Insured losses for natural, man-made hit $112bn in 2021

By admin

 

The insured losses caused by natural and man-made catastrophes have reached 112 billion USD in 2021 according to Swiss Re report.

The cost of damages caused by natural disasters alone amounts to 105 billion USD, representing a 17% increase over one year.

2021 is considered as the fourth most expensive year for the world insurance market since 1970.

Hurricane Ida which hit the United States in August constitutes the highest loss of 2021. For this climatic event, insurers are expecting a bill between 30 and 32 billion USD.

This catastrophe is followed by the winter storm Uri (Texas) and the floods in Germany and Belgium. The latter would have caused insured losses of 15 billion USD and 13 billion USD respectively.

The total cost of economic damages is estimated at 259 billion USD, of which 250 billion USD are due to natural catastrophes and 9 billion USD to man-made losses.

Swiss Re’s analysis does not take into account the historical tornadoes that ravaged the central and southern United States in 2021.

According to the reinsurer, the toll could increase further by the end of the current year.

Naicom goes round states on compulsory insurance

By Favour Nnabugwu

 

The Commissioner for Insurance, National Insurance Commission, Mr Sunday Thomas, has said the commission is going round states to ensure the enforcement of compulsory insurance policies in the country.

Thomas at a sensitisation programme for top functionaries in Kano State on the implementation and enforcement of compulsory insurances in the state.

The CFI said, “Permit me to mention that the Insurance Act 2003 and other relevant laws of the Federal Republic of Nigeria did make the following insurances mandatory, among others: third party motor insurance in respect of all mechanically propelled vehicles that ply the public roads;

“All buildings under construction that are more than two floors; all public buildings including schools, offices, hotels, hospitals, shopping malls; professional indemnity for all medical practitioners and hospitals; and group life insurance cover by employers for employees where there are more than three persons; annuity for retirees as provided under the Pension Reform Act 2014.

“It is on the above premise that we knocked at the door of the Kano State government to set the pace for the northern part of the country to embrace insurance, especially with the introduction of Takaful Insurance (otherwise known as Islamic Insurance) as an alternative to the conventional insurance to cater for sentiments of religion and tradition.”

According to him, “The insurance partnership with Kano State is an opportunity to assist the people when they need it most.”

He said, “It is also for the financial services sector to also increase financial inclusion, which is one of the cardinal thrust that had been a forefront policy of the Federal Government for a sustainable economic development and lifting families out of abject poverty.

PenOps, AVCA partner to release maiden report on pension with private equity

By Favour Nnabugwu

 

Pension Fund Operators Association of Nigeria (PenOp) in partnership with African Private Equity and Venture Capital Association (AVCA) set plan in motion to  release report on Nigerian Pension funds engagement with private equity.

The release of this flagship report aims to bridge the gap between these two complimentary industries by investigating and assessing the role of Nigerian pension funds in empowering local investors in Nigeria’s private equity industry.

The Pension Funds and Private Equity in Nigeria Report finds that Nigerian pension funds display a strong appetite for private equity investment both locally and across the continent. 75% of the pension fund managers that participated in the survey plan to accelerate or maintain their current pace of capital commitments to African PE in the next five years, citing a desire for portfolio Diversification and Performance as the most important factors driving their investment plans.

The report also catalogues some of the obstacles faced by pension funds investing in the asset class. Respondents highlighted a perceived weak exit climate and a limited number of established African GPs as significant challenges for pension funds investing in African private equity. However, 49% of survey participants did not consider any of the current pension investment regulations to be prohibitive, suggesting that respondents view the existing regulatory environment as conducive for investment in alternative asset classes.

The partnership with AVCA helps us to work with industry stakeholders to identify and address these bottlenecks for our mutual benefit

Speaking on the publication, the CEO of PenOp, Mr OgucheAgudah, said “Local pension funds have expressed a desire to increase their allocation to private equity and more impactful investments.

