Travel insurance, Covid-19 processing fees mandatory in Nigeria, 40 other countries

By Favour Nnabugwu

 

Travel insurance including Covid-19 processing fees has become mandatory in Nigeria and 40 other countries.

Travel insurance is a policy that covers the financial risks associated with traveling. It provides indemnity against minor risks such as loss of luggage, a delayed flight, and even major risks like medical emergencies and trip cancellation.

The countries are: Nigeria, Algeria, Benin, Cape Verde, Djibouti, Kenya, Mozambique, Namibia, Seychelles, Togo, Mauritius, Ukraine, Russia, Aruba, Argentina, Bahamas, Bolivia, Chile, Costa Rica, Cuba and Ecuador,

The other include Saudi Arabia, Cambodia, China, Indonesia, Jordan, Lebanon, Malaysia, Maldives, Mongolia, Nepal, Oman, Pakistan, Philippines, Singapore, Thailand, Guatemala, El Salvador, Paraguay, St. Maarten, Turks and Caicos Islands

Insurance companies around the world are packaging operation to accommodate the travel insurance including Nigeria.

Since the onslaught of the novel COVID-19 virus that started in the Wuhan region of China, the world has had to adjust to the new global realities.

Economies have shrunk, markets have depleted, and global travel has decreased significantly. In the same vein, governments and cities around the world have adapted themselves to survive with the new realities of today.

One of the ways that governments have tried to adapt to the new normal and to protect their countries and cities is by requiring a COVID-19 test for foreign nationals who want to visit their jurisdiction.

Some people make the mistake of assuming that COVID-19 tests are only necessary for people that are already showing symptoms, but there are a plethora of other reasons you may need COVID-19 tests. Here are some of the top reasons people take a COVID-19 test.

Another reason you might need a COVID-19 test is if you are travelling to another country. Most countries around the world require a COVID-19 test for all foreign nationals that are entering their country.

As a result, most airports will require you to present a COVID-19 test result when you land or even before you embark on the plane. Different countries have different COVID-19 regulations, so make sure that you check the regulations of the country that you are visiting.

Naicom points ways for insurance industry to get over with Covid-19

The National Insurance Commission has mapped out strategic patterns in which  insurance industry will cushions the effects of Covid-19 and get it behind the sector.

Commissioner for Insurance, CFI, Mr Sunday Thomas in his paper on “Strategies Aimed at Cushioning the Effects of the Covid-19 on the Operations of the Nigerian Insurance Industry and the way Forward,” at the 2022 Business Outlook organised by the Chartered Insurance Institute of Nigeria in Lagos today.

Thomas said the pandemic opened a lot of doors that ordinarily, the industry would not think was possible.

The CFI said that the insurance industry has become more visible since the pandemic, earning the commendation of President Mohammadu Buhari for supporting the efforts to contain the Covid-19 but needed to do more in its role in reducing vulnerabilities in all risks.

The dependence on the digital capacity he stated, has nurtured quickly the need to reinforce cyber protections to tame increased exposure of companies remotely working to cyber risks and also, the need for issuance of ICT standards for the industry.

Besides, he said the Commission has a stake in the stability of the industry and has not lost focus of this leading to some policies and programmes wearing relaxed tags. This seen seen in the extension of the recapitalisation exercise, transition to risk based supervisory regime, postponement of IFRS 17 commencement date, and regulatory forbearance.

He noted that the Commission is not oblivious of its responsibility to strengthen regulatory oversight and risk management and also implement effective policyholder protection schemes which involves improved enforcement of market conduct rules and also monitor degree of customer satisfaction and enhance insurance education.

He also put forward that the regulatory body has scaled up its project e-Regulation and has moved up more steps market development with the current collaborative model international and local stakeholders.

The CFI mentioned ten points which if we’ll implemented can move the sector forward;  risk based capital approach, and on this the Commission and the Nigerian Insurers Association are set for joint accomplishment. Other endorsements are, standardisation of reports, enhanced investment in digital capabilities and automation, entrenched effective asset liability management, and capacity development programmes- actuarial, competency framework and having in place reinforced recovery and resolution plan.

Other he mentioned include: the use of modelling for risk assessment and stress testing, context specific products such as loss of job insurance products, cyber insurance policy by trustees of customers data he said, has become more compelling and also stricken for regional integration is the establishment of the College of Insurance Supervisors of the West African Monetary Zone (CISWAMZ).

