Post-consolidation: Afribank boss urges insurers to learn from banks

Sunday Ojeme

The Group Managing Director, Afribank Nigeria Plc, Mr. Sebastine Adigwe, has advised operators in the insurance industry to learn the post-consolidation ropes from the banking sector. He said the greatest thing that a post consolidated Nigerian insurance industry could benefit from the experience of the banking sector was the way and manner post-consolidation challenges were tackled.
Delivering his lecture at the 11th edition of the Champion Insurance Day/Luncheon in Lagos on Tuesday, he said just like the way it was for the banking sector, the consolidation of the insurance industry was designed to tackle all the institutional problems that made it difficult for the sub-sector to make desirable positive impacts and support the growth and development of the economy.
He said there was no doubt that the Nigerian insurance industry had a lot to learn from the experience of banking consolidation for its own consolidation to achieve the desired goals.
According to him, “It can easily avoid some of the unexpected challenges of the banking experience and with the benefit of hindsight, proactive steps can be taken to ensure that the gains already recorded are sustained and other milestones are achieved as soon as possible.”
He said it must be appreciated that the attainment of post-consolidation goals required the cooperation, trust and faith of all stakeholders, saying that the institutionalisation of sound corporate governance and appropriate regulatory oversight were very important.
Speaking on the post-consolidation challenges, he said major board and management challenges lay in the composition of board and management for the merged institutions as well as the adoption of appropriate organisational structure, adding that one of the first critical issues to be addressed post-consolidation was the strategy for the new company.
“It will be necessary to give appropriate direction through development of vision, mission, and core values as well as corporate strategy. The issue here is in defining a new strategic thrust which requires timely communication to all members of staff to ensure their buy-in as well as mobilise them towards the company’s new direction.”
He said branding was particularly necessary where some of the legacy companies had experienced business problems and that the branding effort, which is aimed at regaining customers’ confidence, was also important.
Earlier in his opening remark, the Chairman of Niger Insurance Plc, Alhaji Bala Zakariya’u, who was represented by the Managing Director, Mr. Clinton Uranta, said the issue of corporate governance and capital growth in the industry should be taken more seriously.
He said the sector was frozen for a long period until the government found it necessary to intervene through a raise in the capital base and integration into the global financial sector.
He said, “We will soon see a new insurance industry that will act as a catalyst to the economy. All we need is the right people. We have to continue to build quality and capacity.”