Efekoha now member of AIO Executive Committee

Favour Nnabugwu

 

The Group Managing Director of Consolidated Hallmark Insurance (CHI) Plc, Mr. Eddie Efekoha is now a member of the Executive Committee of the African Insurance Organisation (AIO).

Efekoha admission into the committee took place at the 48th AIO Annual conference and General Assembly in Nairobi, Kenya, was in recognition of his immense contribution towards the growth and development of insurance in Nigeria and on African continent.

In his role, aside working with AIO Secretariat, he is expected to continue to use his rare talents and experience to deepen the penetration of insurance and address all issues on the African Insurance landscape

Efekoha who was once the chairman of Nigerian Insurers Association ( NIA) has been a strong pillar in the Nigerian insurance industry, having become the President of the Chartered Insurance Institute of Nigeria (CIIN) and the Chairman of Nigerian Insurers Association (NIA) in the past of which he served meritoriously.

In a congratulatory letter from CIIN to Efekoha on his feat, the President, CIIN, Sir Muftau Oyegunle, applauded his impact and contributions toward deepening insurance penetration in Nigeria and across the continent, expecting him to dip into his experience to excel in his new role.

“Everything you have done and accomplished in improving the insurance industry both in Nigeria and Africa are plausible. We are sure that this is another opportunity to continue to use your rare talent and experience to deepen the penetration of insurance and address all issues on the African insurance landscape. Accept the institute’s hearty congratulations.”

Efekoha holds a Bachelor’s degree in Insurance and a Master’s degree in Business Administration both from the University of Lagos.

He was the Executive Vice Chairman/CEO of Consolidated Risks Insurers, the past President of the Chartered Insurance Institute of Nigeria (CIIN) and the 22nd Chairman of the Nigerian Insurers Association (NIA) from 2016-2018

He has worked with leading Insurance Brokerage firms in top executive positions including Hogg Robinson Nigeria, Glanvill Enthoven & Co (Nig.) and Fountain Insurance Brokers as pioneer MD/CEO

AIBA elects Olatunde-Agbeja, Ezeibe as Chairman, Secretary

By Favour Nnabugwu

 

 

The African Insurance Brokers Association (AIBA) has elected the Chairman of Boff Insurance Brokers, Chief Babajide Olatunde-Agbeja and as it’s new Chairman and Ekepma Ezeibe as Secretary

Others also elected are as follows: Mr. Shaibu Ali – Ghana – Vice Chairman;  Mr. Yombo Bammeke – Nigeria – Treasurer; Mr. Nelson Omolo – Kenya – Ex Officio; Mr. Shola Tinubu – Nigeria – Ex officio and Mr. Jean Baptiste Ntukamazina- AIO SG – Ex Officio.

The election which took place on the sideline of ongoing 48th African Insurance Organisation Conference in Nairobi,Kenya.

The executive are to serve for one year and it is expected that heir election will give a great impetus to the body in accomplishing its mandate of broadening the practice of insurance broking in Africa.

Naicom cancels Registration licenses of Niger Insurance, Standard Alliance Insurance.

By Favour Nnabugwu
The National Insurance Commission, Naicom, has taken the bold step to finally cancel the licences of registrations of Niger Insurance and Standard Alliance Insurance after effort to resuscitate the companies failed
The Commission in a statement released by the Head, Corporate Communications and Market Development, Mr Rasaaq Salami said that  “This is to notify all insurance stakeholders and members of the public that the National Insurance Commission, NAICOM has CANCELLED the certificates of registration of Standard Alliance Insurance Plc, RIC – 091 and Niger Insurance Plc,  RIC – 029 with effect from the 21st day of June, 2022”
Consequently, the Commission has appointed Sanya, Ogunkuade Esq as the Receiver/Liquidator for Niger Insurance Plc and, Kehinde Aina Esq of Aina Blankson LP as the Receiver/Liquidator for Standard Alliance Insurance Plc
All stakeholders are advised to forward their enquiries to the respective Receiver/Liquidator for each company for their necessary action.
The Commission assures all stakeholders of the safety and  protection of their interests.
AIO tasked on business models, investment to meet ESG

 

Caption:

L- The outgoing President of the African Insurance Organisation, AIO, Mr Tope Smart and wife, Mrs Tonia Smart

 

 

By Favour Nnabugwu

 

 

 

Africa insurers and reinsurers have been tasked to change to their business models and increase their investments for them to meet environmental, social and governance (ESG) considerations.

