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CFI Speech at MSMEs sensitisation workshop in Lagos

WELCOME ADDRESS BY OLORUNDARE SUNDAY THOMAS, COMMISSIONER FOR INSURANCE/CEO, NATIONAL INSURANCE COMMISSION (NAICOM) AT THE SENSITIZATION WORKSHOP ON INSURANCE FOR MSMES AND STAKEHOLDERS ON AUGUST 5TH, 2021 AT THE LCCI, ALAUSA LAGOS

Protocol

I am delighted to welcome you to this workshop meant to educate and enlighten the Micro, Small and Medium Enterprises (MSMEs) on the benefits of insurance The importance of MSMEs to national development cannot be overstated. It is indeed the fulcrum of a nation’s growth and development.

MSMEs form the superstructure to stimulate mass enterprise growth and serve as a source of livelihood for the base of the pyramid population across all economies be it underdeveloped, emerging or frontier markets.

In Nigeria, all development interventions of the current administration have had components focused on enabling these MSMEs sprout and flourish but unfortunately, with little or no insurance content to deal with associated risks and ensure sustainability and guarding them against failure.

According to the National Bureau of Statistics, Micro, Small and Medium Enterprises (MSMEs) in Nigeria have contributed about 48% – on average – to the national Gross Domestic Product (GDP) in the last five years from a total of about 17.4 million enterprises (NBS 2019). They account for about 50% of industrial jobs and nearly 90% of activities in the manufacturing sector.

While some challenges still abound from infrastructure to funding, it is encouraging that the Federal Government through its deliberate policy of removing 100million Nigerians from poverty in the next ten years is taking on the challenges to build businesses and leverage them to create prosperity.
In addition to the efforts of the government at all levels, the spirit of entrepreneurship of Nigerians is driving creativity and productivity.

However, the concern is that whatever gain or progress made in this sector can be halted abruptly in the face of a natural or man-made disaster which can often prove daunting to surmount without any support. In particular, when MSMEs are affected by any mishap, the disruption produces not only direct business losses, but also indirect losses and economic ripple effects. The range of impact include job losses, debt overhang, and a relapse of households into extreme poverty.

While the risks that expose MSMEs to this type of vulnerability may not be within the scope of human control, what is within human reach is a deliberate risk management plan through Insurance. It gives you confidence to venture
Insurance is that product you buy when you think you do not need it because it may be too late to buy it when the need for it arises.
. Notwithstanding the importance of Insurance to lives and property, adoption and penetration have been low in Nigeria owing largely to a lot of challenges principal of which may be the inadequate product offerings that meet the needs of the consumers including the MSMEs.

Consequently, the MicroInsurance and Takaful are two insurance offerings carefully designed for affordability and inclusiveness to bring Insurance within the reach of one of the nations most valued contributors to the economy-the MSMEs. This will support the sector for speedy recovery when unforeseen situations occur.

Thus, NAICOM have undertaken to educate and drive enrollment for these products through this sensitization workshop.

The workshop has so far made stops at three cities in Nigeria; Kano, Kaduna and Abuja pulling MSMEs from these cities and their environs. At all locations, we received overwhelming responses in terms of attendance, engagement and enrollment. The average attendance per location have been over 1000 MSMEs. However, due to the prevailing pandemic and the need to adhere to the protocols, the number allowed in the hall today is restricted to 300 MSMEs.

Lagos state is a key stop for us for obvious reasons; first, Lagos has been Nigeria’s nerve center of commerce, the State hosts the single largest number of, MSMEs in the country, put at 11.5% of total. (NBS 2019)
Secondly, and more important, the current and past administrations of this state have demonstrated a continuous commitment to sustaining MSME growth.

Specifically, the constellation of deliberate polices, special programmes and projects, in collaboration with various agencies to boost capacity, access credit, enable trade are all commendable. Some of the State efforts that readily comes to mind and which have been supportive to the Federal Government efforts are: i. The Lagos State MSMEs Exclusive Fairs
ii. The N220 billion Micro and Medium Enterprises Development Fund (MSMEDF) to cushion the impact of COVID 19,
iii. Other State intervention programs
All of these efforts represent to us both the will and action to engender MSME growth.
It is with these assurance that we have anticipated and prepared, that we shall record much more significant outcomes here with this workshop.

