All Posts in "Business"

Nigeria has potentials to generate $600m from agriculture insurance premium

By Favour Nnabugwu
Nigeria has the potential to generate nothing less than USD 600 million of agriculture insurance premium in a year
Deputy Managing Director/COO, Africa Reinsurance Corporation, Ken Aghoghovbia of Africa Reinsurance Corporation (Africa Re) at the opening Africa Re Agriculture Insurance Workshop in Lagos, said owing to the vax farming in the country against the USD 10 million reported during the year 2021.
He noted that there is a gap of $590 million untapped insurance potentials in the country.
Aghoghobvia stated that these bright economic prospects, provide huge opportunities for insurance companies to innovate and provide risk transfer solutions to cover the inherent risks associated with farming activities.
He stressed that agriculture remains a key contributor to Nigeria’s Gross Domestic Product (GDP) and like in many emerging economies, accounts for 30 per cent of the country’s total economic output; providing employment to at least 35 per cent of its over 200 million population.
He submitted that with sustained pressure on food security, arising from the increasing population and the government’s push to diversify the economy, agriculture will continue to be a key area of focus in many years to come, adding that sadly, this undertaking is undermined by the limited investments in the sector, and the uncertainties resulting from the effects of climate change.
Aghoghovbia maintained that since 2017, the agriculture class of business has generated a lot of interest from several market players and currently, at least 16 insurance companies have received NAICOM’s approval to underwrite the business, thus complementing the efforts of the Nigeria Agriculture Insurance Company (NAIC).
He stated that the prominence of small holder farmers in Nigeria’s food production systems dictates that partners explore new approaches to providing effective and affordable insurance products.
“In line with our mission to support the development of African economies including that of our beloved country Nigeria, Africa Re recognizes the significance of the agriculture sector in fulfilling the aspirations of many farming households.
“Therefore, our team endeavors to work with like minded partners, like yourselves, to make the agriculture class of insurance business a significant contributor to the ambition of increasing insurance penetration in Nigeria and indeed the entire region,” he stated.
He posited that at Africa Re, they are deliberate about leveraging their wide range of expertise and knowledge, backed by solid financial strength, to provide the much needed reinsurance capacity in the agriculture sector, stating that over the last five years, the market has seen exponential growth in insurance premiums from agriculture, but this growth has been overshadowed by the unfavorable loss experience.
“This poor performance reveals the need for the market to invest more in stakeholder engagement including training, aimed at improving underwriting skills as well as claims handling capabilities,” he said.
He said agriculture insurance is still in its formative years in the country, hence the workshop which is aimed at providing a platform for candid conversations with a view to developing homegrown solutions to move the agriculture sector in Nigeria to the next level
The Africa Re. DMD, noted that whereas a lot of work has already been done in addressing some of these challenges, Africa Re recognizes the need for continuous improvement especially during this ever-changing business environment and hopes that the workshop will help to move all stakeholders towards the desired.
Patoma Admin by — October 19, 2022 in Insurance 0
AIICO Insurance, Indo-Eye Care Foundation operate 2,000 free eye service to Nigerians

By Favour Nnabugwu

 

 

AIICO Insurance Plc, in conjunction with the Indo-Eye Care Foundation, has successfully performed free eye surgery on 2,000 Nigerians this year.

Since 2007, the organization has made it a tradition to provide between 2,000 and 2,500 patients with free eye surgery; they accomplished a similar number in the most recent year.

The Managing Director/CEO of AIICO Insurance Plc, Babatunde Fajemirokun, recently mentioned at the 2022 Sharad Purnima Dandiya event in Lagos that his insurance company offers to help the less fortunate restore their sight through the support it offered to Indo-Eye Care Foundation.

Asserting that this action is in keeping with the company’s Corporate Social Responsibility (CSR) to the communities and humanity, Fajemirokun, who was represented by the Communication Manager of AIICO Insurance, Ademola Adenekan, promised that the company will continue to support the underprivileged and initiatives like the eyecare foundation.

The management of the underwriting company, he claimed, is pleased that its gesture has allowed more blind people to regain their sight.

He stated that fast payment of claims has been and will remain a defining feature of the insurer’s operations and that it will continue to uphold its expectations and civic duties.

