All Posts in "Month: September 2022"

Celestine O. Isele died 5 months after wedding in Turke

By admin

 

 

A 35-year-old Nigerian man, Celestine Omorodion Isele, died five months after his wedding in Turkey.

Celestine and his wife, Gloria, got married on April 23, 2022 at St Theresa’s Catholic Church in Umunakanu Owerre, Ehime Mbano Local Government Area of Imo state.
He returned to Turkey after the wedding and died second week of September.

The Delta State indigene was laid to rest on Wednesday, September, 28, 2022, at Kilyos Cemetery in Turkey.

According to his Facebook profile, Isele graduated from University of Benin, Edo State and seems to dealer in clothes and shoes.

 

Patoma Admin by — September 30, 2022 in Others 0
Naicom markets insurance initiatives development, compulsory insurance in Edo State

National Insurance Commission, Naicom has taken insurance market development initiatives and enforcement of compulsory insurance to Edo State.

CAPTION

L –  Karachi Anyanwu, NAICOM; Rasaaq Salami, Head of Corporate Communications and Market Development, NAICOM; Bar. Osarodion Ogie, Secretary to Edo State Government; Adeyemi Abubakar, Assistant Director, NAICOM and, John Osagie, Chairman of Edo State Internal Revenue Services at the meeting between NAICOM and the Edo State Government in Benin City.

Patoma Admin by — September 29, 2022 in Insurance 0
Tony Elumelu commends Naicom for investor-friendly

By Favour Nnabugwu
 

The Chairman of the United Bank for Africa (UBA) and Heirs Holdings, Mr Tony Elumelu has commended the National Insurance Commission, Naicom for the investor- friendly act which made it possible for Heirs Insurance and Heirs Life to come on board after 8 years.

Elumelu in his Keynote address at the 60th anniversary celebration of the Nigeria Council of Registered Insurance Brokers, NCRIB, said it took the companies 8 years trying to process the establishment of the two insurance companies which was possible under the tenure of the Commission For Insurance, Mr Sunday Thomas.
He said UBA has established office in over 20 countries including the United State of America but in all of them, Nigeria’ laws are investor-friendly than the countries they mark their present in.
“Africa’s global bank present in 20 African countries including France, USA, UK, and the UAE And the catalytic work”
Giving his inspiration to the banking industry, he recalled, “In those days when I was in university, what drove me to want to join banking?  it was the profile of bankers, sharp suits, nice carsIt’s funny now that I think about it, but little things on how the people that worked in banking looked made me aspire to the banking profession.
He added that even in his foundation, what we do at the Tony Elumelu Foundation in empowering young Africans across the 54 countries on the continent So far, over 15,000 young African entrepreneurs have benefitted directly from the Foundation through the provision of a $5,000 non-refundable seed capital, alongside business training, mentorship, and market access to these young African entrepreneurs.
Patoma Admin by — September 29, 2022 in Insurance 0
Weed out unregistered, unethical brokers from the arm – Elumelu tasks NCRIB

