Great Nigeria Insurance annuity rise by 8.9% in Q1 2021

.By Favour Nnabugwu

Great Nigeria Insurance Plc has announced that the underwriting firm recorded an impressive figure by significantly growing its Annuity portfolio to over N4.7 Billion in first quarter 2021 representing an increase of 8,9 percent over N52.5million recorded during the same period in 2020.

Speaking to newsmen in Lagos, the Managing Director, Mrs. Cecilia O. Osipitan explained that life annuity is a stream of periodic payments that commences at a specified date, which is either the normal retirement age or at 50 in the case of early retirement. This payment, she said, could either be monthly or quarterly depending on the retiree’s preference.

According to her,  “The benefits include the continuous flow of regular income for the retiree, insulation from the risks associated with the investment of lump sum benefits, structured management of resources and the transference of the risk of diminution in assets and possible failure of investments of retirees to insurance companies which are better equipped to manage such risks.

She further said, “Insurance remains the most reliable bedrock of our existence and cultivating the culture of insurance can never be over emphasized”. There is a need to call for a paradigm shift through effective sensitization of the insuring public as it is very important to imbibe the culture of getting appropriate insurance cover to protect our assets and lives in case of any eventuality”.

Osipitan reiterated the company’s unwavering commitment to creating value to both Shareholders and Stakeholders alike. In her words, “the path through achieving growth and sustaining same is not without its challenges but with the perseverance and doggedness of every member of staff, success is guaranteed”.

Also speaking, the Corporate Communications and Brand Manager, Oyinkansola Sobande mentioned that retirement should be the time to live that stress-free life after years of active engagement and not a time of financial difficulties. Annuity sets out to protect the future of retiree through guaranteed income for as long as they live.

Oyinkansola further elucidated that Annuity for Life Policy is a retirement instrument option for retiring employee. It is a contract that provides, in return for a Lump sum, a monthly or quarterly payment starting immediately after retirement and continuing for the rest of the retiree’s life. The contract is often purchased by retiring persons who want an income that is guaranteed to last for the rest of their lives, no matter how long that might be.

According to the management, “The drive to continue to uphold comprehensive growth strategy still forms the bedrock upon which the company is built; this is evident in the first quarter performance of the company’

Emirates’ newest airbus A380 entered service

By admin

 

Emirates’ newest Airbus A380 entered service earlier this week, doubling the number of premium economy seats offered by the Dubai-based airline.

The aircraft is one of two set to be delivered to the airline this year, with only four A380 deliveries outstanding.

A year ago, the Airbus A380 was practically non-existent in our skies. In the 12 months since the giant has slowly returned to service. Most jets remain on the ground, although Emirates is slowly removing its jets from an extended stay on the ground as it increases its network and capacity.

Dubai-based giant Emirates has wasted no time putting its latest aircraft into service. The carrier received 118th Airbus A380 from Airbus last Wednesday.  The Upon delivery, the aircraft flew to Dubai, arriving on May 13th. Here, it will have undergone an entry to service check.

With the aircraft getting the all-clear, it has joined 19 other active Airbus A380s in the Emirates fleet. On Tuesday, the aircraft operated its first passenger flight, heading to Paris and back. On Wednesday and Thursday, Emirates flew Frankfurt and back the marking the first time that the airline’s new premium economy cabin had been flown to the German aviation hub

Today, the aircraft was given a slightly shorter flight to operate. The giant departed Dubai International Airport (DXB) at 16:02 as flight EK2803. Cruising at an altitude of 40,000 feet, the aircraft is expected to arrive in its neighboring country at 18:12. After a turnaround in the Saudi Arabian city of Jeddah, the aircraft will return to its Dubai home.

Which Airbus A380 aircraft is Emirates currently flying?

According to ch-aviation.com, aside from A6-EVP, 19 other Emirates Airbus A380 aircraft are currently flying. The oldest of these is A6-EEU, with an age of 7.55 years, while the average age of the airline’s active A380s is 3.41 years old. This compares to an average age of 6.9 years across the entire fleet.