Patoma Admin by — October 18, 2022 in Insurance 0
Climate finance to low, middle income countries hits $51 billion in 2021

 

By Favour Nnabugwu

 

 

 

Total financing by major multilateral development banks (MDBs)to low-income and middle income economies in 2021 of $50.666 billion,

The figure surpassed the annual expectations of $50 billion set in 2019 (link is external) at the UN Secretary General’s Climate Action Summit in New York.

Of the $50.666 billion of climate finance committed to low-income and middle-income economies, $47.24 billion was from the MDBs’ own account and $3.426 billion from external resources that were channelled through the banks. Mitigation finance committed to low- and middle-income economies totalled $33.055 billion, or 65%, while adaptation finance totalled $17.611 billion, or 35%.

He MFBs fince on climate change rose in 2021 with over $19 billion committed to climate change adaptation finance, according to the Joint Report on Multilateral Development Banks’ Climate Finance

The report tracks the progress of MDBs in relation to their climate finance targets such as those announced at COP21 and the greater ambition pledged for the post-2020 period.

 

The 2019 goals projected a collective total of $50 billion for low- and middle-income economies and at least $65 billion of climate finance globally, with an estimated doubling of adaptation finance to $18 billion and private mobilization of $40 billion.

The report also records a notable increase in adaptation finance to over $19 billion in 2021, again beating expectations. A total of $19.187 billion was committed to climate change adaptation finance, with$17.611 billion, or 92%, committed to low- and middle- income economies, thus surpassing the expected collective delivery of increasing adaptation finance to $18 billion.

Kevin Kariuki, Vice President of Power, Energy, Climate and Green Growth at the African Development Bank, commented: “As MDBs, we have steadily grown the amount, and access to climate finance over the last decade, thereby demonstrating the potential of multilateralism in tackling global threats. However, this is not near enough, and efforts to ramp-up the quantum of, and rate of access to, global climate finance, especially adaptation finance, in developing countries are necessary”. He added,

“This is why we have established flagship programmes such as the $ 25 billion African Adaptation Acceleration Program and the $20 billion Desert-to-Power, to accelerate climate action, while safeguarding the wellbeing of our people and nature”.

This edition of the report presents the multilateral development banks’ climate finance commitments data in two different chapters, with data for low- and middle-income economies and that for high-income economies presented separately.

The African Development Bank’s contribution to climate finance in 2021 stands at $2.49 billion or 41% of all Bank investment approvals. Of this amount, the proportion of climate adaptation grew to 67%, which evidences the Bank’s steadfast commitment to supporting its regional member countries build adaptive capacity and climate resilience.

The 2021 multilateral development bank report combines data from the African Development Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group, the Islamic Development Bank and the World Bank Group.

Patoma Admin by — October 18, 2022 in Banking & Finance 0
25th NIA Chairman, Olusegun Omosehin’s investiture holds Nov 3

By Favour Nnabugwu

 

 

 

The Nigerian Insurers Association (NIA) will hold the investiture ceremony of Mr. Olusegun Omosehin as the 25th Chairman of the association on November 3rd, 2022 at Oriental Hotel, Lekki, Lagos.

NIA which happens to be the umbrella organization for all insurers in the country will hold the investiture ceremony of its new Chairman that bring change of leadership including the principal officers of the Association.

In a statement released by Davis Iyasere, Corporate Communications Dept said that the investiture ceremony presents an opportunity for the new Chairman to share his vision and strategic direction of the association during his tenure.

It is a unique opportunity for stakeholders in the insurance industry including clients, insurers, brokers, investors, government agencies, other professional bodies and providers of ancillary services to interact and share ideas on how to continually position insurance and appreciate its role in the larger economy.

The Chairman of the Investiture Committee Mr. Kunle Ahmed, also said that “this investiture ceremony will be significantly different from others as the investiture committee has lined up programmes / activities to signpost the event including the 25th Investiture Golf kitty.

“We want to use this investiture ceremony to make a bold statement that insurance has taken its pride of place in the financial service sector and our hope is that guests will go home with a clear understanding of the agenda of the new chairman for the association during his tenure which will impact insurance practice and the economy at large. We are looking forward to the best investiture ever”, he enthused.

