Regency Alliance's Newsletter

January- March 2018 Regency Alliance Insurance Plc’s Newsletter Fisticus Insurance 101 Salvator Mundi MOVING THE MOST EXPENSIVE PAINTING IN THE WORLD BUDGET 2018: REGENCY INSURANCE AND THE EMERGING POWER ALLIANCE INSURANCE PLC: On the cusp of Greatness EQUATION IN NIGERIA

INSIGHTS The business community has always been eager to understand the direction of government policies, of course, executives, managers and analysts know the impact of government policies and will always want to strategize or, even re-strategize for sustainability as going concerns and in generating values for their stakeholders. In this digital maiden edition, we provide an insightful thought on the key areas of budget presentation by the President in tackling the energy problem which has slowed the economy down for decades. We examined the Government’s ingenious idea of raising capital for expanding the power frontier through green bond expected to take root this year and how that serves as great investments and opportunities for insurance industry. This edition also looks at trending stories and issues of gender pay gap and you can contribute through #knowyourworth, which will continue to feature salient stories on women-in-business and workplace issues. We also feature the financial highlight of Regency Alliance Insurance Plc and how it has been living up to its mantra of ‘we earn your trust’ and how exhibiting the trust has helped many of its clients cope in the business place in a challenging economy. The segment also features our wins as two staff of the company bagged different awards for being the best in their professional exams while one was awarded an associate of the chattered Insurance Institute at the ceremony that took place in Lagos recently. It is an edition we hope you will enjoy as subsequent editions will continue to provide you with interesting pieces. The Editor EDIT ORIAL TEA M Temitope Olanrewaju Bayo Aluko Toyin Gbede EDITOR Ololade Adams Kayode Tejumola FEATURES Dupe Ashiegbu Friday Amaechi CONTRIBUTION DEPUTY EDITOR

FISTICUFFS pointed to Mr. A as being responsible for the accident. The policemen asked both men to bring their car papers and driving licenses. Whilst going through their papers, it was discovered that both Adebayo Aluko It was the end of the year. In this part of the men had third party insurance. Then I asked Mr. A why he fought when he had insurance. He world, it’s no surprise to see people travel responded haughtily “isn’t third party just so as to home for Christmas and New year stop police from disturbing me?” celebrations. Was he right? However, the pomp of the ceremony was faced with circumstances of traffic jam due to many people What insurance policy is in itself, sufficient enough travelling in and out of Lagos. There was also the fuel to have prevented the men from fighting? scarcity which has led to lots of traffic on our roads, making this season a lot more difficult to enjoy. But, Third Party Motor Insurance: This insurance policy you can trust Nigerians , nothing is big enough to provides cover for damage to third parties property hinder us from having fun. The scarcity has not and injury or death to such third parties. The benefit prevented us from making plans to travel. for third party property damage (including car, buildings, etc.) is to a maximum limit of N1,000,000. The fateful day of my journey, just few minutes’ drive from reaching the Lagos-Ibadan Express Way, I This is the policy popularly sold for N5,000. faced the longest standstill. After about 30 minutes of no movement, I decided to take a walk to see the Comprehensive Cover on the other hand provides cause of the gridlock. cover for the insured vehicle against the following: accidental damage to the insured vehicle, covers There it was, a very embarrassing sight. loss or damage to the insured vehicle by fire or theft, malicious damage to the vehicle and insured’s Two adult males, corporately dressed, engaged in a legal liability to third parties in respect of any fist fight beside two cars: A 2012 Toyota Corolla and a damages to the property of such third parties and 2013 Nissan Almera; both badly damaged from a for any injury or death to the third parties arising head-on collision. In the cars were little kids from the use of the motor vehicle. shedding tears: in one a little girl not older than 7; in the other, two boys who looked like they attend a All said and done, Mr. A’s N5,000 policy is sufficient crèche. enough to repair Mr. B’s car. If only Mr. A had placated Mr. B and called his insurance company, The crowd was able to pull the fighting men apart. he would not have had to end in a fist fight, causing Then some policemen came to the scene of the many people, including myself to get to our home fight. After a series of questioning, evidences towns late that day.

So You Just Bought a $450 Million Leonardo da Vinci Painting. Now What? The Lawyer Once you get a work like Salvator Mundi out of the From decoy trucks (yes, really) to tax wizardry, auction house, you must figure out where to ship it. That’s where a lawyer comes in. He or she will limit your here's what happens after you win the most tax liability and make sure you don’t get stung by expensive painting in auction history. restrictive export regulations. It’s not hard to imagine a feature film based on the As John Cahill, who founded his own firm after serving $450 million sale of Leonardo da Vinci‘s Salvator Mundi as general counsel for auctioneer Phillips de Pury & (c. 1500). In the movie version of the event, as soon as Co., notes, if you ship the painting to Italy, you’ll have a the hammer comes down, the auction house sends hard time getting it out again. (Because Leonardo is out decoy trucks and spreads disinformation on the Italian, Salvator Mundi would be considered a piece And both Hornby and Derek Jones, executive director “one piece of a much larger collection and it can get dark web to thwart potential gangsters waiting to seize of cultural heritage, making any future export difficult.) of art mover Atelier, concur: Yes, you run decoy trucks rolled into that policy. The change in exposure is not the work for their mobbed-up bosses. Other countries, such as the UK, have other restrictions, to add protection in a case like the Leonardo. going to be completely out of bounds for the rest of which require a buyer to allow the government to “It’s not unusual to have a complete communication the collection.” The reality is far more mundane—but no less complex. match a work’s sale price before he or she can sell it blackout,” Hornby says, “so only one or two people For a private collector who owns a number of works, a (Don’t worry, it still involves decoy trucks.) There are outside the country. know the exact plan.” Final details of the shipping route blanket policy may also apply, though security and numerous practical matters to consider, like packing, may be made very late in the game to maximize climate control will be more difficult to guarantee shipping, insurance, and tax liability. So, as soon the Another data point in determining where to put your security. Other precautions could involve booking outside of a controlled environment like a museum. winning bid comes in, a host of legal and logistical Leonardo: taxes. If you want to enjoy your Renaissance multiple flights and even making decoy shipments of All of this presumes, however, that the buyer plans to procedures are set in motion. With more and more treasure in your New York apartment, you would have similarly sized artworks at the same time. get insurance in the first place. In what is likely to send works commanding eight- and nine-figure prices at to pay New York sales tax—which would run you The extra security escorts, which both shippers a chill up the spine of art lovers the world over, auction—including a $110 million Basquiat this past around $36 million, estimates Cahill. acknowledge would be on duty, would be highly Buchanan says the high-end insurer’s “greatest spring and a $179 million Picasso in 2015—the stakes discreet, so that the average Joe wouldn’t be able to competition” is “self-insurance”—i.e., no policy at all. have never been higher when it comes to handling If you buy a work of art in one state and live in another, tell the difference between a routine shipment and a This concern applies to a case like Salvator Mundi, pricey works. you would also have to pay what’s called “use tax.” But top-value delivery. which is the last work by Leonardo on the private some buyers have found creative ways to avoid that. The truck that transports the work would also be market and, therefore, legitimately impossible to We spoke to a handful of experts—a lawyer, an insurer, When collector Elaine Wynn bought a Francis Bacon state-of-the-art, outfitted with shock absorbers that replace. two shippers, and an art storage expert—to find out for $142.4 million in 2013, she parked it at the Jordan operate with air bag technology, not old-fashioned “We sometimes see people who can afford to what happens after the lights in the sale room go down Schnitzer Museum of Art in Eugene, Oregon, before springs, as well as climate control, GPS tracking, and purchase something like this,” Buchanan explains, “but and the champagne bottles are empty. All said they taking it home. The loan saved her some $11 million in alarm systems. they could afford to live without it if something had no direct personal knowledge of the Leonardo, use taxes, reported the New York Times. Two drivers—who, at both companies, also happen to happened.” but are intimately familiar with how to handle be trained art handlers—would be on hand in case high-profile transactions. “People from California can park things in Oregon and one of them needed backup. The loading area would The Storage Expert Arizona without paying use tax,” Cahill said. But provide proper light levels and protection from UV If you decide to go without insurance for your “without knocking those states at all, not every exposure. And the crate that contains the work would Leonardo, there will be one hitch: You’ll have trouble museum could deal with the crowds the Leonardo also be high-tech, with a robust wood hybrid exterior storing it. Steve Novenstein, the CEO of state-of-the-art would bring or the security it would require.” and a vapor barrier inside that resists dampness. storage facility UOVO in Long Island City, Queens, said his company would require proof of insurance