Kenya’s cabinet minister for Treasury Ukur Yatani told the 1,500-plus delegates attending the African Insurance Organisation (AIO) Conference in Nairobi that new business models and more investments hold the key to meeting their ESG goals.

In an address delivered by his assistant, Mr Yatani said the AIO conference’s theme of ‘Insurance and Climate Change: Harnessing the opportunities for growth in Africa’ speaks to what the continent is experiencing currently.

“Insurance industry has a critical role to play in helping companies and nations to manage, measure and reduce the impact of climate change,” said Mr Yatani.

“They therefore cannot continue with their business as usual in the face of increasing frequency and scale of risks linked to climate change. We must adjust our business models to better respond to ESG issues.”

He called for collaborations with other players including governments if they are to “play their rightful roles” in championing and promoting environmental sustainability issues.

In 2012, the United Nations Environment Programme Finance Initiative developed a framework for the insurance industry on the principles for sustainable insurance.

The framework was to, among other things, help insurers embed ESG issues in their business models and raise transparency and accountability of underwriters on ESG issues.

But lean budgets and challenges on their traditional insurance products have been a barrier to increasing focus on ESG.

“I want to encourage insurers and insurers operating in Africa to increase their retention capacity through increased investments on the continent. The increased investments will encourage and ensure that we meet the ESG goals,” said Mr Yatani.

Climate change conversations are being given preference especially as floods, drought, wildfires and locusts disrupt livelihoods in Africa, presenting challenges that insurers can transform into opportunities.

Insurers and reinsurers have been challenged to use the Nairobi conference to take stock of the progress that has been realised in embedding ESG in their businesses.

“As the assembly continues to discuss ESG issues, I urge them to critically examine the achievements and the progress that has been made towards the fulfilment of those goals,” said Mr Yatani.

He said while Africa’s insurance sector has prioritised access and inclusivity, many countries have been slow on developing regulations and rolling out products for the excluded and the marginalised groups.

The outgoing President of  African Insurance Organisation (AIO), Mr. Tope Smart, has frowned at the low insurance penetration rate in African.

He made his position known yesterday at the ongoing 48th Conference and Annual General Assembly of the AIO in Nairobi, Kenya.

According to him, “African insurance industry remains one of the least penetrated in the world, with an average of about 2%, which is low compared to the global average of around 7 percent”

“Our industry’s growth keeps getting slowed down by our inability to build substantial capital reserves due to poor saving culture and “Premium flight”, while “there is still heavy reliance on foreign expertise,” he said.
He added that “Our industry is still plagued by poor public image and lack of trust”, saying “these and many more are the challenges we face today, and we need to address them if we intend to secure a better future for our industry.”

“As AIO clocks 60 this year, he informed that the Golden Jubilee of the organisation will be marked by a symposium, where the operators intend to discuss some of these challenges facing the insurance industry in the continent.

In view of the fact that the African Development Bank posited that Africa is the most vulnerable continent to climate change impacts under all climate scenarios above 1.5 degrees Celsius.

He expressed worries that “despite having contributed the least to global warming and having the lowest emissions, Africa faces exponential collateral damage, posing systemic risks to its economies, infrastructure investments, water and food systems, public health, agriculture and livelihoods, threatening to undo its modest development gains and slip into higher levels of extreme poverty”.

African Insurance Organisation (AIO) said it signed a revised Headquarters Agreement with the Cameroonian Government in Yaoundé recently, which now grants the AIO all the merits of an international organisation with accompanying advantages.