Patoma Admin by — October 18, 2022 in Insurance 0
Tanzanian insurance market grows by 11% to US$391m in 2021

By Favour Nnabugwu
 
Tanzanian insurance sector wrote gross premiums amounting to TZS912bn ($391m) in 2021, as released by Tanzania Regulatory Authority (TIRA).
The figure represents a nominal increase of 11 percent from TZS824bn written in 2020.
TIRA commissioner Dr Baghayo Saqware said in the report, “Growth for 2020 was 1.2 percent . The financial soundness of the industry was enhanced as a result of minimum capital improvement which increased by 4.3 percent from 2020 to 2021. Total assets for the insurance industry increased by 8.4 percent from TZS1,180bn at end-2020 to TZS1,279bn as of 31 December 2021. Total assets grew by 12.6 percent in 2020 compared to the value of total assets in 2019.”
The life assurance business recorded growth of 21.6  percent from TZS135.7bn in 2020 to TZS165.0bn in 2021. Improved public awareness and quality of products created an increase in sales of individual life policies that has steered the growth.
General insurance, which constitute the bigger share in insurance market recorded an increase of 8.4 percent in gross premium income from TZS688.6bn in 2020 to TZS746.4bn in 2021. This increase is attributed to a number of factors, including an increase in compliance by the public, with the statutory requirements and new systems in place i.e. TIRA MIS, aggressive marketing and continued public awareness programmes.
The total number of insurance companies registered in Tanzania as of 31st December 2021 (including two reinsurance companies, Tan Re and Grand Re) was 33. There were two new registrations in 2021, comprising one life insurer and one reinsurance company. For the years 2019 and 2020, the number of (re)insurers remained the same at 32.
Of the total number of registered (re)insurance companies, 23 are privately owned with at least one third local ownership, two are 100 percent state-owned by the Government of the United Republic of Tanzania and the Revolutionary Government of Zanzibar and nine are 100 percent locally owned. insurance industry outlook
The report says that the Tanzanian insurance market offers numerous opportunities for growth, and international benchmarks in the African region suggest that there is much space to develop.
The overall economic outlook remains positive for the country with a GDP growth of 4.9 percent in 2021 (2020:4.8 percent) and an estimated GDP growth of between 4.5% to 5.5 percent for the year 2022 and average of 6.0 percent over the medium term. This means that middle-class Tanzanians are increasingly able to afford insurance coverage.
As the regulatory and supervisory body, TIRA is working to increase awareness. TIRA is targeting 50 percent of adult population to have access and use insurance products by 2030.
The regulator also targets to increase the insurance penetration rate to 5 percent by 2030. Insurance penetration in Tanzania is 1.68 percent at present compared to 0.8 percent for Uganda and 2.17 percent for Kenya (world average is 7.4 percent).
The penetration ratio is expected to improve following the registration of the bancassurance agents as well as increase in awareness of insurance to the public and other regulatory measures in place.
An amendment to the Insurance Act this year expands the scope for mandatory insurance to include public markets, commercial buildings, imported goods, marine vessels, ferries and pontoons. This will significantly widen the insurance penetration rate and increase insurance density. The Authority is currently working on the regulations that will provide guidance on the implementation of the legislative changes.
Furthermore, the Authority has issued new guidelines on Islamic Insurance called Takaful Operational Guidelines which took effect from May 2022. The expectation behind the guideline is to increase penetration and accommodate Shariah-compliant products so as to extend the scope of insurance services and to increase financial inclusion and insurance contributions to the economy.
Patoma Admin by — October 17, 2022 in Insurance 0
Ugandan insurance market Life rise by 25%, Non-Life by 11%

By Favour Nnabugwu
 
Insurance market in Uganda despite all challenges increase by 25 percent in Life and 25% in Non- Life insurance in 2021
Life GWP was UGX392bn in 2021 from UGX313bn in 2020 reflecting a growth of 25 percent
Non-Life gross written premium (GWP) in 2021 was UGX734bn ($191m) from UGX662bn in 2020 reflecting a growth of 11percent
Overall combined, premiums grew from UGX973bn in 2020 to UGX1,126bn, reflecting an industry growth of 15.7 percent
Non-life business still dominates at approximately 65 percent of gross written premium though this was a drop from 68 percent in 2020.
Life business, however, continued to grow at a higher rate and the market share improved slightly to 35 percent, up from 32 percent in 2020.
Patoma Admin by — October 17, 2022 in Insurance 0
NEPZA boss lauds appointment of Oluwasoromidayo George as Chairman MANEG

