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Nigerians in informal sector charged to enrol in micro pension scheme

 
By Favour Nnabugwu
Nigerians in the informal sector have been urged to enrol into the Micro-Pension Scheme of National Pension Commission, PenCom to guarantee a fulfilled retired life
He assured that the current Micro Pension scheme of PENCOM under the leadership of Hajiya Aisha Umar is well structured to deliver valuable benefits to citizens in the informal sector.
Comrade Adams Otakwu, chairperson of  Conference of Civil Society of Nigeria while addressing journalists in Abuja on Wednesday, urge youths, artisans, small and medium scale  urged them to take advantage of the scheme to save for the raining day.
“We commend the effective and robust regulation of the Nigerian pension industry in the last four years, as well as the uncommon drive by the National Pension Commission under Aisha Umar and the PENCOM management team to boost micro pension in Nigeria.
“We note the commitment of the current management of PENCOM to reinvigorate micro-pension education at the grassroots across Nigeria, that will have exponential impact on micro economic growth in the country
“We note further that over 60 per cent of citizens in the informal sector who are unawares or ill-informed on the micro-pension are currently being targeted for enlightenment by the Micro Pension Scheme of PENCOM.”
He noted that a good number of players in the  informal sector are willing to enroll in the Micro-Pension Scheme, adding, “we see a visible determination by the National Pension Commission under her current management to scale up sensitization on the benefits, essence and impact of Micro-Pension as remedy for old age miseries.”
Otakwu expressed the readiness of civil society organizations to scale up awareness on the importance of enrolling in the scheme.
“We call on Nigerian youths, artisans, small and medium scale entrepreneurs, and members of the informal sector to enrol en-mass in the Micro-Pension Scheme of PENCOM in order to ensure befitting retirement and old age lives.
“Beyond the ongoing prospect and success of the Micro-Pension Scheme by PENCOM under Aisha Umar and her management team, we have seen growth in pension assets, timely payment of retirement benefits and rapid enhancement of social safety net stimulated through the pension industry,” he said.
Patoma Admin by — October 14, 2020 in News 0
S&P warns reinsurers, primary insurers against IFRS 17

S&P Global Ratings has warned that reinsurers and primary insurers to brace themselves for hurdles in the transition to International Financial Reporting Standards (IFRS) 17.

The implementation of IFRS 17 takes effect from 1 January 2023, and S&P explained that it requires insurers and reinsurers globally, excluding those based in the US, to restate their balance-sheet comparatives with new key metrics.

The ratings agency said that in June 2020, the International Accounting Standards Board published its final amendments to IFRS 17, addressing issues for primary insurers regarding their purchase of reinsurance. According to S&P, these amendments dissolved some significant accounting mismatches between market value assets and book value liabilities, which would have created risks for reinsurers.

“Despite this improvement, we believe the transition to IFRS 17 is a major challenge for reinsurers and users of their financial reporting. Reinsurers are likely to be up against technical accounting challenges. They’ll also have to develop new key performance indicators (KPIs) and bring important stakeholders, both internal and external, up to speed. Furthermore, although we expect pending updates to GAAP will somewhat improve the comparability between those standards and IFRS 17, differences will remain,” warned S&P.

The agency added that the new KPIs could affect reinsurers’ risk appetite and bring about shifts in business and financial strategies that could, in the long term, have a ratings impact.

Patoma Admin by — October 14, 2020 in Industry, Trade & Investment 0
Nigeria Re: Akinsola Ale, new Managing Director/CEO

Akinsola Ale has been appointed Managing Director/CEO of Nigeria Reinsurance Corporation (Nigeria Re). This decision was endorsed by the National Insurance Commission (NAICOM) on 31 August 2020.

A graduate of the University of Lagos and the Chartered Insurance Institute in London, A. Ale brings over 30 years of professional experience in the insurance industry and beyond.

Prior to his appointment, A. Ale acted as Executive Director of Technical Services at Nicon Insurance Limited.

Patoma Admin by — October 14, 2020 in Insurance 0
London insurance market loses £4.5bn premium to Brexit

London insurers lost a whopping £4.5 billion premium last year as companies restructure for Brexit  says the International Underwriting Association (IUA).

This ‘controlled’ premium was previously written in European offices but managed by London market companies. The London market still wrote some £6.2bn in controlled premiums, which are written outside the UK’s capital but managed within, last year. But this is down from £8.8bn in 2018.

The IUA said planning for Brexit had cost London market companies.

“Reorganisation and the impending loss of financial services passporting rules has meant that a large amount of business written in Europe is no longer overseen and managed in the same way by London, but reported directly to operations located within the EU,” said Dave Matcham, its chief executive.

