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African Risk Capacity Expands Cover To Non-sovereign Risk Transfer Buyers 

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The African Risk Capacity (ARC), which has so far provided parametric disaster insurance products to countries in Africa, is set to expand its client base to include non-sovereign actors, as it looks to grow and diversify its portfolio of risks.

The African Risk Capacity (ARC) has only provided risk transfer and parametric insurance to government’s so far. But now these products are going to be offered to non-sovereigns as well, enabling ARC to offer coverage to entities such as farmers in a country where the government does not have an ARC policy.

Expansion of the ARC risk pool is key to keeping its product offering viable, as the larger the risk pool becomes and the more diversified it is, the greater the reinsurance synergies and cost-benefits that can be achieved and passed on to its policyholder governments.

Today, African Risk Capacity Limited (ARC Ltd), the commercial insurer subsidiary of ARC, has announced a partnership agreement with an insurtech named Pula as part of its drive to expand offering of its capacity more broadly beyond just governments.

The goal is to deliver best-in-class agriculture index insurance products to protect African farmers from climatic risks, working with Pula which aggregates micro and meso parametric insurance for agricultural risk transfer buyers.

Pula provides the levers to connect participating farmers with regional insurance companies and global reinsurance firms, ARC explained.

Pula will work closely with ARC on product development, marketing, premium collection and claims disbursements.

The insurtech’s strong capabilities in Area Yield Index are expected to complement ARC Ltd’s strength in drought coverage, while relationships between Pula and farmers and other aggregators are expected to benefit from ARC Ltd’s relationships with African governments and industry regulators.

ARC Ltd CEO Lesley Ndlovu commented, “The ARC Group is currently expanding its product offerings to African Member States; and by experience, we have seen that there will always be farmers whose Governments may, by reason of fiscal constraints, not be able to take up an umbrella Sovereign disaster risk policy. Working with Pula will enable us to extend coverage to Member States and these farmers in a timely and targeted manner on a mutually adaptable basis.”

“ARC Limited is the first of its kind in sovereign disaster risk insurance in Africa,” added Thomas Njeru, the Founder and Co-CEO of Pula. “The development insurance approach of the ARC Group resonates with our mission to provide an end-to-end management of the delivery of insurance to farmers, including field operations, farmer onboarding, education and claims assessment and payouts. We envisage a win-win partnership that will leverage our best-in- class index insurance products and technology with ARC’s strong partnerships with Governments to provide ground- breaking products to farmers. In partnering with ARC we expect that we can push the boundaries of product performance to our customers and radically increase the access to insurance for millions of farmers across Africa, giving them access to the tools they need to become resilient in these challenging times.”

ARC had already begun diversifying its counterparties beyond governments with its replica parametric coverage, which allows an NGO or other organisation to buy parametric insurance that replicates the coverage of a government in a country it operates in.

Adding private sector risk transfer buyers could help ARC expand more rapidly, which it needs to do so it can recognise increasing reinsurance synergies and also peril and geographical diversification within its risk pool.

But it also puts ARC into competition with other direct sellers of parametric risk transfer and insurance in Africa, which could raise potential operational challenges as well, given ARC relies so much on private market reinsurance capacity.

As we explained recently, ARC is also looking to expand in terms of perils covered, as well as sources of risk.

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Access Bank Announces N50b Interest-free Loan For Businesses

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Access Bank has announced N50 billion in support of Nigerians through interest-free loans and grants to support communities, the youths as well as micro, small and medium-sized businesses.
The bank posted this on its official LinkedIn page.
It said the move was to support businesses following the crippling COVID-19 lockdown as well as the looting and arson that trailed the #ENDSARS protests.
According to the bank; “Now more than ever, we remain committed to our purpose of impacting lives positively.
” In light of the recent occurrences, we will be supporting Nigerian businesses with N50billion interest-free loans and grants. Watch this space for more information.”
The support by Access Bank is expected to help business owners and entreprenuers alleviate and stimulate economic activities, as well as produce many positive multiplier effects on the economy.
“As a way of supporting SMEs and the working class of the country following the recent damage of properties and livelihoods experienced across the nation, @myaccessbank has rolled out interest free loans of up to N50bn.
“The fund is expected to serve as a kickstart to these affected communities, people and businesses. #AccessCares #All4One,” the bank added.

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PenCom Makes Data Recapture Exercise Condition To Process RSA Transfer Request

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The National Pension Commission said the completion of the Data Recapture Exercise (DRE) is a prerequisite for processing any Retirement Savings Account (RSA) transfer request by RSA holders who registered before 1st of July 2019.
“The National Pension Commission (the Commission) introduced the Data Recapture Exercise (DRE) in August 2019 in order to obtain complete, accurate and current data of all RSA holders (both active and retired), the commission stated.
The statement added that “Accordingly, Pension Fund Administrators (PFAs) were directed by the Commission to obtain the relevant information required for the DRE from RSA holders and the process is on going. One of the information required for the exercise is the National Identity Number (NIN).
“The Commission is desirous to ensure that all RSA holders are able to exercise their rights of transferring their RSAs trom one PFA to another, in anticipation of the formal launch of the RSA Transfer System during the last quarter of 2020.
“The Commission therefore wishes to notify all RSA holders that the completion of the DRE is a prerequisite for processing any RSA transfer request by RSA holders who registered before 1 July 2019.”
PenCom explained to fast track the DRE, it approved a proposal of the Pension Operators’ Association of Nigeria (PenOp) for an industry Shared Service Initiative (SSI).
“Consequently, PenOp has engaged agents to conduct the DRE on behalf of all PFAs. This arrangement will enhance efficiency in carrying out the exercise as it would allow an agent to recapture all RSA holders in the same organization on behalf of all PFAs. In partnership with the National Identity Management Commission (NIMC), the selected agents will have the ability to carry out NIN registrations seamlessly.
“The Commission hereby appeals to all active RSA holders and retirees to cooperate with the agents that would be visiting their organisations to carry out the DRE. Meanwhile, the Commission remains committed to providing necessary support to the pension industry to ensure the success of the DRE,” it noted.

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Senate Confirms Dahir-Umar DG PenCom, Four Board Members

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The Senate confirmed the appointment of Mrs. Aisha Dahir-Umar as the substantive Director General of the National Pension Commission (PenCom) on Tuesday.

President Muhammadu Buhari had penultimate week, sent the name of Dahir -Umar to the Senate, seeking the lawmakers ’ confirmation for her to be the substantive DG and others , to the board of the agency.

The lawmakers also confirmed Dr Oyindasola Oluremi Oni, from North Central as the Chairman of the commission.
Also confirmed were Clement Akintola (South -West); Ayim Nyerere ( South – East) and Charles Emukowhale (South – South), as commissioners of the PenCom board.
However, the Senate refused to confirm the appointment of Hannatu Musa (North -West) because she was unable to present her discharge certificate from the National Youths Service Corps.
Until her confirmation, Dahir-Umar , from the North -East geopolitical zone , held the position in acting capacity .

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