All Posts in "Day: March 28, 2021"

321 vessels jammed at Suez Canal – SCA

By admin

At least 321 vessels are currently jammed around Egypt’s Suez Canal awaiting salvage of the giant container ship Ever Given that has been stuck and blocking the vital waterway since Tuesday, Osama Rabie, chairman of the Suez Canal Authority (SCA), said Saturday.

“The number of ships waiting now, whether in the north, the south or in the Lakes is 321. We provide them with all the logistic services they ask for,” the SCA chief told a press conference in the northeastern province of Suez.

“It’s difficult to tell when the problem will be solved, because, as I said, the ship is huge with a large load and it is stuck in a shallow area,” Rabie said.

He pointed out that 14 tug boats are working to salvage Ever Given from all directions.

“Last night, there were signs of success … to the point that we were very hopeful that the salvage will be completed last night,” The SCA chief said, adding authority is prepared with several scenarios to refloat the mega ship that causes “a big crisis.”

The 224,000-ton Panama-flagged Ever Given was grounded on Tuesday in the canal after losing the ability to steer amid high winds and a sandstorm, which led the SCA to announce on Thursday temporary suspension of navigation in the man-made waterway.

Rabie said there will be investigation into the exact cause of the accident but after the rescue process is done.

Dutch firm Boskalis with its emergency response team Smit Salvage is hired by Ever Given’s owner to assist the SCA in the rescue operations.

Linking the Mediterranean Sea with the Red Sea, the Suez Canal is a major lifeline for global seaborne trade since it allows ships to travel between Europe and South Asia without navigating around Africa, thereby reducing the sea voyage distance between Europe and India by about 7,000 km.

Some 12 percent of the world trade volume passes through the Suez Canal.

Patoma Admin by — March 28, 2021 in Insurance 0
New data science to unlock $20m Agric insurance business in East Africa

By admin

Allianz Africa is eyeing the agriculture insurance sector in Kenya and the East African region which is expected to grow by 200 percent.

Allianz experts estimate that the value of the agriculture insurance segment to stand at $10 million but say it holds the potential to grow to $30 million. They aim at partnering with aggregators such as banks, cooperatives, agro-dealers, and commodity Associations to deploy the solution, said Lovemore Forichi, Senior Underwriter of Agriculture at Allianz Re

“According to our estimates, Agriculture Insurance Premium globally is USD 32 billion. East Africa contributes about USD18 million of which Kenya is about USD10 million. Governments and the Private Sector in East Africa are working together to increase agriculture insurance penetration in the region. Less than 5% of the Kenya farming community is insured,” said Lovemore

Allianz, one of the world’s leading insurers and asset managers, entered the East African market last year after signing an agreement with Jubilee Insurance to establish a strategic partnership in the five African countries where Jubilee Insurance currently operates.

The partnership covers the general insurance business (also known as the property & casualty insurance segment) in Kenya, Tanzania and Uganda as well as the short-term insurance segment in Burundi and Mauritius. JHL retains its ownership of its Life and Pensions operations and its Medical insurance business in Kenya, Uganda and Tanzania.

Lovermore says that Allianz aims at unlocking the potential using parametrics which is a non-traditional insurance product that offers pre-specified payouts based upon trigger events such as wind speed and rainfall measurements.

“Operationally, parametric solutions are less cumbersome as the insurance company does not need to visit the farm and occupy the farmer’s time. Monitoring of the index can be done remotely through satellite imagery and data. The farmer can also have access to the data and they can closely monitor the development of the index throughout the growing season on their mobile phone or tablet. This also makes it very transparent, traceable, efficient, and paperless,” said the official.

Through parametrics, farmers can choose which parameter is of concern to them, as far as affecting their crop yield is concerned. The most common parameter is rainfall. Lack of rainfall during the cropping season (drought) as well as too much rainfall (excessive rainfall) have a huge impact on the farmers’ yield and subsequently the revenue.

So the farmer will choose to insure against drought and/or excessive rainfall to hedge their losses. When the insurance company uses index insurance solutions such as Rainfall Index, Evapotranspiration Index, Soil Moisture Index, and Area Yield Index, these are classified as parametric solutions.

