How Aiicco Insurance builds brands’ trust through prompt payment of claims and benefits
By Dele Ojo
“Market-shaping technology and stakeholder value creation as a must is now a norm. And the velocity of these changes demands players across the industry to anticipate and respond just as fast. However, adapting to it requires new ideas and doing things new.
“More importantly, is harnessing the requirements for growth opportunities that lie in both insight and know-how. We are uniquely positioned to take advantage of market insights and leverage our industry know-how of over fifty years in the Nigerian market to the benefit of our stakeholders. Our broad and growing customer base matched with well-designed products is served by a youthful team of AIICO people.
“Our great products for individuals and corporates not only meet customer expectation but are helping them live life with confidence even in uncertainty.”
The above perspective was shared by Aiicco Insurance in consonance with its passion for timely response to payment of claims and benefits to its clients over the years, as this is one of the pillars of measuring the viability of any underwriter.
According to the company, AIICO’s unwavering commitment to fulfilling its obligations to its customers has resulted in a cumulative claims and benefits pay out of over N90 billion in the past five years, i.e. between 2014-2019 period.
Babatunde Fajemirokun, Managing Director/CEO said, “As a company, we exist, not just to create wealth but to provide protection for our clients in return for premium payments. In the past 5 years, we executed our transformation plan and within the period, the improvement in our performance has also reflected in the growth of our claims and benefit payments. We are relentless in our resolve to continue to hold up our end of the bargain, through promptness in claims settlement.”
In 2014, AIICO paid out N10.5 billion; and it has since continued to rise from N13 billion in 2015 to N14.6 billion in 2016, N23.3 billion in 2017 and N29.1 billion in 2018; which represent an average annual growth of 27.7 percent. This year-on-year increase is an indication that the company has kept its focus on superior service delivery for differentiation.
Claims management is the heartbeat of any insurance company. An effective claims management saves the insurer time and money, so you can improve customer satisfaction and retention. An efficient claims handling process enables an insurer to minimize the use of resources in achieving set objectives. The company is positioned for industry leadership by leveraging on the strength of its sales force and excellent service delivery.
And to provide even better services to its clients, Mr. Fajemirokun explained, “At the core of this strategic move is our customer. We are reengineering our operations to drive a whole new experience, leveraging an in-depth understanding of their needs through various life stages. We will anticipate their needs and exceed their expectations. As we embed customer experience within the culture of the Company, we will strengthen our ability to listen and engage customers across our spectrum of touchpoints.”
He stated further, “We will adopt digital everywhere in our quest for providing a unique customer experience and differentiation. We will provide a fast, responsive, and frictionless experience for consumers and employees as they switch between channels in their journey to fulfilment. Wherever our customer finds us, be it online, or by walking into any of our branches, they are sure to meet a recognizable and consistent service delivery. Our omni-channel strategy will make this possible and would ensure this level of service sticks. We will infuse technology within our operations to drive automation and end-to-end simplicity.”
While the Company is looking to establish and maintain market dominance and brand recognition, not just in Nigeria but in Sub-Saharan Africa, it has proven to be stable and reliable through the years amid different seasons of volatility, uncertainties and complexities by consistently delivering on its promise to its customers, shareholders and other stakeholders.
Meanwhile, in its audited results for the year ended December 31, 2020, Gross written premium grew by 23.6 percent to ₦62.0 billion when compared with ₦50.1 billion in 2019, benefitting from the continued investment in agency force, an increased focus on partnerships and better relationship with corporates.
Profit before tax of the organisation declined by 22.6 percent to ₦4.6 billion in 2020 from the ₦6.0 billion recorded in 2019. This was largely due to the lower-than-expected profits in the Life business as a result of higher-than-expected reserving requirements/low yields. However, its General Insurance and Wealth Management businesses increased their contribution to profits.
Profit after tax declined by 12.9per cent to ₦5.0 billion in 2020 as against the ₦5.7 billion recorded in 2019. While Profit for the year declined 11.1 percent to ₦5.2 billion in 2020 from₦5.9 billion in 2019, its total assets increased by 52.4 percent to ₦243.1 billion in financial year 2020, as against ₦159.5 billion in 2019. However, total liabilities grew by 59.6 percent to ₦208.4 billion in 2020, all the way from 2019’s figure of ₦130.6 billion, and total equity increased by 19.9% to ₦34.7 billion in 2020 in comparison with ₦28.9 billion in 2029.
Commenting on the results, Mr. Fajemirokun, the Managing Director and Chief Executive Officer said, “The pandemic caused fundamental assumptions about the global marketplace to be questioned and led to a global economic upheaval. The Nigerian economy slipped into its second recession in five years, with the business environment further impacted by incidents of civil unrest. Despite these unprecedented macroeconomic disruptions, AIICO grew its total assets by 52.5% in the year under review. We delivered sound results having taken decisive early actions to protect our workforce, improve our financial strength, streamline operations and reinforce our distribution strategy”.
He stated further, “Over the past five years, we invested substantially in human capital and technology to significantly elevate our customer experience. This resulted in our gross written premiums growing 23.6 percent yearly despite restrictions caused by the pandemic. Our financial position remains strong, inspiring confidence in our ability to assume the risks our customers wish to transfer. Our investors echo this faith as our rights issue announced in September 2020 was oversubscribed by about 26%. We deploy this capital judiciously, generating risk-adjusted returns for our shareholders, and ensuring that we can continue to keep our promises.”
AIICO Insurance is a leading composite insurer in Nigeria with a record of serving our clients that dates back over 50 years. Founded in 1963, AIICO provides life and health insurance, general insurance, investment management and pension management services to create and protect wealth for individuals, families, and corporate customers.
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