Yemisi Izuora
The Allianz Global Corporate & Specialty in Africa has identified Sub-Saharan Africa as possessing huge business insurance potential.
Allianz highlighted opportunities for the corporate and industrial insurance sector in Sub-Saharan Africa at a conference run by International Programme News’ sister publication Commercial Risk Africa.
Speaking at the seminar, themed ‘Risk Frontiers-Sub-Saharan Africa: The Next Generation of Emerging Markets’, Delphine Maïdou, CEO, Allianz Global Corporate & Specialty in Africa, said, “With growing economies, Sub-Saharan Africa presents a huge potential for business insurance.
Insurers and brokers need to work very closely with risk managers, regulators and stakeholders within the region to create awareness about the purpose and value of insurance so more companies, projects and stakeholders can be adequately protected.”
Ms Maïdou warned that insurance needs to keep pace with investment and economic development.
“Sub-Saharan Africa’s continued growth depends on closing its vast infrastructure and skills gap, which needs innovative credit and investment solutions facilitated by public private partnerships through a clear policy and legal framework.
But for these solutions to work, they will require equally appropriate risk management and risk transfer solutions – which essentially means increasing insurance penetration,” she said.
She pointed out that local and global brokers and insurers operating in countries that have high insurance penetration such as South Africa, Namibia and Mauritius need to work with their counterparts in other African countries to foster the use of modern insurance and risk management for businesses within those areas.
“Innovative and agile insurance solutions can help businesses in Nigeria and the rest of Sub-Saharan Africa,” she said.
“There are numerous ways to close the protection gap to mitigate business risks such as business interruption, fire and explosion, and political risks to name a few.
Both traditional insurance and the new generation of alternative risk transfer solutions can be used to find the right responses to an increasingly complex risk environment.
In essence, this involves educating businesses about these risks and advising them on relevant risk management and insurance solutions, while also ensuring such solutions are accessible in local markets. It is also critical for all players within the industry to do their homework about the regulatory and legal aspects of insurance within each country so they devise relevant and fully compliant solutions.”