CAPTION:
L- Commissioner For Insurance, Mr Sunday Thomas, Chairman of Heirs Holdings, Mr Tony Elumelu; President of the Nigeria Council of Registered Insurance Brokers, NCRIB, Mr Rotimi Edu and the Executive Secretary of NCRIB, Mr Tope Adaramola at the 60th anniversary celebration in Lagos
By Favour Nnabugwu 
Chairman of United Bank for Africa, UBA, Mr Tony Elumelu has advised the the Nigerian Council of Registered Insurance Brokers, NCRIB, to sifr the brokerage sector of the unregistered and unethical brokers.
Elumelu who delivered a Keynote address at NCRIB 60th anniversary theme: 60 years of Insurance Broking: Redefining the practice and professionals, the brokerage sector need to cleanse the sub- sector of unruly brokers who flaunt the rules and regulations of the body.
He was emphatically practical about the sanitizing the brokerage arm, “The need for the body to weed out non-registered and non-compliant members from its fold.
“These are the ones tarnishing the image of the broking profession and the industry at large.An insurance broker must be professional at all times.In redefining the practice and practitioners in the broking profession, NCRIB should lead the war against many of the unethical practices that have been the bane of the industry for years”
Elumelu further said, “These  include premium rate cutting, delayed premium remittance, unremitted premium, overloading of premium, returned premium, fake documents, fraudulent claims, collusion to defraud, mis-selling, unhealthy competition, misrepresentations, manipulation of policy conditions, self-enrichment methods disguised as marketing expenses, and many more”
Elumelu said that while the National Insurance Commission continue to play it’s role, NCRIB should sanction brokers that violate the rules and regulations governing the brokerage arm
“While NAICOM continues to play its role as the industry regulator, NCRIB as a body must ensure that appropriate sanctions are imposed on any of its members found using unethical practices”
The NCRIB That is why we decided to introduce smart, simple insurance to the Nigerian market to better service this underserved market NCRIB’s Contributions.
Defining the broker, he said the the insurance broker is a professional. He represents the interests of insurance consumers and provides them with expert advice, guidance, and support on insurance matters.
The NCRIB serves as a central organisation for the regulation of all practicing insurance brokers in Nigeria. Members of NCRIB have, over the years, facilitated insurance businesses in hundreds of billions of naira, delighted millions of Nigerians with their professional insurance services, and ensured that claims are duly settled.
Apart from weeding the arm of bad brokers, he said there is also need to adhere strictly to the enforcement of corporate governance  by all the members of NCRIB.
“We must strive to achieve the highest levels of professionalism and dedication to delivering excellent service to the public who rely on us to provide them with comfort In the area of Governance.
“We as an industry need to enforce strict adherence to corporate governance by all NCRIB members”
He said there is a lot of benefit from collaboration in the industry while he called on NCRIB to collaborate more with other insurance industry bodies to deepen insurance penetration in Nigeria.
“Where there are differences on issues, such must be resolved as friends and colleagues to protect and preserve the image of the industry. The body should also play a key role in government advocacy for pro-insurance laws and policies”
The brokerage arm should be more innovative, technology, bridging the gap, create more awareness and bench mark against global trend.
“The insurance industry can benefit from innovation across all phases of the service. For this to happen, there is the need to reward and incentivise innovation across the industry”
“The  industry must also benchmark against global trends. Perhaps the starting point for innovation in the broking arm of the industry is retail insurance development”
“It is high time the brokers community began to shift focus to retail because this is where the future of insurance lies in Nigeria. Brokers have the capacity to lead in this area.
“Trying to make profits from existing lines is not going to deepen insurance penetration, rather we must look at the blue ocean opportunities”
‘There is a need to generate more awareness and showcase the value of insurance to the public, promoting participation, most especially in the retail space.
“We must bridge the insurance knowledge gap if we are to make insurance attractive to Nigerians Insurance brokers need to participate fully in this drive as they stand to benefit from the initiative like other players in the market.
“The entire Nigerian insurance industry, must embrace technology fully.The body also needs to work towards positioning its members properly for digital integration, mediating between the insuring public and the underwriters digitally.”
The brokers industry cannot advance when the other financial services are transitioning to online real time and we are still stuck with a system that relies on hard copy files and documents
Patoma Admin by — September 29, 2022 in Insurance 0
Operators from Nigeria, other 35 countries in Ghana for AIRDC after 20 years

By Favour Nnabugwu

 

 

 

Twenty years after the conference of Association of Insurers and Reinsurers of Developing Countries (AIRDC) was held in Nigeria, Operators from 36 developing countries are already in Accra discussing measures to boost insurance industries in developing economies.

Chief executive officers, experts, practitioners from insurance and reinsurance companies are from Nigeria,  Ghana, Egypt, Angola, Togo, Benin, Kenya, Guinea, Liberia, Nepal, Philippines and Senegal, among others for conference which started on September 25 – 28, 2022.

It is being hosted by the National Insurance Commission (NIC) and Organised by the Association of Insurers and Reinsurance of Developing Countries (AIRDC).

It has the theme; “Building Resilience in the Heat of a Global Economic Tussle.” The programme is being held under the auspices of the Association of Insurance Supervisory Authorities for Developing Countries.

The objective of the four-day international conference aimed at coming out with measures to increase the share of developing economies in the global insurance market.

The Commissioner of Insurance, Dr Justice Yaw Ofori, said Ghana was hosting the 22nd AIRDC educational international conference for the first time.

