All Posts in "Day: July 20, 2023"

Oil & gas collaboration to ensure preventive, detective, corrective, compensatory control – Naicom

By Favour Nnabugwu 
National Insurance Commission, Naicom has said the commission collaboration with oil and gas magnates is to ensure a preventive, detective, corrective and compensatory control of the oil and gas insurance for the benefit of the sector, star and the federal level.
The nation’s Commissioner for Insurance, CFI, Mr Olorundare Sunday Thomas made this know at the Orient News summit on oil and gas in Lagos submitted that the dividend of an active approach to Joint Regulatory Framework for driving Local Content in Nigeria
“The intention is more tilted towards encouraging preventive, detective; as well as corrective and compensatory regulatory controls”.
Thomas extended the benefit to state as well, “that necessity is on us to ensure that risks are accurately priced and professional advice is given to Insuring entities, especially in the Oil and Gas space, as it poses vantage position to avoiding overpricing of products, underrating of risks, negligent omission of necessary covers and its consequential effect on avoidable pressure and burden on finances”
“The Jointly issued Guidelines portend to satisfy the intent and provision of the laws: thereby enabling the NCDMB monitor utilization of in-country insurance capacity which is a road to increased retention, growth in in-country technical capacity, Job creation, increased penetration and GDP growth, human capacity development, and many others.It is also projected that the Guidelines will entrench effective regulatory oversight”
“Prior to the Nigeria Oil and Gas Industry Content Development Act of 2010 (NOGICD ACT), the Insurance Act 2003 made far reaching provisions for the domestication and domiciliation of insurance services in Nigeria”.
The CFI specifically pointed the section  65(7) made it compulsory for any property located in Nigeria whether moveable or immovable to be insured with a Nigerian registered insurer. Section 67 requires that insurance of all imports into Nigeria must be insured by insurers registered in Nigeria.
“The synergy between both industries was renewed when both agencies identified the need for a veritable platform for inter-agency collaboration in order to give effect to the requirements of Sections 49 and 50 of the NOGICD Act 2010 by providing guidance to Operators in the Oil and Gas necessary for satisfying the provisions of the law in relation to insurance transactions”.
The journey for the renewed collaboration transited to the signing and unveiling of the Guidelines on submission of Insurance Programme by Operators, Project Promoters, Alliance Partners, and Nigerian Indigenous Companies in the Nigerian Oil and Gas Industry.
Other than the circulation of the Guidelines, there was an official unveiling at the 21st NOG Energy Conference and Exhibition of 4th to 7th July 2022 at the International Conference Center Abuja.I am honoured to at this juncture put in context the Benefits of the Guidelines to our Industries and the Nation in general;
On part of the effort shown by Naicom, Thomas recalled, “The Commission has shown a positive attitude to Market Development by the release of the Soundbox Guidelines which is an instrument to test ingenuities in the Market; hence the Commission seek to facilitate and promote innovative insurance solutions that will address the gaps in current insurance offerings”
“As the regulator, we are committed to creating an enabling environment that will consistently enhance increased capacity of the Insurance Institutions both financially and technically.Beyond our promises and without pre-empting the paper presenters and discussants, I will express the need for reciprocal expectations from Operators in the Oil and Gas sector, one of which is timely compliance with the requirements of the Guidelines jointly issued by the Commission and NCDMB”
Ok the overall target, the CFI assured, “It is our ultimate goal that, following the mandate to develop indigenous capacities to participate in the Oil and Gas Industry, both regulators would by this collaboration be able to facilitate, promote adequate assessment of needs of the Oil and Gas Industry and influence the behaviour of Insurers, Reinsurers and Brokers in manners that addresses the needs for national growth and development.”
Patoma Admin by — July 20, 2023 in Insurance 0
Insurtech secures $1.25m pre-funding, to liaise with Leadway, Aiico, STI, Custodian, others

By Favour Nnabugwu 
Nigeria’s Insurtech Startup MyCover.ai, which has secured $1.25 million in pre-seed funding.
The funding round was led by Pan-African venture capital fund Ventures Platform, with participation from founders factory and Techstars.
The company offers Over 30 personalized insurance products through an open insurance API that integrates with top insurance providers like Leadway Insurance, Hygeia, Sovereign Trust, Custodian, Tangerine Allianz, and AlICO Insurance. This open insurance API enables other companies and innovators to embed these insurance products into their platforms
Insurtech revealed that it will use the funds raised to bolster its in-house operations and tech talent, and also invest in its proprietary technology and strategically expand its operations into other African markets.
Speaking on the funds raised, CEO of MyCover.Ai Adebowale Banjo said,
“We are delighted to have the support of our new returning investors whose deep knowledge and extensive expertise in our region will help accelerate the attainment of our objectives. We are not looking to gain a significant share in the market only, we want to grow the size of the insurance pie by bringing more people into the fold through innovative products and better distribution.
“There’s a problem with access and distribution as a whole, especially with the kind of products insurance companies were churning out and what people needed and could afford. We also found out that the handshake between insurance companies is not there, the visibility and the data required to improve on products and underwriting progressively was lacking
Founded in 2021, MyCover.ai is Africa’s leading insurance infrastructure platform that leverages artificial intelligence and machine learning to scale insurance penetration across the continent.
The startup is committed to addressing the problems that the African insurance market has, such as insufficient coverage, a lack of access, the high cost of insurance, and a subpar customer experience when dealing with insurance procedures.
MyCover.Ai tackles these issues by functioning across three key touchpoints: distribution, insurance claims, and underwriting and product creation, where the claims procedures are optimized for both insurance providers and end customers.
Through its retail channel MyCoverGenius, it provides product-focused and technology-driven policies targeted at deepening insurance adoption in Africa, creating unique and relevant products in partnership with leading insurance companies.
MyCover.Ai claims to have recorded over $1 million in gross written premiums from partnerships with 30 insurance distributors nationwide since its launch. The startup is on a mission to reshape the insurance landscape in Nigeria and address several pain points in Africa’s insurance market
Patoma Admin by — July 20, 2023 in Insurance 0
Salam sponsors Journalists for training in Cote D’Ivoire