CAPTION:
Mrs Oluwasoromidayo George, newly appointed Chairman MANEG.
By Favour Nnabugwu
Nigeria Export Processing Zones Authority (NEPZA) has described the appointment of the new Chairman, Manufacturer Association of Nigeria Export Group (MANEG)  Mrs Oluwasoromidayo George, as a new dawn for the country’s export sector.
 Prof. Adessoji Adesugba, the Managing Director of NEPZA made the remark in a congratulatory message to the new appointee on Sunday in Abuja.
Adesugba, also the Chief Executive Office of the Authority, said that it was time for the Organised Private Sector to re-organise itself more profoundly in order to increase collaborations with relevant government agencies to speed up the country’s economic growth.
He explained that the association had, however, consistently shown its capacity to assist government in driving production, adding that George’s appointment indicated the readiness of the group to commit to a competitive export arena.
“Oluwasoromidayo George remains a fantastic asset for the country and for the organized private sector with incredible cognate experience in diverse areas of the economy. We are hopeful that her reign will increase the country’s export profiles significantly.
“For us in NEPZA, we look forward to deepening our collaboration with her office to boost the country’s industrialization process as well.
“Let me, therefore, congratulate her on this new appointment and also to express my delight on the series of strides made by MAN over the years to grow the nation’s economy,’’ he said.
George is also the Corporate Affairs & Sustainable Business Director, Unilever, West Africa and the Chairperson of the UN Global Compact Network, Nigeria.
She is a Co-Chair of CEO Water Mandate Council, representing the Nigerian Economic Summit Group (NESG).
She was the first female Executive Director of the British American Tobacco Nigeria Foundation (BATN) and the Head of Corporate Affairs, British American Tobacco (BAT) in West and Central Africa.
Patoma Admin by — October 16, 2022 in Industry, Trade & Investment 0
AfDB approves $2.5m grant to Mozambic

By Favour Nnabugwu
The Board of Directors of the African Development Bank (AfDB) has approved a grant of a grant of $2.5 million to the Mozambican government to develop renewable energy resources.
The grant, from the Sustainable Energy Fund for Africa (SEFA), administered by the Bank, will be used to implement the Mozambique Renewable Energy Integration Program (MREP).
“With the support of the Sustainable Energy Fund for Africa, Mozambique’s capacity to integrate larger shares of variable renewables will increase its efforts to become a major regional electricity supplier,” said Dr. Daniel Schroth, Director of the African Development Bank’s Renewable Energy and Energy Efficiency Department. He added, “Given that Mozambique is one of the most highly climate-vulnerable countries in the world, the project will help build a more sustainable and resilient power generation infrastructure.”
The funding will assist the national electricity company to provide financial support for technical, economic, environmental and social feasibility studies for the development of a solar floating power plant in Chicamba reservoir. In addition, it will support funding for a feasibility study for Energy Battery Systems Storage in up to 10 sites, as well as capacity building for EDM´s personnel; and support for tender preparation.
The donation will also be used to conduct studies to increase the share of variable renewable energy production in Mozambique’s energy mix. Feasibility studies to develop floating photovoltaic solar energy will be conducted in existing EDM hydropower assets.
Increasingly affected by severe and sudden cyclones, storms, and prolonged drought periods, Mozambique is endowed with abundant energy from renewable and fossil resources. Over the last decade, the energy sector in Mozambique has made considerable progress: the country is a net exporter of electricity despite low access rates (57% in urban areas and 13% in rural areas). With 187 gigawatts, Mozambique has the most significant power generation potential in southern Africa, thanks to untapped resources in coal, hydroelectricity, gas, wind, and solar energy. Hydropower currently accounts for about 81% of installed capacity. But natural gas and renewable energy sources are set to take a growing share of Mozambique’s energy mix.
The African Development Bank is a key player in the energy sector in Mozambique. It provided more than $400 million in financing for the ongoing $20 billion Mozambique Liquefied Natural Gas (LNG) Project. The Bank supports power generation, transmission and distribution, such as the Tamine Gas Project. It is currently supporting the Mphanda Nkuwa hydroelectric power station project, the rehabilitation of the Cahora Bassa hydroelectric power station and the construction of a transmission line from the north to carry electricity to the South
Patoma Admin by — October 15, 2022 in Banking & Finance 0
Top ten Life, Non- life insurance companies contributed 60.2%, 60.8% to Gross Premium

