All Posts in "Month: July 2021"

Global insured disaster losses estimated $42bn for H1 2021, Aon

By admin

 

Global insurance and reinsurance market losses from natural disasters and catastrophes are estimated to have reached $42 billion for the first-half of 2021 by broker Aon, which is 2 percent higher than the 10-year average.

The broking group said that while this US $42 billion of first-half catastrophe insured losses is only 2 percent higher than the 10-year average ($41 billion), it is 39 percent higher than the 21st Century average ($30 billion), and 101 percent higher than the average of all years since 1980 ($21 billion).

In total, Aon estimates that natural disaster cost the global economy around $93 billion in the first-half of 2021.

The economic loss tally is some 32 percent lower than the previous decade ($136 billion), 16 percent lower since 2000 ($110 billion), but 9 percent higher than the average of all years since 1980 ($85 billion).

All of these numbers remain preliminary, the broking group said today.
Aon’s data comes from a minimum of 163 natural disaster events that occurred in H1 2021, which was below the 21st Century average (191) and median (197).

Interestingly and having ramifications for the insurance-linked securities (ILS) market (in particular collateralised reinsurance), given its focus, the number of disaster events were notably below the 21st Century average in all regions except the United States, Aon said.

In terms of loss of life, natural disasters claimed 3,000 lives during the first-half, which is well below the long-term average (since 1980) of 38,900 and the median of 7,600.

Across the events, Aon counted 22 that drove billion dollar economic losses, the majority of which were weather related.

On an insured loss basis, there were at least 10 separate billion dollar industry catastrophe loss events, Aon said.

The costliest was the US winter storm and freezing weather delivered by the polar vortex, which Aon pegs at the generally accepted $15 billion level.

After that, the severe weather event in Europe in June drove a $3.4 billion industry loss, the Fukushima offshore earthquake a $2.5 billion loss and another US severe weather event $2.5 billion as well.

Patoma Admin by — July 22, 2021 in Insurance 0
Naicom, SERVICOM pally for enhanced service delivery

By Favour Nnabugwu

 

 

The National Insurance Commission (NAICOM) is determined to help the
Service Compact (SERVICOM) achieve it’s objectives to Nigerians.

NAICOM is saddled with responsibility of ensuring the effective administration, supervision, regulation of insurance companies.

The commission is also to control insurance business in Nigeria and protection of insurance policy holders, beneficiaries and third parties to insurance contracts.

The Commissioner For Insyrance, CFI, Mr Sunday Thomas during SERVCOM courtesy visit to the Commission, assured the agency that the commission would set up a committee under the SERVICOM unit to meet and make recommendations so as to promote an effective service delivery initiatives in the sector.

“We are looking forward to the implementation of the service charter of the NAICOM and to take the service charters to Zonal offices to see the values we can add to rejig the unit through knowledge sharing.

“This will help NAICOM streamline its activities towards citizens engagements to get quality services as stipulated in the service charter of the Commission,” he said.

In a statement by SERVICOM Public Relation Manager, Mrs Henrietta Okokon, on Wednesday in Abuja, said the commission proposed collaboration with NAICOM during a meeting

National Coordinator SERVICOM, Mrs. Nnena Akajemeli, , made her intention known, when she visited Mr Thomas Olorundare, the NAICOM’s Commissioner in his office.

In order for the synergy to be effective, Akajemeli called on Olorundare to strategically position the commission through collaborative efforts with SERVICOM to achieve effective service delivery.

According to her, “Public service is the only contact that most citizens have with the government”

She said that SERVICOM was focused in improving the quality of contact with the public by working with Ministries, Departments and Agencies (MDAs) to ensure effective service delivery in Nigeria.

Akajimeli said that the commission had a crucial role in ensuring safety of lives and property of citizens by making sure that an effective administration was established for the conduct of insurance businesses in Nigeria.

She said that the commission was also positioned to ensure adequate protection of strategic government’s assets and other property.

Akajemeli, however, urged the management of NAICOM to provide SERVICOM Unit with needed support and resources for the implementation of its service delivery processes to strengthen the position of the SERVICOM in NAICOM.

“In achieving this, it required networking meetings, customers engagements forum and completion of service charter reviews,” she said.