The level of vulnerability of MSMEs to extinction by likely disasters – both natural and man-made is very high; we all witnessed the destruction of life and property during the #EndSars protest which may have killed some MSMEs and driven some persons further down the poverty line. The good thing which is our message to you today is that insurance will provide you the shock-absorber to withstand any of these unforeseen calamities when they do occur and help your reinstatement in business.

The NAICOM is committed to our mandate of providing diligent oversight to the insurance sector towards ensuring prompt settlement of genuine claims when insured event occurs. I dare say that the MSMEs sector is too important to be neglected as it is key to economic development of the nation and thus, must be guided and protected against failure. The encouraging responses validate that the products meet a critical need also that the appetite for players in the MSMEs sector to succeed sustainably is high.

To ensure that you are properly guided, let me inform you that we have 59 insurance companies; 510 insurance brokers, 4 Microinsurance companies and 4 Takaful companies licensed by NAICOM to operate. Be free to approach any of them for an appropriate and adequate insurance policy that meet your needs.

In conclusion, we believe that the conversations today in addition, will provide insights for us to learn from, to adequately protect the MSMEs as policyholders, ensure a safe and sound Insurance sector, as well as encourage innovation and product development that meet the specific needs of the MSMEs.

Your Excellency, delegates, colleagues in the insurance sector, the press, distinguished ladies and gentlemen, I thank you all for finding time to attend this workshop and I hope you leave here better informed and enlighten on the numerous benefits inherent in the consumption of insurance products. Finally it is my believe that you will take the necessary steps to get yourself, properties and business adequately covered by reaching out to a broker or an insurance company for your insurance needs.
Thank you for listening.

Patoma Admin by — August 5, 2021 in Insurance 0
Faces at NAICOM, MSMEs sensitisation programme in Lagos

CAPTIONS

L – Deputy Commissioner for Insurance, Technical, Alhaji Saliu Bello Abubakar; Director General, Chartered Insurance Institute of Nigeria, Abimbola Tiamiyu; Commissioner for Finance In Lagos State, Dr Rabiu Olowo, representing Gov. Babajide Sanwo-Olu; Commissioner for Insurance, Mr Olorundare Sunday Thomas and Chairman, House Commitee on Insurance and Acturial matters, Darlington Nwokocha at the ongoing Sensitization workshop for MSMEs organized by the National Insurance Commission (NAICOM) in Lagos

L – in Native attire, Alhaji Adamu Balanti; Director of Corporate, Governance, Enforcement and Compliance, and other practitioners during the programme
  • R – Mr AbdulRasaaq Salami, Deputy Director of Corporate Communications of Naicom at the event
Patoma Admin by — August 5, 2021 in Insurance 0
WTW reports net income of N186m for Q2 2021

By admin

 

Re/insurance broker Willis Towers Watson has announced second quarter net income of $186 million, up from the $102 million reported in the prior year period
Revenue was $2.29 billion, an increase of 8% from the $2.11 billion reported a year ago.

Adjusted operating income was $409 million, or 17.9% of revenue, an increase also up from last year’s Q2.

The Corporate Risk & Broking (CRB) segment had revenue of $788 million, an increase of 12% from $701 million in the prior-year second quarter.

North America benefited from gains in connection with settlements and book-of-business sales in the quarter.

The Investment, Risk & Reinsurance (IRR) segment had revenue of $400 million, down 3% from $413 million in the prior-year second quarter.

On an organic basis, most lines of business contributed to the growth. Reinsurance growth was driven by new business wins and favourable renewal factors.

WTW’s IRR segment also secured $133 million in net income for the quarter, up from $119 million in the prior year quarter.

“We delivered very strong quarterly financial results, and I am proud of our results for the first half of 2021,” said John Haley, Willis Towers Watson’s Chief Executive Officer.

“In the second quarter we delivered broad-based revenue growth, continued margin expansion, and had significant earnings per share growth. I am encouraged by our growth momentum and the improving macroeconomic outlook.