before Is it possible that lawyerly magic could make it worth a The Insurer agreeing to house such a painting. collector’s while to donate Salvator Mundi to a Now that you have your Leonardo heading to a secure Other considerations include transportation and museum? Though the tax breaks for art donations in location, you need to make sure it’s protected along condition: “Who is packing it? Who did the last the US have been chipped away over the years, some the way. But who wants to assume the risk of insuring a condition report? When are we doing the condition benefits remain. $400 million work of art that is, literally, irreplaceable? report? How is it crated and who is doing the crates? No one, that’s who. Who is doing the packing and where exactly is it going To get the full deduction, Cahill says, the donor would With an object like Salvator Mundi, the buyer will in our facility?” need an income of $190 million, and if he or she probably end up with an arrangement known as a Beyond that, UOVO, whose founders have a real wanted to take the full deduction in one year, they “quota share,” says Kate Buchanan, vice president of estate background, make sure to implement would need an income of $960 million. But if you just Huntington T. Block Insurance Agency. top-of-the-line security, including biometric features dropped $450 million on a painting, you may well be in “Basically, you split the percentage of premium with all and motion-activated cameras. that very tax bracket. these insurers so they all have a piece of it, and then Before we proceed further in discussions of the you also split the losses,” she explains. “So if you get 20 process, Novenstein wants to make one thing clear. The Shipper insurers to go in on it, each takes a certain percentage “We‘re not storing this piece,” he says. “I just want to Once you work out a game plan with your lawyer, of the premium. If there is, god forbid, even a partial make sure you know that.” you’ll need to get your work from point A to point B. loss, they’ll each take their piece. It spreads the risk out.” But as any savvy consumer in the world of And that’s where things start getting risky. Most insurers Buchanan says a key part of insuring the work also ultra-high-value art knows: Isn’t that what you would will agree that “the majority of claims arise from revolves around who owns it and is obtaining the say regardless? transporting artworks,” says Simon Hornby, president of policy. For a large museum, the Leonardo would be art shipper Crozier,

The Lawyer Once you get a work like Salvator Mundi out of the auction house, you must figure out where to ship it. That’s where a lawyer comes in. He or she will limit your tax liability and make sure you don’t get stung by restrictive export regulations. It’s not hard to imagine a feature film based on the As John Cahill, who founded his own firm after serving $450 million sale of Leonardo da Vinci‘s Salvator Mundi as general counsel for auctioneer Phillips de Pury & (c. 1500). In the movie version of the event, as soon as Co., notes, if you ship the painting to Italy, you’ll have a the hammer comes down, the auction house sends hard time getting it out again. (Because Leonardo is out decoy trucks and spreads disinformation on the Italian, Salvator Mundi would be considered a piece And both Hornby and Derek Jones, executive director “one piece of a much larger collection and it can get dark web to thwart potential gangsters waiting to seize of cultural heritage, making any future export difficult.) of art mover Atelier, concur: Yes, you run decoy trucks rolled into that policy. The change in exposure is not the work for their mobbed-up bosses. Other countries, such as the UK, have other restrictions, to add protection in a case like the Leonardo. going to be completely out of bounds for the rest of which require a buyer to allow the government to “It’s not unusual to have a complete communication the collection.” The reality is far more mundane—but no less complex. match a work’s sale price before he or she can sell it blackout,” Hornby says, “so only one or two people For a private collector who owns a number of works, a (Don’t worry, it still involves decoy trucks.) There are outside the country. know the exact plan.” Final details of the shipping route blanket policy may also apply, though security and numerous practical matters to consider, like packing, may be made very late in the game to maximize climate control will be more difficult to guarantee shipping, insurance, and tax liability. So, as soon the Another data point in determining where to put your security. Other precautions could involve booking outside of a controlled environment like a museum. winning bid comes in, a host of legal and logistical Leonardo: taxes. If you want to enjoy your Renaissance multiple flights and even making decoy shipments of All of this presumes, however, that the buyer plans to procedures are set in motion. With more and more treasure in your New York apartment, you would have similarly sized artworks at the same time. get insurance in the first place. In what is likely to send works commanding eight- and nine-figure prices at to pay New York sales tax—which would run you The extra security escorts, which both shippers a chill up the spine of art lovers the world over, auction—including a $110 million Basquiat this past around $36 million, estimates Cahill. acknowledge would be on duty, would be highly Buchanan says the high-end insurer’s “greatest spring and a $179 million Picasso in 2015—the stakes discreet, so that the average Joe wouldn’t be able to competition” is “self-insurance”—i.e., no policy at all. have never been higher when it comes to handling If you buy a work of art in one state and live in another, tell the difference between a routine shipment and a This concern applies to a case like Salvator Mundi, pricey works. you would also have to pay what’s called “use tax.” But top-value delivery. which is the last work by Leonardo on the private some buyers have found creative ways to avoid that. The truck that transports the work would also be market and, therefore, legitimately impossible to We spoke to a handful of experts—a lawyer, an insurer, When collector Elaine Wynn bought a Francis Bacon state-of-the-art, outfitted with shock absorbers that replace. two shippers, and an art storage expert—to find out for $142.4 million in 2013, she parked it at the Jordan operate with air bag technology, not old-fashioned “We sometimes see people who can afford to what happens after the lights in the sale room go down Schnitzer Museum of Art in Eugene, Oregon, before springs, as well as climate control, GPS tracking, and purchase something like this,” Buchanan explains, “but and the champagne bottles are empty. All said they taking it home. The loan saved her some $11 million in alarm systems. they could afford to live without it if something had no direct personal knowledge of the Leonardo, use taxes, reported the New York Times. Two drivers—who, at both companies, also happen to happened.” but are intimately familiar with how to handle be trained art handlers—would be on hand in case high-profile transactions. “People from California can park things in Oregon and one of them needed backup. The loading area would The Storage Expert Arizona without paying use tax,” Cahill said. But provide proper light levels and protection from UV If you decide to go without insurance for your “without knocking those states at all, not every exposure. And the crate that contains the work would Leonardo, there will be one hitch: You’ll have trouble museum could deal with the crowds the Leonardo also be high-tech, with a robust wood hybrid exterior storing it. Steve Novenstein, the CEO of state-of-the-art would bring or the security it would require.” and a vapor barrier inside that resists dampness. storage facility UOVO in Long Island City, Queens, said his company would require proof of insurance before Is it possible that lawyerly magic could make it worth a The Insurer agreeing to house such a painting. collector’s while to donate Salvator Mundi to a Now that you have your Leonardo heading to a secure Other considerations include transportation and museum? Though the tax breaks for art donations in location, you need to make sure it’s protected along condition: “Who is packing it? Who did the last the US have been chipped away over the years, some the way. But who wants to assume the risk of insuring a condition report? When are we doing the condition benefits remain. $400 million work of art that is, literally, irreplaceable? report? How is it crated and who is doing the crates? No one, that’s who. Who is doing the packing and where exactly is it going To get the full deduction, Cahill says, the donor would With an object like Salvator Mundi, the buyer will in our facility?” need an income of $190 million, and if he or she probably end up with an arrangement known as a Beyond that, UOVO, whose founders have a real wanted to take the full deduction in one year, they “quota share,” says Kate Buchanan, vice president of estate background, make sure to implement would need an income of $960 million. But if you just Huntington T. Block Insurance Agency. top-of-the-line security, including biometric features dropped $450 million on a painting, you may well be in “Basically, you split the percentage of premium with all and motion-activated cameras. that very tax bracket. these insurers so they all have a piece of it, and then Before we proceed further in discussions of the you also split the losses,” she explains. “So if you get 20 process, Novenstein wants to make one thing clear. The Shipper insurers to go in on it, each takes a certain percentage “We‘re not storing this piece,” he says. “I just want to Once you work out a game plan with your lawyer, of the premium. If there is, god forbid, even a partial make sure you know that.” you’ll need to get your work from point A to point B. loss, they’ll each take their piece. It spreads the risk out.” But as any savvy consumer in the world of And that’s where things start getting risky. Most insurers Buchanan says a key part of insuring the work also ultra-high-value art knows: Isn’t that what you would will agree that “the majority of claims arise from revolves around who owns it and is obtaining the say regardless? transporting artworks,” says Simon Hornby, president of policy. For a large museum, the Leonardo would be art shipper Crozier, culled from the net.