However, there are a number of bottlenecks that restrict them. The partnership with AVCA helps us to work with industry stakeholders to identify and address these bottlenecks for our mutual benefit, and the benefit of the local economy

The CEO of AVCA, Abi Mustapha- Maduakor, said “Increasing interest in Africa’s private equity industry from domestic and international investors alike underscores the need to analyse the perceptions and concerns of institutional investors to promote an open dialogue on the continent’s unique business environment. This joint publication exemplifies AVCA’s commitment to championing private investment in Africa: bridging the knowledge gap between industry stakeholders by providing topical, informative research on the opportunities private equity has to offer Nigerian pension funds.”

IICC to award journalists for best report yearly

By Favour Nnabugwu

 

The Insurance Industry Consultative Council (IICC) has instituted an award for journalists covering insurance sector for the best reportage in a financial year.

Chairman of IICC, Sir. Muftau Oyegunle informed members of the National Association of Insurance & Pension Correspondents, NAIPCO during the recent  IICC 2021 Media Retreat in Asese, Ogun State.

Oyegunle stated that the award will recognise one journalist that distinguishes himself or herself in the reportage of the insurance sector within a financial year.

He stated that the award will focus on well researched and detailed write-up on issues in the insurance sector, adding that, such writeup will be developmental in scope.

He therefore charged insurance reporters to ensure that they churn out stories that can clinch the award going forward.

Oyegunle applauded the media for its immeasurable support, especially, the insurance correspondents, who have continued to demonstrate expertise and in-depth knowledge about the insurance industry as has been reflected in their objective reportage over the years.

“As the world continues to evolve, the expectation from you as a key blog in the turning wheels of economic growth equally changes.

“It is upon this notion that the theme for today, the Newsman in the Changing World, has been ably conceived.

“There is a need for knowledge and creativity to lead the way as well as the adoption of artificial intelligence in amplifying the contents that you create.

“The event of the year will no doubt put some mental or psychological strain on us and there is a need for us to deescalate some of those situations before we enter another year,” he submitted.

The IICC boss noted that one of the mandates of the Council was to promote insurance awareness and urged the media professionals to use their platforms and the reach they cover to promote the gospel of insurance and its offerings

W/Bank approves $700m credit for Nigeria’s agro-climate project

By Favour Nnabugwu

 

The World Bank has approved a $700 million credit from the International Development Association (IDA)* for the Nigeria Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project.

According to the bank, the project would increase the implementation of sustainable landscape management practices in northern Nigeria and strengthen the country’s long-term enabling environment for integrated climate-resilient landscape management.

The bank said that the productivity of major crops in Nigeria has been steadily declining over the past two decades, in part due to climate change, forcing an expansion of the area under agriculture and increased imports to meet the food needs of Nigeria’s growing population.

It added that persistent water shortages, especially in the extreme north, continue to exacerbate land degradation, desertification, and habitat loss.

Resource shortages, violent conflict, outdated agricultural systems not adapted to changing dryland conditions, lack of access to finance, weak value chain linkages, an uncompetitive environment for agribusiness, and poor market access were identified as other key barriers to increased agricultural productivity in Nigeria.

Consequently, the global body said that better environmental and water resources management and resilience against disaster and climate risks (largely water-related) were needed to sustain economic growth and protect the most vulnerable.

The World Bank Country Director for Nigeria, Shubham Chaudhuri, was quoted as saying, “Nigeria is faced with water scarcity and droughts which occur every five years, on average, with the potential to increase in frequency due to climate change.

“This scenario not only threatens food security, livelihoods, and productivity, but also exacerbates fragility and increases the risk of violence. With communities and households that are most dependent on natural resources for their survival and vulnerable to desertification, this intervention will improve multi-sectoral watershed planning and investments to help about 3.4 million direct beneficiaries adapt to evolving dryland conditions.”

Also speaking on the project, the Task Team Leader, ACReSAL, World Bank, Joy Iganya Agene, said, “The project will specifically target the inclusion of vulnerable and marginalized groups, including women, youth, the elderly, persons with disabilities, internally displaced people, and ethnic and religious minorities using an integrated watershed approach across sectors and levels of governance.

“This will help reduce the vulnerability of millions of the extreme poor in northern Nigeria, strengthening their own role in the management of their natural resources while also addressing land degradation, strengthening climate resilience, and lessening livelihood vulnerability in dry, semi-arid and dry sub-humid regions in the northern states.”

