Wapic 2018 Annual Report mon

Technology and Innovation

Annual Report & Accounts 2018 1

Technology and Innovation 02.

CONTENTS

01. BUSINESS
REVIEW
OVERVIEW
Corporate Philosophy 14
Business and Financial Highlights 5 Reports of External Consultants 15
Locations & Offices 6
Technical Operations 17
Chairman’s Statement 7 Corporate Sales Division 20
Chief Executive’s Review 10 Retail Sales and Distribution 24

Customer Experience 27
Digital and Technology Services 28
Our People, Culture and Diversity 30

Sustainability Report 35
Risk Management 44

03.

GOVERNANCE

The Board 96
Management Team 100

Subsidiaries 102
Directors, Officers and Professional Advisors 103

Director’s Report 104
Corporate Governance 110
Directors’ Responsibilities 126
Report of the Statutory Audit Committee 127
Customers Complaints Feedback 128
Non Dealing Period Policy 129
Whistle Blowing Policy 134

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04.

FINANCIAL
STATEMENTS

Report of the Independent Auditors 137
Statement of significant Accounting Policies 147
Consolidated Statement of Financial Position 169

Consolidated Statement of Profit or Loss &
Other Comprehensive Income 172

Consolidated Statement of Changes in Equity 175
Consolidated Statement of Cash Flows 179
Notes to the Financial Statement 181

05.

SHAREHOLDER
INFORMATION

Shareholder Engagement 249
Notice of Annual General Meeting 250
Explanatory Notes to Proposed Resolution 251

Capital Formation 253
E-Dividend Mandate Form 254
Shareholder Information Update Form 255

Proxy Form 256
Complaint Management 258

Investor Enquires 265

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Technology and Innovation

01.

OVERVIEW

Business and Financial Highlights 5
Locations & Offices 6

Chairman’s Statement 7
Chief Executive’s Review 10

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Business and Financial Highlightser base. This gives us the platform to address international risks and develop solutions in line with gl-

For the year ended 31 December 2018

In thousands of Naira 2018 2017 2016 2016
GROSS EARNINGS 16,557,187 13,620,976 12,394,435
GROSS WRITTEN PREMIU M 13,892,484 9,807,616 8,005,308
PROFIT BEFORE TA X 1,193,446
187,234 1,622,691
PROFIT AFTER TA X 351,193 586,023
POLICYH0LDERS' FUND 10,792,258 1,530,810 7,293,836
SHAREHOLDERS' FUND 17,110,307 8,205,325 16,566,335
TOTAL ASSETS 30,363,591 17,957,824 25,902,053
28,604,611

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Locations & Offices

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Technology and Innovation

Chairman’s Statement

Distinguished Shareholders, I welcome you to the 60th in infrastructure enjoying steady subscriber growth
Annual General Meeting of our Company, which I have despite already high levels of market penetration. The
served as Chairman, Board of Directors since Novem- agricultural sector was also a major contributor to real
ber, 2011. As I mark my final year of service to Wapic growth supported by government credit and input
Insurance Plc it is with a great sense of fulfilment and subsidies. Local currency exchange rates remained
gratitude to the Almighty that I report on our journey relatively stable during the year despite capital reversals
towards industry leadership and the progress we have by foreign portfolio investors, as the national elections
made in our quest to transform and illuminate Nigeria’s drew nearer.
Insurance sector.
The global economy experienced volatility linked to the
Operating Environment United States’ protectionist trade policies and Brexit-
related uncertainty in Europe. Furthermore, tightening
The Nigerian economy recorded improved growth in of monetary policy in advanced economies eroded
2018. Real GDP growth led by the non-oil sector rose investors’ appetite for emerging market securities and
to 1.93% from 0.82% in 2017. The telecommunications fuelling sell-offs and triggering inflationary and foreign
sector reaped the benefits of continued investment exchange pressures in several emerging economies.

Annual Report & Accounts 2018 7

Technology and Innovation

Business Strategy a reference point for leading market practice. We take
pride in being the first NSE listed company to establish
Between 2012 and 2013 your Company implemented a a Board Technology Committee.
merger transaction and rights issue to raise sufficient
capital to support its bold transformation agenda. As I am pleased to welcome Mr. Mutiu Sunmonu to our
a result of these corporate actions net assets stood at great team of Non-Executive Directors. His wealth of
N14.1bn by December 2013 positioning the Compa- knowledge and experience will be invaluable as we enter
ny as one of the sub-region’s most capitalized insur- into our next phase of growth and increased relevance.
ers. Thereafter, in line with our 2014-2018 corporate
strategic plan, we commenced the implementation of Your Company remains an industry thought leader
several transformation initiatives. First we carried out championing initiatives and programmes aimed at in-
a detailed consumer research exercise to deepen our dustry transformation. This has seen us play a leading
understanding of customer needs and market oppor- role at the 2014 National Insurance Summit which was
tunities. These insights formed the basis of the market the first of its kind in Nigeria. Also in 2014, your Com-
penetration strategy that we have implemented over the pany proactively initiated a comprehensive review of
past 5 years. You will be pleased to learn that from a #18 all outstanding claims in the Company’s books with a
industry ranking in 2013, the Wapic group ranks #8 to- view to ensuring that they were all paid by December
day. One key aspect of our corporate strategy is innova- 31, 2014 an action subsequently mirrored by all Nige-
tion through technology. In 2017 we successfully went rian Insurers following a 2015 regulatory directive. We
live on WapX, a world-class core insurance application are also leading the establishment of an industry-wide
developed by Asseco Europe. With WapX we are now shared claims bureau to radically improve claims pay-
able to seamlessly roll out digital insurance products ment by all operators.
and services. This heralds a step change in operational
delivery and service excellence for the industry. Talent Management

Financial Performance We are conscious of the fact that building a culture of
high performance among employees goes a long way to
Growing from just over N4bn annual gross premiums in ensure competitiveness. As an organization that aims
2012, Wapic closed 2018 with gross written premiums to recruit and keep the best talent, we have revamped
of N13.9bn. During the reporting period underwrit- the entirety of our employee management practices, en-
ing profit grew 40% to N2.1bn as a result of premium suring that remuneration, and other levers of employee
growth and improved reinsurance techniques. For in- engagement, are benchmarked against leading organi-
stance, the negative impact of claims payment in 2018 zations both locally and internationally. At Wapic we
was dampened by increased reinsurance recoveries. We place particular premium on learning and development.
continued to sweat our investments in technology and To this end we continuously invest in training programs
other assets enabling us to keep expense growth at 11% targeted at improving staff skills and capacity across
which when adjusted for inflation remained flat. various functions. The Board also actively mentors se-
nior officers towards their attainment of stretch goals
Despite our improved underwriting performance, sharp and targets. At the junior level, we have established the
reversals in the performance of our public equities port- Wapic Academy where our Entry Level recruits learn
folio mirroring the NSE Index’s 2018 negative correc- the rudiments of insurance, finance and marketing.
tion, led to significant drop in bottom line performance. They undergo 4-months of rigorous classroom training
before they can resume employment. To date, 5 cohorts
Our associate company Coronation Merchant Bank of Entry Level Trainees totalling 120 Trainees from Ni-
Limited continued to return good earnings thereby geria and Ghana have graduated from the Wapic Acade-
enhancing the value of our private equity portfolio. my. We have also entered into an arrangement with the
We closed the period with Consolidated Net profits of Lagos Business School (LBS) to support development
N351m. Our Nigerian business comprising our Life and of our mid-level employees as well as partnerships with
Non-life franchise accounted for 88% of group revenue global Reinsurance companies who deliver bespoke
training for our key talents.

Governance, Regulation and Public Policy Wapic Ghana

We have painstakingly assembled a team of highly quali- As part of efforts to reinvigorate our hitherto challenged
fied and reputable Non-Executive Directors to strength- Subsidiary in Ghana, we took steps to strengthen Wapic
en corporate governance both at the parent company Ghana’s Board and Management, aligning their corpo-
and subsidiary level. Through stringent adherence to rate governance and business practices with those of
high standards of governance we have overtime become

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Technology and Innovation

the Parent Company. The company has gone through a Conclusion
rebranding exercise which included renovating its Accra
head office to a high standard. Our core application WapX I would like to thank past and current Board Members for
is also set to go live in Ghana this year. their support. It has been a privilege to work with commit-
ted non-executive directors who give their all to further
the cause of our company.

Sustainability I would also like to thank Mrs. Yinka Adekoya and the en-
tire Wapic team for their loyal and outstanding service.
Given the long term structure of insurance business mod- My deep appreciation also to our customers, shareholders’
els, Insurance companies must embrace sustainable busi- and other stakeholders who have embraced our transfor-
ness practices as a way of life. At Wapic, our passion for mation efforts and enabled us to become one of the re-
sustainability is visible from the first point of contact. Our gion’s fastest growing underwriters.
Head Office building was built as a Green Building Project.
It is a reference point for environmentally-friendly design Finally, and most importantly all glory goes to the Al-
and signposts corporate Nigeria’s readiness to embrace mighty without whom it would not have been possible.
the sustainable development goals. We are also promoting
the culture of safe road use in Nigeria through our “Safety God bless.
– On – Wheels” initiative implemented in collaboration
with the Federal Road Safety Corp and the Nigerian Police Aigboje Aig-Imoukhuede (CON)
Force and are collaborating with local and international
partners on private sector health initiatives aimed at fixing Chairman
Nigeria’s poor healthcare narrative.

Annual Report & Accounts 2018 9

Technology and Innovation

Chief Executive’s Statement

It is with great pleasure that I present my report to you, customers and all our stakeholders as well as the gener-
distinguished Shareholders, on the activities of Wapic al public that Wapic has stood the test of time without
Insurance Plc. on the occasion of our 60th Annual Gen- losing focus of its underlying core value of Customer
eral Meeting. Satisfaction which continues to guide every action we
are taking. We believe that our business will continually
The year 2018 witnessed sustained macroeconomic be at its best as long as we make customers our absolute
pressures and very difficult market situations charac- priority.
terized by uncertainties and therefore customer apathy.
However, your company, Wapic successfully sustained We have reinforced our total commitment to giving
and surpassed its growth track records. The year was the best possible service to our customers. This is
also graceful for the Company as we marked our 60th reflected in the new service goals we have set out for
year of providing insurance services to the Nigeri- the business by embarking on the transformation of
an public. This historic event reminds us of the tough our Technical Operations. This Transformation Project,
paths we have taken for 60 years and yet thrived till which started in 2015, will culminate in a total overhaul
date. It provided us with an opportunity to reassure our of our business operations to provide the most efficient

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Technology and Innovation

and effective services to our customers in the most The Regulatory Environment
convenient way possible leveraging the most up-to-date
technology. The introduction of WapX our robust core In a bid to address the low insurance penetration and
insurance application backed by other applications like poor insurance awareness amongst the general popu-
Enterprise Resource Planning (ERP), Historical Data lace, the National Insurance Commission (NAICOM)
Portal (HDP), etc. in 2017 set the tone for the technical introduced four forms of operational guidelines for
revolution which was our major focus during the year the Insurance sector. These include: The Micro Insur-
2018. ance guidelines, Market Conduct and Business Practice
Guidelines, State Insurance Producers Guidelines and
In a bid to improve our accessibility to customers, and the Tier-Based Minimum Solvency Guidelines. Plugging
to leverage the traditional and effective means of selling into these reform initiatives, Wapic deployed a broad
retail insurance through the use of Agents, we have com- spectrum of marketing strategies to increase its retail
menced the expansion of our Financial Service Advisors market reach and leverage increased channels of distri-
(FSA) program with the launch of Agent Mobile Appli- bution which have been consciously developed over the
cation. The aim is to continuously grow the number of years, while still catering to the government and corpo-
our FSAs to reach more customers and close sales with rate clients. A variety of retail products targeted at the
the support of this Application. untapped segments of the population were developed to
further improve the penetration and uptake level.
Also, in order to ensure that we continually improve our
status of being a customer-centric organization, Wa- Financial Performance
pic became the first Insurance Company to introduce
the Ombudsman services. This is an Alternative Dis- In 2018, the Group’s Gross Written Premium grew by
pute Resolution service desk which has responsibility 42% year-on-year to N13.9bn while Total underwriting
to informally investigate and mediate fair settlement of expenses, including claims expenses, grew from N4.8bn
commercial disputes between Wapic and its Custom- reported in 2017 to N5.4bn. Underwriting profit grew by
ers. We also successfully launched our Travel Insurance 40% from N1.5bn recorded in the prior year to N2.1bn
Policy, specifically designed to cover individuals against for the period. The Group also recorded a Profit Before
unforeseen incidents during international travels. The Tax of N187m from N1.6bn and a Profit After Tax of
Wapic Travel insurance service is underwritten by Map- N351m from N1.5bn recorded in the previous year. Our
fre Asistencia, a reputable and experienced reinsurance Total assets grew by 6% to N30.4bn from N28.6bn in
company based in Spain with operations in 58 countries 2017. Our Shareholders’ Funds stood at 17.1bn for the
worldwide. period from N17.9bn in 2017. Earnings per share for the
period closed at 3k against 11k recorded in 2017. The
Operating Environment company was able to achieve the quantum leap growth
in our Gross Written Premium through the attainment
An upsurge in crude oil prices, the major determinant of lead underwriter status on two major projects in the
of export earnings, government revenues and overall market. Although the company recorded a significant
economic wellbeing, led to a reported rise of US$71.16/ growth in the topline, the bottom line was adversely
barrel in Half year 2018. In 2018, the price closed at affected by increase in claims expense and other costs
an average price of US$76.7/barrel higher than the incurred on all the ongoing transformation projects. We
country’s oil price benchmark of US$50.5/barrel for expect that the payback on the efforts on will begin to
the year’s budget, making exchange rate pressures to reflect in our performance from 2019 and beyond
ease. This good fortune stimulated a more conducive
operating business environment to sell insurance. Strategy and Growth Opportunities
However, the political landscape particularly the
insurgency in the northern part of Nigeria and The year 2018 marked the end of our first 5-year rolling
preparations for 2019 elections affected take-off of new plan. Your company working with global and reputa-
projects particularly within the Oil and Gas industry. ble consultant, Mckinsey and Company, developed and
Also, the late implementation of 2018 budget by the launched the second 5-year Rolling Plan for the period
Federal government, affected the projected expense 2019-2023. Taking learnings from the first Rolling Plan,
on insurance spent on infrastructures as well as an the new strategic plan defines very bold objectives for
overwhelmingly competitive business environment, the Company which includes the trajectory growth for
Wapic delightfully recorded a good performance as our general and life businesses.
the Company attained its goals of sustained stability,
improved performance and to provision of premium
value to customers and shareholders.

