Martyn Mataa Mashombotwa’s Post

I’ve had reasons to think about Nigeria recently, in general but also from an insurance market and acquisition environment. I’ve helped several investors looking at Nigerian insurers over the years. Familiarity with the market and the expectations of these investors has bred complexity rather than contempt. This isn’t an easy diagnosis of land of plenty or dystopian money pit. Nigeria's potential—expansive land, youthful demographics, and diverse economic sectors. Challenges - from inflation and depreciation to security - test investors' optimism. Insurers face hurdles (public trust, expenses, scale, rural distribution and more), but opportunities exist - cracking microinsurance, regulatory reforms on pension and group life, digital distribution, annuities and more. Navigating this dynamic landscape requires strategic planning. #Nigeria #Insurance #MandA #Actuarial #Consulting https://lnkd.in/duyGfkKJ

The Importance of Insurance in Nigeria's Current Economic Reality In the face of Nigeria's challenging economic landscape—characterized by inflation, unemployment, and fluctuating oil prices—insurance plays a critical role in promoting stability and resilience. As businesses and individuals grapple with financial uncertainty, insurance offers a vital safety net, helping to mitigate risks and protect assets. For businesses, insurance safeguards against operational losses due to unforeseen circumstances such as property damage, theft, or economic disruptions. This is particularly crucial in a volatile economy where such setbacks can lead to bankruptcy or closure. For individuals, insurance—whether health, life, or property—provides financial relief in times of crisis, reducing the burden of out-of-pocket expenses. Furthermore, insurance promotes investment and economic growth by allowing businesses and investors to take calculated risks with the confidence that they are financially protected. In this way, the insurance sector not only shields against immediate losses but also supports long-term economic development. In Nigeria’s current economic reality, where uncertainties loom large, the role of insurance is indispensable in fostering economic stability and personal financial security. #Insuranceinnigeria #lifeinsurance #lifeassurance #nigerianinsurancesector #insuranceandfintech #financialintelligence #financialdiscipline #financialmanagement #negotiations #sales #salesmanagement #empathy #emotionalintelligence #heirsholding #heirslife

Property Ownership: The Value of Contributory Schemes and How to Mitigate Risks In Nigeria, contributory schemes like Ajo and Esusu have long been vital tools for collective financial growth, especially in property ownership. These schemes allow groups to pool resources, making it easier for individuals to acquire property and achieve financial goals that might otherwise be out of reach. However, like all financial tools, contributory schemes come with risks. Mismanagement of funds, lack of transparency, and defaulting members can undermine the group's objectives. Here’s how to mitigate these risks: 1. Clear Agreements Establish clear, legally binding agreements outlining the contributions, timelines, and penalties for defaulting. Transparency from the outset prevents misunderstandings. 2. Trustworthy Leadership Appoint trustworthy and accountable leaders or managers to oversee the funds. Regular audits can ensure transparency and build trust among members. 3. Diversified Investments Consider investing the pooled funds in low-risk ventures until it’s time to purchase the property. This protects the funds from inflation and adds value to the contributions. 4. Insurance Explore insurance options to protect the pooled funds from unforeseen circumstances. 5. Regular Meetings Hold regular meetings to review the scheme's progress, address concerns, and ensure everyone remains aligned with the goals. Contributory schemes can be powerful tools for property ownership, but success hinges on careful planning, transparent management, and a strong commitment to collective responsibility. If you are interested in joining our Property Ownership Community, please comment here or send a message #RealEstate #PropertyOwnership #ContributorySchemes #Ajo #Esusu #FinancialPlanning