“Such restructuring has increased costs for IUA members, making them globally more inefficient and, ultimately, less able to offer a better deal for clients,” he added.

Overall, London market companies increased premium income from commercial and wholesale risks by 10% last year to £21.4bn, the IUA says in a new report. The figure rises to £27.6bn when combined with £6.2bn in controlled premiums, but excluding those now recorded by European entities.

The IUA said London market companies had seen strong premium rate increases across almost all business lines in 2019. “The hardening market conditions are supplemented by firms developing growth areas such as cyber and transfers of business from Lloyd’s of London into the company market,” it said.

The IUA’s annual statistics report recorded three new lines of business. These were: political risk, which recorded premiums of £261m; trade credit, where premiums totalled £243m; and standalone cyber with premiums of £253m.

Mr Matcham said the London company market had returned “a remarkable performance” in 2019, with growth in energy, aviation, property and professional lines. He added that business written through managing agents with delegated authority increased by 28%.

In its tenth year, the IUA’s statistics report has tracked growth in the London company market from premiums of £19.6bn in 2010.

“The make-up of market participants has also altered with an increase in overseas capital, consolidation among the largest players and firms increasingly operating in both the Lloyd’s and company markets,” Mr Matcham said.

Patoma Admin by — October 13, 2020 in Banking & Finance 0
Ethiopian, Oman Airlines provide insurance coverage for Covid-19

In partnership with AXA Partner and Awash Insurance Company, Ethiopian Airlines is providing Covid-19 coverage for passengers on the company’s international flights from 1 October 2020 to 31 March 2021.

Also, Oman Air is providing free insurance coverage to passengers who test positive for coronavirus within 31 days of travel.

Ethiopian Airline coverage called Sheba Comfort” is valid for 92 days for a round trip and 31 days for a one-way trip. It covers up to 100 000 EUR (117 500 USD) of medical and hospital fees.

The guarantee includes quarantine fees set at 150 EUR (176 USD) per day for a maximum of 14 days. Sheba Comfort also covers the repatriation costs in the event of a Covid-19 infection and provides 24/7 assistance via its hotline.

The Oman coverage, valid from 1 October 2020 to 31 March 2021, will include medical and repatriation expenses as well as quarantine accommodation. The cost of the PCR tests will not be covered by this policy.

This coverage does not apply to passengers holding an Omani resident card (non-citizen) traveling to Oman. Covid-19 coverage is underwritten by Oman United Insurance Company, Orient Insurance (Bahrain office) and Doha Insurance.

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Patoma Admin by — October 13, 2020 in Aviation 0
Insurance, pension, other financial operators for NAIPCO confab on Nov 4

By Favour Nnabugwu

Insurance, pension and other financial experts are set to build their investment portfolios to maximise profit.
The operators are going to the deliberate the 2020 annual Conference of the National Association of Insurance and Pension Correspondents (NAIPCO), is billed for November 4, 2020 in Lagos

While the theme for the conference is: “Promoting Bankable Investments Portfolio for Insurance and Pension Sectors,”  the Chairman of the occasion is the Chairman, Nigeria Social Insurance Trust Fund (NSITF), Mr. Austin Enajemo-Isire while the Director General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, is the Keynote Speaker, even as the Chairman, Mutual Benefits Assurance Plc, Dr. Akin Ogunbiyi will be the Special Guest of Honour and Chief Launcher of the new NAIPCO website.

The Commissioner for Insurance/CEO, the National Insurance Commission (NAICOM), Mr. Sunday Thomas and the Acting Director General, National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, have confirmed their attendance for the conference.

Similarly, the Chairman, Nigerian Insurers Association (NIA), Mr Ganiyu Musa; the CEO, Pension Fund Operators Association of Nigeria (PenOp), Mr. Agudah Oguche, among others, will also be present at the occasion to deliberate on ways  operators can invest in the businesses of the Organised Private Sector of Nigeria(OPSN) and still maximise profit.

Speaking on the preparation for the event, the President, NAIPCO, Mr. Chuks Udo Okonta, said, as a critical stakeholder, it is the desire of NAIPCO that companies in both the insurance and pension sectors build up investment portfolios that will translate to huge returns on investments for shareholders and contributors of the contributory pension scheme.

He said the organised private sector has consistently lamented of low funding for manufacturers as the investment community have accused OPSN of lack of bankable investment projects in which pension and insurance companies can invest in, despite the two sectors having in excess of N11 trillion funds that could be invested in the economy.

For the insurance sector, he stressed that the theme of the conference is apt based on the argument that the sector is destroying value due to the consistent low returns on investment to shareholders.