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Technology and Innovation

In order to achieve its goal of becoming a top 3 leading our technical operations will help us achieve sustainable
West African insurance company, the new strategic plan growth by managing operational risk, maximizing pro-
clearly identifies areas of the business that require urgent ductivity and driving value for the Company.
revamp, the extent of change that should occur year-on-
year if we are to attain the desired growth trajectory as We recognize the importance of Human Capital as the
well as projects and initiatives required to achieve the most crucial element of our Company’s success. We will
desired objectives. The growth drivers are heavy on the continue to invest in Human Capital Development by
retail side of the business thus further highlighting the creating the necessary work environment in which our
need to quickly ramp up the efficiency of our processes employees can feel welcome, learn better, acquire new
leveraging technology. This is in alignment with the tech- competencies, develop skills, become more innovative
nical transformation which essentially started 2 years ago and consistently exhibit a culture of winning behaviors
and is gaining momentum each year. and attitudes.

Future Outlook We will continue to build closer relationships with our
partners and customers who add value to our business
The Company aims to up its drive for business excellence while remaining steadfast to our objectives. Overall, we
through sustainable practices, motivated by its com- remain focused on our goal to deliver sustainable returns
mitment to customer satisfaction. While we are hopeful to our shareholders using our ever-growing experience
about our future, we are very conscious of the realities and improved processes which will position us as a true
of geopolitical and economic volatility, regulatory chang- market leader in the insurance industry.
es, foreign currency pressures and changes in consumer
needs and consumption patterns. These challenges re- Powered by our strong team of extraordinary employees,
quire us to become more agile and very adaptive in our innovative mindset, focused pursuit of our strategic ob-
thoughts and creative in our processes as well as in how jectives, coupled with the unalloyed support and expert
we manage our businesses to remain relevant and stay guidance of our ever strong, committed and dedicated
ahead of our competition. Board of Directors, I have never been more confident
about the future we are creating. I look forward to an-
I believe that Wapic will continue to improve and emerge other exciting year that will see us continue to deliver
stronger than ever. Our current financial performance to- value to our stakeholders, while successfully navigating
gether with our firm commitment to improving our ser- the continued uncertainties of the economic and business
vice delivery mechanics our affirmations that our efforts environment. I look forward to sharing with you a much
to date at building an institution of repute have been suc- greater story of delivery of exemplary value, profitability
cessful. and long-term sustainability of our business in the com-
ing year.

Thank you.

As we continue to position our company for long-term

Adeyinka Adekoyasuccess, we believe that the ongoing transformation of Managing Director\Chief Executive Officer

12 Annual Report & Accounts 2018

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02.

BUSINESS
REVIEW

Corporate Philosophy 14
Reports of External Consultants 15

Technical Operations 17
Corporate Sales Division 20
Retail Sales and Distribution 24

Customer Experience 27
Digital and Technology Services 28
Our People, Culture and Diversity 30

Sustainability Report 35
Risk Management 44

Annual Report & Accounts 2018 13

Technology and Innovation

Corporate Philosophy

Our vision Our mission

To transform and illuminate the insurance To lead in all that is worthy
industry for the benefit of our customers

and other stakeholders

Our Core Values

Excellence Leadership

We strive for our personal best in our thoughts, our We are all leaders in our own way. We hold our-
words and our actions, being better today than we were selves accountable for our choices. We take owner-

yesterday. ship of our tasks, our actions and our decisions.

Professionalism Innovation

Our interactions with customers and We build on what we know works,
colleagues embody competence, a good work constantly refining and finding better ways
to serve our customers and our colleagues
ethic and a focus on serving others

Empathy Sustainability

We consider the experience of others in everything We look to the future, ensuring that our actions
we do. Our interactions with our colleagues and today build towards a healthy tomorrow, where our
customers reflect kindness and understanding business, team, community and wider environment
of their situation. We appreciate the efforts and
experiences of others. survives and thrives

Teamwork

The contribution of every team member is vital to our success.
We each play our part in making it work.

14 Annual Report & Accounts 2018

Technology and Innovation

Reports of External Consultants

Annual Report & Accounts 2018 15

Technology and Innovation

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Technology and Innovation

Technical
Operations

In 2018, the Company continued with its transformation Underwriting
journey, which led to a change in the technical operating
model. The new technical operating model focuses on The Company strives to maintain its commitment to
excellent service delivery to customers through preferred improve its underwriting risk selection process whilst
channels, thereby shifting focus from being a technical ensuring that risks are accepted within the risk tolerance
and product driven company to a more customer centric level. The Company also carefully evaluates businesses
service-oriented company. To support this change, we and/or opportunities to ensure that businesses and/or
have segmented our technical division into Corporate and opportunities that could create systemic risk exposures are
Customer Solutions. The key benefit is to streamline and effectively mitigated. That is, incidents of multiple claims
automate processes as well as reduce cost and cycle time occurring from one event via:
spent to render services to the customers.
• Exercise of extreme caution when underwriting
The underwriting profits at 2018-year end grew by 69% from discrete {one-off} risks, particularly, when we do not
N1.1billion recorded in 2017 to N2.0 billion in 2018. The have the requisite experience or know how or when
significant improvements in the Company’s performance is underwriting risk are unquantifiable.
largely attributed to sustained market penetration efforts
embarked by the Company across key customer segments, • Review of all policy documents with a view to ensuring
improved underwriting risk selection and underwriting that they meet best practice
practices, enhanced claims management services and
improved utilization of reinsurance arrangement. • Outright declinature of unprofitable transaction(s)

Essentially, risks that fall below our underwriting risk The Company has a disciplined risk appetite based on
acceptance appetite are declined. In addition, the company our reinsurance treaty in each of our chosen classes of
in fulfilling its service commitment to pay only genuine insurance. In addition, our Underwriting team ensures
claims within its Service Level Agreement timeframe that each risk to be accepted is evaluated using historical
declined reported claims incidents that were established as analysis, quantum analysis, environmental analysis,
fraudulent. economical analysis and loss experience to determine the
type of risk we cover

During the year, our Travel Insurance Product was Our Non-Life business portfolio witnessed an improvement
launched as part of our vision to provide variety of product in performance with 62% growth in Gross Written
suitable to our customers. Premium (GPW) from N6.4bn in 2017 to N10.3bn in 2018.
The company upscaled the skills of the technical division This improvement in performance is supported by our
personnel by providing both specialized and soft skills Engineering class, which grew by 1053%. The Engineering
training locally and internationally which is required class contributed 36% to GWP as against 5% in 2017. Oil &
to provide the service that will exceed the customers’ Energy and General Accident classes contributed 24% and
expectations 17%, respectively in 2018.

Annual Report & Accounts 2018 During the year under review, the Net Premium Income
(NPI) recorded a growth of 17%. This growth was supported
largely from income realised in General Accident and
Motor with 32% and 22% respectively.

17

Technology and Innovation

Claims Reinsurance

The Company, having understood the importance of Wapic is committed to maintaining a dynamic reinsurance
effective claims settlement in the rendering of insurance arrangement with the best reinsurance companies.
services to customers, has reinforced its commitment to Consequently, Wapic partners with A-rated global
settle claims promptly. The Company therefore revamped reinsurance companies and ensures that these companies
its claims management processes and enhanced its lead the reinsurance programmes. In addition, the
resources in order to provide services that exceed the Company partners with local reinsurers after considering
customers’ expectations. their risk profile to follow the Lead in line with the
Regulatory Guideline that risks must be fully placed locally
As part of the technical transformation, the Company before foreign reinsurers are approached.
embarked on claims transformation that involved seamless
and automated claims settlement processing within a The objective is to provide market-leading capacity for our
specified timeframe. This transformation established customers, at the same time protect the Group’s balance
certain initiatives which were implemented across the sheet, and optimize our capital efficiency. The above aligns
company with a view to improving the status quo and with the primary aim of reinsurance, which is to protect
having an enjoyable customer experience. the company’s balance sheet and to facilitate efficient
capital management, the absence of which could leave a
We continue to enhance the involvement of our in-house damaging effect on the capital and ongoing operations of
Ombudsman to mediate on customers complaints to the company. Through its reinsurance arrangements, the
ensure their resolution within a specified timeframe. Company is compensated for financial losses incurred
It is important to note that complaints referred to above its retention or deductibles under the insurance
our Ombudsman were resolved with our customers contracts issued to our numerous clients for all lines of
successfully without any escalation to the Regulator or business.
litigation proceedings.
In 2018, a reinsurance optimization exercise was
In 2018, Wapic settled a total claims amount of N3.63 conducted again by our Actuarial Consultant, with a view
billion, consisting of N2.36 billion paid on Non-Life to achieving efficient reinsurance utilization based on
businesses and N1.26 billion paid on Life businesses. optimal level of reinsurance cost, retention limit, capital
This resulted in a 17% increase in the volume of claims reserve, and profit. Based on our improved efficiency and
settled in 2018 over the same period in 2017. The increase increased Gross Written Premium in 2018, the company’s
in the claims volume is a reflection of the increase in our ability to absorb larger risks was enhanced with increased
underwriting portfolio and some one-off large losses that capacity on our entire treaty programme.
occurred within the period.
With a focus on our corporate aspiration, we took
In implementing the Company’s zero claims leakage audacious steps to ensure that our reinsurance coverage
policy, the Company enhanced its process on recovery of from the world-class reinsurance companies is adequate,
salvage and subrogation, which resulted in savings for the to meet the demands of large corporate customers.
Company. Recovery is being effectively monitored and Prior to ceding risks to these reinsurance companies, we
treated as a source of revenue in the Company, which is ensure that in-depth analysis is carried out on each line
used to reduce the claims outlay. of business to obtain the optimal reinsurance cover at the
most competitive terms. Our reinsurance partners are
In addition, the Company has collaborated with top ranged duly rated as follows:
and medium sized auto garages to provide top range
services to our mutual clients at the optimal prices while
at the same time mitigating the risk of financial leakage
from claims. This has enabled the Company to forestall the
practice of clients.

FOREIGN REINSURERS RATING AGENCY
MUNICH REINSURANCE COMPANY LIMITED AA- A.M Best
SWISS REINSURANCE COMPANY LIMITED A+ A.M Best

LOCAL REINSURERS A A.M Best
AFRICAN REINSURANCE CORPORATION B+ A.M Best
CONTINENTAL REINSURANCE PLC B+ GCR
WAICA REINSURANCE CORPORATION BBB+ GCR
NIGERIAN REINSURANCE PLC

18 Annual Report & Accounts 2018

Technology and Innovation

Actuarial The Unit is also reviewing its processes in order to position
itself for the implementation of IFRS 17, a guideline that
Insurance contract liabilities remain an important will kick off on January 1, 2022.
component in assessing and determining the quality of
our company’s capital adequacy. The Company regularly In 2018, the gross IBNR amount dropped by 18% to N1.8bn
determines the amount to be reserved as technical provision from N2.2bn, this was because the historical data was
derived from the assumed liabilities. The actuarial team adjusted to allow for inflation to the valuation date using
regularly advises the investment units on the composition the corresponding inflation index. The resulting future
and maturity of the liabilities, while the investment team expected cash flow for claim payments was discounted
ensures that assets are adequately matched to liabilities. to the present day terms using an assumed discount rate.
N1.12bn of the IBNR amount relate to Non-Life business
The Wapic’s Actuarial Services Team is striving to fully while N702m is for the Life business. Gross Unearned
attain its transformational goals. Approximately 80% of Premium Reserve (UPR) for the period was N4.93bn out
the processes have been automated on the core insurance of which N4.30bn relate to the unearned premium for
application in order to effectively drive and promptly the Non-life business and N632m for the life business.
deliver actuarial results. Outstanding Claims Reserve (OCR) figure was N2.91bn
out of which N2.22bn and N688m are for the Non-Life
and Life businesses respectively.