Of the airline’s 145 current Boeing 777 aircraft, 141 are currently active, with four stored according to ch-aviaiton.com’s fleet data. This means that the airline’s only option to add additional seats is to reactive further Airbus A380 aircraft. Emirates’ Airbus A380s count for 55% of the airline’s capacity, with 61,579 seats across the fleet. This compares to 48,522 seats on the Boeing 777 fleet

Emirates is set to take the last four Airbus A380s to be built over the next year. According to the current delivery plan, one more aircraft delivery is currently scheduled for 2021. The remaining three should join the airline in 2022  The A380 production line is set to be modified into an A320 family production line

Fueling the expansion of engineering insurance in Africa

By admin

Mirabilis is ready and equipped to respond to the insurance needs of Africa’s construction and engineering sector.

Innumerable reports inform us that two-thirds of Africa’s cities are yet to be built; that some US$100-billion of private and public funds are to be invested in new African city projects; and that rising urban growth rates translate into the need for homes for an additional 950-million people by 2050.

Also forthcoming is public infrastructure development that supports inter-continental trade and facilitates improvements to socio-economic conditions.

This bodes well for the construction and engineering industry, particularly in South Africa, which is one of the sectors hardest hit by the country’s economic decline and the Covid-19 pandemic.

Over the years the sector has also faced toughening market conditions and declining political and investment sentiment; and natural disasters that impact heavily on projects because of the unpredictability of, for example, weather and ground conditions.

The vulnerability of a project is, therefore, crucially dependent on how, and the depth to which, risks are insured. This responsibility falls to construction and engineering insurance underwriters, who not only need to be skilled in the underwriting of complicated insurance solutions but also have expertise in aspects of process, mechanical, electrical, building, civil, and structural engineering projects.

This is one of the reasons why Mirabilis, Santam’s construction and engineering underwriting business (which has a vast footprint spanning Africa, the Middle East, Central and Southeast Asia, and the Indian sub-continent) demands the adoption of professional global best practice standards.

Risks in this sector are difficult to quantify because construction and engineering insurance is highly specialised. No two risks are the same and similarly no two underwriters will underwrite in the same manner. But what is assured at Mirabilis, is that a minimum standard is applied. This is vital because there is pressure on an insurance broker to produce a policy timeously, sometimes within hours of the awarding of a project, and which must meet the contractual requirements of the project.

To underwrite complex risks involves the collection of vast amounts of information: including a proposal form, detailed scope of the project, summary of the Bill of Quantities, details of ground conditions, site drawings, and engineering method statements. Further considerations are the unique aspects of the project, which is when Mirabilis underwriters engage their industry skillsets, knowledge, and experience to ensure that additional information is sourced.

This information takes cognisance of the insured’s requirements, from whom full disclosure is required. If such disclosure is not provided at underwriting stage, it could lead to disputes at claim stage.

This is also not a simple under-writing effort. Construction and engineering processes are ever-changing, meaning that there is always new knowledge to be acquired, which is why Mirabilis regularly trains its underwriters and exposes them to new advances and challenges faced by contractors.

As such, Mirabilis has, in the past 15 years of its existence, built a network of localised and international credible affiliations, including Santam’s extensive network of partnerships such as Sanlam Pan Africa and Saham Finances, and has aligned with New Reinsurance Company Limited (NewRe), a Zurich-based reinsurer that has authorised Mirabilis to act as an agent to underwrite and accept, on NewRe’s paper, engineering classes of reinsurance business.

Mirabilis is optimistic for the near future for at least three reasons: the number of requests for quotations is increasing; the SA government intends to award R791-billion to infrastructure projects; and the private sector is stimulating new development. In readiness, Mirabilis has introduced an online quoting platform in SA to provide insurance brokers, at their convenience, with real-time underwriting feedback, quotations, and policy documents, and cater for the smaller Contractors’ All Risks insurance policies.

Caring for brokers is integral to Mirabilis’ success over the years. We have walked a long path with our brokers, helping and supporting them to grow. We keep them visible at all times, such as currently in the wake of the pandemic, where we are engaging them on a one-to-one basis.