He said the last time the conference was held in West Africa was 20 years ago (2002) in Nigeria.

Dr Ofori said the objective of the programme was to come out with strategies to increase the share of the developing economies of the global insurance market.

According to him, the share of the developing countries in the global insurance market was paltry and a huge chunk of insurance businesses were operated by developed economies.

Dr Ofori said the conference would help the insurance and reinsurance companies to come together, collaborate and have a united front and voice in the world insurance market.

The Commissioner of Insurance said the conference would create avenues for the insurance and reinsurance companies to discuss technological innovations to enhance the insurance industry.

The President of AIRDC, Yassir Albaharna said the theme for the conference was chosen in view of global economic developments.

“The subject of resilience has gained a lot attention lately, as world economies continue to be impacted by range of macro-economic, political, social and technological factors on a scale not before.

Building greater resilience has therefore become a defining mandate of our time,” he said.

Achieving financial resilience, Mr Albaharna, said depended on the development of financial strategies that relied on country risk assessment and financing tools.

Dr Mohamed Ibn Chambas, a former Special Representative of the Secretary-General and Head of the United Nations Office for West Africa and Sahel, who was the Special Guest of Honour said insurance as a risk transfer mechanism, had played fundamental roles in helping humanity overcome adversities.

Dr Chambas expressed the hope that the insurance industry in developing world could help address the currently global economic challenges, saying “I am optimistic that insurance can once again play the critical role it has frequently demonstrated in difficult periods.”

Patoma Admin by — September 29, 2022 in Insurance 0
Beneficiaries of CBN intervention fund re-paid N3.7trn in four years

By Favour Nnabugwu

 

 

The Central Bank of Nigeria (CBN) said the beneficiaries of the intervention finds disbursed in the last four years, N3.7 trillion has been re-paid out of the total of N9. 3 trillion

The Director of Development Finance Department of the bank, Mr. Yusuf Yila, made this known in Abuja today

Of the total figure the apex bank said a total of N5. 3 trillion of the intervention funds was not yet due for repayment.

He said that the apex bank would slow down intervention schemes, with it’s new move to curtail the inflationary trends.

Mr..Yila insisted that all beneficiaries of CBN intervention schemes must pay back their loans, as according to him, they were not grants.

Giving details on why the CBN raised the Monetary Policy Rate (MPR) the Director of Monetary Policy, Dr. Hassan Mahmoud explained that in current economic situation in the country, with the rising inflation rate, hiking the interest rate was the best decision to curtail it.

“In the last 17 months or so, inflation has been going up but we didn’t jack up the rate until we felt that we had to act to tackle the trend.

“Note that Central Banks have been raising rates across the globe because of the global inflation trend. But we didn’t raise rate just because others are raising rates. We raised rate because of the wind gap before the inflation rate and the interest rate.

“How does the rising inflation affect the economy? The volume of money was too high for the economy to a sorb in terms of the flow of supply. Consequently, prices will go up because of the volume of money in the system.

“A lot of those funds standing idle. The banks are not lending the funds and as such impacting negatively on our Freign Exchange market.

“It will also impact on the Foreign Exchange market and when the Naira depreciates, so also will the it will increase the inflation rate. Besides, it will make our economy unattractive to foreign investors to bring in their money.”

Patoma Admin by — September 28, 2022 in Banking & Finance 0
Nigeria, three other Africa exporting countries better positive outlook in 2023 – Allianz Trade

