All Posts in "Month: March 2023"

African Insurance Market to hit N123.8 bn by 2028

By Favour Nnabugwu

 

 

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Africa insurance market size is expected to reach a value of US$ 123.8 billion by 2028, exhibiting a Compound Annual Growth Rate, CAGR of 7.1 percent during 2023-2028 from US$ 81.6 Billion in 2022.
Insurance is a policy or contract that aids in protecting the insurer from financial losses. It is a form of risk management that is primarily used to hedge against the risk of a contingent or uncertain loss.
According to the latest report by IMARC Group, titled “Africa Insurance Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028
 It includes the equitable transfer of the risk of a loss from one entity to another, in exchange for a premium, and can be thought of as a guarantee to prevent a large, unknown, and potentially catastrophic loss.
It protects against property damage, personal injury, death, theft, and legal liability. Besides this, it provides insurance coverage for death, disability, retirement benefits, and medical expenses. Moreover, it is responsible for providing customer service and ensuring that claims are processed in a timely and efficient manner.
The emerging insurance sector majorly drives the market in Africa. Along with this, the escalating number of insurance companies providing coverage to rural areas, which often lack access to traditional insurance services, including crop and livestock insurance, property and casualty insurance, and health and life insurance, is a major driving factor.
 Coupled with this, the rising population levels are propelling the demand for insurance products to protect individuals, families, and businesses from financial loss, further catalyzing the market favorably.
As individuals own more assets to protect, they are more likely to purchase insurance products to mitigate any potential risks, thereby bolstering the overall insurance market across the region.
In addition, the widespread adoption of insurance policies among the geriatric population as they need life insurance and other long-term care products to help protect their financial security and provide for their family in the event of their death or disability, is significantly supporting the demand.
Apart from this, the rising initiatives by several government agencies to provide insurance companies with a steady stream of revenue is acting as another growth-inducing factor.
Furthermore, the increasing literacy rate across the region is raising awareness regarding the associated benefits of insurance, thus creating a positive market outlook.
Patoma Admin by — March 29, 2023 in Insurance 0
Nigeria, Morocco signs pact to boost insurance sector

CAPTION:
R- The Group Managing Director of Africa Reinsurance Corporation, Dr Dr Corneille Karekezi; the Director-General of the Nigerian Insurers Association, Mrs Yetunde Ilori, the Moroccoan Federation of Insurance and Reinsurance Companies, Mr Mohamed Hassan Bendalah, the NIA Chairman, Mr Olusegun Ayo Omosehin and a Moroccoan counterpart during the signing in Morocco.
By Favour Nnabugwu
 
The Nigerian Insurers Association (NIA) and the Moroccan Federation of Insurance and Reinsurance Companies have signed a pact to boost both sectors together.
The agreement that will lead to exchange of market information, sharing of market intelligence and capacity building in both sectors
At the formal signing ceremony performed by the Chairman of the Nigerian Insurers Association, Mr. Olusegun Omosehin and President of Moroccan Federation of Insurance and Reinsurance Companies, Mr. Mohamed Hassan Bendalah in Casablanca Morocco, both associations agreed to exchange and share experiences and best practices in insurance sector
Nigeria and Morocco planned to work together while they identify other possible areas of cooperation including priority areas based on path already laid out by the Presidents of the two countries.
Giving further insight on the terms of the agreement, the NIA Chairman, Mr. Olusegun Omosehin stated that the two associations have agreed amongst others to: Maintain permanent contacts between the two associations with a view to exchanging and sharing successful experiences and best practice of both parties.
The two countries will give effect to the foregoing, the parties agree to meet once or twice a year in Casablanca and Lagos as the case may be.
Other areas they are looking at priority areas for cooperation based on significant and successful experience in the Moroccan or Nigerian insurance market and they include inclusive Insurance, direct compensation system in Motor Insurance, Bonus-Malus system for third-party motor insurance, centralization of motor insurance for professionals passenger transport (TPV) such as taxis, buses, coaches, regular line buses, personnel transport etc.
The coverage they are focusing are: Catastrophic risk coverage scheme, digitalization of distribution channels and customer experience, agricultural insurance; Exchange of statistics and technical data on the respective insurance and reinsurance markets to develop comparison benchmarks, which will be useful to both marketplaces.
Exchange information on good practices and share success experiences to serve as a source of inspiration and to facilitate the fast implementation of solutions which have had some positive effect in one of the two markets.
On human capacity development, both associations have agreed to open their respective markets to field trips and professional development study tours for short-term training programs either within the two professional associations and/or their affiliated insurance companies.
To give room for evaluation of the agreement and in line with global best practice, the two associations have agreed to conduct a biannual evaluation of the agreement to enrich and further develop it.
The NIA Chairman appreciated the President and members of the Moroccan Federation of Insurance and Reinsurance Companies for the initiative and expressed the hope that both markets will benefit from the relationship.
Omosehin who was accompanied by the Director-General of the NIA, Mrs Yetunde Ilori, assured the Moroccan federation of the commitment of the NIA to the relationship due to the benefits derivable from the agreement.
“I want to assure you that we are committed to the spirit and letters of the collaboration and do hope that both markets will benefit immensely from this initiative”, he enthused
Patoma Admin by — March 29, 2023 in Insurance 0
Oil & Gas retains N262.432 bn premium in 2022

