Bill to make banking, insurance & pension workers declare assets passed 2nd reading

By admin


The House of Representatives has passed for second reading, a bill that will make it compulsory for workers in the banking, insurance and pension industries to declare their assets.

The proposed law as reported by the Punch,  will also bar staff members of banks and other financial institutions from operating accounts outside the shores of Nigeria. Their spouses and children may also be mandated to declare their assets when a bill presently at the House becomes law.

Also, the Secretary to the Government of the Federation would also be stripped of the responsibility to keep records of declared assets by Nigeria Customs Service and bank workers, and transfer it to the relevant regulator of each industry.

The lawmaker representing Iseyin/Itesiwaju/Kajola/Iwajowa Federal constituency in Oyo State, Mr Shina Peller, made these proposals in the Bank Employees, Etc., (Declaration of Assets)(Amendment) Bill 2021.

The legislation is titled ‘A Bill for an Act to Amend the Bank Employees, Etc., (Declaration of Assets) Act CAP. B1 Laws of the Federation of Nigeria 2004 to Reflect the Prevailing Situation in the Country.’

Leading the debate on the bill, Peller recalled that the Bank Employees (Declaration of Assets) Act CAP B1 Laws of the Federation 2004 was enacted on September 26, 1986, by the military regime.

He noted that the law was to make provisions for the declaration of assets by employees of banks operating in Nigeria and to empower the President to extend its application to other categories of persons.

American Airlines Flight Diverts As Passenger Skips Security Check

By admin


American Airlines flight full of passengers jetting off for a Mexican vacation had to divert after discovering that one passenger had skipped airport security.

American Airlines flight number AA881 took off from Charlotte Douglas International Airport (CLT) at 08:25 on June 8, 2021. The plane was en route to Cancun International Airport (CUN) in Mexico and was climbing at 6,750 feet when the pilots received a call.

They were informed that one passenger had boarded the aircraft without going through Transportation Security Administration (TSA) security.

The 12-year-old Airbus A321 registration N508AY immediately stopped the climb and returned to Charlotte Douglas International Airport (CLT). When the plane landed, it was met by Charlotte Mecklenburg Police (CMPD), who boarded the plane and arrested a passenger sitting in the first row of first class.

He was a former airline employee
When American Airlines was asked about the incident by aviation enthusiast website View From The Wing American Airlines, spokesperson Sarah Jantz said
American Airlines flight 881 returned to Charlotte shortly after takeoff following reports of a potential security concern.

Upon arrival, Charlotte Mecklenburg Police (CMPD) met the flight and escorted one customer off the aircraft. The flight departed for Cancun at 10:40 a.m. with all other customers following a precautionary maintenance inspection and security sweep.”

Axa offers €300m to 15,000 French restaurants for Covid-19 BI losses

By Favour Nnabugwu


Axa has offered settlements totalling €300million before reinsurance to 15,000 French restaurants for business interruption (BI) losses, after they closed to minimise the spread of Covid-19.

The move followed disputes between AXA and French restaurants since the outbreak of the pandemic, with some high-profile court settlements falling in favour of policyholders.

Axa France said the “fixed and definitive lump-sum payment” will be made to policyholders of its standard policy with extended cover for BI losses for “administrative closure”.

Axa said it “regrets the misunderstandings with some of our restaurant clients” over policy wordings, but added that it stands by its argument that the policies do not cover “collective administrative closures”.

Axa said the cost of the settlement after tax and reinsurance is expected to be offset by “favourable developments in 2021 related to Covid-19, in France and Europe”.

The sum on offer is equivalent to 15% of catering turnover, Axa said, and covers closures announced by the government on 14 March 2020 and 29 October 2020. The settlement offer is expected to be open to policyholders until the end of September 2021.

“As restaurants are finally allowed to welcome their customers again, we are taking this initiative so that everyone can look to the future and focus on the restart of economic activity. Such a large initiative is unprecedented for Axa France,” said Patrick Cohen, CEO of Axa France.

Marine Insurance cost on the rise

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Shipping companies are likely to face higher insurance costs from increased reinsurance pricing and growing exposures.

World trade is reliant on shipping, with 90 percent transported by sea. Consequently, shipping companies are dependent on insurance and reinsurance, in particular liability and pollution cover provided by mutual insurers known as protection and indemnity (P&I) clubs.

These clubs are underpinned by a more than 120-year-old pooling agreement overseen by the International Group of P&I clubs, which in turn is supported by one of the world’s largest reinsurance contracts.

The 13 P&I clubs that form the International Group provide essential liability insurance for 90vpercent of the world’s ocean-going tonnage, compensating for accidents and pollution incidents.

Under the International Group structure, each club is liable for the first $10m of claims, while the pooling agreement sees clubs share claims between $10m and $100m. Excess of $30m, each club’s participation in the pool is reinsured by the group’s Bermuda-based captive reinsurance vehicle, Hydra Insurance Company.

Sitting above the $100m of pool coverage, the International Group purchases an annual group general excess-of-loss reinsurance programme that provides up to $2bn of reinsurance cover in a three-layer structure.

A further $1bn of ‘overspill’ reinsurance cover is purchased by the group, taking the total available cover per single loss to $3.1bn. Some 80 global reinsurers participate in the annual International Group reinsurance contract, which protects some 80,000 to 90,000 vessels. These reinsurers spread the risk further through the treaty, retro and capital markets.