INSURANCE: The listing of bonds in the market will hopefully This latest government effort is expected to bring some which can make probable maximum losses easi COVER STORY reach a billion dollars if there is a major triggers a business interruption. continue through 2018 as government make true its exponential growth in green energy should the intention in financing green projects focusing on government keep to its promise in this wise. This means Solar and probably wind power projects in pa the insurance sector will have to come up with renewable energy projects and just as the President will become larger in scale and will continu expertise in the areas of green energy underwriting excitedly expressed optimism that this will in the long from insurance companies must be thought thr especially in the hinterland of the country where plants and associated risks. AND THE EMERGING POWER run solve many of the country’s energy challenges, especially in renewable technology involving power in the future. Their risks will also grow, a providing tailor-made renewable energy ins reliance on the conventional gas based thermal plant that econom matches Nigeria solutions electricity generation had posed huge challenges Nigeria is not the first on Africa continent to seek EQUATION IN NIGERIA which would require billions of dollars of investments in alternative green energy as energy needs continue to environment. which will be better if insura companies can train and raise expertise in r gas pipeline to site gas to power plants. grow in sub-Sahara Africa. Kenya and South Africa are engineering risks solutions and weather insu already looking at this as a means of satisfying the This focus of this piece is to draw the attention of the growing consumption or producing energy mix for provide sufficient homemade underwriting Temitope Olanrewaju insurance industry and other stakeholders to the sustainability. The Kenya Energy Regulatory Existing policies include policy product l INTRODUCTION sufficient growth incentives that could drive long held hurdles and opportunities in this emerging energy Commission reported a power generation of 1,434MW supports risk analysis, structuring and ex “Certainly, the infrastructure requirement to dreams of getting Nigerians out of poverty. Recently, sector for the insurance industry not only as its from renewable sources largely from Geothermal , RESPONDING TO THE INSURANCE NEEDS OF THE insurance operators is in understanding the different supply management in hydro, wind and so reposition Nigeria for the future is huge and our Nigeria was named to overtake India as the custodian contribution to national development but as an hydro and wind power while South Africa, in a March RENEWABLE ENERGY SECTOR dimensions to these associated risk and fashioning out demand management in heating and cooling, resources are limited. Government, therefore, of highest number of poor people in the world, and so avenue to deepen its insurance penetration and 2017 debate on renewable energy by South African The fact remains that there is high possibility of appropriate suitable cover for them. operational risks and plant cooling, promoti will pursue private partnerships to maximize one cannot agree more on seeking such private enhance its GPI to GDP ratio which is comparatively National Energy Association showed that 3.1Gigawatt exponential growth when this finally comes onstream and budget management. available capital and developmental impact.” sector participation in infrastructural growth to support lower than other significant sectors of the economy. of electricity came through wind, solar considering the growth rate in those other African Compared to conventional energy infrastructure envisaged economic growth. Photovoltaic(PV) and concentrated solar power(CSP) countries and peculiar needs in our country. The projects, Renewable Energy projects have relatively European insurers with experience in thi Renewable Energy or Green Energy as it is often compared to 467MW in 2013, a 6.5times growth rate in accustomed to the challenges of major techni With these words, the President of Nigeria, during the The President was specific on the government’s target termed plays an important role in the transition to a low three years according to the South African Nigerian Electricity Regulatory Commission (NERC) lower operational and Maintenance (O&M) cost after in which underwriters find themselves ma 2018 budget presentation, told the parliament of programs in the coming year bringing the attention of carbon economy and the provision of a secure supply Department of Energy in 2016. The Council for says it is committed to stimulating investment in the initial investment in the manufacture and projects based on often prototypical techno government’s intention to seek private sector’s the lawmakers to some key projects and programs of clean energy. This has been at the heart of the Scientific and Industrial Research(CSIR) which renewable energy generation in Nigeria reckoning the installation of the equipment. Photovoltaic, Wind and unusual settings, requiring renewable ene participation in financing its infrastructural deficit to that would drive the intentions of his regime’s clamor by Environmental activist for bio-friendly participated in the event in Sandston posited that vast and mostly untapped potential in renewable Waves based technologies for instance, are often insurance products that must be just as i drive the economy which has suffered through lack of energy resources. Information available on its website dependent on weather patterns which create determination of bringing democratic dividend to environment and agitation against climate change. renewable energy remains the least cost option as indicates that the Commission has set a target of uncertainties to project completion. Being usually designed for projects which could be based Nigerians. Renewable Energy projects are based on different well as being the cleanest electricity generating generating a minimum of 2,000MW of electricity from modular in nature, grid connection and other technological model that will constantly kinds of specialized technologies which range from technology available today. The global electricity renewables by the year 2020. However, that was before enabling construction cost are relatively lower with innovation in this sector envisaged to pr POWER In focusing on possibly the most pressing need of the Solar Thermal Technologies, Photovoltaic Technologies; supply has grown from 57GW in 2015 to 70GW in 2016. the latest government position on renewable power capability for higher scalability. Biomass Technologies; Wind Energy; Geothermal The successes recorded in South African, Morocco country one of which is provision of adequate power INSURANCE supply, the President spoke glowingly on rather an Plants; Hydroelectric as well as Wave and Tidal Stream and Kenya amongst other sub-Saharan African at a faster rate. From the Business and Financial Risk perspective: sources and this is expected to drive growth expectedly countries may be an a good reference point to the Devices. Although the full technical details of any of unconventional rhetoric of investing in renewable Business Interruption/Delay in Start Up, Cost-Overrun, these Renewable Energy technologies to be fact that if the Nigerian government’s current initiative energy through a Federal Government first of its kind in Counter Party Funding risk; Credit Risk The development of new streams of energy has not embarked on by the Federal government based on through the raising of financial instruments that Africa Sovereign Green Bond effective from December 2017. The green bond roadshow for Construction risk, Transportation, Operating Material As desirable as the benefits of Renewable Energy are is well followed through, it can guarantee a disclosed, there is no doubt that it will not only be a financing green programs actually started on Monday their relative comparative advantage is not yet focuses investments on renewable energy technology been without some hurdles in many African countries. Technical/Technological: Design, Manufacturing and Damage All Risk; Technological Obsolesce Risk; to the economy and national development, the 18th December 2017 with a N10.69 billion to finance valuable introduction into the Energy mix to improve breakthrough in the energy sector. A recent case in underlining technology is associated with diverse risk Machinery Breakdown risk distinct environmentally friendly projects. This piece is current power supply, but also improve access and point was the successful completion and and challenges, some of which can be managed Socio-Political: Legal and Liability; Regulatory and not intended to discuss the performance or otherwise affordability of electricity especially in the hinter lands. commissioning of Nigeria’s first project-financed using bespoke insurance solutions while others require Resource Control/Permit Risk of such instruments, but the focus is the idea behind The notion of green or renewable energy is not entirely independent power plant – the 459 megawatts (MW) alternative risk management approach. The United Environment – Natural Hazards, Weather Risk, Soil this laudable intention and how such will help in new in Nigeria as a notable solar energy innovation capacity Azura-Edo power plant ahead of completion States Oversea Private Investments Corporation Condition, Maritime Risk etc. economic growth and sustainability. was installed by Total Nigeria Plc at its refurbished T-air schedule which demonstrates further that the (USOPIC) and the United States Trade and service station in Onigbagbo, Mobolaji Bank- Anthony opportunities in the energy sector remains attractive to Development Agency (USTDA) who have participated Apart from this pre-designed and constructions ‘The listing of bonds in Way, Ikeja, Lagos in June 2014 which was a Solar potential private investors. in micro renewable power generation in some hurdles, there are risks associated with the various Powered Service Station and was the first of its kind in SECURITY the market will both Nigeria and the West African sub-region. The sub-Sahara African countries already identified and stages of construction, operational and post operation. With immediate focus more likely to be on stated such hinderances as the lack of engineering, station is equipped with SunPower solar panels which hopefully continue the company said was the most efficient solar panels geotechnical or environmental impact studies in some solar power