NAICOM pegs minimum capital of Web Aggregators @ N5m, registration @ N3m

The National Insurance Commission (NAICOM) has pegged the minimum share capital of a web aggregator at N5 million and registration fee, N3 million.

This was contained in the operational guidelines released by the regulatory body to serve as a working document to register, supervise and monitor web aggregators.

The web aggregator is expected to have a minimum share capital not less than N5 miliion as at the date of application and shall continue to maintain same throughout the license period, even as the Web Aggregator shall submit to the commission, a financial position duly certified by an External Auditor every year after finalisation of books of Accounts.

The regulatory body has equally pegged Web Agregator’s registration for license at N3 million.

Intending investor is to pay N500,000 non-refundable application fee, after which such investor will pay N2.5 million as licensing fees, even as license renewal will cost N1million.

Stating that Insurance levy payable by Web Aggregator shall be one per cent of the gross commission income or minimum of N200, 000, whichever is higher, it added that the commission to be paid by the insurer partner to Web Aggregator shall not exceed 30 per cent of the brokers commission as stated in Section 53 of the Insurance Act, 2003.

“A Web Aggregators shall put in place a robust LMS and transmit leads at no extra cost to the insurers. The insurer shall keep adequate records of commission paid to a Web Aggregator,” it pointed out.

On payment of premium under web Aggregation, operation, it said, shall be guided by Section 50(1) of the Insurance Act 2003 which provides for receipt of an insurance premium as condition precedent to a valid contract of insurance and highlighted further that there shall be no cover in respect of an insurance risk, unless the premium is paid in advance i.e. ‘No premium, No cover.’

The operational guidelines is to serve as a working document to register, supervise and monitor web aggregators.

The commission in the guideline said that insurance intermediary who maintain a website for providing information on products of different Insurers is covered by this guideline.

It stated that it is the responsibility of Web Aggregators to obtain any clarification required on the applicability of this Guidelines, and any other Regulations from the commission.

Uganda Airlines wins World’s youngest aircraft fleet 2022 Award

By admin

 

For operating the world’s youngest aircraft fleet for the second year in a row, Uganda’s national carrier, Uganda Airlines, boasting of an average aircraft age of only 1,95 years, has been named the winner of the “ch-aviation World’s Youngest Aircraft Fleet Award 2022.

For the first time, ch-aviation has also recognized aircraft leasing companies with the ‘world’s youngest aircraft portfolio award 2022’.

The aircraft leasing company managing fleet is CMB Financial Leasing, with an average age of 3,91 years.

The ch-aviation Youngest Aircraft Fleet Award was conceived to honour Airlines and Aircraft Leasing companies worldwide who maintain young and efficient aircraft. “Keeping a modern fleet and portfolio by using new generations of aircraft contributes significantly to the decrease of CO2 within the aviation industry and helps achieve better fuel efficiency. This represents a huge step forward for sustainability, and ch-aviation has decided to give them the recognition they deserve.

The ch-aviation Youngest Aircraft Fleet Award recognises Airlines and Aircraft Leasing companies worldwide that operate young fleets and manage young portfolios, respectively. The efficient newer aircraft generations are vital for lowering CO2 emissions and making flying more environmentally friendly, and we commend the winners for their effort. It is essential to say that this award is entirely based on non-manipulable fleet data. There is no jury or any other subjective parameter involved.

 

Allianz, Prudential Beneficial control 50% of Cameroon life market

By Favour Nnabugwu

 

Two insurance companies is said to control 50 percent of life market in Cameroon. They Allianz and Prudential Beneficial Life Insurance

Cameroon, the life insurance market generated a XAF70.6 billion turnover for companies operating in the sector, in 2020.

According to the activity report recently published by the Ministry of Finance, 50 percent of the turnover was generated by two of the eleven companies operating in the sector. They are Allianz Cameroon and Prudential Beneficial Life Insurance Cameroun.

Allianz, leader of the local market, recorded a XAF20.2 billion turnover, representing 28.62% of the overall turnover in the market segment that year.  This figure is up by XAF300 million compared with the XAF19.9 billion the firm recorded in 2019.

With 21.3% of the life insurance market share in Cameroon in 2020, Prudential Beneficial recorded a XAF15.07 billion turnover in 2020, up by XAF2.1 billion year-on-year. This significant increase in its turnover can be explained by the shift in majority partner that occurred in June 2019 with Prudential taking over US firm Beneficial’s shares in the insurance company.

According to figures published by the Ministry of Finance, in 2020, Prudential Beneficial recorded the largest increase in its market share since 2016. Indeed, in 2016 and 2017, the company was only controlling 19% of the local life insurance market. In 2018 and 2019, that share jumped to 20.08%.

The additional grounds being gained by Prudential should be a concern for market leader Allianz, which has been losing ground since 2016. In its report, the Ministry of Finance shows that due to the tough competition, Allianz lost 5.76% of market share between 2016 and 2020 even though its turnover rose by XAF2 billion between the same period.

Specifically, its turnover rose from XAF18.6 billion in 2016 to XAF20.2 billion in 2020. At the same time, its rival Prudential posted a XAF10.3 billion in 2016 and XAF15.07 billion in 2020 (up by XAF5 billion between the two periods).