Facilitating the deals

The broker has had a presence in Africa for many years, while Mr Hoggard himself has more than four decades of experience in the market. Zimbabwean-born Mr Hoggard explained RFIB decided to open an office to show the market it had its ‘feet on the ground’ in Africa. But he stressed that the firm is not in competition with local markets. Instead RFIB’s role is to provide a trusted route into London (Lloyd’s) and international markets. He explained the new office is here to emphasise to its clients that RFIB is a presence that is here to stay and to become the facilitator of choice for specialist risk management solutions in Sub Saharan Africa. “Africa is all about a physical presence and personal contacts,” he said. “RFIB have built up relationships over many years and the new office will help us cement those relationships still further.” RFIB started out in South Africa and does a lot of important work in that area. RFIB also has a strong influence in Tanzania and with Mr Hoggard’s connections, the firm will expand its expertise into Zimbabwe, Zambia and Mozambique in the near future.hide“As an African,” he said, “I know that the people across the region are highly qualified and knowledgeable. However, we can help facilitate deals and give people easy access into Lloyd’s or other international markets, providing an alternative route that is backed up by decades of experience.” It is a long-term process, he believes, and the key to his success will be in gaining people’s confidence and trust. “RFIB’s goal is to work with the local markets, to assist where certain specialist expertise can add value and where reinsurance placements need to be placed externally,” he stressed. “We want long-term relationships that benefit all parties.” “Africa is maturing as a continent,” he continued, “and companies need to think of new ways of doing business to succeed.” He gave the example of Zimbabwe and the tobacco industry. After the expropriation of the larger farms, the tobacco companies have started to lease land from the new owners. By funding the small-scale farmers, loaning them funds to cover agronomy costs, for example, the tobacco firms are assured of a steady harvest. The loans are repaid when the tobacco is sold to the company. Added to this, the tobacco companies are able to offer the farmers access to insurance. As the farmers become more profitable, they want insurance not just for the crop but for their consumer goods and property. So a new middle class is evolving, with insurance very much part of the equation. Mr Hoggard explained: “As insurers it is good news because it gives them access to new clients but also provides them with the necessary security as it is the tobacco companies actually paying premiums upfront. “This gets over one of the biggest hurdles for insurers in Africa—the non-payment of premiums. In Zimbabwe and in other African countries there is an extremely large percentage of premiums that go unpaid to insurers so any scheme which helps with this benefits the insurance industry hugely, he said. RFIB does not just deal with agriculture but also has a huge book of marine cargo business, as well as construction and property/casualty. It has clients from the energy sector, as well as telecommunications and the mining industries. The commonality between all these sectors is that they are growing across Sub Saharan Africa. While business may be more competitive in South Africa itself, according to Mr Hoggard, Sub Saharan African as a whole is an area of massive opportunity. “We are not focusing on business from any one country,” he said. “But we can provide expertise and access to specialist risks where there is limited capacity in Africa. We want to facilitate development and be part of the future. Our goal is to become the facilitator of choice in Sub Saharan Africa.”

Facilitating the deals

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