“Our financial results reflect our talented colleague base, their perseverance, the strength of our client relationships and our compelling value proposition. We are focused on moving forward independently, with confidence in our ability to continue delivering significant value for all of our stakeholders.

“We are well-positioned to compete vigorously and independently across our businesses around the world and will continue to innovate and adapt to address evolving client needs

Patoma Admin by — August 5, 2021 in Insurance 0
Heirs Insurance, Heirs Life delivers on 5 mins insurance purchase promise

By Favour Nnabugwu

 

 

Insurance companies, Heirs Insurance Limited (HIL) and Heirs Life Assurance (HLA), have confirmed that customers are now able to purchase insurance policies from their websites, www.heirsinsurance.com and www.heirslifeassurance.com, in mere minutes.

The revolutionary, interactive websites—first of their kind in Nigeria—ensure that customers have access to quick insurance, completing transactions in minutes wherever they are, without any human intervention.

This development signals the kick-off of the companies’ ambition to digitalise insurance and provide a viable alternative for customers to purchase products and request claims without delay, as well as learn more about insurance.

Mansging director, Heirs Life Assurance, Mr. Niyi Onifade explained that the websites were designed to remove the barrier of accessibility.

He said: “For us at Heirs Insurance and Heirs Life, our business revolves largely around satisfying our customers and we understand the important role technology plays in making that happen, as well as widening the scope of our offering to underserved markets”

“Presently, our websites offer a web app feature that allows customers to buy and pay for policies in just five minutes and request for claims within 24 hours. This, we believe, is the ease customers truly deserve and we are glad to be pioneering that”.

Acting Managing director of Heirs Insurance Limited,  Dr. Adaobi Nwakuche   confirmed the companies’ stance on technology offering ease and comfort to customers.

She said: “We are delighted that customers can now purchase products via our websites. This milestone speaks to the innovation we are bringing into the insurance industry and more importantly, our commitment to our customers. Our promise of simple, quick, accessible, and reliable insurance service is closer than ever”.

The duo of Nwakuche and Onifade have repeated severally in their series of media engagement that the companies will constantly be at the intersection of technology and innovation, leveraging the power of both factors to provide for customers, well-tailored, value adding products at affordable prices.

Heirs Insurance Limited (HIL), the general insurer, with the mandate to protect people’s properties, and specialist life insurance company, Heirs Life Assurance Limited (HLA), with a vision to provide financial security and life insurance plans for people, are positioned to become the leading Nigerian insurers leveraging digital to provide simple, quick, reliable, and accessible insurance to individuals and businesses.

With paid-up share capitals of N10billion and N8billion respectively, HIL and HLA commenced full operations with a workforce of astute and experienced professionals, and a robust financial capacity to underwrite all classes of general and life insurance businesses.  The companies are supported by top-notch Reinsurers to provide second-layer security for clients’ insurance portfolios. Both companies are subsidiaries of Heirs Holdings, a pan-African investment group with presence across twenty three countries worldwide.

Patoma Admin by — August 4, 2021 in Insurance 0
Unitrust Insurance records GWP of N3.98bn in 2020

By admin

 

Unitrust Insurance Company Limited, recorded a Gross Premium Written (GPW) of N3.98 billion, representing a year-on-year growth rate of 13 per cent when compared to the previous year.

The Managing Director of the underwriting firm, Mr. John Ijerheime, disclosed this today during a courtesy visit by the executive of National Association of Insurance and Pension Correspondents (NAIPCO) to the firm’s head office in Lagos.

He noted that the company closed the year with a Profit After Tax (PAT) for the year stood at N747.17 million. Profit of N802.19 million and paid N1.8 billion claims in 2020

“In the same vein, the company’s underwriting profit improved significantly as the total profits of N802.194 million from N 301.759 million reported in the 2019 financial year. The claims paid for the year was N1.08 billion,” he said.

Ijerheime reiterated that against the backdrop of challenges that characterised the year, the company delivered an outstanding performance across key metrics.

“Indeed, 2020 was a year that will be remembered for its unprecedented disruptions, which were primarily attributed to the COVID-19 pandemic and its multidimensional impacts on global economies. Yet, in the face of prevailing circumstances the Company delivered impressive results during the Year.