Annual Report & Accounts 2018 19

Technology and Innovation Technology and Innovation

Corporate Sales
Division

The Corporate Sales Division is the largest market-facing • Asian Corporates

business of the Company. The division supports its cus- • Construction
tomers with value added tailored solutions and services to
allow them operate efficiently and grow their market share. • Manufacturing

Our clients are highly diversified, multinational compa- • Oil and Gas
nies, local corporates, and financial institutions occupying • Telecoms & ICT
primal positions in the economy.

In line with our strategic intent of being the “Most Enjoy- Financial Institutions Group
able Company to do Business With”, our goal is to create
valuable alliances with reputable institutions and orga- The Financial Institutions Group (FI) is a specialized group
nizations both within and outside the organized private equipped with appropriate skills and capacity to cater to
sector and government agencies with a view to providing the sophisticated needs of customers within the financial
unique service offerings that meet specific corporate needs market sector of the economy.
and business objectives.
Our customer base includes banks and non-bank financial
The Corporate Sales Group understands that successful institutions. The FI Group distinctly manages the unique
partnerships with our customers is about dependant on needs of the financial markets through its need-based val-
excellent service, and service is about people, trust and ue proposition to the targeted financial institutions.
commitment.
The ultimate goal of the FI group is to provide value to its
Our Business Model sophisticated customers through its differentiated prod-
ucts & services. We have established competencies for the
We centre our business model on value creation for our underwriting and administration of financial sector-relat-
stakeholders. Our focus and vision remain clear- to ensure ed insurances which we uniquely manage under key part-
that our clients WIN regardless of economic trends. Con- nerships and industries as follows:
sequently, we deploy bespoke solutions for our clients.
• Access Bank Plc
We have structured the Company’s business model to
serve institutions and corporate entities operating within • Other Commercial Banks & Subsidiaries
the public and private sectors of the economy, with an an-
nual gross turnover of N500 Million and above, segmented • Microfinance Banks (MFBs) and Partnerships
as follows:
• Capital Market Operators (CMOs) / Leasing /
• Federal, State, Local Government, Ministries, Development Finance Institutions (DFIs)

Departments and Agencies • Merchant Banks/Primary Mortgage Institutions
(PMIs)

20 Annual Report & Accounts 2018

Technology and Innovation

Large Corporates Group Manufacturing Unit

• The Large Corporates Group comprises: Global manufacturers are constantly dealing with a vari-
• Oil & Gas ety of risk issues such as workplace injuries, supply chain
• Manufacturing issues, cyber insecurities, robot proliferation as well as
• Construction & Infrastructure shrinking talent pool.
• Telecoms & ICT
• Asian Corporates The Manufacturing team with the support of the Techni-
cal team have developed insurance proposals personal-
Oil & Gas Unit ized to cater to the unique needs of our clients in the Ni-
gerian market to cover their insurable risk gaps. Our focus
The 2018 financial year proved a volatile year for the en- segments include Cement, Food and Beverages, Tobacco,
ergy sector, especially for Oil and Gas Irrespective of the Textile and leather products, Chemicals and Pharmaceu-
prediction that the year would offer price stability for the tical products, Plastic and Rubber products, Electrical
space, the opposite proved to be true. We experienced a and Electronic products, and Motor Vehicles Assembly.
number of factors that weighed heavily on the Oil sector,
which in turn created volatility and uncertainty. Further- In 2018 financial year, the Manufacturing team experi-
more, the year 2018 was marked with interesting news, enced phenomenal growth of about 355% in premium
from US President Donald Trump’s Iran sanctions and generation in addition to deepening our penetration into
tweets to OPEC, to increased output in the US and Cana- the Tier 2 Manufacturing space. We are positioned to
da’s purchase of a multibillion-dollar pipeline. maintain the momentum in 2019 by achieving leadership
on more key accounts within the Manufacturing space
and gain larger share of wallet.

Construction & Infrastructure Unit

Despite these challenges in 2018, there was increased Some economists consider the construction industry as
growth in Insurance Premiums generated from the Oil a leading driver of economic development in a country.
and Gas Sector. This was primarily due to the economic This is mainly because almost all other sectors of the
reforms in the country and the deepening of our custom- economy depend solely on the products and services of
er base by paying more attention to the International Oil the construction industry to carry out their operations, in
Companies, Oil Servicing Companies as well as Marginal one form or another.The Construction and Infrastructure
Field Operators. team offers relevant insurance products and administers
insurable risk to construction and infrastructure compa-
Some new Projects commenced in 2018 which included nies. We create tailor-made solutions that cater to the
First Exploration and Production Early Works Project, specific insurance needs of our clients that range from
Mobil Producing Nigeria Unlimited UBIT PP Restoration Real estate developers, Surveyors, Architects, Engineers,
and EAP-IGE Replacement Projects, Indorama Eleme etc.
Chemical CAR Project, etc. amongst others. This helped
the Oil and Gas team achieve its intended projected target There is an increase in investment in the Construction
for the year, with the plan to sustain this achievement in space because of the recent focus of the Government on
2019. infrastructural developments which is currently attract-
ing foreign investors with the attendant benefit of an in-
The 2019 Industry outlook presented a significant de- crease in construction activities. The following are point-
crease in oil production across the globe aimed at driving ers to the fact that the construction industry is receiving
higher prices, a factor expected to weigh on oil demand a major boost.
in 2019. Furthermore, the current waivers on Iranian oil
exports are due to expire after 180 days, but an extension • Massive demands for buildings across all sectors of
cannot be ruled out — particularly if oil prices at that time the economy.
of expiration is still too high..
• Recent focus on infrastructural development by Fed-
In spite of the aforementioned, , there is expected to be an eral and State Governments.
increase in activities within the second and third quar-
ter of the year which would lead to an upsurge of projects • The adoption of privatization and commercialization
and this is expected to would have a positive impact on in- as instruments of Federal Government policy.
surance income generation. These upcoming projects in-
clude Total Ikike Project, Mobil Osi Oworo Project, Shell • The tightening of regulations relating to business op-
Petroleum Development Company ASSA North Project, erations in Nigeria.
Niger Delta Petroleum Resources OPL 227, and Total Egi-
na Operational Policy. According to a forecast made by Global Construction Per-
spective and Oxford Economics “from 2009 to 2020, only
Nigeria and India will enjoy higher growth rates with the

Annual Report & Accounts 2018 21

Technology and Innovation

exception of China (who is no 1 in the world) in their con- Asian businesses in the last three years and has succeeded
struction output.” Therefore, enormous opportunities ex- in improving acceptance of the company within the var-
ist in the Construction industry. ious Asian business communities through a partnership
with influential Asian groups in the country. We expect to
We hope to take advantage of the opportunities in 2019 see more improvement in such business relationships in
with the responsibility of signing on new key names within the 2019 financial year.
this sector by providing solutions to the target market and
increasing our share of wallet The Asian Corporate team will continue to leverage on
these partnerships to improve its network base of cus-
Telecoms & ICT Unit tomers and create significant business patronage from the
Asian business communities.

The Telecoms & ICT unit is responsible for managing and Public Sector Group
developing the Company’s business in the Telecommuni-
cations and ICT industry. In 2018 financial year, we gained The Public Sector Group is responsible for exploring the
some momentum by increasing our share of wallet of our opportunities in all organizations that exist as part of Gov-
major customers as well as increased participation in new ernment machinery for implementing policy decisions and
accounts. delivery of services that are of value to citizens.

In 2019 financial year, we expect that the global telecom- The Sector is made up of core civil services, which include
munications and ICT markets will continue its transfor- Line Ministries, Departments, Agencies and the enlarged
mation in the industry underpinning the digital, sharing public service that comprise of Services of States, National
and interconnected economy. This proposed transforma- Assemblies, Judiciary, Armed Forces, Police Force, Para-
tion will be driven primarily by the ongoing innovations military Services and the Local Government Area Councils.
and technological developments that are taking place.
These developments are expected to create new insurance Our sales strategy for the Public Sector Group is geograph-
opportunities in the sector. ical. The group is present in Abuja and Lagos and focuses
on establishing direct relationship with Government offi-
We are poised to take advantage of the emerging opportu- cials, engaging them in constructive business dialogue and
nities in the sector. also providing technical support systems to develop their
workflow processes, information Management and capac-
Asian Corporates Unit ity building for a formidable partnership.

The Asian Corporates Unit cater to the needs of Asian led The total portfolio of insurance business in this sector is
Organizations, which include The Indians, Lebanese, and in excess of N58b in both classes of Life and Non-Life.
the Chinese owned managed organizations. The Asian However, due to the democratic bureaucracies and bud-
businesses consist of four major areas of activities namely; get approval delays there are challenges of huge backlogs
manufacturing, construction, trading, hospitality & life- of outstanding and unpaid premiums. Between 2017 and
style. A dynamic and well-structured management team 2018,, the Group has made significant progress in generat-
leads these organizations and in most cases; they have af- ing premium from this critical sector of the economy. We
filiation to an offshore parent company have successfully won major accounts like the Group Life
assurance scheme for the Federal Civil Servants.
In recent years, several countries within the Asian conti-
nent have been the world’s fastest growing economy, and The outlook of the year 2019 financial year is positive as
the influence of their expansion into other continents is we envisage that the Federal Government will embark on
evident in the high influx of Asian businesses into Nigeria massive infrastructural development, which will attract in-
and other African Countries. surance solutions.

The Company has steadily grown its business portfolio of

22 Annual Report & Accounts 2018

Technology and Innovation

Annual Report & Accounts 2018 Annual Report & Account2s 23018

Technology and Innovation Technology and Innovation

Retail Sales and
Distribution

The Retail Sales & Distribution Division provides outstand- These efforts and the planned activities for 2019 will sig-
ing value and convenience to our customers by develop- nificantly contribute to shareholders value in 2019FY and
ing an infrastructure of market-leading retail capabilities, beyond.
which we then employ to provide leading customer offer-
ings across multiple channels. Customers remain at the Our goal is to create valuable alliances with reputable in-
heart of our business. We use insights gained from our in- stitutions and organizations both within and outside the
teractions with our customers to add value to our business finance industry with a view to providing unique service
model. offerings that meet specific individual need and business
objectives.
The Division provides tailored insurance solutions and risk
management services to all cadres of Individuals as well as Products & Services
Small and Medium Enterprises (SMEs) with annual finan-
cial turnover of up to N 500 million. The year 2018 witnessed a significant product innovation
in our service offerings to our Retail and SME customers.
Our mandate is to create a retail sales network and portfo-
lio that will deliver a leadership position for retail penetra- Our traditional insurance service delivery has gradually
tion in Nigeria. The Retail market in the country is vast and evolved due to some key prevalent trends such as technolo-
currently experiencing profound disruption in consumer gy, demographics and the sociological demands of our cus-
behavior and preferences. tomers. These have significantly affected the expectations
of our customers with respect to service delivery. We have
Our business model is hinged on changing customer needs taken our customer feedback and responded by offering
and we continue to differentiate ourselves accordingly by customized products designed to add value to the segments
developing products tailored to meet these needs, deploy- of the market we serve.
ing highly effective distribution channels, leveraging on
cutting-edge technology, that ensures retail products and Our need-based products and services provide solutions for
service delivery are simple and seamless personal wealth preservation and management as well as
maximizing business interest for SMEs.
Excellence in execution has never been more critical in
Retail, and in the 2018 financial year, we began to amplify In addition to the traditional insurance products, we offer
our focus on the core drivers of shareholder value. We an- a wide array of structured investment solutions that help
chored our activities in three main areas as follows:: our customers develop a wealth strategy that will create,
preserve and enhance their wealth for life. Our range of
• Driving Operational Excellence and Innovation Agility 5 SMART investment-linked products launched in 2016 o
have continued to receive market acceptability as evident in
• Aggressive Growth of our Retail Salesforce the volume of growth recorded to date on each product. The
array of index-linked savings plans provided the platform
• Optimizing the bancassurance opportunities for customers to systematically accumulate funds towards

24 Annual Report & Accounts 2018

Technology and Innovation

meeting short, medium and long-term obligations, with The mobile application implementation targets two class-
assurances of a life cover, in the event of demise. Smart es of users; our retail clients, and Wapic Financial Services
Life+ remains the flagship product amongst the invest- Agents (FSAs).
ment linked product bouquet. Looking ahead, the plan
is to take deliberate steps towards driving the sale of our The full deployment/implementation of this world-class
Smart Scholars product given its inherent benefit to our mobile application will;
teeming customers.
• Enable the business acquire new customers via the al-
ready saturated mobile channel.