By Favour Nnabugwu
The nation’s insurance industry is striving to reach the 71.3 percent considarate premium retention in the oil and gas with 36 percent attained in 2023
In the equivalent, 36 percent of the total premium generated is N261.432 of N761.2billion.which is quite low compared to the huge risk.
The Bulletin of the Insurance Market Performance as released by the National Insurance Commission, Naicom make the sector’s oil and gas the lowest retention in 2022.
The average premium that all insurance businesses were able to keep locally throughout the time period under consideration was 71.3percent
The Bulletin reads, “The oil and gas portfolio lamentably remained a challenging angle in the market owing to its nature of enormous capital and professional requirements.
“In the non-life segment which also took a similar pattern, motor insurance continued its lead as the highest retaining portfolio with a retention ratio of about 93.5 per cent, also a point higher than its standing in the prior quarter.”
“Oil & gas recorded the least at about 35.9 per cent. The oil and gas portfolio lamentably remained a challenging angle in the market owing to its nature of enormous capital and professional requirements”.
“Consequently, the retention performance in the current period sustained its prior position when compared to the third quarter as evidenced by the overall non-life business ratio of 55 per cent, slipping from about 56.6 per cent held in the prior period.”
Despite operational constraints brought on by the national and international economies, the sector maintained encouraging company retention rates that were indicative of the market’s resiliency and growing capacity.
Patoma Admin by — March 29, 2023 in Insurance 0
Non-life rakes N416.383bn, Life generates N309.361bn in Q4 2022

By Favour Nnabugwu

Non-life insurance business generated a large chunk of the total premium income of N416.838 billion representing 57.4 percent of the  entire N726.2bilion

Life business on the other hand rakes in N309.361billion, representing 42.6 percent of the total premium income
The  N726.2billion premium generated, represented a growth proportion of about 36.3 per cent, quarter on quarter.
The National Insurance Commission, NAICOM in the Market Bulletin attributed the growth to consistent regulatory measures being carried out by the Commission.
Naicom says while Non-Life business as in the prior periods, continued its dominance, contributing 57.4 per cent premium relative to the share of the Life business of 42.6 percent, the proportional significance of Life in the industry sustained a positive course in recent times reflective of the consumer’s confidence and awareness.
In-depth analysis of the non-Life segment of market shows Oil & Gas business sustaining its market share dominance at 30.25 per cent, increasing by two point (2.4 per cent) compared to the previous quarter.
The figure posted by Fire Insurance came a distant second (22.2 per cent), maintaining same pattern of contribution to the gross premium pool of the market while Motor Insurance (14.9 per cent), Marine & Aviation (12.2 per cent), even as General Accident (11.1 per cent) and Miscellaneous (9.5 per cent) followed in that order.
On the other hand, Life business was driven by Individual Life portfolio (38.6 per cent) even as its relative contribution fell by about (2.6 per cent) compared to third quarter (41.6 per cent).
In a contrasting path to the previous quarter, group life followed by 34.5 per cent while Annuity business contributed gross premium income of about 26.9 per cent during the period.
In a similar pattern, the net claims paid were reported at N244.3billion, growing at 17.9 per cent QoQ during the same period.
Insights into the Non-life segment shows that Motor Insurance led with regards to claims settlement vis a vis gross claims reported at 92.3 per cent signifying a nine points improvement as against its prior position. Fire Insurance was the least with 46.3 per cent, the only class below average proportion.
All other portfolios of General Accident Insurance (80.7 per cent), Oil & Gas (51.6 per cent), Marine & Aviation (74.4 per cent), miscellaneous Insurances (86.1 per cent) recorded a proportion above the average, of paid claims against gross claims reported.
Life Insurance business, on the other hand, reported two points less in comparison to the position held in the prior period of 94.6 per cent) of net claims paid compared to total claims reported during the same period of 2021
Patoma Admin by — March 26, 2023 in Insurance 0
Temperature to rise above 40 o.C  in next 48 hours, NiMet warns of discomfort in FCT, 4 others

By Favour Nnabugwu
 

The Nigerian Meteorological Agency, NiMet has warned of possible rise in temperature to above 40 degrees in the next next 48 hours in FCT, Kwara,Oyo Nasarawa and Benue which may lead to thermal discomfort.