“Our business growth model is driven by structural analysis of our strengths, weaknesses, opportunity, and Threats (SWOT) for responsive bonding irrespective of the challenging situations. We have by this result, demonstrated our robust capacity and sustainable execution of our strategic growth plans,” he submitted.

On 2021 half year performance, he stated that as at July 31, 2021, the company had generated N3.7 billion premium, which was closed to what it did in the full year of 2020, adding that the firm anticipates closing the year with over N5 billion.

The Unitrust Insurance boss said the firm had paid over N400 million claims this year.

Chairman of NAIPCO, Chuks Udo Okonta, used the visit to abreast the management of the company of the initiatives adopted by the association to contribute immensely towards the development of insurance sector.

According to him, “Claims profiling helps in showcasing companies claims payment history for a period of five years, while product profiling focuses on the benefits of arrays of products paraded by companies and management profiling helps showcase the pedigree of individuals steering the affairs of companies..

Patoma Admin by — August 3, 2021 in Insurance 0
Tanzanian Govt calls on insurance industry to back financial sector masterplan

By admin

 

 

The Tanzanian government is urging the insurance industry to work together to support the country’s Financial Sector Development Master Plan 2020-2030.

The master plan sets ambitious goals for the insurance sector, including:
50 percent coverage of the adult population within a decade;

life insurance penetration to be 3 percent and non-life, 2 percent

10 percent of beneficiaries of retirement plans to use annuity products by 2030;

90 percent of the population have health insurance by 2030;

20 percent of the adult population have life savings products;

80 percent of the population are aware of insurance matters by 2025;

10 percent of total insurance premium to contributed by agriculture insurance by 2030;

10 new demand-driven insurance products developed by 2030;

8 affordable insurance distribution channels to be developed by 2030.

Speaking at the official opening of the annual conference of the Tanzania Insurance Brokers Association (TIBA) in Dar es Salaam last week, Permanent Secretary in the Ministry of Finance and Planning Emmanuel Tutuba said the government alone cannot achieve the goal of expanding insurance coverage to all. Support is needed from the private sector.

He said that insurance is key to the country’s financial inclusion agenda and the bulk of growth of the financial sector in the next decade is expected to be generated by the insurance industry.

Mr Tutuba said, “This transformation can only happen if the insurance industry pivots itself on innovation and synergy. The first part is digitalisation. The second part is for the players, re/insurers, insurance brokers/agents, bank assurers and all the players across the insurance value chain to work in synergy so as to achieve the economies of scale.”

Insurance industry’s capacity to be expanded

He also said that the government would seek to enhance the industry’s underwriting capacity with the view to improving the insurance sector’s contribution to the national economy. Special thrust will be on enhancing capital requirements and human skills development as well as establishment of pools for specialised and large risks, for example, oil and gas as well as aviation.

Patoma Admin by — August 3, 2021 in Insurance 0
Aon’s revenue from commercial risk jumps to 20% in Q2′ 2021

By admin

 

Broking giant Aon has benefited from a 20% jump in revenue within its commercial risk segment, the segment’s revenue rose from $1,126 million in Q2′ 20 to $1,349 million. citing strong new business generation, retention, and management of the renewal book portfolio.

This improvement has also been attributed to the more discretionary portions of Aon’s business, primarily in transaction liability, project-related work, construction, and cyber consulting, which were negatively impacted in the prior year period.

Aon’s efforts in the reinsurance space during Q2 saw the firm secure a 12% year-on-year increase that resulted in revenues of $500 million.

Market impact is reported to have been a modestly positive driver in this area, with the majority of revenue in its treaty portfolio recurring in nature and recorded in connection with the major renewal periods that take place throughout the first half of the year.

Equally, the second half of the year is driven by facultative placements and capital markets that are more transactional in nature.

Net income attributable to shareholders was $379 million, down from $398 million in the prior year quarter.

Total revenue increased 16% to $2.9 billion, including organic revenue growth of 11%, which CEO Greg Case describes as the firm’s strongest in over a decade, translating into 17% growth in earnings per share, and contributing to 13% free cash flow growth.

“These results demonstrate the incredible resilience of our colleagues and the power of Aon United, said Case.

“We are moving forward at an accelerated pace, with a proven leadership team and an enduring strategy.