Technology • Grant customers ease of access to our products and
services, thereby enabling us to provide enjoyable ser-
Modern and innovative retail capabilities depend on new vices, in line with our customer experience aspirations
technologies, thus technology is central to our multi-chan-
nel business model. • Reduce workload and improve retail underwriting
processing speed.
In a digital world, convenience means the ability for cus-
tomers to obtain our products on line real time irrespective Wapic Mobile Application for Sales Agents
of geographical location. The internet continues to inspire
a revolution in the way customers shop. Digital channels The Agent app performs similar functions as the Custom-
such as online and mobile now represent a growing share er app with additional sales related functionalities that will
of our retail business. Our business model prioritizes the enable more productivity by the Agents. This would also
rapid development of customer features on these digital empower the Agents to perform approved transactional
channels. capabilities using their devices.

We have adopted an initiative to lead the industry in the Wapic Insurance Education Platform
adoption of profitable digital and ecommerce products.
These initiatives are driving the adoption of our retail This app seeks to educate our customers and the public
products and experience via the self-service platforms and alike on the principles of insurance and insurance termi-
various other Omni-channel digital platforms. nologies.

In the 2018 financial year, we embarked on several digital Wapic Customized USSD Code
and technology projects to ensure all internal and custom-
er-facing digital interfaces are integrated into the Com-
pany’s core application platform. Some of the initiatives
embarked on include:

Wapic Mobile Application for Customers We commenced this initiative to ensure Wapic maintains
continuous engagement with customers via their
We embarked on this initiative to ensure the Company mobile devices with USSD. The USSD implantation and
continuously and consistently maintain engagement with deployment targets at existing and prospective retail
customers via their mobile devices using a mobile app. customers.

Other initiatives concluded in 2018 are shown in the table below.

S/N PROJECT NAME PROJECT DESCRIPTION

1 The Contact Center Application This project is established to Improve contact center representatives In-
teraction with Customers

2. Bank Payment Services Enablement of Customers to make payment at over 2000 bank branches of
various banks for their polices

3. Payment Services Integration Integration of Payment Platforms to our core application, WapX.

4. Notification Services Various Notification for Customers

These projects led to some level of process improvement Wapic take the lead in both the on-line and direct market-
and increased sales of our retail products. Indeed, the suc- ing space and in turn driving the sale of our retail products.
cessful implementation of our core insurance application,
WapX, has provided the technological platform to enable

Annual Report & Accounts 2018 25

Technology and Innovation

Our People relevant regulatory agencies for the scheme and have com-
menced the development of this partnership with a view to
The Division’s strength remains its people who have been utilizing same to achieve our market penetration aspira-
significantly instrumental to the successes recorded thus tions.
far.

In order to optimize our ability to attract, motivate and re- Travel Insurance
tain the best Retail sales talent, we pursued a number of
career initiatives, including the growth of our salesforce In December 2018, haven obtained all requisite regulatory
programs. Our training and development programs provide approvals; the Company launched its Travel Insurance desk
our Sale Managers and Agents with the resources and skill and commenced the sale of Overseas Travel Insurance cover
required to take on additional responsibilities, and enhance in Nigeria working with our International Partners, Mapfre
their potential for long-term career growth. Asistencia.

We provide a variety of training and development opportu- The service has so far received market acceptability. We are
nities aimed at building poised to ensure the continued growth and expansion of
Wapic’s market share within the Retail space.
Agent capacity to deliver services, meet strategic needs and
align with the Company’s values, strategic plan, and overall Looking Forward
mission. Training and development programs in the areas
of Interpersonal Effectiveness, Teambuilding, Management The Retail insurance market in Nigeria continues to evolve
Orientation, Understanding our Products, and New Em- at a rapid pace, evident in rising customer expectations
ployee Orientation directly support our mission. We train for value, intensified competition in many market
our Agents to understand the beliefs, behaviors and buying segments, entrant of foreign players and ongoing industry
decisions of our target customers with a view to developing transformation enabled by digital technology. As we move
a superior customer value proposition. forward, the Retail business objective is to grow our
customer base by providing relevant products and services
We continue to focus on recruiting, motivating, and retain- while leveraging technology and data analytics, improve our
ing the best talent; sustaining a high performing workforce; customer experience and deliver business results evident
providing for business continuity through succession; and by improved operational profitability.
minimizing losses to the Company through regulatory com-
pliance.

Bancassurance Our strategic play in the years ahead will be characterized by
our ability to respond to the dynamic needs of our customers
As part of our growth strategy, we entered into a strategic that will leverage on the implementation of sustainable
partnership with Access Bank Plc that will provide the need- business practices. With our relentless commitment to
ed platform for breakthrough growth in client acquisition providing exceptional customer services, we are confident
and multi-channel approach to market penetration. that we are on the right track to achieving our mission of
becoming a dominant player in the Retail market.

We have since obtained a ‘no-objection’ approval from the

26 Annual Report & Accounts 2018

Technology and Innovation

Customer
Experience

At Wapic Insurance Plc, customer satisfaction is a direct Contact Centre
reflection of our effectiveness as an organization as we Email: [email protected]
consider our customers as fundamental stakeholders in Live Chat: Wapic.com/Livechat
our business. Wapic has pledged to be the most enjoyable Telephone: 01-2774500, 4566, 4577 or 0700DialWapic
company to do business with and over the years, we have Social Media
achieved this through the delivery of excellent customer facebook.com/mywapic
experience at all our touch points. twitter.com/mywapic
Instagram: mywapic
We pride ourselves in providing exceptional services to Head Office
customers at all times and we make deliberate efforts Physical Address: 119, Awolowo Way, Ikoyi Lagos
to solicit and accommodate customers’ feedback in our Dedicated phone number to the office of the Group
products development and service delivery in order to Managing Director available on specific days in the month.
improve on our service delivery and exceed our customers’
expectations.

Ways to Reach Us

Wapic has provided several channels for easy access by
Customers. These channels include:

Website (Wapic.com)

Individuals can request a call through our website and an
Agent will put a call through immediately.

Annual Report & Accounts 2018 27

Technology and Innovation

Digital and
Technological Services

As the world continues to evolve faster than ever, partner for travel insurance) and various others.

Digitalization is taking more of a centre stage in our new The completion of the major enterprise automated

world. Your company, in line with our mission to lead in switching platform positions Wapic as the preferred

all that is worthy created the first Digital and Technology partner for various new digital organizations who

Division in any insurance company in Nigeria. The bundle insurance products into their major products or

goal of this new division is to ensure innovation and a seek to integrate Wapic Insurance into their corporate

sustainable future for the company. This entails creating enterprise systems. In 2019, we will commence full

stability in technology operations and implementation integration to corporates and help make insurance

while ensuring that we work with various stakeholders purchase a seamless experience.

including regulators to increase our share of wallet in the • Various Payment Platforms: During the year in

market. review, we completed and refreshed various payment

There are two major arms of the division namely: Digital platforms to enable customers pay their premiums

Group, which is majorly concerned with growing the and investment contributions. Some of the platforms

company by providing various digital channels and concluded and launched in 2018 include AccessPay

products aimed at enabling Wapic, penetrate the market. (This enables customers pay directly into their Wapic

The second is Information Technology Group, which is Account/Policy from any Access Bank Branch).

concerned with running the company by building future- PayDirect (This enables customer pay directly to their

proof systems working with our various stakeholders. Wapic accounts at over 2000 bank branches of banks

enabled on the platform). QuickTeller (This enables

customers make payment directly to their account

Growing The Company using cards), Paystack (This enables customers make
payment with their cards or using USSD short codes).

With the deployment of WapX - our unique Core Insurance • Digital Travel Insurance Platform: We successfully
platform that will drive various initiatives and position
launched our travel insurance platform. This enables
your company as one of the most innovative profitable
customers to buy travel insurance directly from our
insurance firms in Africa, we commenced some of the
website – www.wapic.com. The intuitive platform
deployment of channels. During the year in review, we
gives options and saves you the stress of filling the
were able to launch the following:
form again if you have purchased a policy with Wapic.

• An Integration Platform: We completed an integration • Notification Engine: We deployed the notification
platform that connects various partners to Wapic
engine that gives customers continuous updates of
insurance through the newly deployed WapX
their journey with the company. It includes various
platform. This integration platform has application
notifications on policy purchase, renewals, payment,
programming interfaces (APIs) that enable instant
claims status and various others. The platform also
communication between us and partners such as
directs customers to our self-service platforms.
Insurance Companies, Banks, FINTECH and Payment

Switches, Mapfre Insurance (our international

28 Annual Report & Accounts 2018

Technology and Innovation

The future gets brighter as we work on various digital inform you that the redundancies put in place by your
initiatives in 2019. Some of the digital channels to be company is able to support the business during any crisis.
launched in the New Year include: We have in addition, deployed more of our applications to
the cloud using the Microsoft Azure platform. Microsoft
• Mobile Insurance Application for Agents: We have has made your company one of the premium sites to prove
commenced work on a digital platform for our agents. the workability of her platform in Nigeria and we remain
We believe our customers keep us in business and they a reference point for others. The deployment to the cloud
deserve the best experience. Hence the platform has gives the company better agility, stability and resilience.
inbuilt artificial intelligence that help agents select the
best products for our customers. This platform will Whilst we are not compelled by any regulation, your
enable our agents become financial services advisors company is also ensuring that the IT platforms are
to our customers. The application also enables agents’ compliant with certain global standards. The following are
up-sell and cross-sell, provides instant payment already at various stages in the company:
options, empowers agents save quotes for customers
and continue from where they stopped. The platform • IT Infrastructure Library (ITIL) Compliance and
also gives Wapic the capacity to provide better risk- Certification: We have trained a majority of the IT staff
based pricing to our customers. and ensured they passed their certification exams for
the global ITIL standards. Thus, the type of service
• Mobile Insurance Application for Customers: We management provided is in alignment to the standards.
have also commenced work on the mobile insurance We have an IT Service Desk Tool, installed Change and
application for customers. This platform complements Configuration Management and commenced within
the agents’ platform. It enables us provide a refreshing the year the Change Advisory Board (CAB) in line
digital experience for our customers. The application with global standards. Compliance with this standard
in addition to normal insurance products (policy, means internal customers and by extension, our
claims and investments) provides customers means external customers now experience improved service
of accessing their relationship managers in Wapic; delivery.
refer friends and family, view loyalty points and
other benefits. The platform also has inbuilt artificial • ISO27001 Compliance: We have commenced
intelligence to enable customers make the best choice. compliance with this standard, which is for Information
We have integrated the Mobile application directly to Security.
our internal processing platforms.
• ISO 22301 Compliance: We have also commenced
• A Portal to enable Self-Service for Brokers: we compliance with the global standard for Business
have included the Brokers in the ongoing digital Continuity Management.
transformation in your company. We have commenced
the portal for the brokers. The portal enables brokers Looking Into The Future
transact with Wapic with ease anytime, anywhere
and every time. To enable Wapic deliver on the With these foundational systems and the major
expectations of brokers, we have included these cadre transformations happening in the company, the Digital
of partners in the development process of these new and Technology Services team are excited about the future
capabilities. The portal would ensure that our brokers of the company. We will ensure we continue to improve on
deliver optimal service to their customers. our current services and bring the planned value of these
platforms to our stakeholders. Having commenced the
Running The Company new 5-year strategy of the company, we believe we remain
at the core of the future Wapic; and we will not rest on our
Our Information Technology team ensures that the oars.
company keeps running. In today’s corporate world,
Information Technology is not just a major enabler, but It is our goal to be the benchmark for innovation in the
also a distinct catalyst towards delivering premium service insurance industry in Nigeria as well as other regions
to customers. The year 2018 was a year of stabilizing our by consolidating on the platforms, people and processes
newly deployed technology platform. We strengthened enabled by the new systems we are working on. We will
the IT Team via various trainings and the addition of new also ensure that the platforms are customer-focussed.
Executive Trainees (ETs) from the Wapic’s unique Entry The business will also be more data driven and we have
Level Training Program (a one of a kind in the insurance deployed a data warehouse to collate data from various
industry). These new ETs are trained both locally and internal and external sources. The aim is to ensure that
internationally and we are glad to tell you that they are we work with the Data Architects to derive better value
already deploying and supporting our platforms. through business-driven analytics program. While creating
these new capabilities, we will keep our eyes on the ball
To ensure redundancies, we ran disaster recovery (DR) and ensure the systems remain stable and risk-free
simulations four (4) times during the year and we can

Annual Report & Accounts 2018 29

Technology and Innovation Technology and Innovation

Our People,
Culture and Diversity

Wapic places a high value on its employees who are crucial to our success in attaining our vision. In
Wapic, we ensure that every employee has a sense of belonging and believe they have equal opportunity
to succeed.

