnel in the industry said the institute is focussing on training of insurance firms' staff. “The need for more quality staff”, he said, “was as a result of expansion of businesses and increase in branches abroad”. Recently CIIN made a policy, which aimed at compelling insurance organisations to include training as part of compulsory continuing development programme. The CIIN boss also announced training opportunities available overseas especially in the United Kingdom, United States of America and South Africa through arrangements with various international bodies CIIN had arrangement with.

At the firms' level, many insurers have embarked on in-house trainings, lectures, symposiums and training by professionals or consultants for the purpose of human capital development .Oasis Insurance Plc, Niger Insurance Plc, Cornerstone Insurance Plc, Regency Alliance Assurance, Great Nigeria Insurance, Mutual Benefits Assurance Plc and many others have established subsidiaries outside Nigeria and even bracing up to participate in oil and gas, and aviation businesses which are not only capital intensive but need well-trained personnel because they are specialised areas of insurance.

Also highlighting the reasons why Oasis Insurance Plc raised its capital base to improve its human resources, Chief Samuel Adegbite, the firm's chairman said the insurance industry is service oriented, hence the need to get capable hands to deliver the best services.

Even though training, especially overseas will take a heavy tool on firms' budgets but Equity Assurance Plc does not budge. Its Managing Director and Chief Executive Officer, Mr Ibidapo Balogun, said that the firm would not spare costs to ensure their workers are empowered, because the effect would yield long-run advantages. He added that the training programme was designed to add impetus to all departments and branches. But for Mr Akin Ogunbiyi, Managing Director, Mutual Benefits Assurance Plc, professionalism is the key to taking advantage of the various opportunities valuable in the sector. This he said the firm would lay more emphasis on.

Since the human capital is the most important factor in an organisation, it has to be developed to contribute more wealth and add value to the quality products or service rendered.