WELCOME ADDRESS BY MR. EDWIN IGBITI CHAIRMAN OF THE INSURANCE INDUSTRY CONSULTATIVE COUNCIL (IICC) AT THE 2022 IICC MEDIA RETREAT, HELD AT GRAND INN AND SUITES, IJEBU-ODE, OGUN STATE, ON NOVEMBER 26, 2022
Distinguished Members of the IICC,
Members of the National Association of Insurance and Pension Editors,Erudite Speakers Ladies and Gentlemen, It is with great pleasure I welcome you to the 2022 IICC Media Retreat for Insurance Journalists even as I convey the goodwill of the various Arms of the Insurance Industry under the umbrella of the Insurance Industry Consultative Council (IICC) to you.
This Retreat is organised annually by the IICC to serve as a platform to engage and recognize the contributions and the key roles the media has been playing as an instrument for awareness creation and education for insurance in Nigeria. It is also a great opportunity to feel the pulse of the public through the lens of the media.
It is against this backdrop that the IICC ensures its commitment to this annual gathering remains an ever-present feature in the calendar of the industry. This forum also serves the objective of further unifying all Arms of the Insurance Industry who have come together under one umbrella, the IICC, in order to ensure unity and single-mindedness in promoting the insurance industry agenda. It is vital to state that the IICC was formed with the purposes targeted at enhancing the profile of the industry as well as boost its significance to the nation’s economic growth. The objectives include:
1. Acting as an industry voice for national matters. 2. Acting as a platform for intra industry conflict resolution. 3. Promoting the industry’s image and growth agenda. 4. To take up and assume any other role that may serve the best interest of the insurance industry. The crucial position the media plays in the economy and society at large cannot be over emphasized.
Indeed, the media poses as a veritable authority for agenda setting, public education, sensitization and awareness creation. It is in the light of the above, that the theme for this retreat “Media as Catalyst for Insurance Inclusion”, comes to limelight. The media is a powerful catalyst for social change and equally an effective tool for insurance inclusion that the industry desires.
Hence, the need to continually carry the media along with the various initiatives and developments in the industry for good coverage and projection.At this point, I like to use this opportunity to express our profound appreciation to the media for its inestimable support over the years especially, you the insurance industry Journalists who have constantly employed your expertise and in-depth knowledge about the industry to objectively report the trends and opportunities as well as enlighten the public about the values of insurance. You will agree with me that there has been growth in the industry despite the numerous economic recessions, the effects of the COVID-19 and the #ENDSARS protests which resulted into millions of claims. The insurance industry has stood as one of the most resilient and fast expanding sectors in the nation’s economy.
As the industry witness expansion, we equally need you the media to keep promoting these achievements for the good of the common goal of the industry.We are partners and we urge you all to use your reputable platforms to consistently announce the gospel of insurance and its benefits to the public so that we can attain the desired penetration rate in Nigeria. When the industry is booming from our efforts, it will also be a common joy and gain for us all. Hence, the onus is on all of us, everyone in this room and our networks beyond it to ensure that the insurance industry attains its pride of place in the economic ecosystem. At this juncture,
I would like to extend my heartfelt appreciation to all our astute speakers who will be sharing their wealth of experience with us today. I am positive we will learn a lot from their expertise.
Thank you for honouring our invitation to this retreat and implore you to take maximum advantage of the knowledge that would be shared here for the advancement of your profession as modern-day information managers.
Thank you all for your attention and God bless.Mr. Edwin Igbiti, ACII, FIIN Chairman of Council Insurance Industry Consultative Council (IICC)
The Insurance Industry Consultative Council organised a two day retreat for the Nigerian Association of Insurance & Pension Editors NAIPE for 2022 at Grand inn Hotel, Ijebu- Ode, Ogun State.
