INSURANCE

WHICH IS THE PERFECT MONTH TO BUY CAR INSURANCE?

For the first time, data reveals that Car Insurance Policies are most expensive in the month of December.

Over the past four years, the cost of typical car cover has been 13% higher in December in the UK compared to the monthly average for the rest of the year.

This means drivers purchasing annual policies in December will unknowingly be caught in a price trap, whereby they will always pay the most for their insurance.

The average Car Insurance Policy is 19% more expensive in December when compared to the cheapest month of the year.

The cheapest month to buy Car Insurance varies from year to year, but between 2013 and 2016, December was by far the most expensive month.

Part of the reason is that over Christmas and around New Year, there is a limited availability of call centres and a lot of companies doing IT work. So fewer Insurance quotes are generated.

Due to drop in competition, those who are offering Insurance quotes are able to charge higher prices.

Conversely, January is a very good time for low prices, as every provider is back in the market quoting furiously to get a good start to the year.

 

 

CLAIMS LOSSES FROM CALIFORNIA’S WILDFIRES TOP $3 BILLION; STATE SAYS SOME INSURERS MAY EXIT

Insured losses from last month’s wildfire disaster in Northern California topped $3.3 billion, the state Department of Insurance said Tuesday.

The claims for insured losses on residences, businesses and vehicles represents a three-fold jump from figures released two weeks by the state agency. Data was based on losses as reported to the state by 15 major insurers.

“Behind each and every one of these claims, and behind the over $3 billion in insured losses claims, are ordinary people,” Insurance Commissioner Dave Jones said in a call with reporters. “Tens of thousands lost everything in what has proven to be the deadliest and one of the costliest set of wildfires in our state’s history.”

Jones also said there’s a chance insurance companies now may take a second look at areas once considered low wildfire risk and be hesitant to issue policies given the devastation seen in last month’s deadly fire disaster.

“We may also see, unfortunately, insurance companies updating their models of risk associated with these fires,” he said. “And that may mean in some cases some insurers will decide to write less insurance in some areas that had traditionally had been viewed as lower risk.”

The fires were in at least eight Northern California counties of the state.

Overall, residential insured losses for all the fires totalled just over $3.1 billion and commercial losses represented nearly $137 million. Auto losses exceeded $28 million and farm/agriculture losses from the fires exceeded $4.5 million, with most of it in Sonoma County but also some losses in Napa County.

The wine country wildfires damaged or destroyed more than 14,700 homes, 728 businesses, and more than 3,600 private cars, commercial vehicles, farm equipment and watercraft.

At least 43 people died as a result of the devastating fires, including a firefighter.

 

The series of wildfires, which started the evening of Oct. 8, destroyed entire neighbourhoods in the city of Santa Rosa. At least 5 percent of the housing stock in Sonoma County was destroyed in the fires.

The state official said the policy change may be needed since California continues “to develop in areas where there’s significant change of fire. We continue not to have adequate local fire protection resources to fight those fires and we shift those costs onto Cal Fire and the state.

 

HEAVY FINES BY NAICOM HINDERS INSURANCE BROKERS PERFORMANCE

The out-going President of The Nigerian Council of Registered Insurance Brokers (NCRIB) Mr. Kayode Okunoren has said that various forms of levies an

d penalties on insurance brokers hugely affected their perf

ormances in the last two years.

Okunoren made this known during his Valedictory Press Conference at the Brokers House Alagomeji Yaba Lagos. He said that although the council was able to seek and get concession for members with the regulatory authorities, especially NAICOM and the Financial Reporting Council (FRC) through constructive dialogue, NAICOM has always seek the tiniest of excuse to impose heavy fines on Insurance Brokers in the last two years, thereby hindering their performance.

STAKEHOLDERS LAMENT LOW INSURANCE PENETRATION IN NIGERIA

Insurance penetration will not deepen until the needs and expectations of customers are met and delivered, stakeholders in the industry have said.

It was suggested that to enforce a deep penetration in Nigeria, the industry must present itself not only as someone who is coming to sell policies, but also creating an opportunity for effective collaboration between her and the customers.

Speaking in Lagos during a programme tagged: “Insurance September- Breaking the Code,” the convener, Ekerete Gam-Ikon, said the delays on the amendment of the National Insurance Commission Act 2003, is the reason customers’ issues are yet to be addressed.

According to The Guardian, he said that with the huge opportunities in the sector, insurance should not be sold out of fear, noting that the time for fear is over, as people are now looking for more opportunities.

“There are expectations that people have, and most are these things not happening. Insurance penetration will not happen until insurance customers are heard, and allowed to enjoy what their expectations are.