Attention Insurance Professionals! 📢 Exciting news from Zambia's reinsurance sector! 🎉 🚫 Strictly Prohibiting Fronting: In a bold move, Zambia's reinsurance guideline now prohibits fronting practices. Transparency and local resilience take center stage as we aim to strengthen the reinsurance landscape. 💡 Understanding Fronting: Any cession where local retention falls below 10% will be considered Fronting. It's crucial that a minimum of 10% is retained locally, ensuring a robust and sustainable insurance ecosystem. 🔵 Local Market First: A significant shift towards enhancing local capacity! Before considering ceding abroad, local market capacity must be thoroughly explored and utilized. Prioritizing local strength and expertise benefits us all. 🌍 Supporting Pan-African Collaboration: Zambia now mandates mandatory cession to Africa Re and PTA Re (Zep Re). Embracing regional cooperation and harnessing the expertise of Africa Re and PTA Re elevates our commitment to sustainable growth and development. Stay informed, adapt, and thrive in this evolving reinsurance landscape. Let's work together to ensure a resilient, inclusive, and progressive insurance sector in Zambia. 🌟 #Reinsurance #InsuranceIndustry #ZambiaInsurance #RiskManagement #AfricanInsurance #Collaboration #Innovation #Reinsurancenews #EuroReinsurance #EuroRiskManagement #ReinsuranceEurope #EuropeanInsurance #InsurEurope #EuropeRiskAssessment #ReinsuranceEU #EuroCoverages #EuropeanInsurers #RiskRetentionfika Nadia Zidi Hegel Ignacio Molina Laura Marfil Peter J. Schlumpf Muhammad Iftekhar Ahmed, MBA - ACII - Chartered Insurer QBE Insurance

🌍 Recent Developments in Africa (1 - 7 July 2024) 👇 ATIDI - African Trade & Investment Development Insurance aims to increase its capital to US$1 billion within the next three years to expand its risk coverage. Hollard Insurance acquired Absa Group's insurance businesses in Mozambique, Botswana, and Zambia, marking a significant consolidation in the insurance market. Tech Startup Investments: In 2023, 406 startups collectively raised a total of $2.41 billion. Credit Downgrades: A wave of downgrades across the continent due to higher interest rates and political instability, affecting overall economic stability. 🇧🇼 Botswana: Trade Deficit stood at P2.4 billion, driven by decreased diamond exports and increased machinery imports. 🇬🇭 Ghana: Inflation decreased to 23.1% from 25.0% in April, showing improvement in economic conditions. PMI fell to 49.7 in June from 51.6 in May, indicating deteriorating business conditions. International Monetary Fund disbursed $360 million to Ghana as part of a $3 billion program to support economic reforms. 🇰🇪 Kenya: NCBA Group acquired AIG Kenya Insurance Company to strengthen its financial services position. Commercial banks’ profits surged 12.9% in the three months to March, driven by cost-cutting measures and increased income from loan interest charges. Economy grew by 5% in Q1'24, down from 5.5% in Q1'23, indicating a slight slowdown. Inflation reached a four-year low at 4.6% in June, showing positive economic trends. Kenyan activists urged renewed street protests, rejecting President William Ruto's call for dialogue after he withdrew proposed tax hikes. 🇲🇼 Malawi: Financial Sector Growth: Multiple banks and financial institutions reported significant profits and growth, indicating a robust financial sector. 🇳🇬 Nigeria: Public debt reached $91.46 billion by March, marking the first time the country's debt-to-GDP ratio has exceeded 50%. 🇸🇸 South Sudan: The country plans its first vote since gaining independence in 2011. 🇹🇿 Tanzania: Central Bank maintained its key interest rate at 6% amid strong economic growth, indicating a stable monetary policy environment. 🇺🇬 Uganda: Stanbic Bank Uganda launched a Unit Trust as industry assets hit Shs2.8 trillion, reflecting growth in investment products. 🇿🇼 Zimbabwe: Inflation figures in June show Zimbabwe's economy rapidly stabilising, painting an encouraging picture.

With a legacy spanning over a century, Sanlam stands as a prominent #financialservices group headquartered in South Africa. Established in 1918, Sanlam has evolved from its origins as a life insurance company to become a diversified provider of financial products, including #insurance, #investments, and #wealthmanagement services. Sanlam is recognized as a leading, digitally enabled Pan-African insurance market leader. Beyond its business activities, Sanlam demonstrates a strong commitment to #corporatesocialresponsibility. The company actively engages in initiatives focused on education, healthcare, and community development across the regions where it operates. Additionally, Sanlam supports programs promoting #financialliteracy and inclusion, empowering individuals and businesses to achieve #financialsecurity and prosperity. In our recent discussions, Sanlam expressed appreciation for our initiatives aimed at mobilizing resources for #peace across our continent Africa. They highlighted their commitment to optimizing the impact of investments in the Peace Fund, including exploring contributions from their staff. I look forward to continued collaboration with Sanlam in advancing the work of the AU Peace Fund to foster #peace and #stability throughout the continent. #SouthAfrica #Sanlam #TheAfricaWeWant #PeaceforAfrica #Financingpeace #PeaceBuilding #Agenda2063 #AfricanUnion #ResourceMobilization #SustainableDevelopment #PartnershipBuilding #FinancialServices #Insurance #Investments #WealthManagement

