All Posts in "Day: August 24, 2022"

NIA parleys States on Third Party Motor Insurance. Kaduna, Kogi, Rivers, Ogun already in

NIA parleys States on Third Party Motor Insurance
* Kaduna, Kogi, Rivers, Ogun already in
By Favour Nnabugwu
The Nigeria Insurers Association NIA is working closely with states on enforcement of Third Party Motor Insurance as Kogi, Rivers, Kaduna and Ogun have already keyed in
The outgoing Chairman of the NIA, Ganiyu Musa while giving account of his stewardship for the past two years
Musa noted that the NIA is engaging with Road Traffic Officers of the Federation to drive integration of the third-party motor Insurance across the states following their request for the implementation of the system in all 36 states including the Federal Capital Territory (FCT).
Musa said the Association is working closely with the state vehicle inspection service on enforcement of Third Party Motor Insurance in the states Kaduna Kogi Rivers and Ogun states have already keyed into the project
The NIA chairman is optimistic that more states are already discussing with the association to finalise arrangements on how they can join.
The NIA chairman said the association is also working with Lagos State Building Control Agency as part of engagements on the implementation of Lagos State Building law Occupiers Liability and Builders Liability insurance.
Miss said the bill will passed into law before the end of the tenure of the ninth National Assembly
He told journalists that the much awaited Consolidated Insurance Bill 2020 will soon be signed into law
Musa said the association is alsoclosely monitoring developments on the insurance bill and would continue to pursue same doggedly until the bill is passed into law
He said the association participated in all the processes thus far and would continue to monitor developments in respect of the bill.
 “It is expected that the new law will have a positive impact on the insurance space in Nigeria and align it with global best practice”
“We must acknowledge the cooperation received from the Speaker Federal House of Representatives Rt Hon Femi Gbajabiamila; Chairman and members of the House Committee on Insurance and Actuarial Matters Also National Insurance Commission NAICOM and other stakeholders in the journey thus far.
The NIA chairman lauded President Muhammadu Buhari’s assent to the Finance Act 2021 which has now given a more acceptable definition of capital
Musa who doubles as Managing Director Cornerstone Insurance Plc noted that prior to this time the definition of capital in Insurance Act 2003 was defective and highly restrictive
We appreciate the Honourable Minister of Finance Budget and National Planning Commissioner for Insurance KPMG and members of our association for their support in seeing this process through We are optimistic that this major milestone achievement has removed the major encumbrance on the recapitalisation exercise.
Musa stated that the association has began engagements with Road Traffic Officers of the Federation to drive integration of the third party motor Insurance across the states.
He pledged that the association will continue to partner relevant government agencies on the adoption of the Nigeria Insurance Industry Database NIID Insurance Industry Portal NIIP.
Our aim is to achieve national coverage We remain hopeful that other states will appreciate the value of the platform and embrace it
According to him, The association continues to scale up its engagements with the government with a view to creating more understanding on the importance and role of insurance in the national economy”
Musa said the leadership of the association has been engaging representatives of Federal Ministry of Finance Budget And National Planning the office of the Head of Service and the Accountant General s Office on provision of appropriate data and payment of premium on insurance of government assets
He stated that the association will continue to maintain a very cordial relationship with the National Insurance Commission NAICOM in the overall interest of the market.
This is to ensure that matters of common interest are discussed and agreed to avoid friction We thank the Commissioner for Insurance and the entire management of the commission for the excellent relationship and support received
Musa further stated that the association will continue to complement the efforts of National Insurance Commission, NAICOM in their campaign on domestication of compulsory insurances in the states
Musa listed some of his achievements to include the completion of the Insurers House project which commenced in May 2018 NIA s 50th anniversary and hosting of the Africa Insurers Organisation AIO.
Patoma Admin by — August 24, 2022 in Insurance 0
Consumers pay N777bn for electricity in Q1 2022

By Favour Nnabugwu

 

 

Consumers paid a whopping N777 billion for power supply in the first three months of 2022, according to Electricity Distribution Companies, DisCos,

The latest revenue figure is 317 percent higher than the N186.34 billion recorded over a similar period in 2021.

The 11 DisCos in a statement under the aegis of Association Nigerian of Electricity Distributors, ANED, said they have also installed 129,352 distribution transformers since the power sector privatization of 2013.

ANED’s Executive Director, Research and Advocacy, Barr. Sunday Oduntan, in the statement, said new milestones were recorded despite lapses in the Nigerian Electricity Supply Industry, NESI.