Pictures @ CIIN Business Outlook in Lagos

CAPTION:

L – Commissioner for Insurance Sunday Thomas; President, Chartered Insurance Institute of Nigeria, Sir (Dr.) Muftau Oyegunle and Deputy President, Edwin Igbiti at the CIIN Business Outlook in Lagos today

Commissioner for Insurance/CEO, National Insurance Commission, Naicom, Mr Sunday Olirundare Thomas while delivery his paper

 

President of the Nigerian Council of Registered Insurance Brokers, NCRIB, Mr Rotimi Edu at the CIIN event.

 

CIIN president, Muftau Oyegunle @ CIIN Business Outlook in Lagos

ADDRESS BY SIR. (DR.) MUFTAU OYEGUNLE PRESIDENT/CHAIRMAN OF COUNCIL, CHARTERED INSURANCE INSTITUTE OF NIGERIA AT THE 2022 CIIN BUSINESS OUTLOOK; A HYBRID PROGRAMME HELD AT ORIENTAL HOTEL, VICTORIA ISLAND, LAGOS ON 23TH FEBRUARY, 2022.

PROTOCOLS

It is with great pleasure that I welcome you all to our Institute’s Annual Seminar; the Business Outlook. A forum where key players in the Insurance Industry as well as the Finance sub-sector of the economy converge to review the business environment in the country for the immediate past year and strategize on the way forward for the insurance industry in the New Year.

This programme among other things, examines the National Budget, reviews the thrusts of the fiscal and monetary policies of the government and estimate how these would influence the insurance industry in particular and the economy in general.
The theme of 2022 Business Outlook is: “Economic Policies of the Government in 2022: Challenges, Issues and Prospects”. In examining the Government’s 2022 economic policies, we will look to:
– Analyse the 2022 National Budget as presented.
– Review the fiscal and monetary policy of the Government and their impact on the Insurance sub- sector of the economy;
– Appraise the performance of the Insurance Industry in 2021 and project into the future;
– Review the effects of the COVID-19 pandemic to the Insurance industry and how the industry can reposition itself – going forward.
Distinguished Ladies and Gentlemen, I am very optimistic that this year’s edition will be very insightful considering the positive projections of the global industry by international analysts. According to economic experts; the growth projections for 2022 revealed the demand for insurance would keep rising worldwide and the industry will be fairly bullish notwithstanding concerns about the potential effects of COVID-19 variants. Also, Swiss Reinsurance Institute stated that for the first time in history, global insurance premiums will exceed $7 trillion by mid-2022.

To bring this home today, we have erudite speakers drawn from the financial services sector to give us insight as to their projections for the year, the economy and the Insurance Industry. We are equally pleased to have the Commissioner for Insurance, Mr O. S Thomas who will equally give us a detailed perspective from the standpoint of the regulator about their projections for the year 2022.

At this point, I want to appreciate the Commissioner for Insurance for always answering our call whenever we reach out and doing so with the zeal, dexterity and commitment that defines true professionalism. I equally like to acknowledge our theme speakers: Dr. Oladimeji Alo, the Managing Director/CEO. Excel Professional Service Limited and Mr. Peter Ashade, Group CEO, United Capital Plc. We appreciate your thoughtfulness for agreeing to partner with the Institute on this remarkable programme.

Distinguished Ladies and Gentlemen, as I hand over to the experts to do justice to the topics for today, let me end this remark by, once again, welcoming you all to this seminar which promises to be very interactive and knowledge driven. I thank you all for taking out time from your busy schedules to be part of this great programme.

Thank you all for your attention and God bless.

Sir. (Dr.) Muftau Oyegunle, ACII, FIIN
President/Chairman of Council
CHARTERED INSURANCE INSTITUTE OF NIGERIA (CIIN)

Insurance industry grew by 8.01% in 2021

By Favour Nnabugwu

The Nigerian insurance industry in 2021  grew by 8.01 per cent compared to a negative growth rate of 13.29 per cent recorded in 2020.

According to the National Bureau of Statistics, in its Gross Domestic Product report for the fourth quarter of 2021, said the insurance industry also accounted for 7.82 per cent of the finance sector.

In the NBS report, the underwriting industry recorded negative growth of 2.08 per cent in the first quarter of 2021.

It, however, expanded by 16.41 per cent, 7.86 per cent and 13.61 per cent in the second, third and fourth quarters of 2021.

