Connect with us

Business

$130bn Insured Losses Recorded Globally In 2022, Says Aon

Published

on

Aon plc has published its 2023 Weather, Climate and Catastrophe Insight report, which identifies global natural disaster and climate trends to help make better decisions to manage volatility and enhance global resilience. The report reveals that natural disasters caused a $313 billion global economic loss during the 12-month period under review – 4 percent above the 21st-century average – $132 billion of which was covered by insurance.

Data showed that 2022 was the fifth costliest year on record for insurers, with approximately $50-55 billion of the global insured loss total resulting from Hurricane Ian in the United States – the second-costliest natural catastrophe in history from an insurance perspective, surpassed only by Hurricane Katrina in 2005, which resulted in nearly $100 billion in insured losses on a price-inflated basis.

The report also highlights that approximately 31,300 people lost their lives due to global natural catastrophe events in 2022. The total number of fatalities remains below average for now 12 years in a row; however, more than 19,000 of the fatalities were heat-related deaths in Europe alone, primarily as a result of heatwaves.

While a majority of total losses in 2022 were left uninsured, the 58 percent “protection gap” was one of the lowest on record, highlighting a positive shift in how businesses are navigating volatility through risk mitigation, and how insurers are providing further protection to underserved communities through access to capital.

“This report explores the events and costs of catastrophes and natural disasters in 2022 that created a staggering amount of economic loss,” said Greg Case, CEO of Aon. “But this data also highlights a tremendous opportunity for us to continue to better serve clients. By working together on scalable solutions, we will not only mitigate risk, but bring together public, private and societal forces to accelerate innovation, protect underserved communities and strengthen the economy.”

While technological innovation has allowed for better insight as catastrophes unfold and faster and more thorough assessments of damages after an event, the Aon study examines resilience and the ability to overcome climate-related consequences – not only for physical risks, but in areas like the health of the workforce, reiterating the need to build multi-faceted strategies that account for climate change risk mitigation on all fronts.

Further findings of the 2023 Weather, Climate and Catastrophe Insight report include:

421 notable natural disaster events were recorded in 2022, higher than the 21st century average of 396.
75 percent of global insured losses were recorded in the United States, which was higher than the average of 60 percent.
Windstorm Eunice was the costliest individual European windstorm since 2010, with $3.4 billion in insured losses. Widespread hailstorms in France contributed to the second-highest natural disaster payouts for the country on record of €6.9 billion ($7.4 billion).
Droughts and heatwaves severely impacted Europe, the United States, China and other regions and global insurance payouts for the drought peril were the second highest on record, at $12.6 billion globally.
Flood losses in Australia broke the historical record as La Niña conditions persisted for a third year and Sydney recorded the highest annual rainfall.
Monsoonal floods in Pakistan had a far-reaching humanitarian impact on the country. In a summary of the 2022 monsoon season, the Pakistan Meteorological Department noted that country-wide rainfall from July to September was 175 percent above average.
Both severe drought conditions and a prolonged rainy season in different regions of Latin America reduced agricultural crop yield across the region.
“The devastation that disasters caused around the world demonstrate the need for wider adoption of risk mitigation strategies, including better disaster management and warning systems that improve resilience,” said Michal Lörinc, head of Catastrophe Insight at Aon. “While impacts of climate change become increasingly visible around the world, it is the socioeconomic aspects, demographics and wealth distribution that remain a major driver of financial loss. Data in this report will help guide organizations to not only enhance their own risk mitigation but take action to close the protection gap globally to better protect the communities in which we live and work.”

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

N5.51 Trillion Pension Investment Boosting Nigeria’s Real Sector Growth

Published

on

By

PenCom DG to IMF: N5.51 Trillion Pension Investment Boosting Nigeria’s Real Sector Growth

The Nigerian pension industry has committed a total of N5.51 trillion to asset classes that support long-term financing for real sector growth. These investments span infrastructure, private equity vehicles, real estate, and subnational infrastructure initiatives, among others.
The Director General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, made this disclosure during a meeting with a delegation from the International Monetary Fund (IMF), which visited the Commission on 7 April 2025 as part of the Fund’s 2025 Article IV Consultations. The delegation, led by Mr. Jose De Luna, Senior Financial Sector Expert, held discussions with PenCom’s key officials on matters relating to the pension industry and broader financial sector developments.
Represented by the Head, Surveillance Department, Abdulrahaman Muhammad Saleem, the Director General told the delegation that pension fund investments in the real sector of the economy are indicative of the pension industry’s vital role in providing funding for key economic growth and development in Nigeria.
In a presentation to the delegation, PenCom said the industry Net Asset Value (NAV) increased by 22.65% from N18.36 trillion as of 31 December 2023 to N22.51 trillion as of 31 December 2024. The growth was attributable to additional contributions received and investment income.
However, the Director General decried the limited availability of investable instruments that meet the minimum requirements for pension funds’ investments in Nigeria currently. She told the delegation that only 86 investable instruments, constituting part of the pension broad index, meet the minimum quality requirement for pension fund investments that are liquid and have the required free float. This is despite the numerous provisions made in the Investment Regulation to foster increased eligible investment outlets.
Going forward, PenCom will continue to collaborate with capital market operators to broaden the spectrum of eligible financial instruments for pension fund investments. This initiative aims to further diversify portfolios and enhance real returns. Additionally, the Commission will promote increased pension fund investment in alternative asset classes. These efforts are intended to strengthen the overall investment portfolio and reinforce the long-term growth and sustainability of the Contributory Pension Scheme (CPS).
During the meeting, PenCom presented key developments within the pension industry, focusing on investment strategies, asset quality concerns, financing for growth, and regulatory challenges. Noteworthy was PenCom’s commitment to fostering the development of diverse asset classes and securities eligible for pension fund investments. This initiative involves collaboration with entities such as the Securities and Exchange Commission (SEC), the Debt Management Office (DMO) and the Pension Fund Operators Association of Nigeria (PenOp).
The IMF delegation expressed satisfaction with PenCom’s ongoing efforts to diversify pension fund investments. Additionally, they commended PenCom’s regulation and supervision of the pension industry in Nigeria. Overall, the IMF praised PenCom for the remarkable growth achieved within Nigeria’s pension industry, recognising the Commission’s pivotal role in driving positive momentum and ensuring long-term sustainability.