By Favour Nnabugwu
Top ten Life and Non-life insurance companies control over 60  percent of the total market gross premium income of N369.2 billion for half quarter 2022.
The gross premium indicates a 20.1 per cent growth rate compared to the same period of the previous year and an impressive 65.0 per cent, quarter on quarter.
The top ten companies whose names were not mentioned for obvious reasons, to protect the market, contributed a large chunk of the total gross premium for the sector.
The National Insurance Commission, Naicom Statistics Bullentin released by Head of Corporate Communication & Market Development, Mr AbdulRasaaq Salami to the Media recently said the companies are doing greatly.
“Life business is controlled by the top ten (10) players in the market compared to about sixty (60.2 percent) per cent in the prior period YoY.”
“The top ten (10) underwriters in the NonLife section of the industry contributed about sixty one (60.8 percent) per cent of the gross premiums income sustaining a similar scenario in the corresponding prior period”.
This occasion demonstrates a fairly distributed market control and a less concentration risk in the market.
Naicom also looked at the least ten insurance in life and Non-life.
“However, less than one per cent was the contribution of the least ten (10) players in both Life (0.13 percent) and Non-Life (1.23 percent) segments of the market.
Though the market is yet to fully recover from covid-19 episode, among others, Naicom concluded, “Even so, following the historical pattern of the industry, the analysis of the market has not only improved in the current period but maintained a fairly balanced concentration especially in the Non-Life section of the industry”
Patoma Admin by — October 15, 2022 in Insurance 0
Security, floods top brokers discussions in Abuja

CAPTION:

L- President of the Nigerian Council of Registered Insurance Brokers, Mr Rotimi Edu and the Chief Executive Officerr of National Insurance Commission/ Commissioner For Insurance, Mr Sunday Olorundare Thomas at the 2022 insurance brokers conference & Exhibition in Abuja Thursday

 

By Favour Nnabugwu

The security challenge and the rampaging floods in the country have been the focus of the conference of the brokers in Abuja.
Insurance brokers are also more concerned about the rise in floods which rendered many homeless and lots of property destroyed
The 2022 Insurance Brokers Conference  & Exhibition of the Nigeria Council of Registered Insurance Brokers, NCRIB, was parked full with eminent personalities who specialise in security of the nation put heads together on how best insurance industry could come to help ameliorate the challenges there in.
President of the NCRIB, Mr Rotimi Edu said the theme of the conference, Insurance in the Face of National Security” could not be more apt than now, considering the challenging security situation in the world and the country today.
Edu said insurance and security are not something that can be separated. “Needless to state that insurance and national  security affect each other.  There is no way risks exposure which insurance exists to succuor would not be rife in an environment challenged by insecurity”
“There  are exposures of lives and properties in a period of social commotion and general insecurity, necessitating the need for the public to have a perfect understanding of their roles towards better acceptance of insurance at a time like this”
“t I is an irony that just as we speak, the country’s exposure to activities of criminal elements such as Boko Haram and Bandits have been a continuous threat to our collective peace”
The country has not yet clam down on security challenge before floods ravage some part on the country, NCRIB President noted, “Also, from the news we have been inundated with in the last few days there had been flooding of some parts of the country, leading to destructions of properties, lives and farms and as such posing grave challenges to food security that would have ripple effects on the future of the country.”
In all of that, he said the federal government is trying hard to calm the situations, adding that more need to be done. “While  great kudos should be given to the federal government for its combative roles against all forms of insecurity in the country, more still needs to be done with the cooperation of such strategic stakeholders like our Council and the insurance industry to vitiate this malaise.
“We must all realise that sustainable progress could only be accomplished in an environment of peace and tranquility, and as a result, no shade of conversation should be spared in finding solutions to this problem”
Patoma Admin by — October 15, 2022 in Insurance 0