By Favour Nnabugwu
Allianz Trade which operates through the Allianz Global Corporate & Specialty license in South Africa, said in its report that commodity exporting countries, Nigeria and three other countries would have positive outlook in 2023
Though report said the energy crisis and rising interest rates will drag global GDP growth down to just +1.5 percent as slow as it was in 2008.
The other three include South Africa, Kenya and Ghana
In Africa commodity exporting countries have a more positive outlook, helped by better terms of trade prospects.  GDP forecast for 2023 is as follows: Africa (2.7 percent from 3.2 percent in 2022), South Africa (1.5 percent from 1.8 percent), Nigeria (unchanged at 2.3 percent), Ghana (unchanged at 2.5 percent), and Kenya (4.4 percent from 4.9 percent).
However, domestic issues are limiting. In South Africa, energy rationing, and logistical bottlenecks – aggravated by flood damage to the port of Durban in April hamper growth while in Nigeria, the oil sector continues to struggle.
Inflation rate in Africa is set to continue increasing driven by costlier food and fuel prices with Africa forecast to finish 2022 averaging 14.7 percent and then 9.6 percent in 2023, Nigeria (18 percent and 15 percent), South Africa (6.8 percent and 5 percent), Ghana (31.3 percent and 20.3 percent) and Kenya (6.5 percent and 5.5 percent).
Heightened food security risks in North Africa and many parts of sub-Saharan Africa where the role of agriculture and the tendency to rely on imported food products makes the countries particularly vulnerable to the agricultural shock caused by the geopolitical conflict.
Allianz Trade said Nigeria’s economy which  expanded by a better-than-expected 3.5 percent y/y in Q2, up from 3.1 percent y/y in Q1, while the pick-up in headline growth was largely due to the contraction in the oil sector easing, while growth in the non-oil economy held up well. In seasonally-adjusted terms, GDP rose by around 0.9 percent q/q.
More timely indicators suggest that activity picked up further at the start of Q3. The MI rose from 50.9 in June to 53.2 in July. And private sector credit growth reached 21.3 percent y/y in July. But production in the key oil sector remained very low, essentially unchanged from June at 1.18mn bpd in July.
Meanwhile, the currency weakened against the US dollar, both on the Nafex exchange rate and the black market. Inflation jumped from 18.6 percent y/y in June to 19.6 percent y/y in July, the highest since September 2005.
The main driver behind the increase in the headline rate was another sharp rise in food inflation, although price pressures rose in other categories too. Elevated inflation is likely to push policymakers to continue raising interest rates.
Since June, global macroeconomic conditions have considerably worsened. Deep and long-lasting ruptures in energy markets and the negative impact on business confidence will push the manufacturing sector in most countries into recession. At the same time, rapidly rising interest rates and falling real disposable incomes will induce a housing recession in the US.
After contracting by -0.6 percent in the second quarter of 2022, global growth will return to negative territory in Q4 (-0.1 percent q/q) and is not likely to recover before mid-2023. Overall, we have cut our 2023 forecast to +1.5 percent (-1.0pp compared to our Q2 forecasts).
Global trade growth in volume will also remain low at +1.2 percent in 2023 as advanced economies face a domestic demand-led recession. The return of credit risk is to be expected as this recession will be triaging the good, the bad and the ugly of corporate vulnerabilities.
The rebound in business insolvencies gained momentum during 2022 (+18 percent q/q in Q2 2022, from +5 percent in Q1). The largest acceleration happened in Western Europe (+26 percent y/y YTD).
Though we are still witnessing historically low numbers of bankruptcies in the US (-19 percent YTD as of Q2), China (-14 percent as of August) and Germany (-4 percent as of June), Spain, the UK and Switzerland already show pre-pandemic insolvency numbers.
The trifecta of lower demand, prolonged production constraints (input prices, labor shortages and supply-chain matters) and increasing financing issues (access and costs) is mechanically pushing up expectations in business insolvencies, notably for European countries and sectors most exposed to energy issues.
The -0.8 percent decline in Eurozone GDP has the potential to accelerate the rise in insolvencies by +25pp in 2023 (to more than +40 percent), with Germany up +16 percent, France up +29 percent, Italy up 31 percent and Spain up 25 percent. This increases the probability of seeing the extension of and new (targeted) state aid measures.
On the global level, nflation will remain high until Q1 2023 after energy prices have peaked, with food and services adding upside pressure. We expect global inflation to average 5.3 percent in 2023 (after close to 8 percent in 2022).
Eurozone inflation should peak at 10 percent in Q4 2022 and then average 5.6 percent in 2023. In the US, inflation is likely to have peaked already but should remain above 4 percent until Q1 2023, falling below 2 percent only after Q3 2023 (averaging 2.9 percent in 2023).
Patoma Admin by — September 28, 2022 in Insurance 0
Nnamdi Azikiwe international Airport @ 40 tomorrow

By Favour Nnabugwu

 

 

 

All is set for the celebration of the milestones that have been achieved by one of Nigeria’s foremost Airports, the Nnamdi Azikiwe International Airport, NAIA, Abuja on September 29 for its 40th anniversary.