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗖𝗼𝗻𝘀𝘁𝗿𝗮𝗶𝗻𝘁𝘀: 𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗡𝗲𝘄 𝗥𝗲𝗮𝗹𝗶𝘁𝘆 𝗳𝗼𝗿 𝗞𝗲𝗻𝘆𝗮𝗻 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀. With the recent implementation of the Social Health Assistance (SHA) and housing levy in Kenya, many employees are feeling the pinch. These deductions, while aimed at improving social services, have left many with reduced take-home pay, making it even harder to balance monthly expenses. Does this mean we neglect the crucial insurance protection we need? One of the most significant advantages of insurance is its flexibility. You don’t have to break the bank to get started. You can begin with a modest policy and increase your coverage as your financial situation improves. This approach allows you to build your safety net gradually, offering peace of mind even in tough economic times. In my experience, many clients believe they can't afford insurance given their current financial strain. However, once we break down the options, they realize they can start with a basic plan that fits within their budget. As their income stabilizes or grows, we adjust their coverage to provide more extensive protection. It's about finding that first stepping stone towards financial security. The current financial constraints many are facing shouldn't be a deterrent. Instead, see it as an opportunity to start small and make gradual progress. It’s better to have a small layer of protection today than wait for the 'perfect' time when you think you can afford a bigger plan. Remember, insurance is about preparing for the unexpected, and the best time to start is always now. 𝗧𝗵𝗲 𝗸𝗲𝘆 𝘁𝗮𝗸𝗲 𝗮𝘄𝗮𝘆: Start with what you can afford, and as your finances improve, build on it. The small steps you take today can provide immense value in safeguarding your future. #StartSmall #GrowBig #FinancialPlanning #ProtectYourFuture #InsuranceMatters #SHAImpact #HousingLevy

I wanted to share the key learnings from the session yesterday, but stumbled on a great summary from one of the participants Anita Ama Arhinful,Cert CII-Uk. I couldn’t have captured it any better. I’m glad that you found the session valuable. #microinsurance #inclusiveinsurance #GIA

Africa Insurance Magazine: The beginning of every journey is exceptional. Beginnings personify hope, determination and courage. It’s that reflective moment when all the seed ideas and concepts go from mental ideas to physical and social reality. If you are reading this, it means we finally did it! We have finally published the inaugural edition of The Africa Insurance Magazine #AIM. The industry focused magazine covers all things Risk Management, Re/Insurance, Finance, Investment, Climate Resilience, Sustainability. We hope the excitement and joy that filled our hearts, minds and souls when we were putting this content together will be transformed to you as you read. Now available on: www.irmic.co.zw Clementine Chinyuku, Caroline Mbofana, Women In Insurance (Victoria), Emeritus Reinsurance, Atlas Mag-Insurance, Old Mutual Limited, InsuranceAsia News, Women in Insurance network, SATIB Insurance Brokers Zimbabwe, Gloria Zvaravanhu, ACII Rose Wanda, Organisation of Eastern and Southern Africa Insurers, Young Insurance Professionals (YIPs) Africa, African Insurance Organisation #AfricaInsuranceMagazine #AIM #InsuranceAdvocacy #InsuranceEducation

🌟 Important Update on Social Security Trust Funds 🌟 The combined Social Security Trust Funds (Old-Age and Survivors Insurance Trust Fund (OASI) and Disability Insurance Trust Fund (DI)) are expected to be depleted by 2035, covering only 83% of promised benefits at that point, according to First Trust. 🚨 🔍 Key Points: - These funds cannot be merged without new legislation. - Joint financial projections gauge the overall health of Social Security. - DI fund is stable and can meet obligations through at least 2098. 📊 - Without considering the DI fund, the OASI fund would run out by 2033, covering only 79% of benefits. 📉 To ensure solvency over the next 75 years, the Trustees estimate: - 21% reduction in benefits, or - 27% increase in payroll taxes (equivalent to a 3.3 percentage point rise). 💡 #SocialSecurity #FinancialPlanning #RetirementSecurity #EconomicUpdates