The industry needs more orientation to talk to the people who sell these products because most of them are not selling them well.

It is not a beggarly industry; it should be the other way round.

insurance keyboard

General Insurers in South Africa in Digital Dilemma

The short – term Insurance sector in SA has been slow to go digital as a result they are losing out on Gross written Premium. This is according to latest Accenture survey. The survey shows a clear customer preference for digital Insurance solutions and readiness for digital engagement. About 80 percent of 1,500 Insurance customers surveyed across SA are ready to purchase Insurance Products on line.
insurance verification

Capital Verification of Insurance Companies Underway – NAICOM

The National Insurance Commission (NAICOM) is getting ready to kick start the Insurance Industry’s Capital Verification excise. The excise has become imperative given the high level of management expenses of some Insurance companies. A situation that has led to some Insurance companies not being able to pay dividend to their shareholders for more than five years.
PIC.9.TRAFFIC ON OSHODI AGEGE MOTOR ROAD IN LAGOS

2,542 Vehicles Stolen Between 2013 & 2015 – NBS

The National Bureau of Statistics (NBS) recent data shows that 2,452 vehicles were stolen between 2013 and 2015. Out of which 1,373 vehicles were recovered while 1,165 of them were never recovered car theft is real. Get Insurance.
Africa Insurance Premium Kenya

Africa Insurance Premiums Drops

The total Insurance Premiums in Africa dropped from 72 billion US Dollars in 2013 to 69 billion US Dollars in 2014 according to the latest data from Africa Insurance Organization Survey dubbed Africa Insurance Barometer 2016. Life Insurance accounted for about two thirds of the 2014 total Premiums with the remainder going to Non – Life Insurance. South Africa as always dominated the African Insurance Market with 71% share of the total Premiums. However, insurance penetration accounted for only 2.8%of Africa Gross Domestic Product (GDP) with the exception of South Africa and Namibia where Insurance penetration levels have reached 14% and 7.3% respectively. Overall, the contributions of Insurance to GDP are still significantly lower than Global average of 6.2% in all other African Countries. Experts believe that the Insurance Industry in Africa can only make meaningful contributions to the Global Insurance Market when they over –come the challenge of fragmentation which has led to weakness. The problem of fragmentation is evident in the numbers of Insurance companies in most African countries; many of them just fringe players. Nigeria has 50 Insurance companies, Ghana has 46, and Kenya 47, Mozambique 48 and Liberia with a population of only 4 million have 31 Insurance companies and Uganda 29. Experts are of the opinion, that there is urgent need for Insurance Firms in the continent merge operations within country and across borders, so that they can have large Insurance and Re – insurance companies with balance sheets that are better able to ensure lasting legacy and compete with the biggest and the best in the world.
motor insurance banner

₦20,000 For Third Party Motor Insurance Bill

The Third Party Motor Insurance which is made compulsory by law is about to get a boost all being well as a bill presently before the senate is seeking to increase the Premium from the current ₦5,000 to ₦20,000. Operators are however divided over the proposed bill even though they are the biggest beneficiary at the end of the day. While some see the proposed bill as transformational, others believe it was ill– timed given the current economic recession. This group believes that if the bill sails through, it will further compound the menace of fake Insurance documents which a major challenge at the moment. According to senator Umaru – Kurfi from Kastina, increasing the Premium from ₦5,000 to ₦20,000 will ensure effective settlement of claims. With the current ₦5,000 Premium, many motorists are not even aware that they can make claims on their Third Party Motor Insurance. Many motorist see the Third Party Motor Insurance popularly called ‘‘Police let me Pass’’ as just a document you procure to avoid law enforcement officers problems on the way when they are stooped. This is attributed to lack of awareness and Insurance education which the operators are benefiting from immensely as only very few people make claims on their Third Party Motor Insurance. Here is hoping that if the proposed bill of ₦20,000 Premium sails through Operators must brace up for a different Scenario.
insurance competition

Unhealthy Competition Bane of Insurance Industry

The Nigeria Insurance Industry is at a cross – road at the moment because of unhealthy competition. In their desperate move to get businesses at all cost in this time of economic recession, many Insurance companies are taking short – cuts hereby breaching the law. This desperation is heightened by increased calls by share holders associations on the regulator to sanction companies with high management expenses who do not pay dividend to their shareholders. In an exclusive interview with Almond Finance and Wealth Report recently, boardroom Guru and Chairman of Hogg Robinson Nigeria Limited, Mr Bode Emmanuel spoke extensively on the noticeable unhealthy competition in the Insurance Industry. According to him ‘‘NAICOM’’ should find a way of putting a cap on the amount of discount Insurance companies can give their client to discourage unhealthy competition especially in Motor business.