While assuring consumers of the commitment of the DisCos to improving the services, he noted that they also recorded other feats such as “increased metering from 2.3 million in 2013 to 4.1 million as of 2020, a 78 percent increase.”

Oduntan also stated that the DisCos attained a “reduction of average Aggregate Technical Commercial & Collection Losses, ATC&C, estimated in excess of 56bpercent, pre-privatisation) to 46.3 percent increase in the number of registered customers from an estimate of less than 2 million customers, pre-privatisation, to 10.2 million; establishment of 1,035 customer centres and the creation of 32,573 jobs as against the 23,515 at the privatization period”.

On the recent restructuring that saw the takeover of five DisCos by banks, Oduntan described the action as “unjustifiable” as the Director General of the Bureau of Public Enterprises (BPE) is also a board member of the companies.

He said, “the recent restructuring of the DisCos is being worsened by a resort to violations of the rule of law – expropriation of DisCos outside the framework of the agreements reached under the privatisation of the assets”.

ANED condemned the arrest of the MD-CEO of the Benin Electricity Distribution Company, BEDC by elements of the law enforcement apparatus on August 15 2022.

ANED also cited the BPE’s ‘Performance Assessment of nine DisCos Comprehensive Report of December 2021’ which imdicated that several commitments and investments expected of the government were not been executed timely, leading to continuous structural issues impacting DisCos.

ANED said the operators of the distribution segment of the power sector value chain were ready to do more in a business environment that has respect for sanctity of contracts.

Oduntan claimed fur8, “BPE report also faulted the lack of minor reviews from 2015-2019 by the Nigerian Electricity Regulatory Commission, NERC, despite dynamic variables, resulting in N2.4 trillion of tariff shortfall accumulating between 2015-2020, as well as unfavourable regulatory guidelines negatively impacting DisCos source of revenue”.

Patoma Admin by — August 24, 2022 in News 0
Global Reinsurance premium up by 18% – Gallagher Re

By admin

 

The globally diversified major reinsurance companies of the world group grew their premiums by 18 percent in the H1 of 2022, suggesting diversification and footprint is proving beneficial to them strategically.

Reinsurance broker Gallagher Re reported that premium growth across the reinsurers that it tracks averaged 12 percent in H1 2022, supported by continued favourable pricing for commercial lines and reinsurance business.

For the H1 of 2022, the average combined ratio was 94.1 percent with all but three re/insurers posting a sub-100 percent combined ratio.

Across the H1, the nat cat loss ratio fell by half a percentage point, but in the Q2 in isolation, it rose by 1.5 percent to contribute 6 percent of the combined ratio, with attritional losses also up 1 percent to 61.8 percent

However, growth is far from even across the industry, with certain companies taking their opportunities to exert the advantage that global and line of business diversification offers to them.

Next, the often slightly less diversified, geographically and in terms of business line, North American and Bermudian re/insurers that as a group expanded by 14 percent in the half.

“Continued pricing gains for commercial lines business remained the key driver of premium growth in Q2,” Gallagher Re explained.

With Q2 of 2022 seeing accelerating premium increases, an impressive 9 of the 25 companies Gallagher Re tracks reported a greater than 20% premium increase year on year for that quarter, versus just 5 out of the 25 at the end of Q1.

The broker highlights that a number of management teams expect commercial premium increases to continue to outpace loss cost trends into 2023, but points out that the average attritional loss ratio increased by 1 percentage point versus the prior year in Q2 2022.

It’s also worth noting that natural catastrophe losses, as a contributor to the average combined ratio across the commercial insurance and reinsurance cohort, increased in the Q2 as well.

That, in a relatively benign quarter for major global catastrophe loss activity, but one where the frequency of severe weather peril impacts had continued to erode some of the profitability of re/insurers.

Going back to premium growth, it’s perhaps notable that some of the strongest growth in property lines of business comes from the global players, while many of those pulling back from property cat risk are in the middle-tier of the industry.

It’s not the same across the board though, as some global reinsurers are slashing cat exposure too, suggesting a bifurcation in strategy across the market, as some companies believe they have the underwriting expertise and diversification in their portfolios to absorb catastrophe exposures, even at the recent historical rates of frequency and severity.

After the mid-year reinsurance renewals, there has been a slight adjustment in the industry’s exposure to US coastal wind as a peril, which means any major storms this year could result in a different dispersion of losses across insurance and reinsurance firms, compared to prior years, which will be interesting to watch out for as hurricane season progresses.

Patoma Admin by — August 24, 2022 in Insurance 0