projects in Nigeria considering abundant sunlight as stated by the president, the insurance countries while in others, it has been the cost of legal through 2018 as manufactured in the world. Being a more research or advisory services on complex tax issues. companies must begin to position themselves in environmentally friendly station, it features Zero However, USOPIC observed that once these key early emerging such risks. underwriting Insurance government make true emissions of Harmful Greenhouse Gases, Zero Noise hurdles are sorted, the projects often prove viable and companies, brokers and underwriters alike as well as pollution, and a renewable energy source other stakeholders must begin to include as part of can attract long-term investors with some level of its intention in The company believes that such innovation drives success recorded in such country as Tanzania in areas their Strategy and business models; new hires, trainings nancing green down the cost of doing business leading to ensuring of micro energy supply. and exposures of existing staff in areas that will promote local insurers know how in key risk areas further investments for economic growth and projects focusing on development. In addition to this landmark prototype Beyond that, it is imperative to appreciate some especially in engineering risk and storage technology inherent risk that are peculiar to Renewable Energy to retain most of the insurance capital within the renewable energy technology by Total Nigeria Plc, there are also very projects as compared to other conventional energy or economy. many ubiquitous domestic installations scattered all infrastructural projects. These could be Financial, projects’ over the country. Technical, Social and Political and other Risks range from natural hazards, mechanical Environmental. The challenge therefore with the breakdowns and even serial losses to gear boxes and foundations have been identified in existing covers

which can make probable maximum losses easily underwriters to improvise in providing customised The listing of bonds in the market will hopefully This latest government effort is expected to bring some reach a billion dollars if there is a major damage that coverages. For instance, Ellon Musk of Tesla recently continue through 2018 as government make true its exponential growth in green energy should the triggers a business interruption. delivered a 150mw of electricity storage system for intention in financing green projects focusing on government keep to its promise in this wise. This means wind power plant in Australia, prompting the belief renewable energy projects and just as the President the insurance sector will have to come up with Solar and probably wind power projects in particular that we are having a new generation of power excitedly expressed optimism that this will in the long expertise in the areas of green energy underwriting will become larger in scale and will continue to grow storage technology for renewable energy which has run solve many of the country’s energy challenges, especially in renewable technology involving power in the future. Their risks will also grow, and responses been the core areas of challenge but with the Tesla especially in the hinterland of the country where plants and associated risks. from insurance companies must be thought through success or seemingly success, the future of the most reliance on the conventional gas based thermal plant providing tailor-made renewable energy insurance challenging area in renewable energy will open new electricity generation had posed huge challenges Nigeria is not the first on Africa continent to seek solutions that matches Nigeria economic frontier that will change the way we harness benefits which would require billions of dollars of investments in alternative green energy as energy needs continue to environment. which will be better if insurance from the environment and change the way we live gas pipeline to site gas to power plants. grow in sub-Sahara Africa. Kenya and South Africa are companies can train and raise expertise in renewable over the next century while the future growth could see already looking at this as a means of satisfying the engineering risks solutions and weather insurance to a huge capital accumulation for insurance This focus of this piece is to draw the attention of the growing consumption or producing energy mix for provide sufficient homemade underwriting solution. companies in the developing economies. insurance industry and other stakeholders to the sustainability. The Kenya Energy Regulatory Existing policies include policy product line that INTRODUCTION sufficient growth incentives that could drive long held hurdles and opportunities in this emerging energy Commission reported a power generation of 1,434MW supports risk analysis, structuring and execution for As an Insurance underwriting company, our “Certainly, the infrastructure requirement to dreams of getting Nigerians out of poverty. Recently, sector for the insurance industry not only as its from renewable sources largely from Geothermal , RESPONDING TO THE INSURANCE NEEDS OF THE insurance operators is in understanding the different supply management in hydro, wind and solar, company’s business model is constantly being reposition Nigeria for the future is huge and our Nigeria was named to overtake India as the custodian contribution to national development but as an hydro and wind power while South Africa, in a March RENEWABLE ENERGY SECTOR dimensions to these associated risk and fashioning out demand management in heating and cooling, streamlined to take advantage of emerging resources are limited. Government, therefore, of highest number of poor people in the world, and so avenue to deepen its insurance penetration and 2017 debate on renewable energy by South African The fact remains that there is high possibility of appropriate suitable cover for them. operational risks and plant cooling, promotional tools opportunities in the market. We recognize the will pursue private partnerships to maximize one cannot agree more on seeking such private enhance its GPI to GDP ratio which is comparatively National Energy Association showed that 3.1Gigawatt exponential growth when this finally comes onstream and budget management. opportunities inherent in the government’s new initiatives and quest for accelerated investment in the available capital and developmental impact.” sector participation in infrastructural growth to support lower than other significant sectors of the economy. of electricity came through wind, solar considering the growth rate in those other African Compared to conventional energy infrastructure envisaged economic growth. Photovoltaic(PV) and concentrated solar power(CSP) countries and peculiar needs in our country. The projects, Renewable Energy projects have relatively European insurers with experience in this field power sector and have therefore deployed the right Renewable Energy or Green Energy as it is often compared to 467MW in 2013, a 6.5times growth rate in accustomed to the challenges of major technical risks strategies that will position the company as a major With these words, the President of Nigeria, during the The President was specific on the government’s target termed plays an important role in the transition to a low three years according to the South African Nigerian Electricity Regulatory Commission (NERC) lower operational and Maintenance (O&M) cost after in which underwriters find themselves manage player in the sector. Our strategy involve trainings and 2018 budget presentation, told the parliament of programs in the coming year bringing the attention of carbon economy and the provision of a secure supply Department of Energy in 2016. The Council for says it is committed to stimulating investment in the initial investment in the manufacture and projects based on often prototypical technology in skill acquisition through strong global technical government’s intention to seek private sector’s the lawmakers to some key projects and programs of clean energy. This has been at the heart of the Scientific and Industrial Research(CSIR) which renewable energy generation in Nigeria reckoning the installation of the equipment. Photovoltaic, Wind and unusual settings, requiring renewable energy sector alliances that will effectively respond to the critical skill participation in financing its infrastructural deficit to that would drive the intentions of his regime’s clamor by Environmental activist for bio-friendly participated in the event in Sandston posited that vast and mostly untapped potential in renewable Waves based technologies for instance, are often insurance products that must be just as intricately gaps in order to deliver specialized services to our drive the economy which has suffered through lack of energy resources. Information available on its website dependent on weather patterns which create determination of bringing democratic dividend to environment and agitation against climate change. renewable energy remains the least cost option as indicates that the Commission has set a target of uncertainties to project completion. Being usually designed for projects which could be based on the clients across existing and emerging risk areas. Nigerians. Renewable Energy projects are based on different well as being the cleanest electricity generating generating a minimum of 2,000MW of electricity from modular in nature, grid connection and other technological model that will constantly drive kinds of specialized technologies which range from technology available today. The global electricity renewables by the year 2020. However, that was before enabling construction cost are relatively lower with innovation in this sector envisaged to prompt Temitope Olanrewaju is of the ERM/Corporate planning Department. In focusing on possibly the most pressing need of the Solar Thermal Technologies, Photovoltaic Technologies; supply has grown from 57GW in 2015 to 70GW in 2016. the latest government position on renewable power capability for higher scalability. country one of which is provision of adequate power Biomass Technologies; Wind Energy; Geothermal The successes recorded in South African, Morocco sources and this is expected to drive growth expectedly supply, the President spoke glowingly on rather an Plants; Hydroelectric as well as Wave and Tidal Stream and Kenya amongst other sub-Saharan African at a faster rate. From the Business and Financial Risk perspective: unconventional rhetoric of investing in renewable