As the continent’s risk managers, he called on the insurance sector to provide risk management solutions, in the form of risk mitigation and transfer, building resilience and enabling the continent transition to net-zero greenhouse gas emissions.

 

A. M. Best celebrates with AIO on 50th anniversary

By Favour Nnabugwu

 

 

AM Best has extended its congratulations to the African Insurance Organisation (AIO) on its 50th anniversary, which is being celebrated during the ongoing 48th annual AIO Conference and Annual General Assembly in Nairobi, Kenya.

The weeklong conference began on Saturday, 25 June 2022 with the theme of “Insurance and Climate Change: Harnessing the Opportunities for Growth in Africa.” The golden jubilee will be celebrated under the theme, “AIO at 50: A call for Africa Insurance Renaissance.”

“I would like to offer congratulations on this milestone to the AIO and its entire membership and commend its new strategic initiatives for advocacy, research, training, capacity and reputation building and for nurturing a forum for communication in the insurance industry,” said Dr. Edem Kuenyehia, Director of Market Development for Africa at AM Best.

“AM Best is committed to being a truly global rating agency, servicing the needs of the (re)insurance industry throughout the world including the growth economies across the African continent,” added Nick Charteris-Black, Managing Director, Market Development – EMEA, AM Best. “Through our rating activities, we seek to strengthen the financial solvency, stability, and sustainability of the insurance industry in support of economic growth and the well-being of all stakeholders.”

Insurance and reinsurance companies and other market stakeholders looking to learn more about AM Best and its approach to issuing financial strength ratings can contact:

Naicom senstises FCT agencies on compulsory insurance

The National Insurance Commission, Naicom, organised sensitisation workshop for the Joint Taskforce on Enforcement of Compulsory Insurances in the FCT as a Pilot Scheme.

The workshop is aimed at sensitising members of the Taskforce on the requirements of the law with respect to the compulsory insurances as well as the enforcement modalities to be adopted by the taskforce Committee.

The Taskforce is comprising of the Nigeria Police Force, the Federal Road Safety Corp, the Federal Fire Service, FCT Fire Service, VIO, the Office of the Attorney General of the Federation and the Federal Capital Territory Administration.

The enforcement exercise within the FCT is expected to begin in the next few weeks.

CFI Speech on joint Guidelines on Oil & Gas with NCDMB

REMARKS OF THE COMMISSIONER FOR INSURANCE AT THE OFFICIAL SIGNING AND PRESENTATION OF THE JOINT GUIDELINES ON SUBMISSION OF INSURANCE PROGRAMME BY OPERATORS, PROJECT PROMOTERS, ALLIANCE PARTNERS, AND NIGERIAN INDIGENOUS COMPANIES IN THE NIGERIAN OIL AND GAS INDUSTRY ISSUED BY THE NIGERIAN CONTENT DEVELOPMENT AND MONITORING BOARD and NATIONAL INSURANCE COMMISSION The Executive Secretary of the NCDMB DCT, NAICOM Chairman, NIA President, NCRIB Directors of NAICOM and NCDMB

Gentlemen of the Press Distinguished Ladies and Gentlemen It is with great delight that I address you on the occasion of the signing and unveiling of the Guidelines on the submission of Insurance Programme by Operators, Project Promoters, Alliance Partners, and Nigerian Indigenous Companies in the Nigerian Oil and Gas Industry.

The partnership between NAICOM and the NCDMB which has led to this jointly issued document is a drive towards strengthening our mutual oversight functions. The Federal Government’s drive towards enhancing local content speaks to the long-term plan burn out of good intention and strategy to grow our economy, develop the Nigerian Industries and her human capital.

It is in alignment with this national interest that we converge this day to append our signatures to the instrument that solicits information evidencing adherence to the Government’s local content determination. It is important to state that, prior to the NOGICD Act 2010, the Insurance Act 2003 made far reaching provisions for the domestication and domiciliation of insurance services in Nigeria. In particular Section 65 (7) of the Insurance Act 2003 made it compulsory for any property located in Nigeria whether moveable or immovable to be insured by a Nigerian registered insurer. Section 67 requires that insurance of all imports into Nigeria must be insured by insurers registered in Nigeria.

