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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.

 

Patoma Admin by — June 28, 2022 in Insurance 0
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:

Patoma Admin by — June 27, 2022 in Insurance 0
President Buhari approves appointment of Fasanya as SMEDAN’s DG

By Favour Nnabugwu

 

 

ABUJA- President Muhammadu Buhari has approved the appointment of Mr. Olawale Tunde Fasanya as the new Director General and Chief Executive Officer of the Small and Medium Enterprises Development Agency of Nigeria, SMEDAN.

The appointment which took effect from 6th June 2022 was contained in a letter dated 23rd June 2022 and signed by the Honourable Minister of Industry, Trade and Investment, Otunba Niyi Adebayo CON.

A statement signed by Ibrahim Kaula Mohammed, Deputy Director/Head, Corporate Affairs unit of the agency described Fasanya as a seasoned technocrat and a certified Business Development Advisor with a proven track record of landmark accomplishments of thirty-five years in the Micro Small and Medium Enterprises, MSMEs ecosystem in Nigeria.

Born on June 3rd, 1962 in Ogbomosho, Osun state , Fasanya holds a Bachelor of Art degree in English and Literary Studies from the University of Ife, now Obafemi Awolowo University, Ile Ife in 1985.

He is also a holder of Advanced Certificate in Public Relations from the Nigerian Institute of Journalism, Lagos and a Masters in Public Administration from the Lagos State University, Lagos in 1994.

A lover of knowledge, Fasanya also parades a legion of other qualifications including a Diploma in Market Business Development Service from the International Training Centre of the International Labour Organization, ILO, among others.

He is due for the award of PhD in Public Policy Analysis and Management from the University of America.

He started his working career in a publishing firm, Jator Publishing Company Ibadan, Oyo state as deputy editor/administrative officer.
He switched into public service, joining the National Productivity Centre , NPC, Abuja where he served as Productivity Officer, Senior Productivity Officer, Assistant Chief Public Relations Officer, and Chief Public Relations Officer between August 1998 to June 1999.

Mr Fasanya also served as Personal Assistant to Hon. Minister of State, Ministry of Defence between June 1999 to February 2002 and later Special Assistant to the Hon. Minister of Solid Minerals between February 2002 to May 2003.

He was a pioneer staff of SMEDAN when it was set up in 2003 serving as a Special Assistant to the Pioneer Director General/CEO of the Agency, Mrs. Modupe Adelaja and was overseeing all units under the Director General’s Office as Deputy Director and Group Head, Corporate Affairs.

He was appointed acting DG of SMEDAN between July to December 2008 and later as Group Head, Strategic Planning, Policy and Coordination between April 2009- January 2011.

Mr. Fasanya upon his promotion in January 2011, was appointed Director, Strategic Planning Policy and Coordination, a position he held till October 2014 when he was promoted as Director, Enterprise Development and Promotion, the engine room of the agency, a position he held till 2018 when he was appointed to another strategic position as Director, Policy Planning, Research, Monitoring and Evaluation, a position he distinguished himself so well till his retirement from the civil service on 3rd June, 2022.

He was a member, ECOWAS committee on the production of MSMEs Development Charter for Member States (2012-2014) as well as Head of secretariat, National Council on MSMEs, among others.

Patoma Admin by — June 25, 2022 in Industry, Trade & Investment 0
House Committee demands PenCom audited accounts from 2019 – 2022

By Favour Nnabugwu

 

The House of Representatives Committee on Public Accounts has demanded audited accounts of the National Pension Commission (PENCOM)) from 2019 to 2022.

The chairman of the committee, Hon. Busayo Wole Oke, demanded that the office of the Secretary to the Government of the Federation (SGF) and the Director of the Budget office to furnish the committee with the four audited accounts

Oke also directed the Clerk of Committee to write the SGF and the Budget Office to get these details when the Director General of PENCOM who was represented by the Commissioner in charge of Technical, Anyim Nyerere, appeared before it on Thursday .

The Auditor General of the Federation in a query to the Committee had said that the Commission had failed to render its audited financial accounts since 2013 till date.

However Nyerere said that the Commission failed to submit its audited financial account because it did not have a board at the time under review to ratify it as required by law.

He further explained that PENCOM had prepared the audited accounts from 2013 to 2017 which it submitted to the Office of the Auditor General but were rejected because they had no board in place and that the SGF was in charge of the budget of the Commission during this period.

Nyerere also said that the 2018 to 2020 budgets, by which time a board was constituted, for the Commission had been approved but yet to be submitted.

He said the 2021 and 2022 budgets were still at the draft stages and would be ready for submission within the next 30days.

Chairman of the Committee, Oke, excused the commission for not having a board saying it was not within their powers to constitute a board.

He decried a situation where sensitive agencies of the government like the PENCOM were being allowed by the Executive arm of government to run without boards for long periods of time.

He therefore declared that it was wrong that an agency whose assets had hit N14 trillion would be managed in such a shoddy manner.

He said that the Committee would decide the next line of action on the Commission upon the receipt of the copies of its budgets for the years under review from both the SGF and the office of the Director of Budget.

Patoma Admin by — June 24, 2022 in Pension 0
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.

Patoma Admin by — June 23, 2022 in Insurance 0
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

Patoma Admin by — June 23, 2022 in Insurance 0
New security outfit will raise investments in free zones – NEPZA

By Favour Nnabugwu

 

 

The Nigeria Export Processing Zones Authority (NEPZA) says the newly inaugurated Special Economic Zone Security (SEZSEC) outfit will cause an upsurge of investments in the zones.

