Naicom, CIIN beckon on operators to roll out strategics for growth

By Favour Nnabugwu

 

The National Insurance Commission and the Chartered Insurance Institute of Nigeria have called on the industry operators to come up with  strategies that will placed the sector in it’s rightful position in the economy

The  Commission and the training institute in Lagos on Wednesday during the 2022 business outlook forum organised by the CIIN, with the theme ‘Economic policies of the government in 2022: Challenges, issues and prospects.

The Commissioner for Insurance, Mr Sunday Thomas, who spoke on the topic ‘Strategies aimed at cushioning the effects of the COVID-19 on the operations of the Nigerian insurance industry and the way forward,’ said the commission ensured increased visibility for the insurance sector.

He said NAICOM had continued to implement effective policyholder protection schemes.

“The commission reviewed current policyholders’ protection schemes and improved use of the security fund for settlement of insolvency and distress; improved enforcement of market conduct rules; and monitored degree of customer satisfaction and enhance insurance awareness by policyholders in Nigeria,” Thomas said.

He said NAICOM ensured risk-based capital approach, enhanced investment in digital capabilities and automation, standardisation of reports and capacity development programmes, among others.

The President/Chairman of Council, CIIN, Muftau Oyegunle, described the forum as an avenue where key players in the insurance industry finance subsector of the economy converged to review the business environment in the country, for the immediate past year and strategise on the way forward for the insurance industry in the New Year

NAIPCO strengthens ties with LASPEC

The Nigeria Association of Insurance Correspondents, NAIPCO, paid a courtesy visit to Lagos State Pension Commission, LASPEC in Lagos today

 

CAPTION:

L –  Executive Director Finance and Investment, Lagos State Pension Commission, Mr. Olumuyiwa Oshin; Insurance Correspondent, News Agency of Nigeria, Mrs. Ajoke Adeyemi; Director General, Mr Babalola Obilana; Chairman, National Association of Insurance and Pension Correspondents/Publisher Inspenonline, Chuks Udo Okonta and Head, Public Affairs, Mrs. Mariam, Adetokunbo Eko at a meeting in Lagos.

From left: Executive Director Finance and Investment, Lagos State Pension Commission, Mr. Olumuyiwa Oshin; Director General, Mr Babalola Obilana; receiving a copy of NAIPCO Trumpet from Chairman, National Association of Insurance and Pension Correspondents/Publisher Inspenonline, Chuks Udo Okonta at a meeting in Lagos.

Five insurers hold 60% of the UAE market in 2021

By Favour Nnabugwu

The Emirati insurance market in the United Arab Emirates, UAE is closing the year 2021 with a 7 percent increase in its turnover.

The written premiums realized by the 29 listed insurers have gone from 24.4 billion
AED (6.6 billion USD) in 2020 to 26.1 billion AED (7.1 billion USD) a year later
 
The market is dominated by five insurance companies which account for nearly 60% of the turnover recorded by the industry in 2021. The other 24 companies share the remaining 40 percent
 
The five Insurers whose amount runs in billions are Orient Insurance with AED 5.008 (USD1.363) and taking up 19.20 percent of the share; ADNIC  has AED 4.267 (USD1.162)  representing 16.30 percent
Oman Insurance has AED 3.539 (USD0.963) equals 13.60 percent; Dubai National Insurance and Reinsurance AED1.226 (USD0.334) representing 4.70 percent and Al Ain Ahlia with AED1.206 (USD0.328) representing 4.60 percent.

Total top 5 insurers AED 15.246 (USD4.15) taking a chunk of 58.40 percent
Other insurers AED10.854 (USD 2.95 41) representing 41. 60 percent
 

The market is dominated by five insurance companies which account for nearly 60 percent of the turnover recorded by the industry in 2021. The other 24 companies share the remaining 40 percent

The net profit generated by all the listed companies reached 1.93 billion AED (525 million USD) by the end of 2021, representing a 2 percent increase over one year.

African Risk Capacity pays $10.7m in compensation to Madagascar for Cyclone Batsirai

By Favour Nnabugwu

 

African Risk Capacity (ARC) has agreed to pay $10.7 million in compensation to help the Malagasy government and its citizens.

Created in 2012 by the African Union, ARC is a specialized agency whose mission is to help member states mitigate the effects of extreme climate events

After crossing both islands of the Indian Ocean (Reunion and Mauritius), the tropical cyclone Batsirai hit Madagascar hard on 5 February 2022. The disaster caused 121 deaths, displaced 61 500 people, destroyed 19 000 homes and 4 500 classrooms.

For the record, ARC has developed a parametric insurance product against tropical cyclones in East Africa in late 2020.

ARC’s parametric triggers are designed to be quickly assessed when any qualifying catastrophe or weather event occurs and so it’s encouraging to learn that this US $10.7 million payout will be made very rapidly, to help the Government of Madagascar in delivering much-needed relief and recovery funding to affected areas of the country.

Madagascar had previously received a $2.3 million ARC payout after its parametric drought insurance policy was triggered a few years ago.

Madagascar was the first African nation to take up the sovereign parametric cyclone insurance protection, in late 2020 and the decision has proved to be a prudent one, as the countries cyclone policy was triggered by Batsirai.

ARC’s Tropical Cyclone model identified that over 6 million people were exposed to recent tropical cyclone Batsirai when it slammed into Madagascar.

According to reports from the Malagasy Disaster Management Agency (BNGRC), some 61,500 people were displaced by cyclone Batsirai, while 121 people lost their lives, and 19,000 homes and 4,500 classrooms were damaged by the severe storm.

Cyclone Batsirai caused significant impacts to Madagascar in February 2022 and was the strongest tropical cyclone to strike the country since Cyclone Enawo in 2017.

Batsirai made landfall as a Category 3 storm on February 5th 2022, with sustained winds of 165 kilometers (105 miles) per hour and gusts up to 230 kilometers (145 miles) per hour, only two weeks after cyclone Ana brought deadly flooding to the country in late January and killed 55 people.