In addition, Section 72 prohibits any person from transacting insurance or reinsurance with foreign insurers/reinsurers except with the written permission of the Commission. Following the peculiarity of the Oil and Gas industry, the NOGICD Act was enacted which therefore facilitated the hitherto collaboration between the NCDMB and National Insurance Commission; This amongst others, led to the proactive considerations of the specific provisions of the NOGICD Act relating to the Insurance Industry. The Guidelines for Oil & Gas Insurance Business was issued in 2010 which amongst others, stipulates the roles and responsibilities of insurance institutions in ensuring compliance with local content law.

This was done with the primary consideration of ensuring that available In-Country Insurance Capacity is fully filled before any foreign consideration. The overall aim of the guideline is the development of indigenous content through increased indigenous participation. The NOGICD Act 2010 was therefore applauded by the entire insurance industry as it greatly complemented the National Insurance Commission roles and responsibilities in performing its regulatory and supervisory oversight function. In similar vein, Sections 49 and 50 of the NOGICD Act specifically relate to Insurance & Reinsurance and Approval for Offshore Insurance respectively.

The Act also contains a Schedule with recommended minimum levels of Nigerian Content Level measured by percentage spend. The historical synergy between our agencies has therefore necessitated a veritable platform for inter-agency collaboration in order to give effect to the requirements of Section 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 joint Guidelines which is today issued with the objectives of enforcing and strengthening compliance with the provisions of the referenced sections of the NOGICD Act and relevant provisions of the Insurance Act with respect to companies carrying on insurance business in the Nigerian oil and gas industry is to also enable the Board monitor utilization of in-country insurance capacity. I therefore implore all operators, project promoters, alliance partners and Nigerian indigenous companies engaged in any form of business, operations or contract in the Nigerian oil and gas industry to note that the sighted relevant laws have demanded our adherence and continued compliance, hence the issuance of this Guidelines. It is on this note that I express optimism in relation to the realization of the benefits of increased local content which are but not limited to; increased retention, growth in in-country technical capacity. Job creation and employment generation, increased penetration and GDP growth, human capacity development, and many others.

Whilst we note the need to secure domestic supply chains through strong backward domestic integration which has the potency of protecting economies from imported contagion of both a health and economic variety, we are also mindful of the capacity gap of the Supply side. Consequently, the National Insurance Commission is committed to creating an enabling environment that will consistently enhance increased capacity of the Insurance Institutions both financially and technically.

Ladies and gentlemen, I want to appreciate the joint team of NAICOM and NCDMB for the invaluable contributions towards the drafting of the Guidelines and other Templates for ease of renditions. I strongly believe that the ongoing partnership will help us discharge our duties and functions in a more effective manner.

My special appreciation goes to the Executive Secretary, NCDMB for his commitment to this course right from the conceptualization phase of this synergy. I am hopeful that this collaboration will serve as a platform to breach any observe gap between the demands of the Oil and Gas Sector and the products offered by the Insurance Industry. Ladies and Gentlemen, thank you for your attention.

Thomas O S

ARC Group, African Bank pay Zambian Government $5.3.m for drought insurance claims

By Favour Nnabugwu

 

Africa Disaster Risk Financing Programme Multi-Donor Trust Fund has present o cheque of.$5.3m cheque to the Zambian for the drought insurance

The fund is supported by the Governments of the United Kingdom, through the Foreign, Commonwealth and Development Office, and Switzerland, through the Swiss Agency for Development and Corporation, and managed by the African Development Bank(AfDB).

Presented by representatives from the African Risk Capacity Group (ARC) and the African Development Bank, the parametric insurance payout will aid in the country’s recovery from the extreme drought event during the 2021/2022 agriculture season.

This will enable the timely emergency response activities in communities affected by drought, through the provision of cash transfers and food assistance to ensure food is available for the targeted households during the lean season period, according to an announcement.