Wapic places a high value on its employees; our employ-
ees are crucial to our success in attaining our vision. We
ensure that every employee has a sense of belonging and
the belief that they have equal opportunity to succeed.
We embrace diverse backgrounds and perspectives of
employees, which cuts across various cultural and ethnic
backgrounds to create a unique environment for inno-
vation and creativity. This diversity enables the compa-
ny gain access to a wide pool of talents while striving to
achieve its business objectives.

For the period ended December 31, 2018 the company
had a staff strength of 189 Professional Staff across Nige-
ria and Ghana.

Diversity and Inclusion Age Distribution

We strive for diversity and inclusion in all facets of the We have a young and vibrant workforce which provides
workforce; our staff composition shows no bias for gender the opportunity to tap into the creative and fresh perspec-
and nationality. Women are represented at both Board tives from young minds while also utilizing the knowledge
and Senior Management levels constituting 21% and 29% base of the more experienced employees. We currently
respectively. have 68% of our workforce below 35 years old. Our objec-
tive is to ensure effective succession planning, sustainabil-
30 ity and business continuity.

Annual Report & Accounts 2018

Age Distribution Technology and Innovation

100

80

60
83

40

20 35 28 14 17
11

0

25 25-30 31-35 36-40 41-45 46 and
Years Years Years Years Years Above

Employee Engagement

As part of our People Leadership intent, team bonding ac-
tivities such as Thank God It’s Friday (TGIF), HR Day, End
of Year Party, International Women’s Day (IWD), Retreats
amongst others are regularly organized. There were sever-
al employee engagement sessions during the year aimed at
fostering improved and open communication among em-
ployees across the Group and learnings from the sessions
were implemented to ensure that Wapic attains its desire
to become an employer of choice

Annual Report & Accounts 2018 31

Technology and Innovation

Career Development

Wapic views its people as its most valuable asset, there- Wapic
fore we provide a unique and experiential learning envi- Insurance
ronment where all employees can develop valuable skills,
learn from colleagues while contributing to business 49%
growth. This principle is applied at all levels and across
all functions. At Wapic, we are committed to developing
and empowering our staff with requisite training and de-
velopment.

Wapic boasts of a best-in-class Insurance Training School
-“The Wapic Academy” which is an intensive 4-month En-
try Level Training Programme (ELTP) for fresh graduates.

The ELTP has produced 120 highly skilled professionals
across Nigeria and Ghana since its inception in 2012 as
shown below:

Number of Entry Level professionals Female
29%
30 24 23 15 15 89
25 0 4 0 14 2018 Capacity Development
20 25
15 We employ the hybrid learning approach which ensures
10 that our employees have several ways in which they can
acquire the knowledge and expertise needed to transform
5 the organization. Our employees are constantly encour-
aged to take relevant certification examinations. Majority
0 of our workforce are professionally certified in their vari-
ous roles and also seek professional certifications in areas
0 of interest relevant to the organisation. Some non-techni-
cal staff attended a 3-month Insurance Foundation Course
2012 2013 2015 2016 2017 with West African Insurance Institute to further strength-
en their understanding of insurance.
Nigeria Ghana

Furthermore, we have a reinsurance partnership with in-
ternational reinsurance companies such as Munich Re and
Swiss Re. This strategic partnership has given our staff the
opportunity to attend international reinsurance trainings.

Wapic also entered into a strategic partnership arrange-
ment with Lagos Business School to run a 3-year Man-
agement Development Programme which focuses on en-
hancing and optimizing the managerial and leadership
capabilities of employees from Assistant Manager to Dep-
uty General Manager cadre. This programme is aimed at
the development of selected officers to function at compe-
tency levels required for their roles and guide their reports
in the achievement of their organizational goals as well as
their personal development plans.

Mentoring

Wapic has a mentorship programme that provides a stim-
ulating environment for our employees by assigning men-
tors to our ELTP graduates upon resumption in the orga-
nization. This helps in providing guidance and advice to
enable then grow professionally. We also encourage our
employees to have mentors within the organisation.

32 Annual Report & Accounts 2018

Technology and Innovation

Culture standing the importance of culture in the attainment of

the overall Corporate goals and aspirations especially as
The Company embarked on a Culture and Organization- we run off the current 5-year Strategy and prepare for the
al reorientation programme during the 2018 Half Year next phase of the Company’s life. Employees were exposed
Strategy Retreat held on August, 2018 with a view to in- to the Framework for creating and institutionalizing a
stitutionalizing an enduring Corporate Culture in Wapic. winning culture, and the Competing Values Framework

e The retreat was organized to assist employees in under- that exist in financial institutions and their implications
on the company.

Annual Report & Accounts 2018 33

Technology and Innovation

34 Annual Report & Accounts 2018

Technology and Innovation

Sustainability
Report

Wapic is uniquely positioning itself to address the envi- more innovative, productive and competitive through the
ronmental, social, and governance (ESG) challenges in its application of this principle.
roles as a leading risk manager, risk carrier, and investor.
There are many reasons why environmental and human Our Sustainability Journey
rights risks are significant for the insurance industry and
Wapic, in its continued strive to remain a frontrunner in In 2014, Wapic Insurance Plc redefined its corporate phi-
the industry, is committed to leading the course of maxi- losophy with a Vision to “transform and illuminate the in-
mizing every opportunity within these identified changes surance industry for the benefit of our customers and other
rather than see them as destructive. These efforts are in- stakeholders” and a Mission “to lead in all that is worthy”.
deed opening up new frontiers for us in the volatile, yet This Vision and Mission Statement is hinged on and driven
growing local, national and global economies. by a set of 7 Core Values of Excellence, Innovation, Profes-
sionalism, Teamwork, Leadership, Empathy and Sustain-
At Wapic, we believe that building a sustainable business ability.
is the way to go, thus have entrenched sustainability into
the core of our business by supporting successful compa- As an insurance company, our core function is to midwife
nies and communities in every market we operate. This transfer of risk and this requires that we play a critical role
we achieve by investing in child education, promoting and in understanding and mitigating the adverse economic,
protecting human rights and ensuring a healthy and ful- social and environmental consequences of financial loss-
filling working environment for our employees. We con- es arising from fortuitous events, and which may impact,
sistently support and finance sustainable socio-economic whether directly or indirectly, the company’s business re-
growth by leading the way in financial inclusion, helping to sults, reputation and/or its relationship with stakeholders.
develop enterprises and being at the forefront of progres-
sive initiatives in support of sustainability. Wapic’s vision and mission are forward looking and pro-
vide the necessary backbone to keep the company sustain-
We continue to increase the efficiency of our operations able and on track to progressively deliver prosperity to our
by adopting digital and technology practices that benefit investors, community and people. As such, Wapic’s inno-
our business and customer fulfilment objectives, as well vation, production and competitive advantage is steadily
as positively impact our environment. Our ongoing dig- growing because of the conscious application of sustain-
ital transformation drive will have a huge positive effect ability principles
in all spheres of our business operations. For example the
ongoing initiative to transition from paper-based policies Following various initiatives and activities by Wapic in the
and operations, to digitalized sales fulfilment / documents years before 2017, it seemed to be that sustainability was
will make Wapic more environment-friendly and save cost thought to be about partnerships and corporate sponsor-
as well as time. In addition to the benefits of online direct ships only. While these are indeed effective components of
purchases of insurance, it will offer our customers end-to- sustainability they do not suffice. Hence, Wapic has pro-
end digital process by servicing claims, provision of online gressively sought to put sustainability at the core of the
quotes, which will greatly increase customer experience. business through risk management and underwriting.
Our commitment to sustainability issues has helped po-
sition us as the leading insurance company in the subject Wapic is also aligning with national and international as-
matter across the nation. sociations and organizations that promote sustainability.

Wapic demonstrates its passion for sustainability by In due time, the company will become signatory to, and
having it as one of its core values and promises to be
35
Annual Report & Accounts 2018

Technology and Innovation

comply with international principles and agreements such hancing its capital and providing long term value to share-
as the Principles for Sustainable Insurance (PSI). holders without compromising our core commitment to
social and environmental good. Our sustainability focus
Sustainability Focus Areas: therefore includes the following:

Wapic is determined to build an enduring legacy by en-

Sustainable Economies Sustainable Societies Sustainable
Environment
1. Economic impact and performance 1. Corporate social investment
2. Capacity building 2. Ethics, compliance and 1. Energy efficiency
3. Micro-insurance 2. Resource efficiency
4. Financial inclusion corruption 3. Electronic waste
5. Supplier development 3. Human rights 4. Logistics and Business travel
6. Enterprise 4. Customer security and privacy
management
5. Water management

Sustainability in Wapic: Leveraging on strategic partnerships, Wapic has made
valuable social contributions via active participation in, and
Wapic’s sustainability trajectory has taken shape over the philanthropic sponsorships of social initiatives. In recent
years, starting with strategic partnerships that showed the times, Wapic has harmonized corporate responsibility and
company’s interest in, and firm commitment to influencing sustainability to drive all business operations, providing a
social good. central purpose and direction towards the thematic areas of
Health, Education and Environment.

Strategic Sponsorships Corporate
Partnership and Donations Responsibility &

Sustainability

1. Corporate philosophy redefined with a 1. CSR & Employee Volunteering fully adopted Wapic-wide with
forward looking vision and mission Focus on Education, Health and Environment

2. Established Corporate Responsibility 2. Company processes and office building aligned with international
and Sustainability function sustainability standards

3. Formed strategic partnerships with 3. Helping promote responsible exploitation of the world’s forest re-
organizations such as Friends of Af- sources by sourcing for papers that are Forest Stewardship certified
rica, Global Fund, GBCHealth Cama,
UNITAID and NiBucca 4. Introduction of an ADR Ombudsman function
5. Employee Volunteering Programme impacted about 1,500 lives
4. Development of the Anti-bribery and 6. The Company in conjunction with NIBUCCA facilitated a peer-to-
Corruption Policy
peer malaria training for about 50 members of staff
7. The Company in conjunction with the Island Maternity Hospital

conducted a seminar on Maternal Mortality to about 200 nursing
and pregnant women

2012 2014 2015 2016 2017

1. Business operated on high ethical 1. Commenced process to integrate 1. ESG due diligence assess-
standards, respect for human rights ESG issues into all facets of company ment conducted
and support for the society activities
2. Next phase of company
2. Development of the Ethics and 2. Extensive gap analysis on current Corporate Responsibility
Whistleblowing Policy Sustainability focus and Sustainability goals
developed
3. Top Management commitment to 3. CSR Committee constituted
Sustainable Insurance Principles till 4. Development and approval of a robust Annual Report & Accounts 2018
date
CSR strategy
4. Development of the Enterprise Risk
Management Framework

36

Technology and Innovation

S/N PARTNERSHIPS and PARTICIPATIONS IMPACT

1 On May 7, 2014, Wapic partnered with Roll Back • Re-emphasize Wapic’s commitment to improving

Malaria, UNITAID and The Global Fund to provide healthcare and fighting HIV/AIDS, TB and other

a platform for strategic discussions on health and major health challenges in Nigeria and Africa

financing innovations as it relates to Africa. The • Positions Wapic as a key player in the domestic

event was tagged the “Africa Health Innovation responses to improving the wellbeing and health

Meeting”. systems in Nigeria and Africa

• Endears Wapic to the group of key international

organizations seeking partnership in domestic

financing

2 Wapic partnered with the Federal Ministry of Trade Shows Wapic to be investing in building capacity of

and Investment and The Small and Medium Enter- MSMEs on how to:

prises Development Agency of Nigeria (SMEDAN) • Access and/or increase business capital

to organize a one day National SMEs summit / • Ensure business relevance and survival through con-

workshop. tinuous research & development

• Connect to proven business mentors from the public,

social and private sectors

• Go about marketing, branding, employee engage-

ment and other business processes

• Design and implement policies including Health and

Safety

3 Wapic participated at GBC Health CAMA Sustain- Reemphasized Wapic’s commitment to national health
ability Event, which was a one day private-sector and mitigating health issues such as:Malaria Control in
targeted workshop tagged “Capitalizing on Compe- support of Maternal Child Health Goals
tencies: Partnering to Eliminate Malaria to Acceler- • Overcoming barriers to Malaria Elimination in Africa
ate Impact on Maternal and Child Health MDGs • Increasing Investments for Malaria Control and
Elimination
• Malaria Diagnosis and Treatment

Sponsorship and Donations: occupants. Commissioned in December 2016, Wapic’s
corporate head office showcases the company’s sustainable
Wapic is a responsible investor dedicated to building as- future. The building has been designed to conserve and
sets in ways that contribute to a more sustainable future. In efficiently utilize energy, water and other resources. Noise
sponsoring and donations, focus is on Education, Health, and waste pollution are controlled, and the building boasts
Environment, Arts and Sports. Since 2016, Wapic has lev- of natural light and cross ventilation.
eraged on employee volunteering to drive this process, with
intent to over time expand to grander community giving The corporate head office is an extension of Wapic’s belief
programs on business aligned projects such as safety, risk that the Insurance industry must lead in causes that uphold
the values of environmental and business sustainability.
management, disaster resilience and response.
Value Delivery:
Wapic Green Building:
Driving sustainability would afford Wapic a number of ben-
Green buildings seek to reduce adverse effects on the efits across board. Such benefits include:
environment, whilst maintaining the wellbeing of the