Thermal discomfort is not just a lack of satisfaction with the ambient temperature but. reflects a situation where there is a potential threat to health, that is  when the temperature falls below 18 o.C or rise above 24. .

Also some States including Kebbi, Sokoto, Zamfara, Taraba, and Adamawa are expected to rise above 40 o C in the next two days.

The Agency in a statement signed by the General Manager Public Relations,Mr. Muntari Yusuf Ibrahim,  said that observations from the source region indicates that temperature is expected to rise above 40 degrees in the next 48 hours.

The Agency therefore advise people in these locations to drink a lot of fluid through this period.

NiMet said, “Parts of Kebbi, Sokoto, Zamfara, Taraba, and Adamawa are expected to record temperatures greater than 40°C. While most parts of the Northern cities are expected to record temperatures between 35°C to 40°C, this includes parts of Oyo, Kwara, FCT, Nasarawa, and Benue”. It reads.

The statement further warned that cities like Bauchi, Gombe, Borno, and Yola are at risk of experiencing high thermal discomfort, while the following days, parts of Kebbi, Sokoto, Zamfara, Taraba, and Adamawa are expected to experience temperatures greater than 40°C.

NiMet assures of continuous monitoring of the weather and update Nigerians accordingly

Patoma Admin by — March 26, 2023 in Aviation 0
Insurance industry generated N726.2 bn premium in Q4 2022

Non-life 57.4% Life 42.6%; claims rise by 31.2%
By Favour Nnabugwu 
insurance industry generated a gross premium income of N726. 2 billion in the fourth quarter of 2022 out of which Non- Life recorded 57.4 percent and Life 42.6 percent.
The National Insurance Commission (NAICOM) the gross premium income generated under review represented a 36.3 percent quarter- on- quarter and 17.8 percent year-on-year.
The  contribution of the gross premium income by each class of business for the period under review showed that Non-Life business as in the prior periods, continued its dominance, contributing 57.4 percent per cent relative to the share of the Life business which was 42.6 percent
According to the Commission, “This is a remarkable situation compared to the real growth (3.5%) of Gross Gomestic Product (GDP) over the same period and, is attributable to consistent regulatory measures being carried out by the Commission.
“The proportional significance of Life in the industry sustained a positive course in recent times was reflective of the consumer’s confidence and awareness.”
In-depth analysis of the Non-Life segment of market shows Oil & Gas business sustaining its market share dominance at 30.25 percent, increasing by two point 2.4percent) compared to the previous quarter.
 The figure posted by Fire Insurance came a distant second (22.2 percent) maintaining same pattern of contribution to the gross premium pool of the market while Motor Insurance (14.9 percent).
Marine & Aviation (12.2 percent), General Accident (11.1 percent) and Miscellaneous (9.5 percent) followed in that order.
 On the other hand, Life business was driven by Individual Life portfolio (38.6 percent) even as its relative contribution fell by about (2.6 percent) compared to third quarter (41.6 percent).
In a contrasting path to the previous quarter, group life followed by about thirty-five (34.5 percent) per cent while Annuity business contributed gross premium income of about twenty-seven (26.9 percent) per cent during the period.
 claims payment increase by 31.2%
The Insurance industry’s Claims reported during the fourth quarter of last year stood at N318.2 billion, representing a 31.2 percent per QoQ growth.
Insights into the Non-life segment shows that Motor Insurance led with regards to claims settlement vis a vis gross claims reported at about 92.3 percent), signifying a nine points improvement as against its prior position.
In the Bulletin,  Fire Insurance was the least at about 46.3 percent.  All other portfolios of General Accident Insurance (80.7 percent), Oil & Gas (51.6 percent), Marine & Aviation (74.4 percent), miscellaneous Insurances (86.1 percent) recorded a proportion above the average, of paid claims against gross claims reported.
Life Insurance business on the other hand reported two points less in comparison to the position held in the prior period of ninety-five (94.6 percent) per cent of net claims paid compared to total claims reported during the same period of 2021.
Patoma Admin by — March 23, 2023 in Insurance 0
Insurance industry’s total assets hit N2.33 trn in Q4 2022

