All Posts in "Day: November 2, 2020"

Moroccan insurance market face with 700m MAD pandermic loses

The Covid-19 pandemic has gravely affected the insurance sector. However, some measures adopted by the Supervisory Authority of Insurance and Social Welfare (ACAPS) have alleviated its impact.

In fact, those measures are believed to have avoided 700 million MAD ($76 million) of losses to the market Some of which include: Softening prudential ruleG, Granting subsidised loans and aid to intermediarie, Extending motor insurance certificates and Teleworking

The greatest risk for the Moroccan insurance market Moroccan is generated by the financial market.

The significant drop in the stock market at the beginning of the health crisis has strongly disrupted insurers. In order to deal with this situation, more flexible prudential rules were adopted.

Maintaining the prudential rules of pre-Covid-19 would have led to a 25 percent drop in the insurers’ results.

According to ACAPS, the pandemic risk coverage is rare in Morocco; as seldom do insurance contracts include business interruption clauses related to that type of risk.

Patoma Admin by — November 2, 2020 in Insurance 0
African insurers worry over climate change, cyber-risks, pandemic

African countries have to fear three main risks in the next five years: climate change, cyber-risks and pandemics.

The effects of climate change are strongly felt in Africa.

In recent years, we no longer speak of periods of drought but of torrential rains, floods, epidemics, destruction of crops , infrastructure and property.

The impact of natural disasters is aggravated by the low insurance penetration rate, which excludes any monetary compensation.

Digitalization at an accelerated pace is a new risk. While the digital transformation offers opportunities for social and economic development, it also brings its share of risks with the rise of cybercrime.

In the end, the health situation due to Covid-19 has a direct impact on the major African countries’ economies.

In South Africa, a country where insurance has its place in the culture, policyholders find themselves in an impasse because of inadequate insurance contracts with regard to the pandemic risk.

The coverage of these three risks is a growth driver for African insurers who must nevertheless raise more funds in order to engage in this path.

Patoma Admin by — November 2, 2020 in Insurance 0
Swiss Re loses $691n in nine months of 2020

The Swiss reinsurer has sustained a net loss of $691 million in the first nine months of 2020 compared to a profit of 1.34 billion USD in the same period of 2019.

However, if we were to exclude the Covid-19-related debts and the claim reserves of $3 billion (before tax), the net result would be set at $1.6 billion.

As of 30 September 2020, the Property & Casualty (P&C) activity showed a net deficit of $201 million. The direct insurance entity, Corporate Solutions, also recorded a deficit of $323 million.

The Life Capital entity made no exception as it ended the three quarters with a net deficit of $136 million.

However, the first nine months of 2020 do not show negative figures only. Swiss Re indeed posted a 6.1 percent turnover increase with $30.16 billion of premiums by late September 2020.

Patoma Admin by — November 2, 2020 in Banking & Finance 0