The SERVICOM boss emphasised on the significance of Service Charter in NAICOM
Akajemeli explained further that the Service Charter would communicate promises and commitments of services provided to its customers.

She said that Charter could serve as operational performance enhancement tool that enshrined the trust between service providers and service takers.

She charged NAICOM on the need to develop a framework to monitor performances against service standards that would identify the gaps for service improvements, regular self-assessments and surveys on effectiveness of the services.

According to her, this will help to improve the performance of the commission.

“And this will be achieved through regular training and re-training of staff on all aspects of service delivery to equip them with prerequisites knowledge, skills and attitudes and to ensure sustained service improvements in the Commission,” she said.

Patoma Admin by — July 22, 2021 in Insurance 0
Nigeria airlines commend FG on removal of 7% subcharge on imported parts

By admin

 

Nigerian airlines have commended the federal government for its response in removing 7 per cent surcharge on imported aircraft and spares and the Nigeria Customs Service (NCS) for the support it has given to the operators.

Chairman and CEO of Air Peace, Allen Onyema made this known today as he corrected misconceptions in the sections of the media following proceedings in the interactive forum at the Senate on July 6, 2021, when he made presentation as Vice Chairman AON on behalf of the airlines on the challenges the operators are facing.

According to him, “An online medium reported the meeting as an issue concerning Air Peace alone and brought ethnic dimension to an issue that concerns all airlines in the country, a report he condemned.

“The meeting was called by the Senate to discuss the reasons for the recent upsurge in flight delays and flight cancellations amongst other issues and challenges facing the aviation industry.

“It was on this occasion that AON made its presentation of challenges facing all the airlines. Our member airlines were present but we made an articulated collective presentation to the Senate, which I read as the Vice President on behalf of the association,” Onyema said.

“It was on this occasion that AON presented the issue of the partial implementation of the Finance Act 2020 which prohibits the payment of duties and VAT on imported aircraft and aircraft spares by the Customs Service.

“Of note, was the presence of a 7 per cent Surcharge on the assessed duties which was not supposed to be. This caused delays in the clearance of aircraft and aircraft spares leading to grounding of aircraft that would have been flying,” he further explained.

He said, “After the Senate meeting, the airlines contacted the Minister of Finance and Minister of Aviation on the aforementioned challenges and both Ministers, “as representatives of a responsible government, swung into action immediately.”

“AON, for the avoidance of doubt, commends the Federal Government for its unflinching support for the growth of indigenous investments in Nigeria. This was very evident in the manner the government got this challenge addressed immediately within 48hours to the joy of the airlines.

“We equally commend the Nigerian Customs Service for also assisting the airlines, including but not limited to Air Peace which was used as an example, in getting their aircraft spares and aircraft released. Our planes have since started flying,” he said.

Onyema said since the 7th day of July, 2021, airlines have been clearing their aircraft spares and aircraft without having to pay any 7 per cent surcharge.

“It is therefore very mischievous for any media outfit to be circulating videos of the presentation of AON complaints made on July 6th two weeks after the said presentation and two weeks after the issues had been resolved as though they are still existing.

The target of the sponsors of this falsehood is the Federal government of President Muhammadu Buhari. I personally frown at the ethnic angle presently circulating in the social media that the ‘fulani’ is destroying Air Peace.

“Those who want the country to go up in turmoil will never stop fanning divisive falsehood. The video was deliberately doctored to show only my face while obscuring the presence of the entire Senate committee members, Minister of Aviation and the leadership of all Aviation agencies in Nigeria.

“The target here is also me. No amount of deliberate intimidation, blackmail and falsehood will deter me from standing up for Peace and unity in my country. This has been my life since my childhood.

“It is very untrue that Air Peace is being dealt with by the ‘fulani’ rather the Federal Government led by President Muhammadu Buhari is very protective of every indigenous investment including those of the airlines,” he added.

He said that contrary to the insinuations that only Air Peace was singled out by Customs to pay those contested surcharges; it was all the airlines that were affected.

“Nobody is ‘dealing’ with Air Peace rather this government is very protective of Air Peace. This is evident in the government refusing to allow one Middle East airline from coming into Nigeria because its Covid-19 protocol was discriminatory and unfavourable to a Nigerian airline. Which airline is that? Air Peace of course.