By Favour Nnabugwu
The nation insurance industry’s total assets has reach a whopping N2.328 trillion in the forth quarter of 2022
The confirmation of the asset was release by the National Insurance Commission in it’s Industry Bulletin for Q4 2022.
According to the Bulletin,”The total Assets of the Insurance industry stood at N2,328 trillion in the fourth quarter.”
 The Builletin release by the Head of Communication and Market Development, Mr AbdulRasaaq Salami today further reads that the sustaining Market size distribution with respect to Life and terms of Assets remains positive, with the increasing measures of market deepening and processes would lead to the realization of the vast potentials in the insurance industry.
On the recapitalization drive achieved that period, said notwithstanding, the outlook of the market growth in development, recapitalization drive still ongoing, regulatory Insurance laws and provisions enshrined in the Insurance bill, being reviewed and digitization of the supervisory wide per cent (YoY). 
“This is relatively at a lower momentum compared to the prior period when the
a positive growth that signifies expansion at the rate of two (2.4%) per cent,(QoQ)and at 4.4 progression rate was recorded at about nine per cent (YoY), attributable to the wave of Non-Life Insurance businesses during the period”
Patoma Admin by — March 23, 2023 in Insurance 0
NiMet urges over 187 members, 6 member territories to operate common vision, goals

By Favour Nnabugwu
 
In the celebration of the World Metorologic Al Organisation, the Director- General of the Nigerian Meteorological Agency, NiMet,  Prof Mansur Bako Matazu appealed to the over187 Member States and 6 Member Territories, of the large house to operate with common vision and goals.
 The WMO with the theme for 2023 is “The future of weather, climate and water across generations”  said that Nigeria joined them in the Organisation’s celebration of World Meteorological Day
“The World Meteorological Day therefore, offers opportunity for member countries to converge ideas and resources; and align in one common thematic area”
He said that the agency ensure to bring young people into the agency and as such, “I therefore encourage us as institutions and individuals to invest in our future generations, creating awareness on the dangers of climate change such as extreme weather and loss of livelihoods; and providing opportunities for them to proffer solutions thereby making the World a safer place for All. We must catch them young.”
“We have signed Memorandum of Understandings (MoUs) with several universities in Nigeria to promote the science of meteorology within the academic institutions at tertiary level.To support national and regional development, “
“Over the years, society as well as science has evolved. Technology has allowed us to modernise the way activities are conducted in a more concise and efficient manner.”
“We have witnessed the transition from an analogue society to a digital one, and the evolvement is expected to continue. In the same way, the world climate has transited from variability to change while variability still continues within different climate environment.”
NiMet, Matazu had continued to render services in support of aviation, agriculture, construction, tourism, defence, water resources management, telecommunications, environment, communications, etc.
Also speaking, the WMO representative in North, Central and West Africa, Dr Bernard Gomez said the WMO anniversary also serves extreme, our ocean is as a reminder of our changing climate.
“Our weather is more warmer and more acidic, and sea levels have risen. Cyclone Freddy in southern Africa which claimed over 200 lives and caused significant damage to property, is astark reminder of the threat from the climate system.
He recalled that in 2022, Nigeria lost over 600 lives due to unprecedented flooding.
“The rate of change is accelerating. and we need urgent action now to slash emissions and to ensure that future generations can both survive and thrive on our planet”
“The good news is that rapid scientific and technological advances have greatly improved the accuracy of weather forecasts and life-saving early warnings. Therefore, no one should be left
behind, regarding access to weather and climate information’
While appraising the feats of NiMet, Gomez posited that NiMet has done well in developing business ventures with partners
To improve the quality and availability of Earth observation data, WMO, other UN Agencies and Partners have established the Systematic Observations Financing Facility (SOFF) programme to support least developed countries to bridge gaps in the generation and provision of weather and climate information and services.
“I am pleased to note that NiMet has signed an MoU with the SOFF Secretariat as one of the technical partners that will support some countries participating in the SOFF programme. This is indeed a testament to NiMet’s growing capacity and professionalism within the global
community.”
He said, “To improve the quality and availability of Earth observation data, WMO, other UN Agencies and Partners have established the Systematic Observations Financing Facility (SOFF) programme to support least developed countries to bridge gaps in the generation and provision of weather and climate information and services”
“This is indeed a testament to NiMet’s growing capacity and professionalism within the global community”.
Patoma Admin by — March 23, 2023 in Aviation 0
Sunu Group appoints Alexandre Atte Ahui as Chairman

By Favour Nnabugwu

 

 

 

SUNU Participations Holding has appointed Alexandre Atté Ahui as Chairman of the Board of Directors for the remainder of his current term of office as Director.

