Rates turn highlights need for skills in the industry

It was never going to be easy. After some 16 years of falling insurance prices, rates are on the turn. Not everyone is seeing an increase in premiums as yet and the picture is bound to be varied, but some are reporting massive hikes. Risk managers say this is a golden opportunity for them to prove their value to their boards but they are also extremely critical of the insurance industry. Variously, they say insurers are running scared from any African risk, good or bad. They also report negotiations being broken off midway through and underwriters not playing fair. Insurers have been quick to respond, urging the risk management community to read their policies properly, be prepared to take on more risk internally and to step up. Whatever the rights and wrongs, one thing is becoming very clear: few people know what it is like to go through a ‘hard’ insurance market where premium rates are high. After all, you need to be at least 40 years old to have seen that before and if you think back 16 years, risk management was at a nascent stage across Africa. So, it is no real surprise then that people are floundering. However, they are also professionals and no doubt will step up to cope with the new reality. It does also highlight the need for well-qualified people in the market. This is an issue that is rearing its head again and again in Africa at the moment. CEOs from across the insurance industry were discussing this very problem at the Continental Re Summit – an annual opportunity for CEOs to put their heads together and discuss the most relevant topics. Professional services are something we all need – and will still need no matter what happens with technology. In the past, insurers and reinsurers spent a lot of money on training and development. However, it seems that many have stopped putting their money where their mouth is. So many are complaining of a lack of skills, but few are actually actively doing anything about it. As journalists, we know exactly how that feels. Social media has made everyone believe they can write and spread news but actually, impartial professional writing has its place and without it the idea of spreading the message about insurance would be that one step more difficult. So, again, kudos to Continental Re for supporting the Pan-African Insurance Journalist Awards, designed to encourage high standards among financial services writers. Of course, I need to congratulate Gareth Stokes, our South African correspondent, for winning a special award for his outstanding contribution to insurance journalism. I also extend my congratulations to the other winners, particularly to Odimegwu Onwumere, from Africa Prime News in Nigeria, who was named Pan-African Re/Insurance Journalist of the Year. Commercial Risk Africa has offered Odimegwu a year of mentorship and I very much look forward to working with him in the months ahead. Driving standards upwards and developing new opportunities is crucial if Africa is to achieve its potential, so it’s good news to see a group of investment banks putting their money where their mouths are with a series of new initiatives designed to encourage more investment and greater confidence in the private sector. Recession has dogged some of Africa’s economies in the past couple of years, so let’s hope this is a real sign of positive things to come for all of us.

Rates turn highlights need for skills in the industry

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