“Those using the social media to destroy the country and promote hate should think of the consequences of their actions. Azman Air was affected and it is owned by a Fulani. Max Air was affected and it is owned by a Fulani.

“The list goes on. Why are we bent on spooling out falsehood that causes disunity and tremendous disaffection in the country? Why are people bent on promoting hate amongst our diverse peoples? For those promoting hate, the Rwandan story beckons on them,” he added.

The AON Vice Chairman said the present government, in its pursuit for the growth of indigenous airlines helped in getting the Bill removing duties and VAT from imported commercial aircraft and aircraft spares passed while the President wasted no time in giving his assent and signing into law, describing the move as commendable

Patoma Admin by — July 21, 2021 in Aviation 0
NiMet describes Lagos rainfall as unfortunate, urges resident to monitor update on Media channels

By Favour Nnabugwu

 

Nigerian Meteorological Agency (NiMET) has described as unfortunate, the heavy rain that occurred on the 16th of July 2021 in Lagos state and environs, which wrecked unquantifiable financial havoc with its accompanied flood and destruction of properties stating that the agency had made the prediction.

The agency also said it will continue to monitor the weather and give alerts as at when necessary and has urged the public to monitor along on their social media handles so as to keep up and prepare.

Recall that NiMET Forecast Office had on the 14th of July 2021 made a 3-day forecast and predicted ” cloudy skies are expected over the Inland and the coastal cities of the South with chances of morning rains over parts of Rivers, Cross River and Akwa Ibom states, it also said that later in the day rains are anticipated over parts of Anambra, Ebony, Enugu, Ekiti, Oyo, Osun, Lagos, Bayelsa, Cross River and Akwa Ibom states”.

On the 15th of July 2021, forecast was made again with respect to Lagos state, with new development and the trajectory suggested that cloudy skies and rains are expected in the morning afternoon and evening.

These forecasts anticipated a rainy day in the coastal city of Lagos state for 16th July 2021.

Consequently, the eventual heavy rainfall that occurred in Lagos state on the 16th of July 2021 was expected.

In a statement signed by GM/PR, Muntari Yusuf Ibrahim, confirmation of the weather forecast is posted on the agency’s Facebook and on YouTube.

In line with the forecast, continuous rainfall was observed over Lagos and its environs from morning to evening.

As the weather outlook for July 15, 2021, indicated, heavy volume of rainfall was observed with 125mm and 66mm of rainfall was recorded at our Oshodi and Ikeja weather stations.

This with other factors, caused flash flood episodes especially over Lagos Marina on Victoria Island.

The Synoptic Causes indicated the presence of very deep vertical extent of moisture and moisture laden winds up to about 3000m (700hPa) level in the atmosphere coupled with instability vortices and trough lines.

These features are usually accompanied by monsoonal rains otherwise referred to as continuous rainfall. The scale of these rains has been getting stronger spatially and temporally, hence leading to high impact and extreme weather events.

On July 16, 2021, at around 0130GMT, according to the Nowcasting Satellite Application Facility (NWCSAF), pockets of mesoscale convective systems started developing over the Atlantic Ocean.

The systems grew bigger, expanding northward and slowly moving westwards, making landfall at around 0545GMT over Lagos and its environs.

The system further intensified, became quasi-stationary and started to produce rainfall around 0800GMT till around 1630GMT.

During the Seasonal Climate Prediction (SCP) held on the 2nd of February 2021 by the Agency, a normal to above normal rainfall was the projection for the country followed with advisories on the socio-economic implications.

As such, high volume and high intensity rainfall are expected. These are capable of faster saturation of the soil making it difficult to hold more volume of rainfall, hence excess runoffs with the ability to flood the environment.

Nigerian Metrological Agency will continue to monitor the weather and give alerts as at when necessary.

NiMet advises that you follow us on Facebook and YouTube to monitor our forecast and avoid unpleasant calamities.

NiMet, providing weather, climate and hydrological information for sustainable development and safety of lives.