The ACReSAL Project is a 6-year strategic project prioritizing actions within four components: Dryland Management, Community Climate Resilience, Institutional Strengthening and Project Management, and Contingent Emergency Response.

It will improve the capacity of the country to adapt to a changing climate, largely through enhancing multi-sectoral convergence (across environment, agriculture and water) and technology modernization, including improved use of data, analytics, and connectivity.

NiMet alerts on poor visibility in North, other States

By Favour Nnabugwu

 

NIGERIAN Meteorological Agency (NiMet) has cautioned Nigerians on possibility of poor visibility in the coming days.

According to a release by the Agency’s Central Forecast Office on Tuesday, the development is as a result of fresh dust plumes raised at the dust source region (Faya Largeau in Chad Republic).

This, according to the statement is expected to advect into the country and reduce horizontal visibility.

“Dust haze conditions are expected to intensify before the end of the day over most of the Northern cities, horizontal visibility should further deteriorate from 0600 local time of 15th December 2021; as thick dust haze should be observed over some of the Northern cities keeping visibilities to 1000m and below over places like Maiduguri, Yobe Nguru, Potiskum, Dutse, Gombe, Yola, Bauchi, Katsina, Kano, and Kaduna.”

NiMet therefore warns that flight operations may be disrupted and airline operators are advised to pick up their flight folders and adhere to regulations, especially at aerodromes in the Northern parts of the country while road users should exert caution while driving along areas with poor visibility during this period and people with respiratory problems should take caution.

Meanwhile, in its High Temperature Outlook, NiMet warns that High-temperature between 35°C and 40°C is expected over parts of Kebbi, Sokoto, Kaduna, and Zamfara in the northwest. Similarly, in the northeast, temperature greater than 35°C and less than 40°C is expected over parts of Taraba, and Adamawa.

In the north-central, parts of Niger, Kwara, Kogi, FCT, Nasarawa, Benue, Kogi, and Plateau are also expected to experience 35°C and less than 40°C.

Areas in the south that are expected to record the same temperature range (35°C and less than 40°C) include parts of Ogun, Oyo, Ondo, Edo, Enugu, Ebonyi, Anambra, Imo and Cross River.

The Agency therefore advised Nigerians to drink plenty of water to prevent dehydration, avoid leaving humans or animals in the car, especially young children.

It also advised that people should stay in the shade such as under trees if you have to wait outside, Wear light and bright clothing, avoid wearing dark colors.

AIO works on integrating insurance in African Continental Free Trade Area

By Favour Nnabugwu

 

 

The president of the African Insurance Organisation (AIO), Mr Tope Smart, has announced the official incorporation of insurance sector integration into the African Continental Free Trade Area (AFCFTA).

Mr Smart, who is also managing director of Lagos-based NEM Insurance, announced this at the recent 25th African Reinsurance Forum held in Kigali, Rwanda, according to a report by the newspaper This Day.

In his explanation on the decision of the regional insurance body, Mr Smart said: “After deep reflection, the AIO Secretariat thought it wise that we incorporate insurance integration into this agreement.”

He also said that the AIO is studying how best to integrate the insurance industry into AfCFTA.

AfCFTA connects 1.3bn people across 55 countries in Africa with a combined gross domestic product valued at $3.4tn, according to the African Union. AfCFTA aims at accelerating intra-African trade and boosting Africa’s trading position in the global market by strengthening Africa’s common voice and policy space in global trade negotiations.

NAIPCO Awards past Chairmen, Corporate Affairs Managers, NAIPCO families

CAPTIONS

L – Chairman, National Association of Insurance Correpondents, NAIPCO, ChuksO. okonts who in his wisdom during his tenure awards past chairmen of the great NAIPCO. In the middle is Mr. Abah Halil of Corporate Communications, NAICOM giving one of the past chairman, Favour Nnabugwu an Award from NAIPCO during the end of the party organised by the association in Lagos todsy

National president of the Association of Registered Insurance Agents, ARIAN, Mr. Odewunmi Olakunle giving Modesty’s Anasoronye his own award as a pastchairmanofNAIPCO