But according to Marsh and sister company Guy Carpenter, the reinsurance environment is very challenging and the upcoming renewal will not be easy.

“This is probably one of the most challenging reinsurance markets that any of us on this call have seen for a number of years,” Demian Smith, head of mutual, agency and captive reinsurance solutions at Guy Carpenter, told a Marsh webinar update on the International Group reinsurance contract renewal. “This is a significantly hard market. The market goes in cycles and ultimately we all need to react to what is happening,” he said.

According to Mr Smith, current reinsurance market conditions are “pretty dreadful”. The P&I sector has experienced increased frequency and severity of claims, while the wider reinsurance market is reacting to changes in risk that have eroded profitability, he explained.

The cost of reinsurance is determined by a number of factors, including loss records, marine underwriters’ expectations of future profitability, and the reinsurance industry’s loss record and capacity levels, explained Mr Smith.

P&I clubs and their reinsurers face “potentially significant losses” from a number of marine accidents in recent years. These include the capsized car carrier Golden Ray, the grounding and sinking of the iron-ore transporter Wakashio, and the arrest of the containership MSC Gayane following a seizure of drugs worth $1.3bn by US authorities in 2019. The reinsurance market also anticipates losses from recent incidents, including the blocking of the Suez Canal by the containership Ever Given and the fire and sinking of the containership X-Press Pearl.

“There has been an unusually high number of reported losses within the [International Group] pool recently,” said Mr Smith. “There has also been a surprising number of large [non-pool] losses associated with P&I in the past 12 months and reinsurers will ask if this is a trend or an aberration. If it is an aberration, it will take time to demonstrate, and reinsurers would treat it in a very different vein to a trend of ever-increasing liability exposures, frequency and severity of loss,” he said.

In addition to marine losses, reinsurers are also being affected by increasing exposures, in particular those related to climate change and systemic losses like cyber or the pandemic.

“The [reinsurance] industry has lost money and return on equity is lower than any reasonable investor would expect, so we see the withdrawal of capacity in certain areas and everyone faces the same challenges of climate change, environmental considerations and systemic risks like cyber and pandemic. As a consequence, the cost of reinsurance globally is going up,” Mr Smith said.

Reinsurance rates have increased by double digits for loss-free business in 2021, while price increases have been “significantly larger” for loss-affected contracts, said Mr Smith. “I am afraid everyone is in this together,” he said.

Changing social attitudes to the environment are already impacting the cost of marine claims, including higher costs of wreck removal. Extreme weather might also be contributing to marine claims, such as the rise in container losses. According to the World Shipping Council, between more than 2,675 containers were lost in five incidents during December and January. This is double the annual average in just a two-month period.

“World trade is reliant on shipping. It doesn’t happen without shipping. And shipping is entirely reliant on P&I to trade globally,” said Mr Smith. “P&I clubs are reliant on reinsurance to spread the risk beyond shipowners. This renewal is likely to be challenging for both reinsurers and the International Group as they negotiate,” he said.

It is in the best interests of world trade for P&I clubs and reinsurers to work together and find solutions to changes in the risk landscape, according to Mr Smith.

“This has to be a long-term relationship. The International Group contract is more than just another reinsurance contract transaction. For world trade to continue and for large limits to be provided to shipowners, and for shipowners to service us all as individuals and businesses, reinsurers and P&I clubs need to work together in partnership and find solutions to make sure that – on the most cost-effective basis – reinsurance can continue to be provided to shipowners,” said Mr Smith.

“However, price will have to respond to changing risk factors. Ultimately, any increases in cost will need to come back to all of us as beneficiaries of world trade, which subsequently affects the shipping market, which may then affect the cost of goods. But if that is what we have to pay in terms of increased liability requirement, and an increased focus on responding to changes in the environment and sustainability, then it is what we have to do,” he said.

Route Expansion: Air Peace connects PH-Benin, Kano-PH; restores Kano-Asaba

By Favour Nnabugwu



WITH the arrival of more of its aircraft and few more expected,  Air Peace has introduced a set of new connections to offer the flying public more options as it has announced the commencement of Port Harcourt-Kano-Port Harcourt, Port Harcourt-Benin-Port Harcourt and resumption of Kano-Asaba-Kano.

Spokesperson of Air Peace, Stanley Olisa, who made this revelation to journalists on Thursday, stated that Kano-PHC-Kano, starting June 15, would operate twice weekly while Asaba-Kano-Asaba, starting June 14, would run three days every week. Benin-PHC-Benin, starting June 18, will operate on Fridays and Sundays.

“Tickets for these new connections are already selling and the flying public can start booking on our website or the mobile app”, he asserted, while adding that the new connections further reflect Air Peace’s commitment to providing strategic connectivity which addresses the gaps in Nigeria’s air travel.

The airline is set to launch scheduled daily flights to Ilorin from Lagos and Abuja on June 17, 2021, and plans to kick off Gombe and Ibadan routes soon.

Air Peace currently services 16 domestic routes, 5 regional routes and 2 international destinations including Johannesburg, and boasts of a mixed fleet of 28 aircraft, including 2 brand new Embraer 195-E2 jets delivered earlier this year, with 11 more lined up for delivery