Devices. Although the full technical details of any of countries may be an a good reference point to the Business Interruption/Delay in Start Up, Cost-Overrun, energy through a Federal Government first of its kind in these Renewable Energy technologies to be fact that if the Nigerian government’s current initiative The development of new streams of energy has not Counter Party Funding risk; Credit Risk Africa Sovereign Green Bond effective from embarked on by the Federal government based on through the raising of financial instruments that been without some hurdles in many African countries. Technical/Technological: Design, Manufacturing and December 2017. The green bond roadshow for their relative comparative advantage is not yet focuses investments on renewable energy technology As desirable as the benefits of Renewable Energy are Construction risk, Transportation, Operating Material financing green programs actually started on Monday disclosed, there is no doubt that it will not only be a is well followed through, it can guarantee a to the economy and national development, the Damage All Risk; Technological Obsolesce Risk; 18th December 2017 with a N10.69 billion to finance valuable introduction into the Energy mix to improve breakthrough in the energy sector. A recent case in underlining technology is associated with diverse risk Machinery Breakdown risk distinct environmentally friendly projects. This piece is current power supply, but also improve access and point was the successful completion and and challenges, some of which can be managed Socio-Political: Legal and Liability; Regulatory and not intended to discuss the performance or otherwise affordability of electricity especially in the hinter lands. commissioning of Nigeria’s first project-financed using bespoke insurance solutions while others require Resource Control/Permit Risk of such instruments, but the focus is the idea behind The notion of green or renewable energy is not entirely independent power plant – the 459 megawatts (MW) alternative risk management approach. The United Environment – Natural Hazards, Weather Risk, Soil this laudable intention and how such will help in new in Nigeria as a notable solar energy innovation capacity Azura-Edo power plant ahead of completion States Oversea Private Investments Corporation Condition, Maritime Risk etc. economic growth and sustainability. was installed by Total Nigeria Plc at its refurbished T-air schedule which demonstrates further that the (USOPIC) and the United States Trade and service station in Onigbagbo, Mobolaji Bank- Anthony opportunities in the energy sector remains attractive to Development Agency (USTDA) who have participated Apart from this pre-designed and constructions Way, Ikeja, Lagos in June 2014 which was a Solar potential private investors. in micro renewable power generation in some hurdles, there are risks associated with the various Powered Service Station and was the first of its kind in sub-Sahara African countries already identified and stages of construction, operational and post both Nigeria and the West African sub-region. The stated such hinderances as the lack of engineering, operation. With immediate focus more likely to be on station is equipped with SunPower solar panels which geotechnical or environmental impact studies in some solar power projects in Nigeria considering abundant the company said was the most efficient solar panels countries while in others, it has been the cost of legal sunlight as stated by the president, the insurance manufactured in the world. Being a more research or advisory services on complex tax issues. companies must begin to position themselves in environmentally friendly station, it features Zero However, USOPIC observed that once these key early underwriting such emerging risks. Insurance emissions of Harmful Greenhouse Gases, Zero Noise hurdles are sorted, the projects often prove viable and companies, brokers and underwriters alike as well as pollution, and a renewable energy source can attract long-term investors with some level of other stakeholders must begin to include as part of success recorded in such country as Tanzania in areas their Strategy and business models; new hires, trainings The company believes that such innovation drives of micro energy supply. and exposures of existing staff in areas that will down the cost of doing business leading to ensuring promote local insurers know how in key risk areas further investments for economic growth and Beyond that, it is imperative to appreciate some especially in engineering risk and storage technology development. In addition to this landmark prototype inherent risk that are peculiar to Renewable Energy to retain most of the insurance capital within the technology by Total Nigeria Plc, there are also very projects as compared to other conventional energy or economy. many ubiquitous domestic installations scattered all infrastructural projects. These could be Financial, over the country. Technical, Social and Political and other Risks range from natural hazards, mechanical Environmental. The challenge therefore with the breakdowns and even serial losses to gear boxes and Babatunde Raji Fashola, inspecting a power generation project foundations have been identified in existing covers

which can make probable maximum losses easily underwriters to improvise in providing customised The listing of bonds in the market will hopefully This latest government effort is expected to bring some reach a billion dollars if there is a major damage that coverages. For instance, Ellon Musk of Tesla recently continue through 2018 as government make true its exponential growth in green energy should the triggers a business interruption. delivered a 150mw of electricity storage system for intention in financing green projects focusing on government keep to its promise in this wise. This means wind power plant in Australia, prompting the belief renewable energy projects and just as the President the insurance sector will have to come up with Solar and probably wind power projects in particular that we are having a new generation of power excitedly expressed optimism that this will in the long expertise in the areas of green energy underwriting will become larger in scale and will continue to grow storage technology for renewable energy which has run solve many of the country’s energy challenges, especially in renewable technology involving power in the future. Their risks will also grow, and responses been the core areas of challenge but with the Tesla especially in the hinterland of the country where plants and associated risks. from insurance companies must be thought through success or seemingly success, the future of the most reliance on the conventional gas based thermal plant providing tailor-made renewable energy insurance challenging area in renewable energy will open new electricity generation had posed huge challenges Nigeria is not the first on Africa continent to seek solutions that matches Nigeria economic frontier that will change the way we harness benefits which would require billions of dollars of investments in alternative green energy as energy needs continue to environment. which will be better if insurance from the environment and change the way we live gas pipeline to site gas to power plants. grow in sub-Sahara Africa. Kenya and South Africa are companies can train and raise expertise in renewable over the next century while the future growth could see already looking at this as a means of satisfying the engineering risks solutions and weather insurance to a huge capital accumulation for insurance This focus of this piece is to draw the attention of the growing consumption or producing energy mix for provide sufficient homemade underwriting solution. companies in the developing economies. insurance industry and other stakeholders to the sustainability. The Kenya Energy Regulatory Existing policies include policy product line that INTRODUCTION sufficient growth incentives that could drive long held hurdles and opportunities in this emerging energy Commission reported a power generation of 1,434MW Solar farm in China A wind-farm near Atlanta supports risk analysis, structuring and execution for As an Insurance underwriting company, our “Certainly, the infrastructure requirement to dreams of getting Nigerians out of poverty. Recently, sector for the insurance industry not only as its from renewable sources largely from Geothermal , RESPONDING TO THE INSURANCE NEEDS OF THE insurance operators is in understanding the different supply management in hydro, wind and solar, company’s business model is constantly being reposition Nigeria for the future is huge and our Nigeria was named to overtake India as the custodian contribution to national development but as an hydro and wind power while South Africa, in a March RENEWABLE ENERGY SECTOR dimensions to these associated risk and fashioning out demand management in heating and cooling, streamlined to take advantage of emerging resources are limited. Government, therefore, of highest number of poor people in the world, and so avenue to deepen its insurance penetration and 2017 debate on renewable energy by South African The fact remains that there is high possibility of appropriate suitable cover for them. operational risks and plant cooling, promotional tools opportunities in the market. We recognize the will pursue private partnerships to maximize one cannot agree more on seeking such private enhance its GPI to GDP ratio which is comparatively National Energy Association showed that 3.1Gigawatt exponential growth when this finally comes onstream and budget management. opportunities inherent in the government’s new initiatives and quest for accelerated investment in the available capital and developmental impact.” sector participation in infrastructural growth to support lower than other significant sectors of the economy. of electricity came through wind, solar considering the growth rate in those other African Compared to conventional energy infrastructure envisaged economic growth. Photovoltaic(PV) and concentrated solar power(CSP) countries and peculiar needs in our country. The projects, Renewable Energy projects have relatively European insurers with experience in this field power sector and have therefore deployed the right Renewable Energy or Green Energy as it is often compared to 467MW in 2013, a 6.5times growth rate in accustomed to the challenges of major technical risks strategies that will position the company as a major With these words, the President of Nigeria, during