“Our ability to innovate on behalf of clients remains unrivaled and continues to translate into significant progress against key financial metrics and shareholder value creation.

Patoma Admin by — August 3, 2021 in Insurance 0
Swiss Re reports $1bn net income for half year 2021

By admin

 

Global reinsurance giant Swiss Re has reported net income of $1 billion for the first half of 2021.

An improved performance in its property and casualty (P&C) business more than offset a COVID-19 driven loss in its life and health (L&H) reinsurance division.

Swiss Re’s H1 2021 Group-wide profit would have reached $1.7 billion excluding COVID-19, compared with a net loss of roughly $1.1 billion for the prior year period, during which Swiss Re reported pandemic losses of a massive $2.5 billion.

Starting with its P&C reinsurance arm, and Swiss Re has announced net income of $1.2 billion for H1 2021, which is a solid improvement on the loss of $519 million for the same period last year.

The firm attributes the robust performance to disciplined underwriting, ongoing price improvements, and significantly fading COVID-19 related losses and a strong investment result.

Within P&C Re, the return on equity (RoE) totalled 27.2%; as Swiss Re grew net premiums earned by almost 9% to $10.5 billion, driven by both volume and price increases.

Losses from natural catastrophe events reached $521 million for the period and are mostly related to US Winter Storm Uri, while Swiss Re’s P&C arm has reported man-made losses of $100 million for the period.

The impact from the pandemic on P&C reinsurance was minimal in H1 2021, says Swiss Re, adding that it expects P&C losses related to COVID-19 to amount to less than $200 million for the remainder of 2021.

At the recent July reinsurance renewals, P&C Re achieved a nominal price increase of 4%, while the volume of treaties remained stable at $16 billion.

Overall, P&C Re has reported an improved combined ratio of 94.4 percent for H1 2021 compared with 115.8 percent  a year earlier, with the unit on track to meet its target, normalised combined ratio of less than 95% in 2021.

“Overall price quality improved, more than offsetting the impact of decreased interest rates and adjustments to loss assumptions. In the July treaty renewals, premium volumes slightly increased, with growth in attractive natural catastrophe business in the US,” says Swiss Re.

Within L&H Re in H1 2021, Swiss Re has announced a net loss of $119 million in light of continued losses from the pandemic.

While these losses fell in Q2 when compared with Q1, the vast majority of Swiss Re’s COVID-19 loss of $870 million in H1 2021 are attributable to its L&H Re business. In fact, excluding L&H Re COVID-19 losses of $810 million, L&H Re’s underlying business performed well, with net income of $530 million.

Net premiums earned and fee income jumped by more than 12 percent, year-on-year, to $7.5 billion, mostly as a result of longevity transactions in the EMEA region and favourable foreign exchange developments.

For the Group, net premiums earned and fee income increased by 7.6 percent to $20.8 billion in H1 2021, when compared with the prior year period.

The reinsurer produced a return on investment of 3.2 percent in H1 2021, driven largely by recurring income as well as equity valuation gains.

Swiss Re’s Group Chief Executive Officer (CEO), Christian Mumenthaler, commented: “We are very pleased with the improved profitability achieved by the Group in the first half of this year. The focus on portfolio quality at P&C Re is delivering very strong results, and we are reaping the fruits of our decisive actions that brought Corporate Solutions back on track.

“Although L&H Re is still impacted by claims related to COVID-19 as we support our clients and society during this pandemic, its underlying business continues to perform well. All our businesses are growing, and our very strong capital position allows us to pursue attractive opportunities across all lines of business.”

John Dacey, Swiss Re’s Chief Financial Officer (CFO), added: “Our property and casualty businesses are on track to deliver on their ambitious combined ratio goals for this year. At L&H Re, we currently believe that the progress of the global vaccination programmes will lead to diminishing COVID-19 losses over the coming quarters. Swiss Re’s asset management continues to successfully navigate financial markets and deliver strong returns for the Group.”

Turning to the Corporate Solutions division, and net income here reached $262 million for H1 2021 after a solid turnaround of the business last year. This positive result compares with a COVID-19 driven loss of $312 million for the unit in H1 2020, and was achieved in spite of nat cat losses of $155 million.