Increasing Revenue Reducing Costs Brand & Firm Building Reducing Risks
•
• New products and • Reduced costs from • Improved customer • Reduced regulatory
more efficient oper- brand perception risks and costs
services ating model and trust
• Increased customer • Reduced risks of bad
• Reduced resource • Higher brand value loans and reputa-
base through new consumption • Higher ratings in tional costs through
market segments ESG
• Increased balance • Reduced customer sustainability rank-
sheet costs ings • Reduced uncertainty
• Greater access to • Improved employee, of risks
markets through • Reduced cost of stakeholder
established social sustainability and regulator • Reduced risk of
license to innovate performance relationships systemic industry
and grow management and • Winning failure
reporting through sustainability awards
Annual Report & Accounts 2018 improved technology 37
•
•

Technology and Innovation

Human Rights And Employee Standards and discourages unethical actions. In order to drive the
message on Anti-Corruption, we ensure all Wapic employ-
We strongly believe that everyone has the right to be free ees, including newly recruited personnel, agree and sign a
from discrimination in employment, thus at Wapic, we written declaration of commitment to the Code of Ethics
demonstrates respect for human rights and all related and Business Conducts of the Organization. Furthermore,
principles on the subject matter. This includes a duty to the Anti-Bribery and Corruption Policy has been added
take all reasonable steps to avoid a bias judgment based to the group of documents shared with new employees
on employee personal characteristic like race, color, sex, during the recruitment process, to raise their awareness
marital status, etc. of anti-bribery and corruption issues. In order to further
broaden employee awareness on the issue, employees are
We demonstrate our respect for the rights of all people, reminded of the rules of ethical conduct on a weekly basis
through our gender-inclusive, equal opportunities and via emails.
non-discriminatory workplace culture. We respect the
rights of all people, men, women, old, young, people liv- In addition, the Wapic demonstrates its continuous com-
ing with HIV/AIDS (PLWHA), disabled, amongst others, mitment to ethical practices by working with leading insti-
alike. In addition, we also support human rights compli- tutions to build capacity for ethical behaviour amongst its
ance through our financial decisions and supply chain employees. In order to enable staff and other members of
relationships. Through our human resources functions, the public to report unethical activities affecting the Com-
we continued to monitor and raise internal human rights pany, we continue to create awareness about our robust
awareness through formal and informal training amongst whistleblowing system. This has enabled our internal and
employees and management. We also continue to maintain external stakeholders to report unethical activities affect-
our grievance instrument on human rights, among other ing the Company thereby curbing them before they esca-
issues, through our whistleblowing line, through which late into major business threats and liabilities.
our internal and external stakeholders can report any hu-
man rights abuses. The availability of this line has strongly Details of the whistleblowing channels are provided below:
guarded and prevented members of the organization from
indulging in human rights abuses. Telephone

Stakeholder Engagements Toll free numbers for calls from Airtel numbers only:
0808-822-8888 0708-060-1222
Wapic Insurance Plc recognize stakeholder engagement Toll free numbers for calls from 9Mobile numbers only:
as the most important ingredients for successful project 0809-933-6366
delivery. Therefore the organization constantly involves Email
its employees, customers, investors, regulators and com- [email protected].
munities who may be affected by the decisions we make
and can influence the implementation of its decisions. In Stakeholder Inclusiveness
engaging, Wapic communicates the Company’s strategies
and policies through different channels such as the corpo-
rate website, customer surveys, events, focus groups, Town
Hall meetings, business forums, publications, social media
and discussions.

We also communicate these policies and strategies to our In Wapic, sustainability is integrated into the company’s
shareholders through our annual reports and accounts, overall strategy, with focus on satisfying the interests of
public announcement of quarterly results and analysts its stakeholders and investors, communities, environ-
conferences, Annual General Meetings (AGMs), etc. We mental organizations, suppliers and regulatory bodies.
communicate our sustainability policies and strategies to Wapic therefore integrates Environmental, Social and
our suppliers through e-mails and letters, forums, events Governance considerations into its business practices and
and exhibitions, meetings, etc. To our communities, we decision making processes. The Company among other
communicate our sustainability policies and strategies things,
through community outreaches, our employee volun-
teering initiatives, partnerships with community- facing 1. Engages only in responsible insurance
Non-Governmental Organizations (NGOs), charitable do- practices, marketing and advertising to our
nations and sponsorships. With our regulators, we com- customers while ensuring that our products and
municate through – regulatory consultations, Industry services are value-adding and accessible
working groups and committee meetings, onsite meetings/
supervisory visits by representatives of regulatory bodies 2. Creates sustainable value for its shareholders
and so on. while ensuring high level of corporate
governance.
Ethics, Anti-Corruption & Whistleblowing

At Wapic, we consistently ensure high ethical standards
and integrity in all our practices. We continue to educate
our staff on the importance of ethical conduct, while main-
taining a corporate culture that rewards honest practices

38 Annual Report & Accounts 2018

Technology and Innovation

3. Remain an equal opportunity employer, 4. Positively contribute to the economic
engaging only in fair practices and development of the cities where it operates
promoting diversity while while also engaging in community development
ensuring rewarding career opportunities, initiatives to make the society a better place for
training and attractive working individuals and business organizations.
conditions for employees.

Below are some of the issues raised by stakeholders and how the Company addressed them:

Stakeholders Material Issues Our Responses
Employees Raised
We provided diverse platforms to build capacity of our employees and in
• More recent times engaged different levels of officers and managers in capacity
Capacity development especially in sustainability which includes trainings like:
Development NSE- GRI sustainability Reporting Implementation workshop, Certification
opportunities Course on Sustainability Impact Measurements –GRI Standards by CSR-IN-
Action, Intercontinental sustainability Conference by Lagos Business School
Environmental & Social Risk Management (ESRM) training by IFC.

We also have active Mentorship program and ongoing performance reviews to
ensure employees are always performing optimally

Customers • Long wait • Automation of Contact Centre for efficient communication with customers

time to speak
to an agent • Recruitment of more Contact Centre staff to reduce waiting time

• High TAT • Publication of Insurance education series via e-mail and social media
handles to increase customers knowledge of relevant insurance terms and
• Poor practices
knowledge
of insurance • Efficient notification engine which sends out payment / renewal
terms notifications

• Lack of • Set up of claims care desk to reduce TAT of claims settlement
adequate
follow-ups • Set up of Ombudsman desk for objective resolution of customer disputes

• Wapic is currently overhauling its operations to become more efficient
through the help of automation and artificial intelligence.

Our • Trust in • We publish our claims records to create awareness about the realities of
Communities
Insurance insurance.

Sector • We invest in insurance education at different levels by partnering with

• Mortality schools to deliver thought leaderships to students on insurance and

Rates and financial literacy as well as via other media channels.

Infant Health • We partner with community health care centers and provide supports

Care to them in the area of hospital equipment and basic amenities so as to

ensure nursing mothers and pregnant women get the basic health care

they deserve.

Regulatory • Financial • Wapic ensures compliance with regulatory requirements of the
Bodies
Sustainability National Insurance Commission (NAICOM), the Security and Exchange

• Ethics and Commission and other relevant regulators.

Integrity • We invest in improving our digital infrastructure to ensure that our

processes and administrative activities are properly monitored.

• We also invested in developing the skills of our employees and partner
organizations through training on anti-corruption, bribery and money-
laundering.

Annual Report & Accounts 2018 39

Technology and Innovation

Investing In The Community Malaria by 2030” involved the distribution of 400 pieces
of Long Lasting Insecticide Treated Mosquito nets to fam-
Wapic Insurance Plc. work with communities and ilies, with priority on pregnant women and women with
non-governmental organizations to implement social in- babies. In 2018, Wapic Insurance Plc. took the relation-
vestment programs that can have sustainable beneficial ship a step further by partnering with the organizers of
impact. We believe in adding values to the community in this program which was in its 6th year in 2018, to spend
which we operate. The Company contributes to the devel- Christmas day in Makoko, sharing in the joy of the season
opment of vibrant and sustainable communities by devel- and above all, extending much needed relief and hope to
oping interdependent relationships, based on common the Makoko locals.
pursuits.
The Christmas on the Streetz is a humanitarian relief pro-
As a leading Insurance company, we believe in adding val- gram. It is an open style, music festival oriented cookout
ues to the community in which we operate. We invest in that brings millennials, young adults and brands like Wa-
community projects that align with local needs, our busi- pic together to celebrate the spirit of Christmas. Wapic’s
ness activities and supports the organization’s Sustain- objective for partaking in this exercise was to create a fun
able Development Goals. Wapic subscribes to the highest Christmas event where residents of Makoko can share in
level as corporate citizens and works to develop, imple- the Christmas cheer and converge to enjoy, great music,
ment or contribute to health, educational, and environ- connect with new friends and party in a relaxed atmo-
mental related programs focused on local communities’ sphere, provide free quality medical checkups and relief
needs and desires. items for the less privileged in Makoko whilst projecting
Wapic as a caring organization with lots of goodwill.

Employee Volunteering and CSR Christmas on the Streetz program includes the following
activities:

Wapic employee volunteer program is a planned and 1. the sharing of food and drinks
managed effort that seeks to stimulate and enable em-
ployees to effectively volunteer under the official sponsor- 2. the sharing of relief items such as shoes, soap,
ship and leadership of the company. With this, employees clothes etc.,
are encouraged to contribute to the socio-economic devel-
opment of the nation which in turn brings them self fulfil- 3. Medical checkups of locals in the community es
ment and job satisfaction. Purpose-filled work is such an pecially their adult men and women
essential quality for most job seekers these days, especial-
ly Millennials, and volunteer programs such as this serve 4. Music and entertainment
as a rich pipeline to nourish Wapic corporate culture of
giving back.

Implementing volunteer programs has been an effective
way to help Wapic employees develop skills which is, in
turn, beneficial to their job performance. Wapic employ-
ees agree that volunteering is useful to developing leader-
ship, communication and problem-solving skills as well
as learning to be a team player.

Wapic Insurance Plc. is proud of the brand ambassadors
which its employee volunteering program has created
over the years and the positive impact its staff have made
in the workplace and in Nigerian communities.

The process of investing in the communities involve stake-
holder engagement whereby the Company evaluates and
addresses community issues in the listed priority areas of
Health, Education and Environment. We provide support
for the community in the area of finance, employee time
and gifts. Below are some of the ways Wapic has invested
in the community as an organization:

Christmas on the Streets: Annual Report & Accounts 2018

Wapic Insurance Plc. Technical team had since 2017 pig-
gybacked on the Christmas On the Streetz, a program or-
ganized yearly in Makoko Lagos by Africa Disaster Rescue
Initiative since 2012 as part of their employee volunteer-
ing activity for the year. The initiative tagged “Ending

40

Technology and Innovation

Playwright Competition: ously projecting theatre as a viable contemporary art form,
showcasing new writing and promoting new playwrights
In 2018, as part of the sustainability Arts and Educa- to encourage growth in the industry. The vision of this
tion goals, Wapic invested in a mission to safeguard the foundation is in alignment with one of Wapic’s Corporate
Nigerian literary arts, by projecting young writers to fill Social Responsibility strategic goals which is to contribute
the vacuum we currently have for the next generation of to educational related programs. Wapic looks forward to a
playwrights. Wapic is achieving this in collaboration with bigger outreach through this partnership which will con-
Beeta Universal Arts Foundation, a Nigerian organization tinually inspire young Nigerians positively to secure local
focused on Theatre and Art Education. The organization is accounts of our history through compelling play writing
poised to develop theatre in modern Nigeria by continu- and celebrating of Nigerian culture through literature

Annual lights, Camera, Africa Film Festi- Wapic is glad to have supported the 2018 Lights Camera,
val: Africa Film Festival themed “Who Do You Think You Are”,
a theme which seeks to facilitate interrogations of self and
In line with Wapic’s CSR and Sustainability Strategy, Arts more reflective perspectives of our humanity. The Festival
is recognized as one of the company’s sustainability focal which was created in 2011 aims at stimulating discourse on
points because it encompasses all the developmental do- issues and experiences that are rooted in the African expe-
mains of humanity. It is a language that all people speak rience. During the festival, diverse range of African stories
which cuts across racial, cultural, social, educational and produced in form of documentaries, Animations and Dra-
economic barriers and enhances cultural appreciation. It ma are filmed; supporting the works of emerging African
is also a tool that is used to reach out and connect with film makers.
humanity.
41
Annual Report & Accounts 2018

Technology and Innovation

Operation save the Children tion by motivating its staff to contribute to this course. As
we know, Children are the leaders of tomorrow and deserve
Beneficiaries: Lagos Island Maternity Hospital all the support that they can get. Wapic is committed to giv-
ing every child a fighting chance and this was demonstrated
The United Nations International Children’s Emergency through its Sales division’s health intervention campaign
Fund (UNICEF), has ranked Nigeria 11th position on new- themed “Operation save the Child” in partnership with La-
born deaths globally. “With the newborn mortality rate of gos Island Maternity Centre. The objective is to continu-
29 deaths per 1,000 births, the global estimates rank Nige- ously raise awareness and educate the society on the need
ria as the 11th highest on newborn deaths. The above reports to intervene on our escalating child mortality rate. Wapic
on Nigeria new born mortality rate is a clear indication of also provided for free, invaluable medical supplies such as
the need for continued investment in the Nigerian health Bedside Lockers, Electronic Sphygmomanometer, Patients
sector, especially as it pertains to child birth and child care. Screen, Infrared Thermometers, pillows and bed sheets to
Wapic has, for years, given health matters premium atten- the clinic.