the The President was specific on the government’s target termed plays an important role in the transition to a low three years according to the South African Nigerian Electricity Regulatory Commission (NERC) lower operational and Maintenance (O&M) cost after in which underwriters find themselves manage player in the sector. Our strategy involve trainings and 2018 budget presentation, told the parliament of programs in the coming year bringing the attention of carbon economy and the provision of a secure supply Department of Energy in 2016. The Council for says it is committed to stimulating investment in the initial investment in the manufacture and projects based on often prototypical technology in skill acquisition through strong global technical government’s intention to seek private sector’s the lawmakers to some key projects and programs of clean energy. This has been at the heart of the Scientific and Industrial Research(CSIR) which renewable energy generation in Nigeria reckoning the installation of the equipment. Photovoltaic, Wind and unusual settings, requiring renewable energy sector alliances that will effectively respond to the critical skill participation in financing its infrastructural deficit to that would drive the intentions of his regime’s clamor by Environmental activist for bio-friendly participated in the event in Sandston posited that vast and mostly untapped potential in renewable Waves based technologies for instance, are often insurance products that must be just as intricately gaps in order to deliver specialized services to our drive the economy which has suffered through lack of energy resources. Information available on its website dependent on weather patterns which create determination of bringing democratic dividend to environment and agitation against climate change. renewable energy remains the least cost option as indicates that the Commission has set a target of uncertainties to project completion. Being usually designed for projects which could be based on the clients across existing and emerging risk areas. Nigerians. Renewable Energy projects are based on different well as being the cleanest electricity generating generating a minimum of 2,000MW of electricity from modular in nature, grid connection and other technological model that will constantly drive kinds of specialized technologies which range from technology available today. The global electricity renewables by the year 2020. However, that was before enabling construction cost are relatively lower with innovation in this sector envisaged to prompt Temitope Olanrewaju is of the ERM/Corporate planning Department. In focusing on possibly the most pressing need of the Solar Thermal Technologies, Photovoltaic Technologies; supply has grown from 57GW in 2015 to 70GW in 2016. the latest government position on renewable power capability for higher scalability. country one of which is provision of adequate power Biomass Technologies; Wind Energy; Geothermal The successes recorded in South African, Morocco sources and this is expected to drive growth expectedly supply, the President spoke glowingly on rather an Plants; Hydroelectric as well as Wave and Tidal Stream and Kenya amongst other sub-Saharan African at a faster rate. From the Business and Financial Risk perspective: unconventional rhetoric of investing in renewable Devices. Although the full technical details of any of countries may be an a good reference point to the Business Interruption/Delay in Start Up, Cost-Overrun, energy through a Federal Government first of its kind in these Renewable Energy technologies to be fact that if the Nigerian government’s current initiative The development of new streams of energy has not Counter Party Funding risk; Credit Risk Africa Sovereign Green Bond effective from embarked on by the Federal government based on through the raising of financial instruments that been without some hurdles in many African countries. Technical/Technological: Design, Manufacturing and December 2017. The green bond roadshow for their relative comparative advantage is not yet focuses investments on renewable energy technology As desirable as the benefits of Renewable Energy are Construction risk, Transportation, Operating Material financing green programs actually started on Monday disclosed, there is no doubt that it will not only be a is well followed through, it can guarantee a to the economy and national development, the Damage All Risk; Technological Obsolesce Risk; 18th December 2017 with a N10.69 billion to finance valuable introduction into the Energy mix to improve breakthrough in the energy sector. A recent case in underlining technology is associated with diverse risk Machinery Breakdown risk distinct environmentally friendly projects. This piece is current power supply, but also improve access and point was the successful completion and and challenges, some of which can be managed Socio-Political: Legal and Liability; Regulatory and not intended to discuss the performance or otherwise affordability of electricity especially in the hinter lands. commissioning of Nigeria’s first project-financed using bespoke insurance solutions while others require Resource Control/Permit Risk of such instruments, but the focus is the idea behind The notion of green or renewable energy is not entirely independent power plant – the 459 megawatts (MW) alternative risk management approach. The United Environment – Natural Hazards, Weather Risk, Soil this laudable intention and how such will help in new in Nigeria as a notable solar energy innovation capacity Azura-Edo power plant ahead of completion States Oversea Private Investments Corporation Condition, Maritime Risk etc. economic growth and sustainability. was installed by Total Nigeria Plc at its refurbished T-air schedule which demonstrates further that the (USOPIC) and the United States Trade and service station in Onigbagbo, Mobolaji Bank- Anthony opportunities in the energy sector remains attractive to Development Agency (USTDA) who have participated Apart from this pre-designed and constructions Way, Ikeja, Lagos in June 2014 which was a Solar potential private investors. in micro renewable power generation in some hurdles, there are risks associated with the various Powered Service Station and was the first of its kind in sub-Sahara African countries already identified and stages of construction, operational and post both Nigeria and the West African sub-region. The stated such hinderances as the lack of engineering, operation. With immediate focus more likely to be on station is equipped with SunPower solar panels which geotechnical or environmental impact studies in some solar power projects in Nigeria considering abundant the company said was the most efficient solar panels countries while in others, it has been the cost of legal sunlight as stated by the president, the insurance manufactured in the world. Being a more research or advisory services on complex tax issues. companies must begin to position themselves in environmentally friendly station, it features Zero However, USOPIC observed that once these key early underwriting such emerging risks. Insurance emissions of Harmful Greenhouse Gases, Zero Noise hurdles are sorted, the projects often prove viable and companies, brokers and underwriters alike as well as pollution, and a renewable energy source can attract long-term investors with some level of other stakeholders must begin to include as part of success recorded in such country as Tanzania in areas their Strategy and business models; new hires, trainings The company believes that such innovation drives of micro energy supply. and exposures of existing staff in areas that will down the cost of doing business leading to ensuring promote local insurers know how in key risk areas further investments for economic growth and Beyond that, it is imperative to appreciate some especially in engineering risk and storage technology development. In addition to this landmark prototype inherent risk that are peculiar to Renewable Energy to retain most of the insurance capital within the technology by Total Nigeria Plc, there are also very projects as compared to other conventional energy or economy. many ubiquitous domestic installations scattered all infrastructural projects. These could be Financial, over the country. Technical, Social and Political and other Risks range from natural hazards, mechanical Environmental. The challenge therefore with the breakdowns and even serial losses to gear boxes and foundations have been identified in existing covers

which can make probable maximum losses easily underwriters to improvise in providing customised The listing of bonds in the market will hopefully This latest government effort is expected to bring some reach a billion dollars if there is a major damage that coverages. For instance, Ellon Musk of Tesla recently continue through 2018 as government make true its exponential growth in green energy should the triggers a business interruption. delivered a 150mw of electricity storage system for intention in financing green projects focusing on government keep to its promise in this wise. This means wind power plant in Australia, prompting the belief renewable energy projects and just as the President the insurance sector will have to come up with Solar and probably wind power projects in particular that we are having a new generation of power excitedly expressed optimism that this will in the long expertise in the areas of green energy underwriting will become larger in scale and will continue to grow storage technology for renewable energy which has run solve many of the country’s energy challenges, especially in renewable technology involving power in the future. Their risks will also grow, and responses been the core areas of challenge but with the Tesla especially in the hinterland of the country where plants and associated risks. from insurance companies must be thought through success or seemingly success, the future of the most reliance on the conventional gas based thermal plant providing tailor-made renewable energy insurance challenging area in renewable energy will open new electricity generation had posed huge challenges Nigeria is not the first on Africa continent to seek solutions that matches Nigeria economic frontier that will change the way we harness benefits which would require billions of dollars of investments in alternative green energy as energy needs continue to environment. which will be better if insurance from the environment and change the way we live gas