By Favour Nnabugwu

 

 

The pan-African group Sanlam recently organized the first edition of “Sanlam Academy”, a two-day training seminar intended for journalists from the African press.

A second edition of “Sanlam Academy” is planned for October 2023 in Côte d’Ivoire

The session was held on 20 and 21 June 2023 at the headquarters of Sanlam Morocco in Casablanca on the theme: “Keys to reading the insurance market and contributions of the digital technology”.

About fifteen journalists from eight African countries (Senegal, Cameroon, Côte d’Ivoire, Burkina Faso, Mali, Togo, Benin and Morocco) took part in the event.

The competition is open to African journalists in print, online, radio and TV media who are based in Africa, working in an African news organisation, and publish or broadcast their journalistic work on the continent

The Business/Companies, Economy, Financial Markets and Consumer Financial Education categories are open only to South African journalists in print and online media.
The African Growth Story, Broadcast: Audio, and Broadcast: Video, ESG: Business and the Environment, and ESG Business and Society categories are open to African journalists in Africa working in an African news organisation and practising journalism in print, online, radio and TV on the continent.

Winners of the top awards – Best Newcomer, Lifetime Achievement, and Sanlam Group Financial Journalist of the Year – must be contestants who have entered the competition. The independent judging panel will select the winners accordingly.

Patoma Admin by — July 20, 2023 in Insurance 0
ATIDI total insured exposures for 2022 hit $8bn

By Favour Nnabugwu

 

The African Trade and Investment Development Insurance (ATIDI), formerly known as the African Trade Insurance Agency – (ATI)  closed the 2022 year with total insured exposures hitting $8billion.

The AGM approved the organization’s results in 2022, marked by steady performance despite a volatile post Covid-19 economic environment, globally and across Africa.

The pan-African multilateral insurer also unveiled a new brand identity. The new name, African Trade & Investment Development Insurance (ATIDI) better encapsulates its full product offering including risk mitigation and financial intervention. The brand positioning is articulated under the new strapline: Re-thinking risk – Enabling finance, which captures ATIDI’s unique approach to issues of risk in Africa and its unparalleled and deep expertise of Africa.

As the organization transitions to the new brand, it remains financially sound as reflected in its 2022 financial results highlighted below:

  • ATIDI’s total insured exposures at the close of the year reached USD8 billion, representing a year-on-year growth of more than 20%.
  • The organization also experienced strong growth in its total assets, investment income, as well as its equity capital which stood at USD553 million as at the end of 2022. These gains compensated a modest deterioration in certain areas
  • The Net Written Premium grew by 5% and the Gross Premium declined by 7% in the fiscal year ending December 2022 at USD133.2 million compared to the previous year’s performance of USD143.5 million
  • Net profit of USD32.8 million, a slight decline of 6% owing to increase in net claims provisions due to business growth.
  • ATIDI has declared a dividend of USD8.2M in 2022. This is the 5th consecutive year of paying dividends and this reflects the Board and Management’s confidence

ATIDI has begun implementing its corporate strategic plan for the 2023 – 2027 period, which is geared at optimizing the organization’s performance to make it more Developmental, Transformational, Robust and Reliable (DTR2). ATIDI has taken key steps to achieve ambitious goals.

The organization is improving its Board effectiveness and governance through a better adapted structure, and it is implementing the International Financial Reporting Standard 17 (IFRS17) to optimize its financial and risk reporting. It is also continuing the full automation of its operational processes, in line with international best practice and putting in place a new climate policy to complement its Environmental, Social and Governance (ESG) framework and help sustainably address the rising challenges of climate change.

ATIDI is also growing its footprint by increasing the number of its member countries as well as its institutional shareholders. In April 2023, the Republic of Angola became ATIDI’s 21st African – and first Lusophone – member state through a USD25 million capital injection. Before Angola joined as a member, ATIDI already engaged in the country and covered transactions with a gross exposure of USD418M, mainly in construction, energy & gas, trade & transport, water supply and wholesale & retail.

More recently, in June 2023, Japan’s Export Credit Agency, Nippon Export and Investment Insurance (NEXI), also joined our shareholder pool, with a USD14.8 million capital injection. In the past, ATIDI has provided insurance policies to protect Japanese private sector transactions on the continent for a total valued at USD4.9 billion, and through NEXI’s membership, is opening perspectives for more Japanese investors seeking business opportunities and market access in Africa.

The next AGM is scheduled to take place in Zambia, in 2024.

Patoma Admin by — July 20, 2023 in Insurance 0