L- Director-General, Nigerian Insurers Association, Mrs. Yetunde Ilori and President Chartered Insurance Institute of Nigeria, Mr. Edwin Igbiti at the IICC seminar for Nigerian Association Insurance and Pension Editors, NAIPE at Ijebu-Ode, Ogun State
L- Director-General, Chartered Insurance Institute of Nigeria, Mrs. Abimbola Tiamiyu and Executive Secretary, Nigerian Council of Registered Insurance Brokers, Tope Adaramola at the IICC seminar for Nigerian Association Insurance and Pension Editors, NAIPE at Ijebu-Ode, Ogun Stat
L,-Dr. (Mrs.) Olufunke Oyeneye, Head of
Pharmacy, Oba Ademola Hospital Abeokuta an operator and Director-General, Nigerian Insurers Association, Mrs. Yetunde Ilori
L- Mr Davis Iyasere, Head Corporate Communication of the Nigerian Insurers Associatiin, NIA; Director-General, Chartered Insurance Institute of Nigeria, Mrs. Abimbola Tiamiyu; Mr. Rasheed Bolarinwa, Head Corporate Communications, Polaris Bank Plc, and President, Association of Communications and Marketing Professionals in Banks (ACAMB). Mr. Muda Yusuf, Former DG of Lagos Chamber of Commerce and Industry (LCCI); President Chartered Insurance Institute of Nigeria, Mr. Edwin Igbiti; Dr. (Mrs.) Olufunke Oyeneye, Head of Pharmacy, Oba Ademola Hospital Abeokuta; Director-General, Nigerian Insurers Association, Mrs. Yetunde Ilori and Executive Secretary, Nigerian Council of Registered Insurance Brokers, Tope Adaramola during the event
NAIPE members at the rvent
By Favour Nnabugwu
The Chairman of the Insurance Industry Consultative Council, IICC, Mr Edwin Igbiti has enjoined the Media to be part of the industry’s growth agenda to help deepen insurance penetration in the country.
Igbiti who is also the President and Chairman in Council of the Chartered Insurance Institute of Nigeria (CIIN) in Ijebu-Ode, Ogun State during the Welcome Dinner/Gala Night of the 2022 Media Retreat with the theme “Media As Catalyst For Insurance Inclusion” organised by IICC for the member of the National Association of Insurance and Pension Editors (NAIPE).
Igbiti described the media as critical to the industry’s growth agenda while calling on the members of NAIPE to promote and project the industry’s activities in their reports for the growth of the industry and national economy.
“We recognize the importance of the media In the growth of any industry. We know we cannot achieve our growth agenda without the media”.
“The essence of this gathering is for us as an industry to bring you together to brief you on the activities of the industry and our plans for the future.
“It is, therefore, expected that as journalists, you are to tell our stories in your reports and analyses because we are in this together and we will continue to work together as partners in progress for the progress of the industry and the growth of the national economy.
“You have been trying but we need you more. You have to project this industry in the way and manner we want it to be,” Mr Igbiti appealed.
On the performance of the industry, he said although there has been an improvement in terms of numbers, but judging from the nation’s population and demographic, insurance penetration in Nigeria is still very low which he said is caused by the high level of poverty in the country.
At the event included the representatives from the various arms of the industry namely the Nigerian Insurers Association (NIA), represented by the Director General, Mrs Yetunde Ilori; Nigerian Council of Registered Insurance Brokers (NCRIB) represented by the Deputy President, Mr Tunde Oguntade; Institute of Loss Adjusters of Nigeria (ILAN), represented by its President, Mr. Dipo Olanrewaju.
Others who graced the occasion included the DG, CIIN Mrs Abimbola Tiamiyu; Executive Secretary/CEO, NCRIB, Mr Tope Adaramola; Assistant Director, Corporate Communications & Human Resources/Administration, NIA, Mr Davis Iyasere, among others.
The IICC was inaugurated in 2013 to act as the unifying voice of the insurance industry, representing it on national issues affecting the insurance industry, taking up and assuming other roles that would serve the best interest of the industry in Nigeria and providing lasting solutions to challenging issues within the insurance sector.
By Favour Nnabugwu
Allianz Global Corporate & Specialty (AGCS) is set to raise the capabilities and resources of its Alternative Risk Transfer (ART) line to growing customer interest in tailored solutions that complement traditional Property & Casualty products.