pipeline to site gas to power plants. grow in sub-Sahara Africa. Kenya and South Africa are companies can train and raise expertise in renewable over the next century while the future growth could see already looking at this as a means of satisfying the engineering risks solutions and weather insurance to a huge capital accumulation for insurance This focus of this piece is to draw the attention of the growing consumption or producing energy mix for provide sufficient homemade underwriting solution. companies in the developing economies. insurance industry and other stakeholders to the sustainability. The Kenya Energy Regulatory Existing policies include policy product line that INTRODUCTION sufficient growth incentives that could drive long held hurdles and opportunities in this emerging energy Commission reported a power generation of 1,434MW supports risk analysis, structuring and execution for As an Insurance underwriting company, our “Certainly, the infrastructure requirement to dreams of getting Nigerians out of poverty. Recently, sector for the insurance industry not only as its from renewable sources largely from Geothermal , RESPONDING TO THE INSURANCE NEEDS OF THE insurance operators is in understanding the different supply management in hydro, wind and solar, company’s business model is constantly being reposition Nigeria for the future is huge and our Nigeria was named to overtake India as the custodian contribution to national development but as an hydro and wind power while South Africa, in a March RENEWABLE ENERGY SECTOR dimensions to these associated risk and fashioning out demand management in heating and cooling, streamlined to take advantage of emerging resources are limited. Government, therefore, of highest number of poor people in the world, and so avenue to deepen its insurance penetration and 2017 debate on renewable energy by South African The fact remains that there is high possibility of appropriate suitable cover for them. operational risks and plant cooling, promotional tools opportunities in the market. We recognize the will pursue private partnerships to maximize one cannot agree more on seeking such private enhance its GPI to GDP ratio which is comparatively National Energy Association showed that 3.1Gigawatt exponential growth when this finally comes onstream and budget management. opportunities inherent in the government’s new initiatives and quest for accelerated investment in the available capital and developmental impact.” sector participation in infrastructural growth to support lower than other significant sectors of the economy. of electricity came through wind, solar considering the growth rate in those other African Compared to conventional energy infrastructure envisaged economic growth. Photovoltaic(PV) and concentrated solar power(CSP) countries and peculiar needs in our country. The projects, Renewable Energy projects have relatively European insurers with experience in this field power sector and have therefore deployed the right Renewable Energy or Green Energy as it is often compared to 467MW in 2013, a 6.5times growth rate in accustomed to the challenges of major technical risks strategies that will position the company as a major With these words, the President of Nigeria, during the The President was specific on the government’s target termed plays an important role in the transition to a low three years according to the South African Nigerian Electricity Regulatory Commission (NERC) lower operational and Maintenance (O&M) cost after in which underwriters find themselves manage player in the sector. Our strategy involve trainings and 2018 budget presentation, told the parliament of programs in the coming year bringing the attention of carbon economy and the provision of a secure supply Department of Energy in 2016. The Council for says it is committed to stimulating investment in the initial investment in the manufacture and projects based on often prototypical technology in skill acquisition through strong global technical government’s intention to seek private sector’s the lawmakers to some key projects and programs of clean energy. This has been at the heart of the Scientific and Industrial Research(CSIR) which renewable energy generation in Nigeria reckoning the installation of the equipment. Photovoltaic, Wind and unusual settings, requiring renewable energy sector alliances that will effectively respond to the critical skill participation in financing its infrastructural deficit to that would drive the intentions of his regime’s clamor by Environmental activist for bio-friendly participated in the event in Sandston posited that vast and mostly untapped potential in renewable Waves based technologies for instance, are often insurance products that must be just as intricately gaps in order to deliver specialized services to our drive the economy which has suffered through lack of energy resources. Information available on its website dependent on weather patterns which create determination of bringing democratic dividend to environment and agitation against climate change. renewable energy remains the least cost option as indicates that the Commission has set a target of uncertainties to project completion. Being usually designed for projects which could be based on the clients across existing and emerging risk areas. Nigerians. Renewable Energy projects are based on different well as being the cleanest electricity generating generating a minimum of 2,000MW of electricity from modular in nature, grid connection and other technological model that will constantly drive kinds of specialized technologies which range from technology available today. The global electricity renewables by the year 2020. However, that was before enabling construction cost are relatively lower with innovation in this sector envisaged to prompt Temitope Olanrewaju is of the ERM/Corporate planning Department. In focusing on possibly the most pressing need of the Solar Thermal Technologies, Photovoltaic Technologies; supply has grown from 57GW in 2015 to 70GW in 2016. the latest government position on renewable power capability for higher scalability. country one of which is provision of adequate power Biomass Technologies; Wind Energy; Geothermal The successes recorded in South African, Morocco sources and this is expected to drive growth expectedly supply, the President spoke glowingly on rather an Plants; Hydroelectric as well as Wave and Tidal Stream and Kenya amongst other sub-Saharan African at a faster rate. From the Business and Financial Risk perspective: unconventional rhetoric of investing in renewable Devices. Although the full technical details of any of countries may be an a good reference point to the Business Interruption/Delay in Start Up, Cost-Overrun, energy through a Federal Government first of its kind in these Renewable Energy technologies to be fact that if the Nigerian government’s current initiative The development of new streams of energy has not Counter Party Funding risk; Credit Risk Africa Sovereign Green Bond effective from embarked on by the Federal government based on through the raising of financial instruments that been without some hurdles in many African countries. Technical/Technological: Design, Manufacturing and Wedding December 2017. The green bond roadshow for their relative comparative advantage is not yet focuses investments on renewable energy technology As desirable as the benefits of Renewable Energy are Construction risk, Transportation, Operating Material financing green programs actually started on Monday disclosed, there is no doubt that it will not only be a is well followed through, it can guarantee a to the economy and national development, the Damage All Risk; Technological Obsolesce Risk; 18th December 2017 with a N10.69 billion to finance valuable introduction into the Energy mix to improve breakthrough in the energy sector. A recent case in underlining technology is associated with diverse risk Machinery Breakdown risk distinct environmentally friendly projects. This piece is current power supply, but also improve access and point was the successful completion and and challenges, some of which can be managed Socio-Political: Legal and Liability; Regulatory and Bells not intended to discuss the performance or otherwise affordability of electricity especially in the hinter lands. commissioning of Nigeria’s first project-financed using bespoke insurance solutions while others require Resource Control/Permit Risk of such instruments, but the focus is the idea behind The notion of green or renewable energy is not entirely independent power plant – the 459 megawatts (MW) alternative risk management approach. The United Environment – Natural Hazards, Weather Risk, Soil this laudable intention and how such will help in new in Nigeria as a notable solar energy innovation capacity Azura-Edo power plant ahead of completion States Oversea Private Investments Corporation Condition, Maritime Risk etc. Everything stood still at Ilaro as economic growth and sustainability. was installed by Total Nigeria Plc at its refurbished T-air schedule which demonstrates further that the (USOPIC) and the United States Trade and Mathew Dada of internal Audit service station in Onigbagbo, Mobolaji Bank- Anthony opportunities in the energy sector remains attractive to Development Agency (USTDA) who have participated Apart from this pre-designed and constructions made his vows to his heart-throb Way, Ikeja, Lagos in June 2014 which was a Solar potential private investors. in micro renewable power generation in some hurdles, there are risks associated with the various Ramota Elegbede (of the Powered Service Station and was the first of its kind in sub-Sahara African countries already identified and stages of construction, operational and post both Nigeria and the West African sub-region. The stated such hinderances as the lack of engineering, operation. With immediate focus more likely to be on Guardian Newspapers), on the station is equipped with SunPower solar panels which geotechnical or environmental impact studies in some solar power projects in Nigeria considering abundant 15th of December. the company said was the most efficient solar panels countries while in others, it has been the cost of legal sunlight as stated by the president, the insurance manufactured in the world. Being a more research or advisory services on complex tax issues. companies must begin to position themselves in The colourful affair was environmentally friendly station, it features Zero However, USOPIC observed that once these