Continue Reading

Business

Wafira Ntaba Partners Leadway Assurance To Launch Insurance Product For Women

Published

on

By

Leadway Assurance Company Limited has partnered with Wafira Ntaba Limited to launch a bespoke insurance policy for Nigerian women.
The product, Plan B Insurance, comes in simplified and affordable packages for as low as N26,000 per quarter, broadening financial inclusion and income protection for women-led Small to Medium-sized Enterprises and lifestyle protection for women across different social strata in Nigeria.
One uniqueness of the Plan B product is in its single-wide coverage from risks and perils related to auto insurance, healthcare, personal accident, fire, burglary, life insurance and education cutting across its different product packages – SME, Corporate and Premier packages.
Ayona Aguele Trimnell, the visionary behind the innovative Plan B Insurance for Nigerian women, shared the inspiration behind the products.
She stated, “Plan B is an idea that has been in development for 10 years. As I began exploring insurance products aimed at women in other countries, I recognised the need for an insurance product that promotes financial inclusion in Nigeria, specifically for women. I believed we could create something that addresses their unique concerns. Women need to understand how insurance can alleviate their worries and the benefits of being insured. I have personally enjoyed the advantages of insurance for over 15 years, and I believe other women should have the opportunity to experience the same benefits.”
The product focuses on gender-inspired market penetration, amplifying insurance benefits and helping more women secure a more financially secured future.
“Financial inclusion is important and achievable, and we can make it happen if we put in deliberate effort to educate more women about insurance, simplify the benefits to help even the uneducated, understand and be convinced to secure their future by becoming a policyholder. It has been proven and tested that women too buy insurance, but more women need to be aware and get insured”, Trimnell said.
Kike Fischer, Leadway’s Director Sales, Retail and Partnerships, discussed the market approach for the Plan B product, stating, “We are confident that these products will help women of all classes in Nigeria create and protect wealth, recover from economic challenges, pursue their purposes, and lead their families with peace of mind.
We believe these products should reach women in every household, so we have developed strategies to engage women in small socio-economic groups. This will require increased effort, particularly at the retail level. There will be questions, and we must be prepared to provide answers. Our goal is to help women understand insurance and encourage them to actively participate in driving financial inclusion. This begins with securing their futures and then spreading awareness.”
She explained that Plan B is a comprehensive financial product designed to sell insurance policies to women and educate them about the purpose of having insurance and how it can help them achieve financial independence. By partnering with the Plan B product, Leadway has reinforced its commitment to promoting financial inclusion and ensuring secure financial futures for women.

Continue Reading

Business

Sovereign Trust Counsels Nigerians To Imbibe Insurance Culture

Published

on

By

The Managing Director of Sovereign Trust Insurance Plc, Olaotan Soyinka has called on Nigerians to imbibe the culture of insurance, considering the economic situation in the country.
He gave this charge at the company’s first quarter review of operations and processes of the underwriting firm in Lagos.
Soyinka reiterated the importance of insurance in the every day life of all Nigerians, irrespective of the tribe, religion or social status.
He said, “insurance is an integral part of our socio-economic life that should not be taken for granted.”
The Sovereign Trust boss posited that a lot of Nigerians are really trying to make ends meet and therefore, they should be encouraged to have an ally that can be there for them when the eventuality happens and that can only come through having one form of insurance policy or the order.
He also alluded to the biblical story where the Noah’s Ark was the succour for those who took refuge inside it after the flood had receded. In his words, “the earth was restored to its former position with God not having to go through the process of creation like He did in the beginning when the earth was formed”. Like Noah’s Ark, insurance takes you back to your former position before the loss.
Soyinka said this is the time Nigerians need to consciously educate themselves on the benefits they are bound to derive in taking up an insurance policy. He said there are various insurance products that the insuring public can take in protecting their lives and properties but that the most important thing is for the customers out there to willingly open their minds in accepting the fact that insurance is a very important aspect of their lives.
In closing, Soyinka said, “Nigerians have waited too long in willingly accepting and recognizing the fact that without insurance, one is like building a House without a foundation and in no time, it could come crashing; and when that happens, you will have to start from the scratch again with even more funds than you initially spent”. He said insurance gives you the promise of a safe and comfortable future. The earlier we disabuse our minds of the old notion that insurance doesn’t work, the better it will be for all of us. Nigerians should begin to cultivate an uncompromising culture of insurance, he added.

Continue Reading