Commissioned on the 29th September, 1982, the Nnamdi Azikiwe International Airport, Abuja has developed into a hub for the north-central region of Nigeria and beyond.

Instatement released by the Ag General Manager, Corporate Affairs, Mrs Faithful A. Hope-Ivbaze, the Airport prides in the possession of world-class Airport facilities including a brand new international terminal with a passenger handling capacity of 15million per annum commissioned by the President Muhammadu Buhari led administration in December, 2018, a recently rehabilitated domestic terminal, as well as a hajj/cargo terminal.

To underscore the continuous progress that has been made by Nnamdi Azikiwe International Airport (NAIA), Abuja over the years, the Airport was awarded the Best Airport in Safety for the Year 2018 by Airport Council International, Africa Region. It also received ACI’s Airport Service Quality Award in the year 2020, amongst several other recognitions.

As part of activities lined up for the commemoration of the 40th anniversary celebration, the Airport will hold an anniversary event on the 29th September, 2022, where passengers, stakeholders and former Managers of the airport will be honoured for their contributions to the development of the Airport.

The hallmark of the event will be the commissioning of Nnamdi Azikiwe International Airport’s Park & Pay Automated Car Parking Service by the Managing Director of Federal Airports Authority of Nigeria, Capt. Rabiu Hamisu Yadudu.

Patoma Admin by — September 28, 2022 in Aviation 0
Global Marine insurance premium hit $33bn in 2021 – IUMI

