Parametric insurance: closing the protection gap in Africa

Parametric insurance: closing the protection gap in Africa

Parametric insurance: closing the protection gap in Africa

Unlike traditional indemnity insurance, parametric insurance does not cover ‘full loss’. Instead, it pays out benefits based on a predetermined index for losses resulting from weather and catastrophic events. Given the poor takeup of weather and catastrophe cover – described as a ‘protection gap’ – in Africa, where a significant portion of GDP is derived from the agricultural sector, it…

The mining environment and its influence on strategy execution in 2017

The mining environment and its influence on strategy execution in 2017

The mining environment and its influence on strategy execution in 2017

As better news filters out from the mining sector in terms of profitability, the drive for sound risk management practices continues. Brendan Maseti, group risk manager at Lonmin Platinum, says: “In the recently launched Institute of Risk Management Risk Report – South Africa Risks (IRMSA 2017), four scenarios were tabled according to which the South African National Development Plan (NDP)…

Africa as a long-term project still on track

Africa as a long-term project still on track

Africa as a long-term project still on track

As always, it has been a busy few weeks. Commercial Risk Africa has held its annual London conference, while across the continent risk managers and insurance practitioners have been meeting at numerous events. The common thread across all of these has been the tough economic conditions that threaten to stall Africa’s rapid development, witnessed throughout the past few years. It…

Change is the new normal

Change is the new normal

Change is the new normal

Legislative reform is a key area of concern for corporates, and risk managers should be aware of the potential for legal change to fundamentally alter the risks that they face, as Max Ebrahim and David Wynn, of Clyde and Co, discuss   Legal systems are subject to political, social, and economic pressures, and once a need for change is identified,…

Data breaches and cyber attacks: How ready is your organisation?

Data breaches and cyber attacks: How ready is your organisation?

Data breaches and cyber attacks: How ready is your organisation?

Data security and cyber breaches are becoming an almost daily occurrence, as is widely reflected in increased publicity and media reports, which also demonstrate that data breaches are growing both in frequency and scope each year. South Africa has been slow to regulate cybercrimes and data breaches. There are currently two key pieces of proposed legislation that are relevant: The…

Sucker punch: political bungling sets South Africa on the recession path…

Sucker punch: political bungling sets South Africa on the recession path…

Sucker punch: political bungling sets South Africa on the recession path…

In December 2015, South Africa made international headlines after going through three finance ministers in just four days. Nhanhla Nene was replaced by David Van Rooyen, since dubbed the ‘weekend minister’, before sanity prevailed and the portfolio was handed to the respected Pravin Gordhan. Mr Gordhan set about undoing the damage caused by this cynical political shuffling, working round the…

Malabu oil scandal: multinationals navigate minefields in Africa

Malabu oil scandal: multinationals navigate minefields in Africa

Malabu oil scandal: multinationals navigate minefields in Africa

For multinationals doing business in developing countries, especially those with a well-known history of corruption, it is like walking through a minefield or swimming in a crocodile-infested river, attempting to make profit through the contract system, which in most cases is largely corrupt. For while there are lucrative businesses to be made in such countries and regions, there are also…

Trust – so hard to win but so easy to lose

Trust – so hard to win but so easy to lose

Trust – so hard to win but so easy to lose

We all know how hard to can be to put our complete trust in someone or something, yet trust goes to the very heart of insurance. Buying insurance is buying a promise – a cliché but true. As is the cliché around insurance companies only being as good as the claims service they provide. We all know that and yet…

Trump and US sanctions – managing the risk

Trump and US sanctions – managing the risk

Trump and US sanctions – managing the risk

US trade and economic sanctions are tools to address national security, foreign policy and economic threats. For the past several decades, the vast majority of sanctions have been imposed by the President alone, not by Congress. Under US law, simply by declaring to Congress that he believes a particular threat constitutes a national emergency, the President becomes vested with authority…

Welcome to the new world order

Welcome to the new world order

Welcome to the new world order

It seems everyone is an expert on everything right now. Turning on the breakfast news this morning, I was greeted with an interview of a Hollywood actor (albeit a good one) pronouncing on the new world order and on how politicians would never deliver the hoped-for results. And that seems to be true of everything. Whenever anything happens, the whole…