All Posts in "Day: March 29, 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