Caring for the Expectant and Nursing Ajegunle Primary Health Centre, Ikorodu. This drive was
Mothers: born after the observation that the health centers in that
community lark adequate sitting equipment and as such
Beneficiaries: Idera/ Ajegunle Primary Health Centre, nursing / pregnant mothers have to stand or squat around
Ikorodu for hours waiting to be seen by a doctor. Wapic provided
metal chairs to cater to over 100 mothers who use the hos-
In furtherance of Wapic’s commitment to providing qual- pital on a daily basis to save them from undue hardship
ity healthcare service to Nigerian communities, its Tech- and also shared with them some health care tips for their
nical division embarked on a drive to offer support to Ex- babies.
pectant and Nursing Mothers in partnership with Idera/

42 Annual Report & Accounts 2018

Technology and Innovation

Annual Report & Accounts 2018 Annual Report & Account4s 23018

Technology and Innovation

Risk Management

Introduction and Overview

Wapic Insurance Plc applies an entity-wide approach to The Group’s risk management had maintained a strong
its risk management process such that both prevailing and sustained focus on planning for the possibility
and emerging risks are proactively identified and of, and ultimately managing the market volatility and
appropriate measures are taken to reduce the likelihood macroeconomic uncertainty. Our well-established risk
of the downside risk while developing the opportunities governance structure and experienced risk team has
inherent in the risks, thus creating value. Wapic has a allowed us to control successfully risk exposures to the
robust risk management framework, which has been Group throughout the year.
designed along with the requirements of NAICOM. The
Group’s risk management framework clearly identifies, In order to exceed our customers and other stakeholders’
assesses, monitors, evaluates and manages the principle expectations, the Group ensures that adequate capital
risks it assumes in conducting its activities. (economic or regulatory) is held at all times. In making
business decisions on risk capital, the Group’s risk profile
and cost of capital are considered. The capital position
In 2018, the Nigeria economy witnessed a marginal of Wapic is closely monitored and regular stress tests
improvement at the beginning of the year but slowed (standardized and historical stress test scenarios) are
down in the second quarter. The economic growth applied. This allows the Group to take appropriate measure
improved again in the third quarter, which was sustained to safeguard its continued capital and solvency strength.
by improved dynamics in both the oil and non-oil sectors.
Further breakdown indicates that Q3-2018 GDP recovery
was driven by a 2.32% YoY growth in non-oil GDP, which As Risk management is part of our culture in Wapic,
compensated for the plunge in oil GDP into technical workshops were conducted Group-wide during the year
recession (Q3-2018: -2.91% YoY) in the quarter. on Economic Capital, Capital Management, Risk-Adjusted
Performance Measures and Own Risk Solvency Assessment
In the past six years, the risk management system has been (ORSA) with a view to grow the risk culture maturity level
enhanced to align its operations to the Group’s approved across the Group on risk and capital.
risk appetite. The Group has taken risk management as
an integral part of its operations and business activities. The Group’s adequate risk policies and procedures for the
The Group is continuously optimizing its risk management management of material risks were reviewed within the
framework, standardizing its risk management procedures, period under review. The country’s political risk is elevated,
and adopting both qualitative and quantitative risk as the 2018 was a pre-election year, which experienced
management methodologies to identify, evaluate and heightened business and policy uncertainties. The effect
mitigate risks. A robust risk management system is of a tight monetary, fiscal and liquidity policy pursued by
maintained to support our decision-making and facilitate Government were felt in the economy. Wapic has a well-
the effective, sustainable and healthy growth of the Group, tested enterprise-wide risk management framework, and
in transforming and illuminating the insurance industry. this proved pivotal in anticipating the risks arising from
macroeconomic. This enabled early intervention measures
Our risk management framework provides essential are taken, whilst remaining positioned to take advantage
tools to enable us take timely and informed decisions to of emerging opportunities.
maximize opportunities and mitigate potential threats.

44 Annual Report & Accounts 2018

Technology and Innovation

Assisting our shareholders to achieve their ambitions • Understand the nature of the risks we are taking,
lies at the heart of our processes as we apply tailored and what range of outcomes could be under various
risk management framework in identifying, assessing, scenarios, for taking these risks;
monitoring, controlling and reporting the inherent and
residual risks associated with the pursuit of these ambitions • Understand the capital required in order to assume
and ensuring they are achieved the right way. We help in these risks;
connecting our customers to opportunities through our
affirmed promise of risk insured rest assured. • Understand the range of returns that we can earn on
the capital required to back risks; and
The Group’s overall risk tolerance is established in the
context of our earnings power, capital, and diversified • Attempt to optimize the risk-adjusted rate of return
business model. The Group’s organizational structure and we can earn. This is through reducing the range of
business strategy is aligned with its risk philosophy. As we outcomes and capital required arising from these risks,
navigate through new frontiers in a growth market in the and increasing the certainty of earning an acceptable
ever-dynamic risk universe, proactive ERM framework return.
becomes even more critical. We are committed to continually
push the frontiers of overall risk profile whilst remaining
responsive to the ever-dynamic risk universe. The Group’s objective of balancing risk, return and
capital has enhanced substantially our risk management
The Group’s risk management architecture, as designed, methodologies. This enables the Group to identify threats,
continued to balance corporate oversight with well-defined uncertainties and opportunities and in turn develop
risk management functions, which fall into one of three mitigation and management strategies to achieve an
categories where risk must be managed: lines of business, optimal outcome.
governance and control and corporate audit. The Board of
Directors and management are committed to constantly Value is added for shareholders if our process allows us to
establishing, implementing and sustaining tested practices demonstrate sustainable risk-adjusted returns in excess
in risk management to align with those of leading of our cost of capital. The process provides security to our
international insurance companies. We are committed that capital providers and clients by assuring them that we are
the long-term sustainability of the Group depends critically not taking on incremental risks, which adversely affect the
on the proper governance and effective management of our outcomes we have contracted to deliver to them.
business. As such, risk management occupies a significant
position of relevance and importance in the Group. Enterprise-wide Scenario and Stress
Testing
The role of the Chief Risk Officer in the Group remains
pivotal, as he has the primary responsibility for ensuring We use robust and appropriate scenario stress testing to
the effective implementation of the ERM Framework for assess the potential impact on the Group’s capital adequacy
both the Group and its subsidiaries. The Group’s ERM and strategic plans. Our stress testing and scenario analysis
Framework requires Board approval, whilst the Risk programme is central to the monitoring of strategic and
Management Group is responsible for the enforcement potential risks. It highlights the vulnerabilities of our
of the Group’s risk policy by constantly monitoring risk, business and capital plans to the adverse effects of extreme
with the aim of identifying and quantifying significant risk but plausible events.
exposures and acting upon such exposures as necessary. As a part of our core risk management practice, the
Group conducts enterprise-wide stress tests on a periodic
basis to understand better earnings, capital and liquidity
sensitivities to certain economic scenarios, including
Balancing Risk and Return economic conditions that are more severe than anticipated.
The outcome of the testing and analysis is used to assess
Balancing risk and return and taking cognizance of the the potential impact of the relevant scenarios on the
capital demands rigorous analysis. The ultimate aim is to demand for regulatory capital compared with its available
optimize the opportunities and minimize the threats with capital. These enterprise-wide stress tests provide an
a view to adding value to our shareholders and providing understanding of the potential impacts on our risk profile,
security to our other capital providers and clients, as well capital and liquidity. It generates and considers pertinent
as ensuring overall sustainability in our business activities. and plausible scenarios that have the potential to adversely
Every business activity in the Group requires capital, which affect our business.
is at risk in exchange for the prospect of earning a return. In Stress testing and scenario analysis are used to assess
some activities, the level of return is predictable, whereas in the financial and management capability of the Group to
other activities the level of return can vary over a very wide continue operating effectively under extreme but plausible
spectrum, ranging from a loss to a profit. Accordingly, over trading conditions. Such conditions may arise from
the past years, we have expended substantial energy on economic, legal, political, environmental and social factors.
improving our Risk and Capital Management Framework, Scenarios are carefully selected and impacts on each line
to focus on taking risks where we: of business from each scenario are then analyzed and
determined, primarily leveraging the models and processes
utilized in everyday management routines. Impacts are

Annual Report & Accounts 2018 45

Technology and Innovation

assessed along with potential mitigating actions that may and implementation to its day-to-day activities. In this
be taken in each scenario. The Group would continue to regard, the Group’s risk management philosophy is that
invest in and improve stress-testing capabilities as a core a moderate and guarded risk attitude ensures sustainable
business process. growth in shareholder value and reputation.

• Ensure adherence to regulatory requirements The Group believes that enterprise risk management
• Identify key risks to our strategy, financial position, provides the superior capabilities to identify and assess the
full spectrum of risks and to enable staff at all levels better
and reputation understand and manage risks. This will ensure that:
• Contribute to the setting and monitoring of risk
• Risk acceptance is done in a responsible manner;
appetite • The executive and the Board of the Group have
• Examine the nature and dynamics of the risk profile
adequate risk management support;
and assess the impact of stresses on our profitability • Uncertain outcomes are better anticipated;
and business plans • Risk mitigating actions are implemented;
• Ensure effective governance processes and systems • Accountability is strengthened; and
are in place to co-ordinate and integrate stress testing • Stewardship is enhanced.
Inform senior management
The Group identifies the following attributes as guiding
principles for its risk culture;
Risk Management Philosophy, Culture,
Appetite and Objectives a) Management and culture:

• Consider all forms of risk in decision-making;
Our Risk Culture Statement: • Create and evaluate business-unit and Group-wide

At Wapic, we embrace a moderate risk appetite, whilst risk profile to consider what is best for their individual
delivering strategic objectives. We anticipate the risks in business units/department;
our activities and reward behaviour that aligns with our • Adopt a portfolio view of risk in addition to
core values, controls and regulations. We discuss challenges understanding individual risk elements;
encountered in an open environment of partnership and • Retain ownership and accountability for risk and risk
shared responsibility. management at the business unit or other point of
The Group’s Risk management philosophy and culture influence level;
remain fundamental to the delivery of our strategic • Accept that ERM is mandatory, not optional
objectives. We strive to limit adverse variations in earnings • Strive to achieve best practices in enterprise risk
and capital by managing risk exposures within our management;
moderate risk appetite. Our risk management approach • Document and report all significant risks and
includes minimizing undue concentrations of exposure, enterprise-risk management deficiencies;
limiting potential losses from stress events and the prudent • Adopt a holistic and integrated approach to risk
management of liquidity and capital. management and bring all risks together under one or
a limited number of oversight;
We improved further our risk management process to • Empower risk officers to perform their duties
continue achieving desired results despite the increase professionally and independently without undue
economic uncertainty and in size and scale of operations. interference;
The Group’s risk management is continuously developing • Ensure clear segregation of duties between market
with improvements, as there can be no assurance that facing business units and risk management/control
all market developments, in particular those of extreme functions;
nature, can be fully anticipated at all times. Hence, • Strive to maintain a conservative balance between risk
management has remained closely involved with important and profit considerations; and
risk management initiatives, which have focused on • Continue to demonstrate appropriate standards of
preserving appropriate levels of liquidity and capital, as behaviour in development of strategy and pursuit of
well as managing the risk inherent in the portfolios. objectives.
• Internalize and share the Group’s Risk Culture
Risk management is fundamental to the Group’s decision- Statement and Pledge to affirm commitment to desired
making and management process. It is embedded in the behaviour.
role of all employees through the organizational culture,
thus enhancing the quality of strategic, capital allocation b) Risk officers’ partners with other stakeholders
and day-to-day business decisions. within and outside the Group and are
guided in the exercise of their powers
The Group considers risk management philosophy and by a deep sense of responsibility,
culture as the set of shared beliefs, values, attitudes and professionalism and respect for other parties.
practices that characterize how the Group considers
risk in everything it does, from strategy development