The adverse impacts of climate change and climate variability caused droughts in Zambia in 2021 and 2022. Substantial lack of rain impacting crop production resulted in severe food insecurity in districts in the southern and western parts of the country.
The Government of Zambia had earlier signed a memorandum of understanding with the ARC to participate in the 2021/2022 drought risk pool to better deal with the drought and protect vulnerable populations from its adverse impacts.

The Zambian Government made a premium budgetary allocation from its national budget and sought additional premium financing support from the Swiss Agency for Development and Corporation and the AfDB to maintain the insurance policy for the 2021/22 agriculture season.

“ARC offers an African solution to one of the continent’s most pressing challenges, the shocks of climate change, transferring the burden of climate risks away from governments to ARC through sovereign insurance,” said Dr Abdoulie Janneh, ARC Group Deputy Board Chair and ARC Ltd Board Chair.

“The Government of Zambia is our privileged partner, and we stand with them to ensure their vulnerable population and livelihoods are protected against extreme weather-related disasters,” he added.

AfDB Vice President for Agriculture, Humanity and Social Development, Dr. Beth Dunford commented: “The African Development Bank is pleased to see this African Risk Capacity Group payout to the Government of Zambia. We expect this to be the beginning of continued support to help the country enhance their resilience to the shocks of climate change.

“The Bank’s support has brought assistance to farming communities hit hard by drought and poor crop yields, by enabling Zambian authorities to provide them with cash payments and sustaining them from eating their seeds as food, quitting farming as livelihoods, or migrating in search of food and non-existent jobs.”

Zambia’s Acting President, Her Honour W.K Mutale Nalumango, welcomed the payout from ARC to the Republic of Zambia. She said: “With the national treasury experiencing unlimited demand for the provision of public goods and services, the government stands ready to support disaster risk transfer initiatives that lighten the burden on the government.

“I urge other organisations such as the World Food Programme and other international and local civil societies to come on board to help expand the ARC insurance coverage in Zambia by partnering with my government to take up replica and micro insurance.”

The funds disbursed to the Government of Zambia will also boost the local economy and help communities build back better.

ARC’s previous parametric insurance payouts include $14m to the Malawian government in early June, and $10.7m to Madagascar in February.

NAICOM pushes for financial Inclusion in micro finance strategy

By Favour Nnabugwu
The Commissioner for Insurance, of the National Insurance Commission, NAICOM, Mr Sunday Thomas, has assured Nigerians that the micro insurance schemes is incorporated in the budding Nigerian financial enterprise.
The assurance came at the inaugural conference of Oriental News Nigeria with theme “Engaging with critical groups to develop effective financial inclusion initiative” which in Lagos.
Represented at the conference by Rasaaq Salami, Deputy Director/Head Corporate Communications & market Development  NAICOM, Thomas said that micro insurance  provides the leeway to protecting your property, safeguarding your belongings  from damages or loss  and ensuring you do not suffer loss when the unexpected damage or loss occurs.
It also safeguards traders or businesses of artisans and petty traders whenever their wares are destroyed, damaged or stolen.
“ Micro insurance is a way of safeguarding your property or business from any unforeseen event,and when it happens, what ever loss you ensured against will be reimbursed you”  the commissioner for Insurance assured on financial inclusion.
The Securities and Exchange Commission (SEC), on its part reiterated its commitments to ensure every segment of the society is covered in the ongoing financial inclusion initiative of the Federal Government
Earlier in her opening address, Editor Oriental News Nigeria , Mrs Yemisi Izuora  said that the conference was conceived by Stanmeg  Communications, publishers of Oriental News Nigeria after a pain staking study  the progress and prospects of the financial inclusion policy in the country since inception in 2012.
“ The conference is being organised given that the past couple of years , the federal government and stakeholders in the financial sector have had to deal with expanding financial services tp large community of underserved pupulation and dealing with resilience challenges brought about by confluence of events that have taken place”  Izuora stated