ART as an option for insurable risks and other business concerns
With a realigned risk appetite and underwriting strategy, ART will target growth opportunities in two major areas: first, captive solutions including captive fronting, and second in the area of structured solutions, which are multi-year, multi-line coverages, including parametric coverage.
Dedicated investments include growing the current 90-strong ART team by 20 new positions to strengthen ART delivery across all areas from modeling and underwriting to legal expertise and claims.
“With its strong expertise and special offering, our ART team can support businesses in the current environment of enormous uncertainty.
Many of our clients seek bespoke solutions for an increasing array of risk scenarios from traditional to non-traditional such as supply chain or sustainability-related risks,” says Shanil Williams, Chief Underwriting Officer Corporate of AGCS.
“With our ART line of business, we have a strong track record and market share in alternative risk transfer and aim to further grow our capabilities and footprint in this sophisticated segment.
From our perspective, alternative and traditional risk transfer are very much complementary and we aim to realize the most suitable solution for each customer with one or the other or a combination of both.”
Multi-disciplinary deal teams
AGCS saw a strong new business production from the ART line of business in 2021 which contributed about 5% to the companies’ global net premium volume; now the corporate insurance carrier is investing in new resources needed to support profitable portfolio growth and will provide more capacity in the ART segment to harvest market opportunities.
The underwriting process and governance structure is essential to the success of ART: At its center are multi-disciplinary deal teams with specialized underwriters and global functions – such as modelers, actuaries, accountants and legal specialists – working closely together when designing a customized ART solution for a company.
“Our cross-functional deal teams leverage diverse skills, and together we are looking at risks from a fundamentally different perspective”, says Grant Maxwell, Global Head of ART, AGCS.
A new road to risk for North American trucking firms
A core offering today, Structured Solutions are a future growth area for AGCS’s ART team. These are essentially multi-year and multi-line coverages with the insured retaining an element of the risk.
They protect a company from being over-exposed to multiple catastrophic events or unforeseen high attritional losses, but usually also incorporate a significant profit share agreement or ‘swing’ metrics which align the interest of insured and insurer and reward good claims performance.
“A good example illustrating the power of these solutions is a structured cover we’ve developed for the North American commercial auto market”, Maxwell explains. “US trucking firms were struggling with strong premium increases from a market that was changing rapidly, leading to unsustainable auto liability programs.
We combined various excess placements with structured multi-year features linked to the actual loss performance. This allowed firms who were confident in their loss performance to share in the benefits and be able to purchase higher liability limits.”
ART can also provide parametric cover which is not indemnity-based but where coverage and claims payment are triggered by any measurable index, for example climate or weather indexes. In addition, AGCS’ ART team can also help transfer risk into the capital markets through catastrophe bonds or other forms of insurance-linked securities.
Supporting the growing number of captives
Another strategic focus of the ART line of business are captive solutions with a strong focus on captive fronting. The well-established AGCS Captive Solutions team, led by Brian McNamara, has been integrated into the AGCS’ Multinational business to serve multinational companies with their own in-house insurer with a broad range of solutions powered by the strong global network of Allianz Group in more than 200 countries and territories.
On top of captive fronting (issuing local policies in numerous countries around the globe, managing premium payments and handling claims on behalf of the captive) AGCS also provides a wide range of ‘unbundled’ standalone solutions for captives such as reinsurance, stop-loss mechanisms to protect the captive retention, or supporting a captive with additional structured solutions for specific risks.
Brian McNamara, AGCS’ Head of Captive Solutions based in Bermuda says: “In the past two years many organizations turned to captives by establishing new in-house insurance programs or expanding existing ones by adding new lines of coverage such as cyber or even third-party risk from customers or suppliers.
We can help captive parents get the most out of their captive and maximizing the benefits of self-insurance leveraging our captive expertise in combination with our wider alternative risk transfer capabilities.”
“Many organizations are currently reviewing their options and decide to retain more risk in various ways.
Our ART tools and mechanisms can be used to reduce balance sheet volatility both for traditional insurable risk such as cyber or Director’s and Officer’s liability, but also to deal with other strategically important business concerns, which are not traditionally insurable.