By Favour Nnabugwu
 
Global marine insurance premiums has risen from 6.4 percent in 2020 to US$33billion in 2021 according to a report by the International Union of Marine Insurance (IUMI).
Lifted by a combination of increased global trade volumes, a stronger US dollar, increased offshore activity and higher vessel values, premiums for cargo, hull, offshore energy and marine liability rose in 2021. Insurers in Europe and Asia in particular saw premium growth.
Regionally, global income was split: Europe 47.2 percent, Asia-Pacific 29.3 percent Latin America 10.3 percent, North America 7.7 percent, other 5.5 percent By line of business, cargo continued to represent the largest share with 57.4 percent in 2021, hull 23.5 percent offshore energy 11.8 percent and marine liability (excluding IGP&I) 7.3 percent
Vice-chair of IUMI’s facts and figures committee, Astrid Seltmann, explained: “Building on the gains made in 2020, 2021 was another positive year for marine insurers.
It was the year when global trade saw a tentative recovery, absolute premiums rose, claims impact was benign, and as a result loss ratios improved. However, this position is tempered by the economic uncertainties the world is facing today. We are reporting this data at a time when several shocks have hit a world economy already weakened by the pandemic.
There is no end in sight for the war in Ukraine, soaring global energy costs and inflation, a gloomy outlook for trade and the possibility of further climate and pandemic related disruptions.  Marine underwriters are navigating some extremely complex issues.”
The global premium base for the cargo market for 2021 reached $18.9bn, up 9.9 percent on the back of a stronger dollar and increased global trade volumes. Cargo premium is a reflection of the value of goods transported and global trade volumes.
However, in July 2022 the International Monetary Fund released a pessimistic forecast predicting global economic growth to slow from 6.1 percent last year to 3.2 percent in 2022.
Loss ratios in most markets continued to improve as a result of increased premium volume in combination with recent benign claims impact. A return to pre-Covid activity in 2022 is likely to increase the impact of claims on underwriting performance.
Cargo insurers continue to face persistent challenges including rising cases of onboard fires, misdeclared cargoes, worsening severe weather conditions including stronger winds and waves, floods and wildfires.
With the increased value accumulation on ever larger vessels and single-port sites, the risk of large event losses continues to grow.
The IUMI reports an increase in the 2021 cargo insurance premium base (from 2020) of 8 percent to US$18.9bn alongside an improvement in overall loss ratios.
Isabelle Therrien, chairperson of the IUMI cargo committee, said: “The cargo market has shown growth in 2021 partly due to a rise in the volume of cargo shipped globally combined with the pricing corrective measure still prevalent in that underwriting year.
The much-needed correction has yielded favourable underwriting performance. However, the industry is still facing headwinds as the global supply chain remains volatile and is still dealing with the aftershock of the pandemic while now adding inflationary pressures to the mix.”
Cargo premiums increased in most markets, with China leading the growth in 2021. China now accounts for 14 percent of the cargo market, with the UK (Lloyd’s of London and the International Underwriting Association) having a 12.2 percent market share. With 2021 claims starting at a low level due to subdued activity in 2020, loss ratios continue to improve in all markets
Global premiums relating to the ocean hull sector increased in 2021 by 4.1 percent to $7.8bn. There was continued strong growth in the Nordic region as well as China, but much weaker in the UK (Lloyd’s) market where the decline of recent years continued.
The overall value of insured vessels rose significantly in 2021, driven primarily by the large increase in containership prices which were up over 35 percent. Dry bulk and general cargo vessel values also saw gains in 2021, but all other segments were down.
However, claims remain low. Total losses stood at 0.06 percent and partial claims at 0.14 percent of the total global fleet. Claims cost per vessel were slightly up on 2020, but still at historically low levels. However, rising steel prices and labour costs are expected to impact future hull claims.
As reported in previous years, the frequency of onboard fires in both the engine room and cargo areas continues to cause concerns, particularly for car carriers and container vessels. Fires occurred on more than 1 percent of the containership fleet in 2021, with 0.4 percent of the fleet experiencing fires incurring more than $500,000 in claims.
In terms of underwriting profitability, results showed continued improvement. However, a return to full shipping activity, value increases, inflation of various costs impacting repair costs, new vessel designs, propulsion and fuel types are likely to impact claims trends going forward.
Rama Chandran, chairperson on the ocean hull committee expressed concern over the long-term sustainability of the hull and machinery insurance sector, saying: “While it is encouraging to see the 2021 premium base growing from the previous year we face deteriorating loss ratios, albeit from a low 2020 base.
Premium base has only recently begun to creep upwards following a sustained decline since 2012. The increase of 4.1 percent is lower than the 6 percent seen last year and the reducing quantum is a worrying trend. This is likely due to increased market capacity, particularly from London and Latin America which is a surprise for many.”
In addition to long-term sustainability, IUMI’s Ocean Hull Committee has identified three major concerns for the coming period:
Offshore energy
Global premiums from the offshore energy sector continued to rise in 2021, reaching US$3.9bn, representing a 6.9 percent increase on 2020. This is a second straight year of rises, following a six-year period of declines (2014-2019).
The demand for offshore energy insurance typically tracks oil prices as projects become viable. Historically, there is an 18-month time lag between improved oil prices and authorised offshore expenditure and unit reactivation. Oil prices remain high, but volatile.
Patoma Admin by — September 27, 2022 in Insurance 0
A. M. Best sponsors AIO’s 26th Africa Reinsurance Forum

By Favour Nnabugwu

 

AM Best is one of sponsors of the upcoming African Insurance Organisation (AIO) 26th Annual African Reinsurance Forum in Lomé, Togo.

The event is themed as “Sustainable Growth: The Role of African Reassurers in Economic Growth and Development.” is coming up October 1-5, 2022

The Director, market development and communications, Edem Kuenyehia said in his capacity as AM Best’s director for market development in Africa, will be in attendance and will be conducting scheduled bilateral meetings with the industry stakeholders during the conference. To schedule a meeting with Dr Kuenyehia at the forum,

AM Best recently published its major annual special report on the global reinsurance industry, featuring dedicated sections focused on reinsurance trends among Middle East and North Africa (MENA) as well as those operating across the sub-Saharan region.

In both report segments, AM Best notes positive long-term prospects for reinsurers throughout Africa, and in particular, an expansion of the sub-Saharan reinsurance markets in the recent past decade. To access the full copy of this comprehensive Best’s Market Segment Report.

The AIO, established in 1972, is a non-governmental organisation recognised by many African governments. It was established to help develop a healthy insurance industry and to foster insurance co-operation in Africa. For more information about the AIO and its 26th Reinsurance Forum in Lomé, Togo.

Patoma Admin by — September 27, 2022 in Insurance 0