Net premiums earned in Swiss Re Corporate Solutions increased by more than 3 percent to $2.6 billion, driven by realised rate increases and selective new business growth. The division’s RoE hit 21.1 percent, and combined ratio totalled 92.7percent, and was supported by favourable prior year development, explains Swiss Re.

At iptiQ, gross premiums written for the core business jumped by a significant 133 percent to $333 million for H1 2021, with Swiss Re noting good contributions across all businesses.

The entity’s gross income, excluding COVID-19 impacts of $5 million, increased by more than 50bpercent, year-on-year, to $26 million for H1 2021.

“The first half of 2021 has demonstrated the strength of our business model as we see our underwriting actions deliver results. While we remain in an uncertain pandemic situation, we are confident that all our businesses are well positioned to continue to perform strongly,” said Mumenthaler.

Patoma Admin by — August 3, 2021 in Insurance 0
Nigeria’s loans from World Bank, African Development Bank rise to $14.35bn

By Favour Nnabugwu

Nigeria’s loans from the World Bank and the African Development Bank rose from $7.14billion to $14.25billion between June 30, 2015 and March 31, 2021.

According to the Debt Management Office, Nigeria’s commitment to the banks rose by $7.11bn from 2015 to 2021, an increase of 98.48 per cent.

The data shows that as of June 30, 2015, the Federal Government had borrowed a total sum of $6.19bn from the World Bank.

A breakdown of the world bank’s loans to the Nigeria shows that a greater part of the loans was obtained from the International Development Association, an arm of the World Bank that specialises in giving concessional loans to poor and fragile countries.

The IDA commitment to Nigeria amounted to $6.09bn.

Another member of the World Bank group, the International Fund for Agricultural Development, had a commitment of $94.80m in the country.

Also, the AfDB commitment to Nigeria stood at $946.52m, comprising loans from various internal bodies such as the African Development Bank ($350m) and African Development Fund ($596.53m).
By March 31, 2021, the Federal Government’s debt to the World Bank had risen to $11.51bn, reflecting a $5.32bn or 86 per cent increase.

The debt included loans of $11.10bn and $410.23m from the International Development Association and International Bank for Reconstruction and Development respectively.

With a commitment of $11.51bn, the World Bank is responsible for 35.02 per cent of Nigeria’s foreign portfolio of $32.86bn as of March 31, 2021.

During the the same period, the Federal Government acquired $1.59bn from the AfDB, $0.21m from Africa Growing Together Fund and $942.51m from ADF.

As of now the AfDB’s commitment to the country is $2.74bn, representing 8.3 per cent of the country’s total external debt.

The data break down also shows that Nigeria is currently indebted to the following agencies: Export Import Bank of China, with a portfolio of $3.40bn; the Exim Bank of India, with a portfolio of $34.95m; the Agence Française de Développement, with a portfolio of $486.6m; the Japan International Cooperation Agency, with a portfolio of $74.6m; and Germany, with a portfolio of $183.7m

Patoma Admin by — August 3, 2021 in Banking & Finance 0
Naicom sentitises MSMEs on insurance August 5

By Favour Nnabugwu

The National Insurance Commission(NAICOM) is having a sensitisation programme with Micro, Small and Medium Enterprises(MSMEs) on insurance come August 5, 2021.

The Commission is bringing together MSMEs across the entire Lagos state and its environs to learn and discuss key issues around the subject through insightful conversations with experts on the field.

A statement from the commission and signed by the Head, Corp. Comms and Market Development, Salami ‘Rasaaq, said, the workshop, which will take place in Lagos on the 5th of August, 2021, added that, the executive governor of Lagos State, Mr. Babajide Sanwo-Olu is expected to declare the workshop open and deliver a keynote address.

He stressed that, the commission is serious about increasing insurance penetration, adoption and acceptance in the country and has been partnering relevant stakeholders to make this dream a reality.

The regulatory body had earlier sensitised MSMEs as well as relevant stakeholders in Kano State and the Federal Capital Territory(FCT), Abuja, on the need to subscribe to insurance products and services and the outcome was deemed successful.

Patoma Admin by — August 3, 2021 in Insurance 0