For the pension sector, he stated that, the theme is also apt as PFAs have limited investment outlets with the ban on investment in treasury bills by the Central Bank of Nigeria(CBN) as well as, the current low yield on bonds, the mainstay investment instrument of the pension industry

Accordingly, he pointed out that the experts will lay bare all available bankable investment outlets for the operators to reap maximum benefits for their shareholders and customers’ benefits.

Moreover, he said, a new NAIPCO website will be unveiled at the conference, while there will be awards for individuals or organisations that have contributed immensely to the growth and development of either the insurance or pension sectors.

Patoma Admin by — October 10, 2020 in Insurance 0
Africa Re joins DIFC to capture middle East business

Africa Reinsurance Corporation, Africa Re has joined the Dubai International Financial Centre (DIFC) to operate as ‘Africa Re Underwriting Agency Ltd (Africa Re).in the region.

The reinsurance company will provide conventional as well as sharia-compliant reinsurance services to the Middle East region.

Africa Re, which is expanding to select markets in Asia, Brazil and the Middle East, specializes in underwriting proportional and non-proportional (marine and non-marine) treaty business, offshore and onshore energy including oil, gas, petrochemicals, power and other utilities, as well as general property

The Vhif Executive Officer of DIFC , Mr Arif Amiri in a  statement“ We are pleased to welcome Africa Re to DIFC, especially as they have chosen us for their first office outside the African continent. Offering conventional and Takaful products provides additional choice and we hope Africa Re will work with DIFC and the other firms in our ecosystem to develop the future of the region’s reinsurance sector.”

The Lagos-based firm seeks to take advantage of the rising demand for Takaful or sharia-compliant insurance in the Gulf, South East Asia and Africa. The GCC Takaful market saw its aggregate net profit surge by 74.3 per cent year-on-year to $414 million in 2019, according to the full-year results announced by publicly listed Takaful operators across the region last year.

The UAE represented the second largest market after Saudi Arabia.

“We are confident that Africa Re will benefit from the increasing demand for capacity in the market, especially in Islamic finance, and use their expertise to shaping the future of the sector,” said Amiri.

Patoma Admin by — October 6, 2020 in Industry, Trade & Investment 0
Naicom strengthens ties with Media…preparation for 20 new offices in top gear

by Favour Nnabugwu
The National Insurance Commission (NAICOM) has said that it will continue to collaborate and strengthen its ties with journalists to increase insurance penetration in the country.
He also stated effort to open the Commission 2 new offices are in almost concluded
Mr Adeyemi Abubakar, Assistant Director and Head Market Development of NAICOM, said this in his paper titled “Market Development Initiatives of the Commission and the Role of Media’’ presented during a seminar for insurance journalists, in Uyo, on Friday.
Abubakar said that Nigeria’s insurance market was grossly untapped, hence, the need for journalists to sensitise the public on the value of having insurance.
 “NAICOM is working tirelessly to instil confidence in the public, to assuage the fear entertained by the public about insurance in the country.
“NAICOM is working hard to ensure stability in the insurance industry. The stakeholders must be protected.
“We need you to enhance sensitisation and creation of awareness to make sure that insurance gets to the general public.
“We must increase insurance penetration to all the states of the federation,’’ Abubakar said.
He said that the commission had approved the establishment of 20 more offices to bring the office of the regulator nearer to the people.
He said that the commission had offices in the six geopolitical zones of the country.
Abubakar said that the commission would continue to press insurance companies to pay claims, stressing that timely payment would encourage more people to embrace insurance.
“We need to promote public understanding of insurance and practice based on international standard’’, he said.
He posited that the strategy of the commission for penetration would be to set up weekly insurance Community Development Service for corps members in the states.
According to him, corps members who belong to the insurance CDS group will go round to educate communities on the benefits of insurance.
Abubakar said the move would promote public understanding of insurance mechanism, build confidence and help in the enforcement of compulsory insurance.
He said: “We want to collaborate with NYSC for the establishment of weekly CDS on insurance in the states.
“They will go round to sensitise the people and educate them on to benefits of insurance.
“People need to begin to talk about insurance in schools and other places the way they talk about banking.
“We want to instil trust in the minds of the people to build their confidence.”
On compulsory insurance, Abubakar listed some of them to include builders’ liability insurance, motor third party liability insurance and the group life insurance.
He noted that the commission is also partnering with the states’ fire service, revenue office and states’ Head of Service to help in the enforcement of insurance schemes.
Abubakar regretted that the insurance sector, which had numerous opportunities, was grossly untapped, saying the potentials will help to improve insurance premium and contribute to the growth of the Gross Domestic Product of the country
Also, he said that the Commission zeal to open  new 20 state branch offices across the country is already in top gear.
It maintained that the restructuring exercise is part of the efforts at repositioning the commission for better service delivery.
Patoma Admin by — October 4, 2020 in Insurance 0