Patoma Admin by — July 21, 2021 in Aviation 0
Enterprise, SIC battle for top spot

By admin

 

Two insurance companies, Enterprise Insurance Company and the SIC Insurance Limited, have remained the dominant players in the market in recent years with a survey revealing that the firms have taken turns to occupy the top spot in the sector.

A report by international rating agency, Fitch, said over the past six years, SIC had occupied the top spot in four years only to lose it to Enterprise in 2018 and last year.

It said the two companies controlled more than a quarter of the industry’s market share last year at a time when 20 insurers were operating in the non-life business.

“In 2020, Enterprise secured 13.4 per cent market share while SIC dropped to 12.5 per cent. Enterprise wrote US$39.7 million premiums that year, just ahead of SIC’s US$43.4 million,” the report, which examined developments in the insurance market, said.

Top four

It listed the Enterprise Insurance, SIC, Hollard and GLICO as the top four largest companies that were engaged in close competition.

It said Hollard, Glico and Star (in third to fifth place in 2020) all reported premiums of between US$20m and US$30m in 2020, giving each a market share of seven to nine per cent.

“In sixth place in 2020 was Vanguard Assurance, which reported US$24.8m in underwriting activity that year, equivalent to about 7.2 per cent of total non-life premiums. Many of the leading non-life companies offer broadly similar portfolios of property and casualty, health, and liability lines to both household and corporate clients,” it added.

Threat from outside

The report said except South Africa’s Hollard, the six largest non-life providers were indigenous companies but noted that “multi-national non-life groups had been growing in stature over recent years.

It said many were now challenging the dominance of the market’s traditional leaders, citing Sanlam as one of the multi-nationals that had been steadily growing its exposure on the Ghanaian market.

“Building on its ownership of the Metropolitan brand in October 2014, the company acquired a 40 per cent stake in the non-life insurance business of Enterprise Insurance for around ZAR240m. Sanlam also owned 49 per cent of Enterprise Life and 40 per cent of Enterprise’s pension fund administration business”.

“Other South African firms have been moving into the country. In November 2014, IVM Intersurer, a significant investor in Hollard group, along with Hollard itself, took a majority stake in non-life insurer, Metropolitan and has since renamed its local operations to Hollard Ghana,” the report said.

Growth

It said the country’s non-life insurance market was one of the fastest-growing in the Sub-Saharan Africa (SSA) region and was undergoing a transformation.

It noted the efforts by the government and the NIC to create a more robust sector with emphasis on consolidation to improve balance sheets but said the approach had been a gentle one to date.

“Over the medium term, it is likely that premium growth will boost larger players in the market, with those with smaller market shares merging or dissolving,” the report said.

On product offerings, the report said services were broad, covering the majority of traditional non-life sub-sectors, including engineering, property, travel, goods in transit, health and motor.

It said the motor vehicle segment was a particular source of innovation within the non-life market, owing in large part, to the relative size of the coverage line which currently accounted for nearly half of non-life premiums written in the country.

“While motor vehicle cover remains a major source of revenue for Ghanaian non-life insurers, there have been concerns surrounding recent rises in claims activity within this segment of the market, due to a rise in road accidents,” it said.

Patoma Admin by — July 21, 2021 in Insurance 0
Munich Re’s Q2 profit hits €1.1bn; COVID losses in Life & Health exceed expectations

By admin

 

Global reinsurer Munich Re has said that while major-loss costs in its property / casualty (P&C) reinsurance operation came in below average for the second-quarter of 2021, COVID-19 had an adverse effect on its life & health (L&H) business in the period.

For the second-quarter of 2021, Munich Re has announced a preliminary net profit of €1.1 billion, which is up on the consensus of €808 million and also 90% higher than the €579 million recorded for the prior year Q2.

During the quarter, the reinsurer’s major-loss expenditure in P&C was below average primarily because of comparatively lower nat cat losses. Also, in P&C, Munich Re notes that COVID-19 related losses were in line with expectations for Q2 2021.

However, in L&H reinsurance, losses from the pandemic “clearly exceeded the expectation mainly due to the high mortality rate in India and South Africa.”
At ERGO, the global reinsurer’s primary insurance arm, Munich Re has reported only minor effects resulted from COVID-19 in Q2.

