CHI Pays Accident Claims Of NAIPCO Member 

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Consolidated  Hallmark Insurance(CHI) Plc has paid accident claims of a member of the National Association of Insurance and Pension Correspondents(NAIPCO), who had an incident recently.

The insurance firm, had, in October, renewed the Group Personal Accident Insurance cover worth N24 million Sum Assured given for free to insurance journalists in the country.

The said member was crossing the road when a motorcycle riding against traffic hit her from behind which led to her being hospitalised.

However, covered under the free group personal  accident cover issued to NAIPCO, CHI stepped in to pay the hospital bills of the member while the victim  has been discharged from the hospital and she now in good health.

This gesture, according to the company, is part of its Corporate Social Responsibility (CSR) project, to ensure that journalists who are exposed to danger and hazard in the discharge of their civic duties are adequately protected.

Reacting to this development, the group managing director/CEO, CHI, Mr. Eddie Efekoha, said, this gesture is to show the kind of values and respect his insurance firm has for journalism, believing, journalists, who are the shaper of the society, and by extension, the insurance industry, must be protected.

Journalism, he said, is a risky profession, hence, the need to adequately provide insurance for those covering the insurance industry.

Applauding the initiative, the chairman, National Association of Insurance and Pension Correspondents(NAIPCO), Mr. Chuks Udo Okonta,  thanked the insurance firm on the claims it paid, stating that, this is a testimony that insurance works and that insurers are actually paying genuine claims.

He applauded the insurer for its prompt response to the claim request, pointing out that, the company was cooperative through out the claim processing.

Okonta also noted that similar claim was paid to a member who was involved in an accident in the past.

The Group Personal Accident Insurance covers death, permanent disability and medical expenses.

The policy, now in its 10th years, has been running since 2012, and is renewed annually by the company. The cover, was renewed on the 1st of October, 2021 and it is due to expire on 30th of September, 2022.

The policy cover all members of the National Association of Insurance and Pension Correspondents(NAIPCO) across the country while the company has promised to continue to renew the coverage for the journalists every year.

Russian insurers banned from dealing foreign companies

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Russian insurers are no longer allowed to do business with insurers, reinsurers and brokers from states deemed hostile to Russia.

This decision follows a wave of economic sanctions imposed by Western countries on Russia after the outbreak of the Russian-Ukrainian war.

The countries involved include the United Kingdom, the United States, Japan, South Korea, Australia, New Zealand, Switzerland, Singapore, Taiwan and all European Union (EU) states. The legislation signed by President Putin also gives the Bank of Russia’s Board of Directors the authority to decide which bonds are not subject to transfer by an insurer to a national insurance or reinsurance company.

The bank is also authorized to determine the data that financial organizations have the right to withhold from the general public. The aim is to prevent hostile states from imposing sanctions using such data.

Several European and American insurance companies have declared the suspension of their activities with Russian companies. They include Swiss Re, Hannover Re, Allianz, Zurich Insurance, Generali, Willis Towers Watson (WTW), Marsh McLennan and Aon.

Fuel Rate Spike:  Air France-KLM to raise ticket prices from March 25

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As of 25 March, KLM and Air France will be adding a surcharge to long-haul ticket prices as fuel prices soar.

KLM has stated the cost of the surcharge varies on destination and travel class, such as a return flight between Amsterdam and New York will be €40 for economy or €100 for business class. The surcharge only applies to new bookings.

Backtracking from Air France?

Air France’s decision comes as a surprise, with the airline stating in Le Monde just four days ago that it has avoided raising prices thanks to hedged fuel costs. A spokesperson for the airline said:
Air France-KLM has hedged 72% of its oil consumption for the first quarter and 63% for the second quarter at $90 a barrel, confirmed back in February. The decision is likely a pre-emptive move against a prolonged Russo-Ukrainian war, with current oil prices at levels not seen since 2008.
Increasing cost

Following last week’s warning by experts that airfares are likely to skyrocket if oil prices do not decrease, several other airlines have expressed concerns over the uncertainty of the fuel market.

KLM-partner airline, Delta, has stated that ticket prices could increase by at least 5% this summer. Speaking at the JP Morgan Industrials Conference on Tuesday, airline President Glen Hauenstein noted that the airline needed to recapture around $15-$20 each way on a ticket, feeling confident that Delta could meet that in the second quarter.

However, several airlines consider the move too hasty, especially considering a drastically recovering market. American Airlines has suggested that stronger summer bookings could offset rising fuel prices. The carrier does not hedge its fuel consumption, with CEO Doug Parker adding that the industry will continue to make money regardless.

In 2010, oil prices were around US$80 per barrel; the airline industry made US$4.8 billion, which was a record in earnings for the industry. Next year, oil prices went up to US$111.26 per barrel. Earnings fell. It takes a while to react. The reaction to higher oil prices is less capacity and higher prices. So when it runs up quickly like it just did, it takes a while to respond, but we respond, and indeed, in 2012, we got back nearly to 2010 revenue levels. We can make money with oil prices of US$100 or higher, and we will. That’s not a long-term impact on the industry’s ability to make money.”
Chief credit analyst for Standard and Poor’s, Phillip Baggaley, differs, noting pricing will still put pressure on the bottom line.

“Even with this strong traffic, the airlines can’t recapture all the higher fuel cost, particularly if they go up quickly.”
What about other airlines?
Malaysia Airlines will be adding fuel surcharges from 23 March to mitigate the costs of unprofitable routes. Emirates, JAL, and ANA have added surcharges onto their domestic routes.

Speaking to at a recent press conference, Lufthansa CEO Peter Gerber has stated that the Lufthansa Group has hedged fuel contracts and will closely follow the market. Lufthansa is 63% hedged throughout 2022 at $74 a barrel.

Europe’s most outspoken CEO, Michael O’Leary, has already addressed concerns, claiming Ryanair will not introduce any fuel charges this summer. The low-cost carrier is 80% hedged on fuel until March 2023.