Ahui is replacing the founder of the group, Papa Pathé Dione, who passed away on 12 January 2023.

Atté Ahui started his career in 1973 at the Union des Assurances de Côte d’Ivoire, a subsidiary of UAP. The insurance professional then served as General Manager of AXA Côte d’Ivoire and SUNU Vie Côte d’Ivoire.

Issofa Nchare joined the Board as an independent Director. A lawyer and economist, I. Nchare previously worked as Head of the Insurance Division in the Cameroonian Ministry of Finance and as Secretary General of CIMA from 2015 to 2020.

With these changes, SUNU’s Board of Directors is now made up of:

Atté Ahui, Chairman Société Financière Dione, Director with Anta-Caroline Dione as its permanent representative SUNU Finances Holding, Director with Patrice Desgranges as its permanent representative Papa-Demba Diallo, Director Federico Roman, Director
Christian de Boissieu, Independent Director
Issofa Nchare, Independent Director

Patoma Admin by — March 20, 2023 in Insurance 0
Global insurance brokers market expected to hit $105.33bn in 2023

By Favour Nnabugwu
The global insurance brokers market is expected to grow from $98.82 billion in 2022 to $105.33 billion in 2023 at a Compound Annual Growth Rate (CAGR) of 6.6 percent.
The insurance brokers market is expected to grow to $130.35 billion in 2027 at a CAGR of 5.5 percent
The countries covered in the insurance brokers market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
The insurance brokers market consists of sales of insurance products by entities that act as intermediaries (i.e., agents or brokers) in selling annuities and insurance policies.
This market excludes the direct selling of insurance products by insurance companies. The value of the market is based on the fees or commissions paid to brokers by the insured, both commercial and personal.
According to the Insurance Regulatory and Development Authority (IRDAI) of India, the Life Insurance Corporation of India sold 2.17 crore insurance policies in the fiscal year 2021-2022 which was an 3.54% increase from previous year’s 2.10 crore policies. Therefore, the increasing demand for insurance policies drives the growth of the insurance brokerage market.
The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included
An insurance broker is a person who is authorized to sell insurance and frequently collaborates with numerous insurance providers to provide customers with a range of products.
North America was the largest region in the insurance brokers market in 2022. Western Europe was the second largest market in the insurance brokers market.
The regions covered in the insurance brokers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The main types of insurance brokers are life insurance, general insurance, health insurance, others. Life insurance in the insurance brokers market refers to the contract between the insurer and the insurance policyholder that promises to pay a total sum of money upon the death of an insured person. The services are offered in various modes, such as offline, and online mode. These are used by corporate, and individuals.
The increasing demand for insurance policies is expected to fuel the growth of the insurance brokers market over the coming years. The demand for insurance policies has risen due to the availability of security services and customized financial services to clients.
The impact of COVID-19 is predicted to limit the growth of the insurance brokers market over the forecast period. The COVID-19 pandemic has taken the lives of millions of people, affected supply chains & business sectors, and disrupted economies worldwide.
The coronavirus outbreak has several impacts on the insurance sector, from employee and business continuity concerns to customer care considerations to the financial outlook. For instance, the Indian insurance industry’s productivity has been hit by 30% in March 2020.
The pandemic has pushed the insurance industry to heavily depend on digitalization for selling new policies, setting up claims, and making other transactions. Therefore, the impact of COVID-19 restraints the growth of the insurance brokers market.
The integration of AI in the insurance sector is a key trend gaining popularity in the insurance brokers market. The combined power of AI and human creativity enables the Intelligent Broker, an automation programme for the insurance industry. Brokers will be able to resolve complicated obstacles, produce innovative products and services, and join or build new markets.
In addition to this, AI in the insurance industry will improve customer service and prevent customers from fraud. In 2021, 60% of the insurance companies are targeting AI to be used in decision making and to reduce manual input, which has doubled in the last two years.
Patoma Admin by — March 18, 2023 in Insurance 0