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

NAICOM Reviews Strategic Plan To Align With Industry’s 10-year Plan

Published

on

By

By Sola Alabadan

The National Insurance Commission (NAICOM) has been reviewing its strategic plan to align it with the Nigerian Insurance Industry’s 10-year strategic plan, the Commissioner for Insurance, Mr. Segun Omosehin, said.

The NAICOM boss disclosed this when the members of the Governing Council of the Nigerian Insurers Association (NIA) led by the incoming Chairman, Mr. Kunle Ahmed, paid a courtesy visit to NAICOM on Thursday in Abuja.

During the meeting, the NIA incoming Chairman congratulated the recently appointed Executive Management and expressed gratitude to the Commission for its pivotal role in maintaining a fair and stable insurance sector. He emphasised the importance of initiating the implementation of the 10-year strategic plan and finalising the consolidated insurance bill.
He also expressed willingness to collaborate with the new Executive, expressing confidence in their ability to elevate the insurance sector to greater heights.

The NIA delegation was briefed on the Commission’s ongoing review of its strategic plan to align it with the Nigerian Insurance Industry’s 10-year strategic plan.

The Commissioner for Insurance assured continued collaboration with the NIA to safeguard consumer rights, particularly in ensuring the prompt settlement of genuine claims.
In his concluding remarks, the CFI affirmed the Executive Management’s ambition to drive growth in the Nigerian insurance market.

Overall, the meeting showcased a collaborative spirit between NAICOM and NIA, highlighting a shared commitment to advancing the insurance sector and protecting the interests of consumers.

Continue Reading

Business

Thomas Hands Over To Omosehin As New NAICOM Boss

Published

on

By

Usman Jankara, Deputy Commissioner, Finance and Administration (left), Sunday Thomas, Immediate Past Commissioner for Insurance, Olusegun Omosehin, Commissioner for Insurance and Ola Gam-Ikon, Deputy Commissioner for Insurance, Technical Operations during the hand over to the new commissioner in Abuja today..

By Sola Alabadan

Mr. Olusegun Omosehin has assumed duty today as the Commissioner for Insurance and chief executive of the National Insurance Commission (NAICOM), having been appointed by President Bola Tinubu on April 20. He is succeeding Sunday Thomas, who has completed his term of office.

In a similar vein, Olawoye Gam-Ikon assumed duty as the Deputy Commissioner (Technical Operations), while Usman Jankara Jimada is now the Deputy commissioner (Finance & Administration).

During an interactive session with the entire Management and Staff of the Commission, The new NAICOM boss stated the Executive Management would set a new tone for the Nigerian Insurance Sector.

His predecessor, Thomas, who was in attendance to officially handover to the new CFI, thanked the staff for their support while in office.

As the Federal Government intends to achieve a $1 Trillion economy by 2026, he said the Insurance Sector is expected to play a critical role and contribute to its quota to make this a reality.

Omosehin holds holds a Bachelor of Science degree in Political Science; a Master’s degree in International Law and Diplomacy (MILD); and also an M.Sc in Economics from the University of Lagos.

He is equally an Alumnus of the Lagos Business School (LBS) now Pan African University, as well as Said Business School, University of Oxford, UK.

He is a Fellow of the Chartered Insurance Institute of Nigeria; a Fellow of the Institute of Directors (FIoD); a Member of the Nigerian Institute of Management; and the Nigerian Society of International Law.

Prior to his appointment, Omosehin was the Managing Director of Old Mutual Nigeria Life Assurance Co. (OMNiLAC).
He was earlier the Managing Director/Chief Executive Officer of Mutual Benefits Assurance Plc.

Before joining the Mutual Benefits Assurance team in April 2010, Mr. Omosehin was the Managing Director/CEO of AIICO General Insurance Company Limited, the general insurance arm of AIICO Insurance Plc. He was also the MD/CEO of Admiral Insurance Company Limited between 2003 and 2007 before merging the company with Crusader Insurance Plc during the insurance consolidation exercise in 2007; a company where he started his insurance career in 1993.

He was a member of the pioneer team that started and nurtured Custodian & Allied Insurance Plc in 1995, where he worked for about nine years before his appointment as the MD/CEO of Admiral Insurance Limited in 2003. He started his career with Crusader Insurance (Nigeria) Plc in 1993 (then a specialist life assurance company)

His hobbies include Networking, Swimming, and Golfing. He is a member of the Ikoyi Club 1938 –Golf Section, and Ikeja Golf Club.

Continue Reading

Business

Pension Industry Starts Enlightenment Programme On Radio

Published

on

By

Driven by the need to educate, inform and enlighten various stakeholders, the pension industry has embarked on a radio program that seeks to shed light on various aspects of the pension industry in Nigeria.
The Nigerian pension industry operates under a Contributory Pension Scheme (CPS) which started through the enactment of an act of parliament, 20 years ago and the scheme has grown tremendously over the years, but a number of people still don’t understand some aspects of this scheme. So, the pension industry has put together a series of interviews to shed more light on these issues.
The interviews are structured as conversations between a number of the CEOs and CIOs of pension funds within the industry, and these interviews delve into so many issues and many topics.
The interviews will be covering things like, “How are your pensions invested”; “What is the history of the CPS in Nigeria”; “How do you access your benefits”; “Pension funds and SMEs”; “Pensions and technology”; “Understanding voluntary contributions”; “Micro pensions”; “The closed pension fund administrators”; “Multi-fund structure of the Nigerian pension industry”; “Safe custody of pension funds.” Amongst others
These interviews will be aired on radio every week for the next 10 weeks and it will be aired on Nigerian info Lagos and Abuja. In Lagos, it airs at 6:30am every Saturday and in Abuja it airs at 7:30am every Monday which began from 27th of April 2024.
Speaking on this development, the Chief Executive Officer of PenOp, Oguche Agudah said ‘‘we felt that these interviews and conversations were necessary in order to bridge the gap between the knowledge of various stakeholders and the pension industry. We realize that pensions can sometimes seem complex, but we hope to simplify these concepts to make them better appreciated and to enlighten various stakeholders on functions of PFAs, PFCs, how pensions are invested and some of the other things that we felt people do not have a grasp on.
These interviews are conversational, and they are also serialized on all our social media platforms and via podcasts. Essentially, we look forward to engaging the public and making these concepts more appreciated and just getting people to understand the industry better and appreciate how pensions impact them and the society at large. This will enable them engage with the industry from a more informed position”

Continue Reading