All Posts in "Day: December 1, 2020"

Naicom grants conventional insurance companies window for microinsurance operation

By Favour Nnabugwu

National Insurance Commission (NAICOM) has announced its resolve to grant Microinsurance window operations to conventional insurance companies from December 1, 2020.

NAICOM in a circular dated November 30, 2020, with a number NAICOM/DPR/CIR/32/2020, signed by the Director, Policy and Regulation, Mr Leo Aka said the directive took effect from today, December 1st, 2020.

The Commission released operational requirements for the business as it detailed; “Henceforth, in order for a window operation to be granted to a Conventional Insurance Company, the following requirements shall be met;

The Insurer shall seek and obtain approval of the Commission to transact Microinsurance Business .

Board Resolution approving the establishment of a Microinsurance Department .

Applicant shall apply for Window Microinsurance National Operation License.

The Department shall be headed by an experienced insurance officer not below the rank of an AGM, who must posses a minimum of seven years post Associate of Chartered Insurance Institute of Nigeria qualification or a minimum of 10 years working experience in a technical department of an insurance institution.

Any Window operator shall segregate the financial records of its Microinsurance business from that of the conventional business.

Appropriate Reinsurance arrangement shall be put in place”, it state.

Patoma Admin by — December 1, 2020 in Insurance 0

As part of preparations for the commissioning of the newly completed, world-class, brand new international terminal at the Mallam Aminu Kano International Airport (MAKIA), Kano, Management of the Federal Airrportsports Authority (FAAN), last week inspected facilities at the airport.

The delegation, which was led by the Managing Director/Chief Executive of the Authority, Capt. Rabiu Yadudu also had a team from the Nigerian Civil Aviation Authority on the tour.

The Management of the Authority also commenced a 10 day facility tour of the nation’s 23 airports yesterday.

The tour is aimed at assessing the infrastructural needs of the airports, while also evaluating their preparations for the annual surge in passenger traffic usually occasioned by the yuletide season, as well as the level of compliance with covid-19 protocols at the airports.

At the Yakubu Gowon Airport, Jos, yesterday, the MD/CE also used the opportunity to address members of staff at the airport.

He assured them that Management will continue to prioritize staff welfare and improve on their conditions of service. He enjoined them to continue to discharge their duties with the highest level of professionalism and dedication.

The team, which also included the Authority’s Directors of Finance, Mrs. Nike Aboderin; Engineering Services, Engr. Salisu Nurudeen Daura; Commercial and Business Development, Mr. Sadiku Abdulkadir Rafindadi; Airport Security Services, Rtd. Group Captain Usman Abubakar Sadiq; Airport Operations, Capt. Mukthar Muye; Human Resources, Mr. Norris Anozie; and Legal Adviser, Dr. Clifford Omozeighan will be proceeding to Bauchi, Kaduna, Gombe and Maiduguri airports, before taking another batch of airports.

Patoma Admin by — December 1, 2020 in Aviation 0

Premiums generated by insurance brokerage businesses increased by 11.08 percent higher to P75.38 billion in 2019 from P67.86 billion premiums generated by the industry in 2018

But the reinsurance brokers saw a decline in their total premium income, according to data from the Insurance Commission (IC).

Citing data from the documents submitted by regulated entities, Insurance Commissioner Dennis Funa said the total premium produced by insurance brokers amounted to P75.38 billion last year.

In terms of product line, insurance brokers generated the most premiums in health insurance, amounting to P22.38 billion as of year-end 2019. This is followed by the fire insurance and life insurance lines, amounting to P17.6 billion and P11.53 billion, respectively,” Funa said.

Aon Insurance and Reinsurance Brokers Philippines Inc. emerged as the best performing firm in the industry in terms of premiums with P10.96 billion generated. The company ranked second last year. It was followed by BDO Insurance Brokers Inc., Marsh Philippines, HSBC Insurance Brokers (Philippines) and Lockton Philippines Insurance and Reinsurance Brokers Inc.

Meanwhile, commissions earned by insurance brokers also reached P8.48 billion in 2019, 4.05 percent higher than the P8.15 billion in the previous year.

BDO Insurance Brokers ranked first in terms of commissions in 2019, with P1.73 billion earned.

Aon Philippines placed second, followed by Marsh Philippines, Intertrade Insurance Brokers, and Lockton Philippines.

On the other hand, reinsurance brokers generated P2.19 billion in premiums in 2019, 42 percent lower than the previous year.

We noticed that insurance companies and NatRe (National Reinsurance Corp. of the Philippines) have been aggressive in accepting risks so there are more premiums on direct business than reinsurance business,” Funa said, quoting one of his staff.

Commissions earned from the reinsurance business likewise declined by 31.58 percent to P128.62 million.

PhilPacific Insurance Brokers and Managers ranked first in terms of premiums last year, with P769.17 million collected. It also topped the industry in terms of commissions earned amounting to P50.57 million.

Patoma Admin by — December 1, 2020 in Insurance 0

 AXA sells its activities in the Gulf region to the Kuwaiti insurer Gulf Insurance Group (GIG) for €225 million ($269.15 million).

This sale also includes AXA’s interests in AXA Gulf, AXA Cooperative Insurance Company and AXA Green Crescent Insurance Company.

Yusuf Bin Ahmed Kanoo (YBA Kanoo), one of the most important private business conglomerates in the region, also decided to sell its 50 percent stake in AXA Gulf and its 16 percent stake in AXA Cooperative Insurance Company. The transaction is scheduled to be finalized by Q3 2021.

The AXA sale is part of the French group’s simplification strategy.

Created in 1962, GIG is a group that aims to become one of the insurance leaders in the Gulf countries. At the end of September 2020, the group was at the head of consolidated assets amounting to $2.8 billion. The main GIG shareholders are the financial holding Kuwait Projects (Kipco) and the Canadian insurance group Fairfax.

Patoma Admin by — December 1, 2020 in Insurance 0