46 Annual Report & Accounts 2018

Technology and Innovation

c) The Group also partners with its customers to credit, market, liquidity, asset and liability management
risks).
improve their attitudes to risk management and
The assessment of the Group’s risk profile is through a
encourage them to build corporate governance ‘bottom-up’ analytical approach covering all of the Group’s
major businesses and products. The Board approves the
culture into their business management risk appetite and it forms the basis for establishing the
risk parameters within which the businesses must operate,
d) Risk management is governed by well-defined including policies, concentration limits and business mix.
The Risk Management function annually review the Risk
policies, which are clearly communicated across Appetite and the Board approves recommended changes
therein.
the Group.
In 2018, tracking and reporting of the risk appetite metrics
e) Equal attention is paid to both quantifiable and against approved triggers and exceptions to management
for prompt corrective actions. Also, reporting and
non-quantifiable risks escalations of key issues and corrective actions taken to the
Enterprise-wide Risk Management Committee and Board
f) The Group avoids products and businesses it does Risk Management Committee.

not understand. Risk Management Objectives

The broad risk management objectives of the Group are:

Strategy and Business Planning • To identify and manage existing and new risks in a

planned and coordinated manner with minimum
Risk management is embedded in our business strategy disruption and cost;
• To protect against unforeseen losses and ensure
and planning cycle. Testament to this is the inclusion stability of earnings;
• To maximize earnings potential and opportunities;
of risk management as one of our strategic priorities. To maximize share price and stakeholder protection;
• To enhance credit ratings and depositor, analyst,
By setting the business and risk strategy, we are able to investor and regulator perception; and
• To develop a risk culture that encourages all staff to
determine appropriate capital allocation and target setting identify risks and associated opportunities and to
respond to them with cost effective actions.
for the Group and each of our businesses.
Risk Categorization

The Group is exposed to an array of risks through its
All business units are required to consider the risk operations. The Group has identified and categorized its
exposure to these broad risks as listed below:
implications of their annual plans. These plans include
• Credit risk
analysis of the impact of objectives on risk exposure. • Operational risk
• Market risk
Throughout the year, business performance is monitored • Liquidity risk
• Underwriting risk
regularly focusing both on financial performance and risk • Strategic risk
• Capital risk
exposure. The aim is to continue the process of integrating • Reputational risk
• Property price risk
risk management into the planning and management • Information Technology (IT) risk

process and to facilitate informed decisions. These risks and the framework for their management
are detailed in the Enterprise-wide Risk Management
Framework.



Through ongoing review, the links between risk appetite,

risk management and strategic planning are embedded in

the business so key decisions are made in the context of the

risk appetite for each business unit.



Risk Appetite



Risk appetite is an articulation and allocation of the risk

capacity or quantum of risk the Group is willing to accept

in pursuit of its strategy, duly set and monitored by the

Executive Committee and the Board, and integrated into

our strategy, business, risk and capital plans. Risk appetite

reflects the Group’s willingness and capacity to absorb

potential losses arising from a range of potential outcomes

under different stress scenarios.



The Group defines its risk appetite in terms of both

volatility of earnings and the maintenance of minimum

regulatory capital requirements under stress scenarios.

Our risk appetite can be expressed in terms of how much

variability of return the Group is prepared to accept in

order to achieve a desired level of result. It is determined

by considering the relationship between risk and return.

We measure and express risk appetite qualitatively and in

terms of quantitative risk metrics. The quantitative metrics

include earnings at risk (or earnings volatility), liquidity

and economic capital adequacy. In addition, a large

variety of risk limits, triggers, ratios, mandates, targets

and guidelines are in place for all the financial risks (e.g.

Annual Report & Accounts 2018 47

Technology and Innovation

Risk Management Responsibilities and Functions subsidiaries and associates

g) Perform competitive analysis in comparison with

The responsibilities of the Risk Management Group, industry peers

the Financial Control and Strategy Group, and other h) Conduct strategic/operational review of branches

key stakeholders with respect to risk management are

highlighted below:

Risk Management Unit – relationship with other

Risk Management Group units



a) Champion the implementation of the ERM The relationships between risk management unit (RMU)

Framework across the Company and subsidiaries. and other units are highlighted below:

b) Develop risk policies, principles, process and

reporting standards that define the Company’s • RMU sets policies and defines risk limits for other

risk strategy and appetite in line with the units in the Company;

Company’s overall business objectives. • RMU performs group-wide risk monitoring and

c) Ensure that controls, skills and systems are in reporting;

place to enable compliance with the • Other units provide relevant data to RMU for risk

Company’s policies and standards, and monitoring and reporting and identify potential

with all regulatory requirement. risks in their line of business and RMU provides a

d) Facilitate the identification, measurement, framework for managing such risks;

assessment, monitoring and control of the level of • RMU and market facing units collaborate in designing

risks in the Company. new products;

e) Embed risk culture in the Company to ensure • RMU and internal audit co-ordinate activities to

that everyone in the Company takes into provide a holistic view of risks across the Group;

consideration Wapic’s risk appetite in whatever • RMU makes recommendations with respect to capital

they do. allocation, pricing and reward/sanctions based on risk

f) Collect, process, verify, monitor and distribute reports; and

risk information across the Company • Information technology support group provides

and other material risk issues to senior relevant user support to the RMU function in respect

management, the Board and regulators. of the various risk management software.

g) Monitor compliance with company-wide risk

policies and limits.

h) Empower Business unit risk champion to Group Risk Oversight Approach

identify, monitor and report on

the effectiveness of risk mitigation plans Our oversight starts with the strategy setting and business

in reducing risk incidence as related to day to day planning process. These plans help us articulate our

activities in the unit. appetite for risk, which is then set as risk appetite limits

i) Ensure that laws, regulations and supervisory for each business unit to work within.

requirements are complied with including

consequence management. The Group’s risk management and compliance division

j) Champion the implementation of Solvency II provides a central oversight of risk management across the

k) Promote risk awareness and provide education Group to ensure that the full spectrum of risks facing the

on risk. Group are properly identified, measured, monitored and

l) Provide assurance on compliance with internal controlled in order to minimize adverse outcomes.

and external policies with respect to risk

management. The division is complemented by the financial control and

regulatory/reputation risk group in the management of

Financial Control and Strategy strategic and reputational risks respectively.



a) Prepare and monitor the implementation of the The Chief Risk Officer coordinates the process of monitoring

Company’s Strategic Plan and reporting risks across the Group. Internal audit has

b) Conduct strategic and operational review of the the responsibility of auditing the risk management and

Company’s activities control function to ensure that all units charged with

c) Conduct regular scanning of the Company’s risk management perform their roles effectively on a

operating environment continuous basis. Audit also tests the adequacy of internal

d) Coordinate and monitor the Company’s rating controls and makes appropriate recommendations where

exercises by external rating agencies there are weaknesses.

e) Prepare business intelligence reports for the

Company’s management

f) Prepare periodic management reports on

48 Annual Report & Accounts 2018

Technology and Innovation

Risk Identification and Classification assets. This usually occurs due to the inability to convert

a security or hard asset to cash without a loss of capital

Credit Risk: and/or income in the process. The Group recognizes the

risk of loss due to insufficient liquid assets to meet cash

Credit risk is the risk of default arising from the uncertainty flow requirements or to fulfill its financial obligation once

of counterparty’s ability to perform its contractual a claim crystallize.

obligations. This may arise from the following but not
limited to premium receivables, reinsurance recoveries,
fund placements in deposit money banks, vendors, and - Funding liquidity risk: Arising from our investment-
fund’s managers. However, in terms of premium payment linked products where there is a financial obligation to
and investments in counterparties, considerable risks exist customers.
that brokers and lead insurers who are allowed extended
payment period may default. - Asset liquidity risk: arising from our financial assets
where we might not be able to execute transactions at
prevailing market price because there is temporarily, no
Operational Risk: appetite for the deal at the other side of the market.


This is the risk of loss resulting from inadequate or Underwriting Risk:
failed internal processes, people and systems or from
external events. This includes legal risk, strategic risk and Underwriting activities are primarily concerned with the
reputational risk. Legal risk includes, but is not limited to, pricing, acceptance and management of risks arising from
exposure to fines, penalties, or punitive damages resulting our contracts with policyholders. It entails the risk that:
from supervisory actions, as well as private settlements.

- The prices charged by the Group for insurance contracts

Market Risk: will be ultimately inadequate to support the future
obligations arising from those contracts, risk exposure
Market risk is the risk that the fair value or future cash flows under its insurance contracts that were unanticipated in
of a financial instrument will fluctuate due to movements in the design and pricing of the insurance contract;
market factors. Volatility frequently refers to the standard

deviation of the change in value of a financial instrument - Risks are not adequately ceded to reinsurers exposing the

with a specific time horizon. Group to potential high claims pay-out;



The Group is exposed to this risk through its financial - Many more claims occur than expected or that some

assets and comprises of: claims that occur are much larger than expected claims

resulting in unexpected losses; and

- Interest rate risk: the risk that the fair value of a fixed
income security will fall as a result of movement in market - The Group’s policyholder will act in ways that are
interest rates. Interest rate risk also arises from fluctuations unanticipated and have an adverse effect on the Group.
in future cash flows of a financial instrument because of

changes in market interest rates.
Property Price Risk:
- Equity price risk: the risk that the fair value of equities
decreases as a result of changes in the levels of equity The Group’s portfolio is subject to property price risk
indices and the value of individual stocks. arising from changes in the market value of investment
properties and fluctuations in expected rental incomes
- Foreign Exchange risk: The risk that the fair value of realised from the Group’s properties.
future cash flows of a financial instrument will fluctuate

because of changes in foreign exchange rates associated
Reputational Risk:
with foreign currency denominated transactions which the
The Group is exposed to this risk through events that
Group is exposed to. damage its image amongst stakeholders and the public
which may impair the ability to retain, generate and drive
sustainable business. We understand that reputational

- Property price risk: the risk arising from changes in the

market value of properties and fluctuations in expected

rental incomes.

risk is the biggest risk to our business as it poses a special
Liquidity Risk: threat to the confidence of our customers, regulators and
industry.

Liquidity risk is the risk that the Group may be unable to

meet its obligations associated with financial liabilities
that are settled by delivering cash or another financial

Annual Report & Accounts 2018 49

Technology and Innovation

Risk Management Governance Framework l) Review and approve risk management
procedures and control for new products
and activities; and
m) Periodically receive risk reports from
The framework details Wapic’s risk universe and management highlighting risk areas,
control failures and remedial action steps taken
governance structure comprising three distinct layers: by management.

Credit Risk

1. The enterprise-wide risk management and a) Approve Wapic overall risk tolerance in relation
to credit risk based on the recommendation of
corporate governance committee forums; the Company Chief Risk Officer;
b) Ensure that Wapic overall counterparty credit
2. The executive management committees; and risk exposure is maintained at prudent levels
and consistent with the available capital
3. Risk management responsibilities per risk area. through quarterly review of
various typesof credit exposure;
c) Ensure that top management as well as
individuals responsible for counterparty
credit risk management possess the
requisite expertise and knowledge to accomplish
Roles of the Board of Directors the risk management function;
d) Ensure that the Company implements a
sound methodology that facilitates the
identification, measurement, monitoring
The Board of Directors’ role as it relates to risk and control of credit risk;
e) To put in place effective internal policies,
management is divided into seven areas; general, credit, systems and controls to identify, measure
monitor, and control credit risk concentrations.
market, liquidity, underwriting, perational, reputational f) Ensure that detailed policies and procedures for
credit risk exposure creation, management and
and strategic risk. Specific roles in these areas are further recovery are in place; and
g) Appoint credit officers and delegate approval
defined below: authorities to individuals and committees.

Market Risk

General a) Define Company overall risk appetite in relation
to market risk;
b) Ensure that the Company’s overall market risk
exposure is maintained at levels consistent with
a) Develop a formal enterprise-wide risk the available capital;
c) Ensure that top management as well as
management framework; individuals responsible for market risk
management possess sound expertise and
b) Review and approve the establishment of a risk knowledge to accomplish the risk
management function;
management function that would independently d) Approve the Company’s strategic direction
and tolerance level for liquidity risk;
identify, measure, monitor and control e) Ensure that the Company’s senior management
has the ability and required authority to manage
risks inherent in all risk-taking liquidity risk;
f) Approve the Company’s liquidity
units of the Company; risk management framework; and
g) Ensure that liquidity risk is identified, measured,
c) Ratify the appointment of qualified officers to monitored and controlled.

manage the risk management function;

d) Approve and periodically review the Company’s

risk strategy and policies;

e) Approve the Company’s risk

appetite and monitor the Company’s risk profile

against this appetite;

f) Ensure that the management of the Company

has an effective ongoing process to identify risk,

measure its potential impact and proactively

manage these risks;

g) Ensure that the Company maintains a sound

system of risk management and internal control

with respect to:



• Efficiency and effectiveness of operations

• Safeguarding of the Company’s assets

• Compliance with applicable laws, regulations and

supervisory requirements

• Reliability of reporting

• Behaving responsibly towards all stakeholders

h) Ensure that a systemic, documented assessment
of the processes and outcomes surrounding key
risks is undertaken at least annually;
i) Ensure that management maintains an
appropriate system of internal control
and reviews its effectiveness;
j) Ensure risk strategy reflects the Company’s
tolerance for risk;
k) Review and approve changes/amendments to
the risk management framework;

50 Annual Report & Accounts 2018