Mr. Segun Bankole, Assistant General Manager/ Head Corporate Communication of Sovereign Trust Insurance gave Omobola Tolu-Kusimo as the immediate past chairman of the association,

R- Former General Secretary, NAIPCO, Chris Agabi, receiving on behalf of Past NAIPCO President, Nnamdi Duru, Excellence in Leadership Award from the Vice President, Association of Registered Insurance Agents, Olatuji Jegede

Also , Mr Kelvin Egerue received an Award as the pioneer chairman of NAIPCOL- Chairman of NAIPCO, Chuks Okonts; Egerue, Mr. Abah Halil of Corporate Communications, NAICOM and one of Egerue’s twins at the event

 

and Mr Roland Okoro of Risksheild.

Past Chairman if NAIPCO, Mrs Favour Nnabugwu giving NAIPCO Award to Mr AbdulRasaag Salami, Assistant  Director, Corporate Communication of the National Insurance Commission, Naicom  for a dynamic Corporate Affairs person, Recieving on his behalf is Mr. Abah Halil of Corporate Communications, NAICOM

Giving an Award also is Mr Segun Bankole Assistant General Manager/ Head Corporate Communication of Sovereign Trust Insurance by Modesty’s Anasoronye,, past chairman of NAIPCO.

Family of Mr Joshua Nse got a gift from NAIPCO for attending the end of the party consistently with his family. Passing the gift to the New is Prince Cookey, a member of the association as well

Mr Modesty’s Anasoronye’s family also got a gift for coming with his family to NAIPCO party as Mrs Iyabo Ogunjuyigbe handed the gift

NNPC’s revenue hits N894.6bn, records N141.96bn surplus

By Favour Nnabugwu

The Nigerian National Petroleum Company (NNPC) Limited revenue for the month of June, 2021 stood at N894.64 billion, a 9.04 percent drop from the May figure.

Despite the drop however, the Corporation returned to trading surplus of N141.96 billion following trading deficits recorded in May.

A statement by NNPC’s Group General Manager Group Public Affairs Division, Mr. Garba Deen Muhammad explained that data was contained in the June 2021 figures of the NNPC Monthly Financial and Operations Report (MFOR).

The Corporation yesterday reported a deficit of N37.46Billion in May 2021.

“A trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue for the period under review”, the Corporation explained.

It added that “In June 2021, NNPC Group operating revenue as compared to May 2021, decreased by 9.07 percent or N89.27 billion to stand at N894.64 billion. Similarly, expenditure for the month decreased by 29.32 percent or N299.44 billion to stand at N721.93 billion.

“Thus, in the period under review, expenditure as a proportion of revenue was 0.81 percent, compared to the figure in May which stood at 1.04 percent.

“The report also noted that the increase in trading surplus was due mainly to the increased sales of crude oil and gas by the Nigerian Petroleum Development Company (NPDC), an Upstream subsidiary of the NNPC, and the increased gas sales and depreciation postings by the Nigerian Gas Company (NGC).

“The positive outlook was further bolstered by the performance of Duke Oil and the Nigerian Gas Marketing Company (NGMC) which also added to the improved bottom line.

“Trading surplus or trading deficit is  derived after deduction  of the  expenditure
profile from the revenue for the period under review”.

NNPC also disclosed a total of 1.63 billion litres of Premium Motor Spirit (petrol) was distributed across the country, translating to 54.50mn litres/day were supplied in June 2021.

Also, the report indicated  47 pipeline points were vandalized representing 26.56 percent decrease from the 64 points recorded in May 2021. Port Harcourt Area accounted for 43 percent, while Mosimi and Kaduna Areas accounted for 51 percent and 6 percent respectively of the vandalized points.

“In the gas sector, a total of 223.77billion cubic feet (bcf) of natural gas was produced in the month of June 2021 translating to an average daily production of 7,459.88million standard cubic feet per day (mmscfd).

“For the period of June 2020 to June 2021, a total of 2,890.11bcf of gas was produced representing an average daily production of 7,321.36mmscfd during the period.

“Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed 59.84%, 20.26% and 19.90% respectively to the total national gas production”, it added.