Insurance Roundup – Accidents in Africa

14 Jan

1. Insurance company Arab Orient will pay to repair fire damage to Dubai’s Tamweel Tower; one it its consultants is currently assessing the extent and nature of the damage. The chairman of the Towers’ Owners’ Association Surendra Nyar predicted repairs would begin in around three months.

The police report for the incident states the fire started from a discarded cigarette, setting light to a pile of discarded building materials and extending to the building’s highly flammable cladding. From there it consumed half the building. Since the fire struck the 34-storey skyscraper last November, the type insulation in question has been banned.

Nyar promised the repairs would cover replacement of the fire-damaged panels at the minimum. He asserted: “We are working very hard to make it fire retardant all the way around,” he said. “We have, however, received assurances that whatever is being replaced will definitely be fire-retardant,” reported the National.

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2. According to AfricaToday, the Namibian Insurance Industry is one to watch. It claims a Small Business News Wire reported it has grown at an annual rate of 13.1% in its review period. And moreover that the market is dominated by five mature companies, who together account for 87% of net premiums.

It is difficult to validate the paper’s claims without access to the report – how exactly, for example, does the report delineate the “life segment business”? But it is certain that the proportion of foreign companies providing insurance in Namibia has been falling.

From 2009-10 it decreased from N$177.05m to N$161.89m, in a majority of sectors including aviation, fire and vehicle, according to the 2011 Annual Report by the Namibia Financial Institutions Supervisory Authority (Namfisa).

Foreign insurance and reinsurance is only permitted as a fallback option, if insurance cover is not available in Nigeria, under Sect 2(2), 3(1)(c)(11) and 65 of the Short Term Insurance Act.

Namfisa reports that the gross premium income from domestic underwriting only rose 15.5%, from N$1.76bn to N$2.03bn, between 2011 and 2012.

Its net performance ratio, compounded from factors including cession ratio, expense ratio and net loss ratio, fell from 91% to 89%. This decline in performance ratio is seen as a positive indication.

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