key early underwriting such emerging risks. Insurance chairmaned by the MD, Mr ‘Biyi emissions of Harmful Greenhouse Gases, Zero Noise hurdles are sorted, the projects often prove viable and companies, brokers and underwriters alike as well as Otegbeye, and host of other pollution, and a renewable energy source dignitaries graced the occassion. can attract long-term investors with some level of other stakeholders must begin to include as part of success recorded in such country as Tanzania in areas their Strategy and business models; new hires, trainings The Olu of Ilaro and prominent The company believes that such innovation drives of micro energy supply. and exposures of existing staff in areas that will businessmen and politicians were down the cost of doing business leading to ensuring promote local insurers know how in key risk areas in attendance to honour the new further investments for economic growth and Beyond that, it is imperative to appreciate some especially in engineering risk and storage technology development. In addition to this landmark prototype inherent risk that are peculiar to Renewable Energy to retain most of the insurance capital within the couple. technology by Total Nigeria Plc, there are also very projects as compared to other conventional energy or economy. many ubiquitous domestic installations scattered all infrastructural projects. These could be Financial, We wish the Dada’s a blissful over the country. marriage with bountiful heavenly Technical, Social and Political and other Risks range from natural hazards, mechanical Environmental. The challenge therefore with the breakdowns and even serial losses to gear boxes and blessings. foundations have been identified in existing covers

RegencyAlliance’s Future, Forward Posture 2017 certainly was a great year. What with the businesses and individuals in periods of economic excitement about the state of the economy and the down-turn is the hallmark of great insurance service. In challenges people must go through (in the effort to living up to this responsibility, Regency Alliance has up make a living). In his new year message to the staff, the to the end of 3rd Quarter 2017 paid out N 527.043 Managing Director reiterated the most important million representing an increase of 111% when issues relative to Regency Alliance Insurance Plc, compared to the corresponding period figure of N People, People and People. People- The staff that 249.5million. This also impacted on the gross claim make up Regency Alliance and give their all towards (GCR) to 22.61% in relation to 11.69% recorded in the achieving the goals and objectives of the company. same period 2016 The company’s posture, as always, is to recruit the best fit for the company and ensure up-to-date training and equipment so they can deliver their best. Lawretta with other participants at the programme. This is a clear demonstration of the company’s commitment to support its client despite the general Niyi and Bayo at with their Awards economic downturn in the economy. It is expected Most recently two members of staff were at a CIIN that there will be significant improvement in the organised certification-programme, they not only company’s performance when the end of the year gained great knowledge but excelled beyond all report is finally released as the Management is looking others at the programme. ‘Niyi Salau came out tops in to further reposition the company through several Insurance Claims Handling, while Bayo Aluko excelled, structural changes and solidifying her position for at Health Insurance Products. Another feather of note better performance. came by the way of Lawretta Okorie (Mrs.), of our People; bring the key stakeholders in the company into Kaduna branch. She was inducted as an associate of focus- the shareholders. They are the reason why the Chatered Institute of Insurance, in recognition of Regency Alliance is a business and has remained in the years she has put-in and her expertise in various business. The common desire of our investors is to see arms of insurance. These awards and recognitions are Regency attain a higher level in line with the desire of the company to always come of acceptance and usage by tops among other Insurance companies. our customers which People again refers to our customers, whose custom would position the company we are duty bound to keep. The recruitment and as a major force within trainings will count for nought if our customers’ interest the insurance landscape by is not on the front burner. A lot of innovative products the turn of the decade. and convenient means of accessing good and Our positive performance effective insurance is being put in place. These in the area of claims innovations will launch the company into a new phase payment can only be a of development. fillip, which will make People again stresses service to our clientele. Our this dream a reality. claims payment record for the year resonates with our mantra “Claim is Good”. The capacity to support Mr ‘Biyi Otegbeye GMD Regency Alliance Insurance Plc

KNOW YOUR WORTH causing many of them to repeat and resit exams. A few of her alumni also narrated their experience with this said Professor and its quite alarming. Information is power. Or it should be. In 2017, a few women also spoke up about the gender pay gap in their place of employment. BBC and E! amongst #TIMESUP is a movement calling out sexual others, were affected by this issue and their female assault, harassment, and inequality in the staff had to quit when they found out that male colleagues were earning practically double their pay. workplace, institutions etc. The movement is The ladies didn’t just up and quit, they asked for what encouraging more and more women to stand up for they deserve (a pay raise). Infact in one occasion, all themselves and together without fear, calling out all she asked for was just a little more than she currently injustice. (against women). earned and was denied repeatedly. The Ladies felt like they had no choice than to resign. Advocacy for women’s right has been an on-going topic but in new times its gained even more support. Recently, in a discussion with friends at a soiree, this Men are standing up for and with women and issue was brought up. I was quite confident that this is encouraging them to shame assailants. not and could not be a Nigerian issue. I trusted we Women are empowering each other to be strong Nigerians are quite evolved, and this is not quite a and speak up. All over the world, women are calling challenge anymore. We earn on the same level or at out and speaking up. They are forcing the authority to least whatever we bargain. listen and act. All hidden and “forgotten” wrongs are now being exposed and a number of men so far are However, to my chagrin, it was quite revealing to hear facing the consequences of overlooked actions. different perspectives and experiences. It brings to It is quite interesting because, in one person’s bear the question, are men really earning more than strength, ALOT of women are finding their own women in similar roles in Nigeria? Are there strength to speak up. I imagine that some men are organizations/companies, that employ and currently working overtime. Going behind the back remunerate the male staff more than female staff in a doors to quietly and quickly retrace their steps, plead similar role? What is the rationale behind such and persuade whomever they may have wronged, to decision/policy? avoid public ridicule. If this is happening, then maybe its time to talk about I saw a viral message yesterday, where a Nigerian it. #TIMESUP lady currently based in the US called out her lecturer from one of our prestigious Universities in Nigeria. She Let’s join the #TIMESUP movement and speak up. accused him of victimizing female students and Perhaps #TIMESUPNIGERIA. I know my worth, do you?

REGAL PUNS STATUE THE ACCOUNTANT AND THE EGG An insurance agent went to a museum and he acci- dentally hit a statue. Museum Administrator: “That's a This underwriter owns some hens, and 500-year-old statue you've broken!” Insurance agent: each morning he collects one egg from “Thank God! I thought it was a new one.” them for his breakfast. HAPPY BOSS It just so happens that he has an accountant as a neighbor who watches A happy insurance boss says to his employees, \"You him collect the eggs every day. worked very hard this year. As a reward, I'll give everyone a check for $5,000. If you work with the One day, one of the hens gets out of its same zeal next year, I'll sign those checks.\" cage and lays the egg in the accountant's back yard. \"Needing insurance is like needing a parachute. If it isn't there the first time, chances are you won't be The underwriter sees this and needing it again.\" challenges the accountant over ownership of the egg. They have a SEVEN INSURANCE AGENTS fierce argument, and finally the underwriter offers to settle it in a \"You ought to feel highly honored,\" said the business- contest, saying \"We will take turns in man to the insurance agent. \"So far today, I have had kicking each other where it hurts, and my secretary turn away seven insurance agents.\" whoever takes the least time to get up \"Yes, I know,\" replied the agent, \"I'm all of them.\" wins the egg.\" GENIE GRANTS A WISH The accountant agrees, and they decide that the underwriter gets to go first. He goes into his house and puts on An insurance sales rep, an administration clerk and his steel capped boots, and when he their manager are walking to lunch when they find an comes back out he takes a run at the antique oil lamp. They rub it and a genie comes accountant and kicks for his life, right out in a puff of smoke. The genie says, \"I usu- where it hurts the most. ally only grant three wishes, so I'll give each of you just one.\" \"Me first! Me first!\" says the The accountant collapses on the floor admin clerk. \"I want to be in the Bahamas, and rolls around in sheer agony. driving a speedboat, without a care in the Finally, he hobbles to his feet after world.\" about half an hour. Poof! She's gone. \"Right now it's my turn,\" he says with some relish as starts to prepare himself In astonishment, \"Me next! Me next!\" says the sales for his go. rep. \"I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply of piña The underwriter says, \"Nah, you keep coladas and the love of my life.\" the egg.\" Poof! He's gone. \"Ok, you're up,\" the genie says to the manager. The manager says, \"I want those two back in the office after lunch.\" Moral of story: Always let your boss have the first say.