Breaking News

Aggrieved insurers, brokers battle HRG Nigeria over NNPC, Group Life

By Patience Saghana
Aggrieved insurance brokers and underwriters have ganged up against Hogg Robinson Insurance brokers over its consultancy services to the Nigerian National Petroleum Corporation’s Consolidated Insurance Package (NNPC-CIP) and the Federal Government Group Life.

The gang up may not have been unconnected to the 54 insurance brokers screened out of the group life and the 8 insurance companies that were also not part of the listed companies.

Some of the angry underwriters also were not selected for the NNPC-CIP, one of which office is situated close to Sanusi Fafunwa, Victoria Island, Lagos.

Vanguard’s investigations revealed that the brokers and insurers that felt wounded are all out to malign Hogg Robinson as they could not come to terms with the centre stage of the broker in the most sought accounts in the industry.

54 brokers and eight underwriters felt they were deliberately schemed out of the selection process of the group life.
In spite of the fact that Hogg Robinson is not the only consultant on the group life, other brokers in the account include Ark Insurance Brokers Ltd, and Leverage Insurance Brokers, Glanvill Enthoven Insurance Brokers Ltd.

Hogg Robinson Insurance Brokers has 207 full-time staff operating in strategic locations in Nigeria. And out of the number of staff, the broker has on its staff 6 FCII (Fellows of the Chartered Insurance Institute), 22 ACII (Associates of the Chartered Insurance Institute) by examinations, and a host of other knowledgeable and experienced personnel. In a local market with perennial problems of qualified manpower shortage, we have a very high concentration of professionally qualified and capable staff for which we enjoy market support and respect.

It has offices in Lagos, Abuja, Calabar, Ibadan, Kaduna, Kano, Port Harcourt and Warri All explanations on and about the consultancy services being rendered by both the Head of Service of the federation, Steve Oronsaye, and the NNPC did not go down well with the  pained companies

One of the insurer claimed that its quotation came tops but was surprised to see that the final allocation of ministries and parastatals did not follow the pattern of the open bidding process.

The underwriter claimed some officials in the office of Head of Service upturned the result, and arbitrarily allocated ministries and parastatals without regard to due process after the ministries had been divided into categories A and B and were to be allocated in order of performance at the open bidding.
Ministries and parastatals categorised as A are to be allocated to those who were on the first to eight position, while category B ministries are to be allocated to those who came ninth to seventh.

Again, Hogg Robinson was being smeared by some faceless operators who could not come out bold to register their aggressions through the Nigerian Insurers Association neither Nigerian Council of Registered Insurance Brokers (NCRIB) nor National Insurance Commission (NAICOM).

A close source at NCRIB told Vanguard that the council would only intervene if aggrieved brokers report officially to the body. The Vanguard source said though NCIRB may not exonerate Hogg Robinson in its entirety for closing its doors to other brokers especially on NNPC account but cannot wholly blame the broker because it did not appoint itself as consultant to NPPC and group life.

The management of NNPC said the broker was appointed by the corporation after an appraisal to boost the multinationals’ the insurance department of the oil company

According to NNPC, “Hogg Robinson Nigeria Limited was appointed as consultant to NNPC on insurance matters following an evaluation process in NNPC to enhance the technical capacity of the department. The remuneration of the consultant is derived from the statutory commission payable by the appointed insurance company”


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.