Never before have the insurance needs of the African construction and engineering sector required more care, and our brokers can take comfort in knowing that Mirabilis is a brand that can be depended on with confidence.

How airlines navigate over, around conflict zones

By admin

Flying is statistically by far the safest means of transportation.

However, some parts of the world’s airspace are more precarious than others. From State-to-operator information and NOTAMs to concessions due to practicality, we take a look at what goes into route planning when conflicts need to be considered and what can happen when information is insufficient, or wires get crossed.

Last week, Israel redirected flights from Tel Aviv’s Ben Gurion Airport due to the escalating conflict with Hamas. While the country has the most sophisticated missile defense system in the world, known as the Iron Dome, the decision was a reminder of the potentially tragic outcomes of civilian aircraft passing through or over zones of conflict.

From Korean Air Lines Flight KE007 and Iran Air IR655 to Malaysian Airlines MH17 and Ukraine International PS752 on this side of the century, misdirected fire sometimes leads to massive civilian casualties.

And yet, airlines sometimes continue to fly to and above areas of ongoing conflict and unrest. What precautions are taken to keep aircraft and passengers safe, and through what mechanisms are the decisions made?
ICAO regulations for State-to-operator
Most of the decisions on what routes to take are decided by airlines and pilots.

When planning a flight route, the on-ground planning team usually calculates the most fuel-efficient path depending on atmospheric conditions. Meanwhile, in certain parts of the world, they also need to take the situation on the ground into consideration, as well as potential ‘no-fly zones’.

There are international standards for sharing information on local and potentially precarious situations on the ground.

Accordingto the Chicago Treaty setting up the International Civilian Aviation Organisation (ICAO), its member states are obliged to ‘promptly communicate potential risks to safe and secure civil aviation operations in their sovereign or delegated airspace’.

This is done via what is called the Aviation Security Point of Contact (POC) Network, or through regional contingency mechanisms. The ICAO also has a specific document, numbered 10084, which outlines State-to-operator and State-to-State sharing procedures, as well as airline risk assessment.

NOTAMs

Updated conditions that could potentially affect the safety along the route are relayed to pilots via so-called NOTAMs (Notice to Airmen). These are generated and disseminated by government agencies and airport operators to staff and crew concerned with flight operations.

Other than immediate conflict and missile launches, they can inform of closed runways, bird flocks, lasers, military exercises, volcanic ash (specifically known as ASHTAM), software patches, and temporary flight restrictions due to passing head-of-state aircraft.

Safety depending on accurate information
Airlines also conduct their own security assessments, often by bringing in third-party consultant agencies. However, all well-informed decisions are based on access to reliable, accurate, and up-to-date information, such as what kind of weapon capabilities fighting groups in a given area have access to.

When this is not available, risk assessment can sometimes be flawed, as the tragic case of MH17 shot down over eastern Ukraine in July 2014 demonstrates.

The area over which the Boeing 777-200 was passing had a no-fly zone in place for up to 32,000 feet. The aircraft was cruising at 33,000 when a ground-to-air missile hit it, and all 283 passengers and 15 crew on board were killed.

At the same time, contingency plans must be in place for unscheduled events while flying over an area of uncertain conditions. For instance, when only certain flight paths and levels are advisable, such as over Somalia or Western Sahara.

What happens in case of an emergency, such as an engine failure or depressurization of the cabin?
Potential risk vs. practicality
Assessments can also differ from country to country and airline to airline. For instance, most national aviation agencies classify Syrian airspace as high risk due to the potential of missiles erroneously locking on to civilian aircraft, whether from military jets or ground-to-air. The FAA even warns that the threat is extended to neighboring flight information regions (FIRs) in the Eastern Mediterranean.