The NBS said, “The finance and insurance sector consists of the two sub-sectors, financial institutions and insurance, which accounted for 92.18 per cent and 7.82 per cent of the sector respectively in real terms in Q4 2021.

“As a whole, the sector grew at 24.92 per cent in nominal terms (year-on-year), with the growth rate of financial institutions as 25.99 per cent and 13.61per cent growth rate recorded for insurance.

“The overall rate was higher than that in Q4 2020 by 26.02 per cent points, and lower by 1.54 per cent points than the preceding quarter. Quarter on quarter growth was 25.34 per cent, while annual growth rate stood at 11.88 per cent in 2021.

“The sector’s contribution to the overall nominal GDP was 3.10 per cent in Q4 2021, higher than the 2.80 per cent it represented a year previous, and higher from the contribution of 2.70 per cent it made in the preceding quarter.

“Growth in this sector in real terms totalled 24.14 per cent, higher by 27.76 per cent points from the rate recorded in 2020 fourth quarter and up by 0.90 per cent points from the rate recorded in the preceding quarter.

“Quarter on quarter growth in real terms stood at 26.99 per cent, while annual growth was 10.07 per cent in 2021.”

The report said the contribution of finance and insurance to real GDP totalled 3.66 per cent, higher than the contribution of 3.07 per cent recorded in the fourth quarter of 2020 by 0.59 per cent points, and higher than 3.16 per cent recorded in Q3 2021 by 0.50 per cent points..

Company Income Tax hit N1.69 trn in 2021

The National Bureau of Statistics, NBS, said Company Income Tax, CIT, rose year-on-year, YoY, by 19.8 per cent to N1.69 trillion in 2021 from N1.41 trillion in 2020.

In its CIT report for Q4′ 21 released today, NBS noted that on quarterly basis, , CIT declined by 26 per cent to N347.81 billion in the fourth quarter of last year (Q4’21) from N472.52 billion in Q3’21.

The bureau stated that in terms of sectoral contributions, the top three largest shares in Q4′ 21 were information and communication (N51.05 billion) with 19.72 per cent; manufacturing (N45.09 billion) with 17.42 per cent; and financial and insurance activities (N31.06 billion) with 12 per cent.

The report stated:”On the aggregate, CIT for Q4 2021 stood at N347.81 billion, a decline by 26.39 per cent on a quarter-on-quarter basis from N472.52 billion in Q3 2021. “Local payments recorded were N258.85 billion, while Foreign CIT Payment contributed N88.96 billion.

“On a quarter-on-quarter basis, positive growths were recorded in accommodation and food service activities (116.01 per cent); activities of extraterritorial organizations and bodies (128.92 per cent); activities of households as employers, undifferentiated goods and services-producing activities of households for own use (563.56 per cent); construction(33.32 per cent); electricity, gas, steam, and air conditioning supply (84.68 per cent); human health and social work activities (31.47 per cent); other service activities (37.28 per cent); professional, scientific and technical activities (51.47 per cent); public administration and defence, compulsory social security (29.46 per cent); real estate activities (17.99 per cent); transportation and storage (2.04 per cent); water supply, sewerage, waste management and remediation activities (26.08 per cent); and wholesale and retail trade, repair of motor vehicles and motorcycles (13.91 per cent).
“On the other hand, decreases in collections were recorded in administrative and support service activities (-72.15 per cent); agriculture, forestry and fishing (-34.52 per cent); arts, entertainment and recreation (-25.31 per cent); education (-1.61 per cent); financial and insurance activities (-5.52 per cent); information and communication (-4.33 per cent); manufacturing (-23.21 per cent); and mining and quarrying (-7.56 per cent).

“In terms of sectoral contributions, the top three largest shares in Q4 2021 were information and communication (N51.05 billion) with 19.72%; manufacturing (N45.09 billion) with 17.42 per cent; and financial and insurance activities (N31.06 billion) with 12.00 per cent.

” Conversely, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use (N189.45 million) with 0.07 per cent; water supply, sewerage, waste management and remediation activities (N328.58 million) with 0.13 per cent; and activities of extraterritorial organizations and bodies (N447.01 million) with 0.17 per cent were top three lowest shares in Q4 2021. “However, on a year-on-year basis, CIT collections in Q4 2021 increased by 17.61 per cent from Q4 2020”