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Solvency II Has Cost UK Insurers £3bn – Report

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UK insurers have spent more than £3 billion implementing Solvency II, the Independent on Sunday reports.

FTSE 100 insurers told the paper that the cost of complying with the new European Union capital regime, which has yet to come into force, had far surpassed the FSA’s original £1.8 billion estimate.

The Independent on Sunday noted that the cost could keep rising as there is as yet no end in sight. Solvency II has been beset by delays. The implementation date has been delayed to 1 January 2014, and there are some indications that the new rules will not come into force until 2016.

Some observers even suspect the new capital regime will be sidelined altogether and will never get off the ground.

A source told the paper: “Billions have been spent on Solvency II, with a high probability that the UK will end up with a regulatory regime not much different from the current one, which after all worked perfectly well even through the financial crisis.”

Expected compliance bill busts the FSA’s £1.8 billion estimate.

PwC : EU Referendum Could Affect Insurer Regulation

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eu

David CameronPrime Minister David Cameron’s announcement of an in/out referendum on the UK being a European Union (EU) member could affect insurer regulation, according to PwC global insurance regulatory leader Paul Clarke.

In a speech earlier this week, Cameron said that if the Conservatives were re-elected he would hold a vote on EU membership.

But Clarke said: “Potentially the biggest impact on the insurance industry will be on regulation. The EU drives the regulatory environment, Solvency II being a classic example.

“Not being part of the EU would hand more discretion to domestic authorities over rule design. From a practical point of view, it is likely the UK would choose to pursue a Solvency II equivalent approach.

“Ironically, the risk would be a UK outside of the EU, unable to influence from within, yet still compelled to follow EU regulation to remain competitive.”

Dropping out could leave UK voiceless, says Clarke.

AIG Executes Plan to Repay $21bn Stimulus to U.S. Govt

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AIG

American International Group Inc. (AIG) announced it has executed its previously announced recapitalization plan with the U.S. Department of the Treasury (Treasury Department), the Federal Reserve Bank of New York (FRBNY), and the AIG Credit Facility Trust (the Trust).

They will also repay in full the approximately $21 billion outstanding balance under the credit facility extended by the FRBNY, and exchanging various forms of government support into common shares, resulting in the Treasury Department owning approximately 92 percent of AIG’s common shares. AIG expects that over time the Treasury Department will sell its stake in AIG subject to market conditions.

37% of Americans Spent More on Insurance in 2012

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insurance in America

Thirty-seven percent of Americans spent more on insurance over the past year while only 7% spent less, according to new research published today by Bankrate.com. The remaining respondents either spent about the same (52%) or didn’t know/refused to answer (4%).

Of those who spent more, 62% said their spending went up because of rising premiums. The next most popular response was because they bought a new home, car, boat or recreational vehicle (12%). The results reflect Americans’ total spending on all types of insurance (auto, homeowners, renters, health, life, etc.).

Consumers Association Backs NAICOM on ‘No Premium, No Cover’ Policy

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The Insurance Consumers Association of Nigeria (INSCAN) has expressed support for the ‘No Premium, No Cover’ policy of the National Insurance Commission (NAICOM), saying it conforms with Section 50 (1) and (2) of the Insurance Act 2003.

In a release signed by Rear Admiral Isaac Areola (rtd), National President and Mr. Julius Bruce, National Secretary, INSCAN stated amongst others:

  • That our Association is in total support of the enforcement of section 50 (1) and (2) of the Insurance Act 2003 by the National Insurance Commission (NAICOM) with effect from 1st January 2013 as the provisions relate to the Insured, the Underwriting Companies and the Insurance Brokers. We hereby enjoin the Nigeria Insurance industry to consequently establish the “Premium Financing” concept as a line of business in the manner it obtains in other jurisdictions to solve this very simple problem.

‘Mobile Money will Enhance Low-cost Insurance in Africa’

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Eugene Adogla

Eugene Adogla
Director of Operations, MicroEnsure Ghana

Mr. Eugene Adogla, Director of Operations, MicroEnsure Ghana was in Nigeria recently for the MobileMoneyExpo 2013 and granted this interview ahead of the summit.

Ghana mobile money

The Spread of MicroEnsure’s Mobile Insurance Offerings in Africa

At present, MicroEnsure offers mobile insurance products in Ghana, Tanzania and Kenya – all the countries we have dedicated offices in on the continent. With our new strategy of leveraging our experiences to serve wider regions from these established offices, the potential to serve more customers in other African markets – especially those close to the three countries mentioned above – remains a key motivator for us for this year and beyond. 

Non-profit Employees Lack Confidence in Retirement Planning

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According to a study released by the TIAA-CREF Institute and Independent Sector, about 45 percent of all employees in the non-profit sector are not confident with their ability to prepare financially for retirement. The findings underscore the need for the nonprofit and philanthropic sector to address their employees’ long-term financial security, create more opportunities for advancement within the sector, and look for national, cross-sector solutions.

AT&T Takes $10bn Hit to Pension Fund

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­AT&T has announced that it is taking a US$10 billion charge related to its pension costs. The company said that the non-cash charge follows a decision to lower its assumed discount rate to 4.3%, resulting in an actuarial loss of approximately $12 billion.

Study: 61 US Cities’ Retirement Systems Face $217bn Gap

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Sixty-one key cities across America have emerged from the Great Recession with a gap of more than $217 billion between what they had promised their workers in pensions and retiree health care and what they had saved to pay that bill, according to a report released by The Pew Charitable Trusts.