We have strong expertise and capabilities across all these areas and are committed to provide more services and capacity to our existing and new clients”, explains Maxwell.
While ART is not always suitable for all clients and every risk scenario, companies with an advanced risk management strategy can likely benefit and should explore this alternative way of managing risks.”
By Favour Nnabugwu
Nigeria’s Gross Domestic Product, GDP, dropped by 1.78 percent to 2.25 percent in the third quarter of 2022 (Q3’22) from 3.54 percent in recorded Q2’22.
The National Bureau of Statistics, NBS, made this known in its Nigerian GDP report for Q3’22
NBS cited the base effects of the recession and the challenging economic conditions that have impeded productive activities as cause for the reduction in growth.
According to NBS, “Real growth of the oil sector also fell by 10.91 basis points to -22.67 percent QoQ in Q3’22 from -11.77 percent in Q2’22”
This trend reflected in the sector’s contribution to GDP which fell by 0.67 percentage point to 5.66 percent in Q3’22 from 6.33 percent in Q2’22.
Similarly, growth in the oil sector decreased by 0.50 percentage points to 4.27 percent from 3.7 percent in Q3’22.
NBS said: “Nigeria’s GDP grew by 2.25 percent (year-on-year) in real terms in the third quarter of 2022. This growth rate declined from 4.03 percent in the third quarter of 2021.
“The reduction in growth is attributable to the base effects of the recession and the challenging economic conditions that have impeded productive activities
The Q3’22 growth rate decreased by 1.78 percent points from the 4.03 percent growth rate recorded in Q3’21 and decreased by 1.29 percent points relative to 3.54 percent in Q2’22.
However, QoQ, real GDP grew at 9.68 percent in Q3’22, reflecting a higher economic activity in Q3’22 than the preceding quarter.
“For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.
“The nation in the third quarter of 2022 recorded an average daily oil production of 1.20 million barrels per day (mbpd), lower than the daily average production of 1.57mbpd recorded in the same quarter of 2021 by 0.37mbpd and lower than the second quarter of 2022 production volume of 1.43 mbpd by 0.24mbpd. (Figure 2).
“The real growth of the oil sector was –22.67 percent (year-on-year) in Q3 2022 indicating a decrease of 11.94 percent points relative to the rate recorded in the corresponding quarter of 2021. Growth also decreased by 10.91 percent points when compared to Q2’22 which was –11.77 percent. Quarter-on-Quarter, the oil sector recorded a growth rate of -1.80 percent in Q3 2022.
The Oil sector contributed 5.66% to the total real GDP in Q3 2022, down from the figures recorded in the corresponding period of 2021 and the preceding quarter, where it contributed 7.49 percent and 6.33 percent respectively.
“The non-oil sector grew by 4.27 percent in real terms during the reference quarter (Q3’22). This rate was lower by 1.18 percent points compared to the rate recorded in the same quarter of 2021 and 0.50 percent points lower than the second quarter of 2022.
“This sector was driven in Q3’22 mainly by Information and Communication (Telecommunication); Trade; Transportation (Road Transport); Financial and Insurance (Financial Institutions); Agriculture (Crop Production) and Real Estate, accounting for positive GDP growth.
In real terms, the non-Oil sector contributed 94.34 percent to the nation’s GDP in the third quarter of 2022, higher than the share recorded in the third quarter of 2021 which was 92.51 percent and higher than Q2’22 recorded as 93.67 percent.”
L – Vice President of Turkiye African Trade and Investment Council (TATIC), Mr. Abiodun Odukoya; President of TATIC, Mohammed Ali Cankatar; President of The Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Rotimi Edu, President of Insurance Association of Turkiye, Atilla Benli; Past President NCRIB, Dr. (Mrs.) Bola Onigbogi at the induction of NCRIB delegation as members of TACTIC in Istanbul, Turkiye, recently
By Favour Nnabugwu
Members of the Nigerian Council of Registered Insurance Brokers (NCRIB) have been inducted into the Turkiye & Africa Trade and Investment Council (TATIC) in instanbul, Turkey
Cankatar noted that it is the world’s fastest growing business network, from which the NCRIB would extract significant value for its members.