AIO head calls for insurers to back key African infrastructure and development projects

He said insurance has a critical role in supporting investors’ initiatives by protecting their time and money on large scale infrastructure projects. Without such projects, he said, Africa will continue to be held back from reaching its full potential. Delphine Maidou, Chief Executive Officer of Allianz Global Corporate & Specialty in Africa, admitted the challenge is in finding the premium capacity and technical knowledge and support within Africa. Too often, she said, investors looked to outside the continent rather than to local interests. She explained: “As one local [South African] risk manager says: ‘As African companies, once we use a local broker and place our business locally, we are creating jobs in Africa’. We need to keep that in mind.”hideMs Maidou stressed: “Once 100 per cent of a book is placed outside of Africa risk managers are not supporting the local economy. Since we launched in the region, we have been receiving increasing support from local companies who realise we do have the underwriting and technical knowledge here. “If the premium is here and handled here we can hire more people locally.” Ms Maidou added, however, that she was not suggesting all insurance should ‘flip’ from overseas into Africa overnight. “Many experts in London, for example, have been working on African accounts for many years and have a real understanding of the market. Risk managers do not want to lose that experience and understanding overnight. There needs to be a transition as risk managers take advantage of the existing experience and experience builds within the region.” She also acknowledged that, as business builds in Africa, insurance interests have to be prepared not just to receive the premium but to handle the claims, including potentially large losses. “There is a flip side and we have to be prepared to handle that as well,” she said. After attending the AIO event in Cairo, Ms Maidou travelled to the African Development Bank annual conference in Morocco where, she said, the message from Cairo was reinforced. “The speeches in Morocco were very consistent with those I heard in Cairo. There was talk of the challenges in Africa and the need for investment into African infrastructure. “The banks are prepared to put huge sums of money and a lot of effort into such projects but they want to see that investment properly protected. Insurance is needed to facilitate that.” However, she warned there is still a gap in the market. “The banks are willing to invest and insurers are beginning to offer solutions but I don’t know if the brokers are quite there to take advantage which makes it difficult. Most of these projects are brokered by those outside Africa because they understand the structures.” There is a real opportunity, she believed, for local brokers to become more involved. “We have learnt that doing business in Africa is not like doing business in the US, for example, and local brokers are well placed to offer that valuable experience. There need to be connections around the globe and we, in Africa, need to be more united in our approach to take advantage of the enthusiasm to develop the region that has been building.”

AIO head calls for insurers to back key African infrastructure and development projects

Want to read this article?

Read Next

Talanx ‘increasingly confident’ of beating full-year profit forecast on Q1 results

US property market stabilises but concern over casualty loss trends

AGCS’s revenue falls in Q1 as rate momentum slows

Property rates easing; insurers press for liability increases: Rims Riskworld

More European corporates buying supply chain cover: Allianz Trade

Talanx ‘increasingly confident’ of beating full-year profit forecast on Q1 results

US property market stabilises but concern over casualty loss trends

AGCS’s revenue falls in Q1 as rate momentum slows

Property rates easing; insurers press for liability increases: Rims Riskworld

More European corporates buying supply chain cover: Allianz Trade

Want to read this article?

Read Next

Talanx ‘increasingly confident’ of beating full-year profit forecast on Q1 results

US property market stabilises but concern over casualty loss trends

AGCS’s revenue falls in Q1 as rate momentum slows

Property rates easing; insurers press for liability increases: Rims Riskworld

More European corporates buying supply chain cover: Allianz Trade

Related Articles