NESTLE: Building Sustainability into Product Design Process

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nestle productThe Nestle Brands

The way a product or service is designed determines its use of resources and can help to minimise waste throughout its lifecycle.

As Head of Sustainability for Research and Development at Nestlé, I recognise the important role good design can play in the preservation of our natural environment.

We’re the world’s largest fast-moving consumer goods company and a sizeable part of our contribution to environmental sustainability depends on our ability to evaluate the impacts of our products from the moment we begin to design or redevelop them.

This means going far beyond simply looking at a product’s packaging and how it is disposed of. It’s about examining everything from agricultural production to ingredient sourcing, processing, manufacture, and the product’s use by consumers.

 

Faster and More Economic

Life-cycle assessments are the most widely-used methodology for achieving this kind of in-depth evaluation, but they can be costly and take several months to complete.

That’s why we’ve been working hard to find quicker and more economic ways of analysing environmental impacts much earlier in the design process.

We recently made a significant step forward with the development of a new web-based tool called Ecodex, which we’re just starting to roll out across our worldwide business.

We’ve been working consistently to reduce the environmental impact of our products since 1990, but this new development will allow us to make even more progress.

 

Complex Data

Ecodex was created by our own life cycle assessment experts in partnership with an information technology company called Selerant.

The tool uses information specific to the food and beverage industry to provide rapid and accurate data that allows our product development teams to assess sustainability performance across multiple product lines.

Importantly, it presents complex results in a simple, user-friendly format, so you don’t have to be a life cycle assessment expert to use it.

We’ve helped Selerant to make Ecodex commercially available to other companies because we think it can add considerable value to our industry as a whole.

 

Sustainable by Design

In parallel with the development of Ecodex, we’ve also reinforced the way we train our product developers to encourage them to take a holistic approach across all the different stages of the value chain.

Over the past two years we’ve set up and trained a global community of sustainability champions within our worldwide research and development network. Part of their role is to support the introduction and deployment of Ecodex.

Moving forward, we’ll continue to educate our teams involved in different stages of product development. This will include holding specific ‘design for sustainability’ sessions, led by our designers, to help the teams think about where the key opportunities are in our value chain to reduce environmental impacts.

These sessions will allow our designers to help solve problems in areas that their work would traditionally not touch.

We’ve already made substantial improvements to the environmental performance of many of our popular products and systems, such as Nescafé Dolce Gusto, and this new approach should enable us to go further, and faster.

By linking our designers to the life cycle assessment process, and providing them with superior tools and a more flexible way of working, I believe we’re putting them in a better position to create even more efficient, lower-impact products for our consumers.

Life Expectancy in Africa

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age group

Nigeria Health Statistics

Total population

158,423,000

Gross national income per capita (PPP international $)

2,240

Life expectancy at birth m/f (years)

53/54

Probability of dying under five (per 1 000 live births)

124

Probability of dying between 15 and 60 years m/f (per 1 000 population)

377/365

Total expenditure on health per capita (Intl $, 2010)

121

Total expenditure on health as % of GDP (2010)

5.1
Figures are for 2009 unless indicated. Source: Global Health Observatory

THE MERCURY DEBATE: WHO Welcomes International Treaty on Mercury

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The World Health Organization (WHO) welcomes of the approval of a new international convention (1) that will reduce the harmful health effects of mercury.

Mercury is recognized as a chemical of global concern due to its ability to travel long distances in the atmosphere; its persistence in the environment; its ability to accumulate in ecosystems, including in fish, and its significant negative effect on human health and the environment.

Dependency Fear: Ukraine, Shell in $10bn Shale Gas Drilling Deal

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Ukraine’s Fuel Minister Stavitsky, Ukraine’s President Yanukovich, Netherlands’ Prime Minister Rutte and Voser CEO of Royal Dutch Shell shake hands after exchanging a signed agreement at WEF in Davos, January 24, 2013.

 

Ukraine has furthered its attempt to decrease its dependence on natural gas from Russia by signing a new deal with Royal Dutch Shell for the energy company to explore on the eastern edge of the country, according to Voice of America (VOA).

A $10 billion, 50-year shale gas exploration deal was signed with the company at the World Economic Forum on January 24 in Switzerland.

Total, French Embassy Collaborate on Educational Dev in Nigeria

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A joint scholarship scheme (“TQJS”) titled TEPNG/ Quai d’Orsay, has been established between Total and the Embassy of France in Nigeria. Under the new programme, five Nigerians are to benefit from an annual scholarship sponsored by Total in collaboration with the French Embassy in Nigeria with effect from the 2012/2013 academic year.

The agreement to formalize the programme was signed at the French Embassy, Abuja on Wednesday, December 19, 2012, between Total Exploration and Production Nigeria Limited (TEPNG) and the Embassy. The Managing Director/Chief Executive of TEPNG, Mr Guy Maurice signed for Total while H.E. the Ambassador of France, Jacques Champagne de Labriolle signed for the Embassy of France in Nigeria.

Africa Offshore Oil Development Attracts U.S. Grant

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The United States and Nigeria are teaming up to develop the African country’s offshore oil and gas industry. The U.S. Trade and Development Agency announced December 31, 2012 that it would be providing a grant to Nigeria that will be used to develop an electronic management platform which provides 24-hour support to offshore operations such as loading and unloading ships, cargo and equipment.