Mathematics Department holds Seminar
A Consultant, Mr Olufemi Ayankoya, has identified Mathematics as the mechanism for the accurate calculation of insurance premiums and provision of foundation for the insurance transaction.
Mr Ayankoya said this on Wednesday at the Town and Gown seminar organized by the Department of Mathematics titled, ‘The Relevance of Mathematics in Insurance Industry’.
In his presentation, he described Insurance as a “contract between two parties (the Insurer and the Insured), whereby the Insurer undertakes to indemnify the Insured or Assured against risk of loss, damage and liability which may arise upon the uncertain occurrence of some specified event, or in the case of life insurance, upon the occurrence of a certain event (death) at an uncertain time.”
According to Mr. Ayankoya, before colonialism in Nigeria, some forms of insurance existed. The insurance system that existed at that time was one of shared responsibility and that of a common pool, where members of a community contributed resources in order to help lessen the burden of one another in the event of a loss. It has been rightly described as a concept of Mutual Insurance; the coming together of people to help one another.
He said that the inevitability of risk in human life gave rise to the concept of insurance. “We buy insurance so that we can rest easy at night, knowing that our lives and those of our loved ones are covered, or that we have taken every step possible to minimize our chances of not being able to pay for life's more costly moments, such as home repairs, doctor's bills, or our kids going to college”, he explained.
Speaking on the operation of an insurance company, the guest speaker stated that the mode of operation is based on two basic concepts: the concept of independent losses and the concept of spreading risk.
He explained, “Under the concept of independent losses, an insurance company looks for one loss that is not likely to affect a large number of different policyholders while under the concept of spreading risk, the insurance company tries to spread the risk among a large number of policyholders so that one type of loss won’t affect the entire group of policyholders.”
He also highlighted the Insurance Company Structure, which include: Rate making, Underwriting, Production, Claim settlement, Reinsurance, Investments & Finance and General Administration.
On the relevance of Mathematics to Insurance, Mr Ayankoya stated that the process of managing risk is highly mathematical and quantitative. The insurance, pension and social insurance industries employ certified professionals called Actuaries with the specific skills required to address risk management. These skills include advanced analytical and mathematical expertise, problem solving abilities, and general business acumen.
The Guest Speaker, Mr Ayankoya, obtained his Higher National Diploma in Statistics from Yaba College of Technology. He has a Post Graduate Diploma in Computer Science from Lagos State University before bagging a Professional Master in Computer Systems from the University of Ibadan.
He also holds Oracle Certified Professional (OCP) certificate as well as the Certified Information Systems Auditor (CISA).
Mr Olufemi Ayankoya is currently the Managing Partner/Founder of Green UNCT Consulting Ltd, Lagos.