In Q1 2021, Munich Re reported COVID-19 related losses within P&C reinsurance of roughly €100 million, as well as losses of €167 million in L&H reinsurance.

This recent announcement from Munich Re is preliminary and so details around losses are limited. But while it will become clearer when the reinsurer publishes its Q2 2021 results in full, the pandemic does continue to dent the company’s underwriting, albeit now more so on the L&H side than the P&C side.

For the first-half of the year, Munich Re has announced a result of €1.7 billion, which is an improvement on the first-half of 2020, when the firm booked an additional €700 million of COVID-19 related losses.

With its H1 2021 result at €1.7 billion, Munich Re says it’s on track to meet its annual target of €2.8 billion, despite there being a greater chance of it missing its €400 million target set for the technical result in its L&H reinsurance business.

Patoma Admin by — July 21, 2021 in Insurance 0
Emirates A380 makes first London Stansted trip to pick up Arsenal

By admin

 

Emirates’ Airbus A380 is making its first trip to London Stansted Airport to icknup Arsernal  football club which will compete in the Florida Cup, playing Inter Milan on Sunday, July 25th.

The airline is flying the giant of the skies to pick up the Arsenal football club ahead of the Florida Cup. By picking up the football team that it sponsors, Emirates will operate the third Airbus A380 to visit London’s low-cost hub.

Emirates, Airbus A380, London Stansted
Emirates is flying an Airbus A380 to London Stansted Airport for the first time (not pictured). Photo: Vincenzo Pace – Simple Flying

London Stansted Airport was the fourth busiest in the UK and the third busiest in London in 2019. Despite this, the Airbus A380 is a rare visitor to the airport. While Emirates’ London Stansted service remains suspended, this didn’t stop the airline from pulling out all the stops to fly the Arsenal team to Florida.

Dubai – London Stansted – Orlando
This morning one of Emirates’ newest Airbus A380s, a jet registered as A6-EVN, departed from Dubai at 09:54. According to data from FlightRadar24.com, the plane is flying to London Stansted as flight EK2545, where it will arrive at roughly 13:45 local time. At the time of writing, the empty A380 was just about to enter Bulgarian airspace.

As mentioned, the flight is empty. While London Stansted is a perfectly normal destination for Emirates with the Boeing 777, the route, along with its London Gatwick route, remains suspended.

The jet is going to pick up the Arsenal football club. The team will compete in the Florida Cup, playing Inter Milan on Sunday, July 25th.

It seems the aircraft will remain on the ground in Stansted overnight. While no set time of departure is scheduled, we know that the aircraft is due to arrive at Orlando International Airport tomorrow at around 18:15 as EK2456.

Only the fourth A380 to visit Stansted
With this flight, A6-EVN will be the third Airbus A380 to visit London Stansted Airport.

The first aircraft to visit was British Airways’ first Airbus A380, G-XLEA. The plane visited in July 2013. Rather than operating passenger flights, XLEA visited London’s low-cost gateway on a training flight ahead of its entry to service

Emirates A380 Makes First London Stansted Trip To Pick Up Arsenal

Patoma Admin by — July 20, 2021 in Aviation 0
Kenyan insurance market generates $2.1bn gross written premium

By Favour Nnabugwu

 

Kenyan insurers and reinsurers faced challenging economic factors in 2020 which made the year a difficult one as the market generated KSH233bn ($2.1bn) of gross written premium, according to a new report from AM Best.

However, Kenya’s relatively stable economy and strengthening regulatory environment, compared with other markets in sub-Saharan Africa, are expected to continue to facilitate the development of its insurance sector.

AM Best’s new report, Price Competition Inhibits Growth Potential of Kenya’s Insurance Market, notes that while low insurance penetration by international standards means the market has good long-term growth potential, stiff competition has led to price undercutting in recent years, hampering premium growth and contributing to the sector’s underwriting losses.

There are more than 50 licensed insurers operating in Kenya, and in 2020, the regulator reports, the market generated KSH233bn ($2.1bn) of gross written premium, representing growth of 2 percent compared to the previous year (6 percent).

In the five years to 2020, GWP grew on average 6 percent per year, however inflation at between 5 percent and 8 percent dampened that growth.