However, in 2019, Qatar Airways once more began flying through Syrian airspace on its routes from Doha to Beirut and Larnaca in an effort to cut down on detour times caused by the then two-year-long neighborhood blockade. At the time of the decision, Qatar Airways CEO Akbar Al Baker told Reuters, while ensuring that the restored routes posed no safety issue, that,

“This is all about the blockade. We are blockaded, and so we have to find ways to fulfill the requirements of my country. It’s very simple.”

Dual ATC and pre-authorization
Generally, the Eastern Mediterranean is a tricky area to navigate. Due to the conflict and lack of recognition of sovereignty between the Greek and the Turkish part of Cyprus, pilots need to listen to air traffic controllers from both sides while diplomatically navigating the airspace above Nicosia.

Pivoting back to the air defense system of Israel, all aircraft must receive entry approval from Israeli ATC about 180 miles before entering the country’s airspace. Otherwise, they risk having an Israeli fighter jet outside of the windows, demanding identification and justification.

Something similar occurred in September 1983. Korean Air Lines Flight KE007 was on its way from New York to Seoul via Anchorage when it entered Soviet prohibited airspace due to a navigational mistake. The USSR forces mistook the unidentified 747-200 for a US spy plane and took it down with air-to-air missiles. All 246 passengers and 23 crew on board were killed.
When things go wrong.

The immediate loss of life is tragic in and of its own. Just as any casualty of war, the trauma reverberates and extends through generations. However, ‘mistaken identity’ shoot-downs also generate more tension between the actors involved or responsible. While only material, it may also cause revenue problems stemming from lack of overflight fees as airlines choose different routes.

Following the missile launch against Ukrainian International Airlines Flight 752 by Iranian forces shortly after take-off from Tehran in January 2020, many carriers stopped flying over the country. Due to potential airstrikes in the broader area, carriers such as Lufthansa, Air France, Singapore Airlines, and Qantas all stopped flying over Iraqi and Irani airspace.

Earlier this year, Iran announced a plan to encourage foreign airlines to make use of the country’s airspace by providing incentive tariffs. Qatar Airways has increased its number of flights over Iran as a result, and discussions are ongoing with Turkish Airlines.

Flight PS752 is not the only tragedy to result from tensions between the US and countries in the region. In July 1988, Iran Air Flight 665 was traveling from Tehran to Dubai when it was shot down by a missile fired from the USS Vincennes. All 290 people on board the aircraft were killed.

The US insists that it misidentified the Airbus A300 as a possible enemy F-14 Tomcat and that it made over ten unanswered calls. Iran, on the other hand, says that the pilots identified themselves as civilian. The black box was never recovered.

Naicom, FMT collaborate to propagate insurance

Caption:

L- Deputy Commissioner (Technical) NAICOM Sabiu Bello Abubakar, Minister of State, Transportation Sen. Gbemisola Ruqayyah Saraki and Commissioner for Insurance, Olorundare Sunday Thomas.

 

 

By Favour Nnabugwu

 

The Commissioner for Insurance(CFI), Mr. Sunday Thomas, said that the National Insurance Commission, Naicom s collaborating with the Federal Ministry of Transportation to ensure the provision of adequate insurance for road transport owners and users within Nigeria and ECOWAS member countries.

Thomas further said the commission is currently working to ensure orderliness in the insurance sector particularly, in the vexed issue of fake insurances in the road transportation sector.

The CFI, pointed out that the commission has now developed technology for verification of insurance policies to further sanitise the sector.

He spoke while receiving the Minister of State for Transportation, Senator Gbemisola Saraki, who a led delegation to the commission.

Saraki had informed the meeting that the ministry had embarked upon a transformation programme of the road transportation sector that will have tremendous impact on the lives and wellbeing of the Nigerian people.

The lawmaker had noted that insurance remained a critical aspect of transportation, hence the need to collaborate with NAICOM to ensure success of the programme.

In a statement, Head, Corporate Communications and Market Development Department, NAICOM, Mr. Rasaaq Salami, said both parties had also agreed to immediately establish a joint committee to look into different areas of interest to ensure a mutually beneficial relationship.

Thomas, further assured the minister of the readiness of the commission to collaborate with the ministry to ensure adequate insurance coverage in the sector.