Over the years, more insurance companies are venturing into the agricultural space as farmers are increasingly understanding the value of insurance as they learn from other people’s experiences.

The Kenyan government and private sector are also actively contributing to the insurance penetration through premium subsidies for both crop and livestock farmers as only less than 5% of the Kenya farming community are insured

Patoma Admin by — March 28, 2021 in Insurance 0
8 Lessons Insurance industry learn from pandemic

By Favour Nnabugwu

Almost exactly a year ago, Nigeria and  South Africa closed down as the coronavirus struck. Many thought it would be a quick three-week lockdown, and then business as usual. How wrong we all were. In many ways, the world will never be the same again.

Inspire of all, insurance sector has learned 8 lessons as we look forward to the next normal.

And yet, amidst the mayhem, there were lessons to be learned. The pandemic gave us the opportunity to pause and think about our business, our clients, and their changing demands.

1. Everybody wants to protect themselves from risk

Covid-19 shook us to our core and made us question how prepared we really are for a crisis. As millions of South Africans re-evaluated their finances, their risks and their lives, we’ve seen a growing realisation that insurance, so long seen as a grudge purchase, is critical to cushioning life’s unexpected blows.

2. We need new products for new times

When lockdown started, millions of South Africans stopped driving to work. Many continue to work from home. With car usage down 30%, clients simply don’t want to pay full insurance premiums for assets that are standing idle for most of the time. It sparked a boom in usage-based insurance,  And there are more changes to come.

3. The future belongs to the machines

There’s no doubt that the insurance industry is ripe for some serious disruption, and data-driven tech is providing the impetus. For insurers, the ability to analyse data better provides the ability to determine risk to a point of near-perfection. This essentially results in more accurate and fair premiums,, which means lower-risk clients will pay less for insurance. Clients demand it – and insurers that don’t have the data capabilities will fall behind.

4. Consumers are the real drivers of change

Tech is the enabler, but clients are the real disruptors. They want simple products tailored to their needs, a slick engagement experience, and the ability to interact on the platform of their choice. Probably the single biggest trend that tech has unlocked in the global insurance industry is the fact that insurers can now compete on the basis of a differentiated customer experience. Technologies like tweeter, user-friendly apps and USSD are driving a range of digital-first, human-friendly services that are tailored to the exact needs of the client.

5. We’re seeing a renewed focus on culture

After an initial honeymoon period, businesses and employees alike are struggling to adapt to the new world of WFH (working from home). Right now, it’s critical for insurers to show their clients and staff that they’re more important than ever, and to go the extra mile for them. This can only happen in a business with a strong culture that’s based on purpose and values. We’re seeing a greater focus than ever on company culture that’s empowering and enabling.

6. Organic growth will only take you so far

To call the local short term insurance market ‘highly competitive’ is an understatement. While tech is making it easier for more South Africans to access insurance, the market remains cut-throat, with the same clients often changing their insurer for a few Naira less on their monthly premium. There are certainly ways to stand out in this market, but for insurers to grow, it’s important to be open to acquisitions and alliances that can take the business forward, whether locally or internationally.

7. ‘Digital-first’ drives opportunity

At King Price, one of our founding principles was that a ‘digital-first’ business model would be fundamental to unlocking new value. As we see a greater focus on factors like personalised premiums and usage-based coverage, we’re certain to see more alliances and greater collaboration between traditional insurance and InsureTech firms. The traditional company provides the footprint, the market knowledge and the client base; the InsureTech provides the tech that drives new insurance models and revenue streams, higher profitability, improved customer experience and reduced operational costs.

8. Time to reaffirm our purpose

As insurers, we exist to protect people, businesses, and communities from unexpected risks. In volatile times, it’s more important than ever to remember our purpose. Today’s consumers seek out companies and brands that align with their values. The products and services they purchase are expressions of their moral values as much as financial decisions are.

Patoma Admin by — March 28, 2021 in Insurance 0