As the insurance industry increasingly comes under pressure, experts have joined the call to enumerate the various opportunities COVID-19 presents despite high expectations of household disasters and consequential claims.

 

Conrad Clark Nigeria Limited, the foremost risk management, and business advisory consulting firm in Nigeria connects stakeholders in the insurance industry on Thursday, April 9, 2020, to discuss the state of business amidst the lockdown, as occasioned by the novel COVID-19.

The convergence, according to Joachim Adenusi, CEO Conrad Clark Nigeria, is in furtherance of its effort at adding value and ensuring the continued support of the insurance industry amidst the COVID -19 crisis.

Commending the government at the federal and state levels for their swift and productive efforts in containing the pandemic, Joachim stated that the objective of the webinar was to identify the potential emerging risks and assess how insurance companies will be responding to these challenges in Africa.

As the insurance industry increasingly comes under pressure, experts have joined the call to enumerate the various opportunities COVID-19 presents despite high expectations of household disasters and consequential claims.

 

Adebola Surakat, Group Head, Claims, and insurance AXA Mansard, in her presentation, reveals that the COVID -19 pandemic has affected mostly non-life insurance businesses.

She went on to state that the pandemic had distorted budget and cash flow projections with obvious financial implications for all companies.

Even if we recover from the pandemic early enough, premiums would be impacted as various businesses struggle with the effects of the pandemic.

Given the lockdown, fewer claims are expected for Motor Vehicles as most vehicles are off the road. There are expectations that there could be an increase in Fire and household claims, given the fact that most people are at home and using their household equipment more.

“There would be an increase in employee benefits policy as the pandemic impacts on the staff of various companies. Travel claims and marine cargo claims would rise with increased cancellation of trips and delay in clearing cargo respectively”, she stated.

Adebola, however, enumerates the various opportunities the pandemic would present, mentioning increased transparency and disclosure to clients, demand for more robust comprehensive policies, and acceleration of digital transformation.

 

Yvonne Palm, Director Risk Management and Compliance, African Reinsurance Corporation dimensioned the associated economic impact of the Covid-19 Pandemic given the fact that it has affected the oil price and revenue streams of the government.

She highlighted the risk factors and implications of the lockdown stressing that the lockdown could be extended. She also explained the potential for global and national recession as the crisis is reshaping lives, adding that that the pandemic has affected global exchange rates, unemployment rate, and impacted adversely on the informal sectors of the economy.

She submitted that companies would need to review their websites and improve on their remote working capacities, and most importantly, diversify their risk focusing more on low risk as we get through this crisis situation.

 

Bola Oniyide, Claims Manager Continental Insurance executive, categorized losses as attrition losses and large losses. He stressed that the Insurance Industry is still adjusting to the future scope of losses and Pandemic losses are not covered in current policies.

He explained how the insurance regulatory association was regulating risk in the sector and the contributions they have made by instituting a health insurance policy for health care workers amounting to One million naira for permanent disability.

He, however, emphasized the need for reinsurance companies to be vigilant to ensure that all insurance companies within their chain continue to meet claims.

 

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