Meanwhile market conditions have remained soft, which has also kept a lid on real GWP growth. However, AM Best warns that the market is saturated, with 35 companies competing for circa $1.2bn of premium in the non-life segment and no single insurer having a market share greater than 8 percent

The number of non-life policies in force grew an average of 13% per annum between 2016 and 2019 – 7% higher than GWP growth in the same period, implying a growth in the total sum insured by the market has not resulted in a corresponding growth in revenue.

Patoma Admin by — July 20, 2021 in Insurance 0
PTAD pays 18 out of 24 pension arrears to DBS pensioners

By Favour Nnabugwu

The Pension Transitional Arrangement Directorate (PTAD) has paid 18 out of the 24 months arrears of pension increment to Defined Benefit Scheme, DBS, the Pension.

it paid additional 9 months of consequential adjustment arrears occasioned by the new minimum wage increase of 2019 to Civil Service Pension Department Pensioners and 6 months of the same arrears to Parastatals, Police, Customs, Immigration and Prisons Department Pensioners.

The Executive Secretary PTAD, Dr. Chioma Ejikeme made this statement today in her response to the commendations from Pensioners on the payment of the arrears.

It would be recalled that in May, 2021, the Directorate implemented the consequential adjustment on Pensions as a result of the minimum wage Increment of 2019 and commenced payment of arrears to the Pensioners of the 4 operational departments as directed by President Muhammadu Buhari.

The Civil Service Pensioners were paid 9 months of the arrears while Parastatals, Police and Customs Immigration and Prisons Pensioners were paid 12 monhs arrears in May.

With this payment, each of the Pensioners in the 4 operational departments would have a balance of 6 months arrears left to be paid.”

According to the ES, “The payment was to further support DBS Pensioners especially during this festive period of the celebration of this year’s Eid el Kabir. While wishing all Muslim Pensioners a Happy Eid El Kabir, she promised to continue to support and promote the welfare of the Senior Citizens in accordance with the mandate of the Directorate.

Patoma Admin by — July 20, 2021 in Pension 0
UAE passengers from Nigeria, 15 other countries remain suspended, GCAA

By Favour Nnabugwu

 

 

The General Civil Aviation Authority (GCAA).  a new safety decision circular issued on Sunday announced that Inbound passenger travel from a total of 16 countries to the UAE will remain suspended until further notice.

Among the countries covered by the advisory are Nigeria, Afghanistan, Bangladesh, Democratic Republic of Congo, India, Indonesia, Liberia, Namibia, Nepal, Pakistan, Uganda, Sierra Leone, South Africa, Sri Lanka, Vietnam, and Zambia.

The authority has maintained status quo on previously issued travel restrictions.

“The current development on the Covid- 19 pandemic leads the UAE to impose new flight and passengers’ restrictions. The UAE Ggovernment is closely monitoring the situation and will provide further updates and instructions as necessary,” it said.

The GCAA said the circular had been issued to ‘harmonise flight and passengers’ restrictions among all above countries’.

The authority has also barred all UAE nationals, with the exception of diplomats and those suffering from medical emergencies from travelling to these countries as well.

All other previously stated travel protocols — including allowing entry only to UAE citizens, diplomats, golden and silver residency visa holders — will remain in place. Private charter jet regulations still hold, with no more than eight passengers allowed to travel per flight, said the GCAA.

Inbound travel from South Asian countries such as India, Pakistan, Bangladesh, and Sri Lanka have been suspended since April this year. Thousands of expatriates stranded in these countries have been desperately waiting to return to their jobs and families. Many are attempting to travel into the UAE by undergoing quarantine in a third country for 14 days.

Besides clarifying the inbound travel suspension, the GCAA circular also spelt out protocols for Emirati passengers who test positive for Covid or have come in close contact with a patient.

“Confirmed Covid-19 patients or those who have come in close contact with Covid-19 patients should generally remain in place and not travel until they meet the criteria for discontinuing isolation or quarantine period based on national protocol of the country they are in,” stated the circular.

“This includes UAE national passengers who wish to return home or those planning to travel to other countries.”

Patoma Admin by — July 20, 2021 in Aviation 0