The Managing Director of NEPZA, Prof. Adesoji Adesugba, said this at the passing-out ceremony of 40 officers of the SEZSEC, on Saturday in Lagos.

The the one-month training, was carried out in collaboration with the Department of State Services (DSS).

According to Adesugba, the outfit was borne out of the need to further strengthen the existing security architecture and provide adequate security to lives and properties in the free zones.

Adesugba, who was represented by Dr Oyesola Oyekunle, Director Finance and Accounts, said the authority suffered its share of the poor security situation when hoodlums invaded the Tinapa Free Zone in Calabar and a lot of investments were lost.

He said the outfit would create a safe and secure environment for the zones’ employees, facilities, contracted service providers, members of the public, the special economic zones and NEPZA resources.

“It is no gainsaying that this singular action will cause an upsurge of investment into the zones as investors look to invest in places where their invest will be secured,” he said.

Adesugba, however said the outfit was not created to dislodge the existing zones’ security structure rather it was established to reinforce the collaborative force of sister security services.

Otunba Niyi Adebayo, Minister of Industry, Trade and Investment, lauded the creation of the SEZSEC unit, adding that the decision was apt to secure and keep the special economic zone (SEZ) safe and give confidence to investors.

Adebayo, represented by Babagana Alkali, Director Policy Planning, Research and Statistics, tasked NEPZA to make the zones more attractive to investors, provide high quality infrastructure and be a one-stop shop that would positively impact the economy.

He said the Federal Government offers a number of economic incentives that would attract foreign companies to operate in the SEZs.

These incentives included: full tax holidays for three consecutive year; duty free importation; hundred percent repatriation of capital, profits and dividends; exemption from all import and export licenses; land is rent free for the first six months for any construction project undertaken in the zone.

Mr Salami Ajege, Commandant, States Services Academy (SSA), said the security outfit was expected to gather intelligence that would help combat economic sabotage, boost trade and other related activities wherever they were deployed.

Ajege said to achieve their mandate, the unit would need to ensure professionalism in the discharge of their duties and responsibilities.

He urged them to be smart, diligent, determined to succeed, discreet with information and be ever ready to confront challenges they will be faced with in discharging their duties.

“For no reason whatsoever should you become vulnerable to be used against national interest or national security,” he said.

Also, the Comptroller-General of Nigeria Customs Service, Col. Hameed Ibrahim Ali (rtd) urged the team to learn the rules that guide other government organisations they would work with to avoid stepping on each others toes.

Ali, who was represented by Catherine Ekekezie, Deputy Comptroller-General in-charge of Excise, Free Trade Zones and Industrial Incentives Department, cautioned the personnel against going on a “one-man patrol” to avoid running into trouble.

Patoma Admin by — June 18, 2022 in Industry, Trade & Investment 0
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.

Patoma Admin by — June 18, 2022 in Insurance 0
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
Patoma Admin by — June 18, 2022 in Insurance 0
Allianz, Swiss Re, IDF to lead flood risk transfer project in Ghana

By Favour Nnabugwu

 

 

Allianz and Swiss Re, members of the Insurance Development Forum (IDF), will lead a Tripartite risk transfer project for urban floods in Ghana.

The IDF, alongside the Ghana Ministry of Finance, the United Nations Development Programme (UNDP) and the German Government, announced its launching during the IDF Summit in Switzerland.

The project will aim to develop a sovereign risk transfer scheme for urban floods in Ghana, by enhancing the response of the Ghanaian National Disaster Management Organisation (NADMO) and local authorities through increased access to data, detailed risk insights, and activation of contingency protocols.

According to the announcement, the above will be done alongside long-term investments in the country’s capacity to leverage and integrate insurance and risk financing into their development strategies.

By carefully selecting a pre-defined trigger for pay-out as opposed to assessing actual losses, the parametric insurance solution will enable quick pay-outs in case of a flood. This, according to IDF, will improve resilience and support the rapid re-establishment of economic activity of low-income communities in urban areas, starting with the Greater Accra Metropolitan Area (GAMA).

Ababacar Diaw, acting CEO, Allianz Ghana, said: “The collaborative development of this parametric insurance solution through a public-private partnership plays into the UN Sustainable Development Goals and is an important contribution to increasing the climate resilience of urban poor and vulnerable people in Accra. Parametric insurance solutions are especially useful in regions where insurance infrastructure, such as good data, is less available.”

UNDP Country Representative Angela Lusigi pointed out, “At UNDP Ghana, we are committed to supporting integrated development solutions that build resilience across society to protect Ghana’s development progress. This project to develop an innovative insurance solution for managing flood risks and to provide rapid pay-outs as a safety net for poor and vulnerable urban communities is welcome.

“It will serve as a boost to government and private sector efforts to provide wider access to insurance and risk finance. By blending the financial-solution expertise developed by the government, with the long-term development and governance support offered by UNDP in partnership with the private sector, we will be able to advance Ghana’s ambitious development agenda.”

This risk transfer project, will be co-funded by the IDF insurance industry members and he InsuResilience Solutions Fund (ISF), funded by the KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and managed by Frankfurt School of Finance & Management.

Claudia Thyme, Industry Deputy Chair, IDF Sovereign and Humanitarian Solutions Working Group, said, “One reason why the protection gap persists is that it is often costly to design insurance solutions tailored to the specific needs and requirements of developing countries.

“Co-funding from the German Government enables the IDF to uniquely address this problem by working on the product development stage in cross-company teams, as an industry. Once a programme has been designed, it is easier for governments to find insurance companies to insure the risk.”

 

Patoma Admin by — June 17, 2022 in Insurance 0