The 42nd African Insurance Organisation (AIO) Conference and General assembly was held in the Tunisian capital Tunis in the last week of May attracting over 1,000 delegates from various countries including outside Africa.
These comprised insurers, reinsurers, brokers, actuaries, and insurance consultants, insurance supervisory authorities and training institutions and associations.
The AIO has a membership of 370, comprising 356 from 47 countries in Africa and 14 associate members from seven overseas countries.
I was privileged to be in our managing director, Mr Geoffrey Chirwa’s delegation with our head of claims, Mrs. Yvonne Ndayanja Majata representing the sole participating company from Zambia this year, Professional Insurance Corporation Zambia PLC.
While at the conference I learnt that Zambia last hosted this event in 1993 in Livingstone and I was privileged to meet some of those who attended the event at the time.
They were looking forward to another time when Zambia will host the event again and of course also see one of the Seven Wonders of the World, the mighty Victoria Falls.
This year’s conference and general assembly was being held under the theme ‘African Insurance facing mass events’
The forum was revealing to first time attendees, like myself. It shows the bigger picture of the insurance fraternity and creates a platform of networking at the highest level.
The occasion was graced by the Tunisian Minister of Finance who showed some passion and knowledge of insurance during his free flowing speech.
According to African Insurance Regulation Directory, May 2015 ‘the total African insurance premium volume grew by more than 10 per cent in real terms, compared with a GDP growth of about six per cent.
Between 2007 and 2013, the total non-life and life premium volume in the region expanded by more than 35 per cent to approximately US$72 billion’.
You may be interested to note that this premium is highly concentrated with the biggest insurance market, South Africa, constituting about more than 50 per cent of the premium at about US$54 billion.
This overall growth rate which is the fastest in the world over is really attracting a lot of players including the industry world ‘big boys’ to the market for example the mighty Swiss Re is back with an
office in Africa.
During the AIO event a number of issues were discussed and one can see the light at the end of the tunnel.
One of the key presentations was on “increasing frequency of Political Violence in Africa and its involvement for the insurance industry.”
The speaker was the Regional Managing Director Middle East UIB London, Mr. Mohammed Kotb.
The presentation was based on the case study of the Egyptian revolution in 2011 which led to the overthrow of the Egyptian president Hosni Mubarak.
The role which insurers played and the amounts paid!
It was a perfect example in which insurance played a role in compensating losses from political risks.
Such risks in our sub-region appear remote but with the uncertainty that we all live with, one can only confidently face the future with appropriate insurance cover against political risks which will be
discussed in more detail separately on this platform.
Why discuss such a topic?
Under most standard insurance policies Political Risks are excluded.
This means those who want to be covered against such must arrange or buy a separate cover.
In the market that provides coverage for these risks the premiums are relatively high although understandably reflective of the nature of the risks.
One of the key points that came out the presentation was the availability of the coverage to the capacity of about US$2.5 billion.
The speaker further dissected on the difference in the policy wordings and much more some initiatives that are meant to create insurance pools specifically aimed at creating more capacity for such risks.
These are important developments because the benefits attributable to
such initiatives are enormous especially if they are localized.
The other presentation were on “The threats of natural catastrophes; the role of African Insurers and Reinsurers” discussed by Mr. Hadj Mohammed Seba, the CEO for CCR Alger.
In the third session the topic was on the “New infectious threats to mankind: challenges for insurers and reinsurers” which was presented by John Baptist Kouame, General Director of the CICA Re.
The Ebola epidemic in West Africa was used as a case study to underscore the role played by insurance in such circumstances.
I like what the session president Mr Junior John Ngulube CEO for Munich Re South Africa, who stressed the need for insurers to demonstrate their relevance by finding appropriate solutions to all risks that affect mankind.
The fourth session’s topic was on “African Insurance and Internet Security Risks.” Although such risks as cyber-crime insurance are not yet popular in our local market there are growing indicators that in the foreseeable future the demand is likely to increase.
From time to time I will be comprehensively discussing a number of topics brought in today’s article.
On a concluding note I urge players in our market to participate in next year’s AIO conference that will take place in Morocco.
Comments: webster@picz.co.zm or webster_tj@hotmail.com or on face book search for Insurance Talk-Zambia page or call/text 0977 857 055 [The Author is a Chartered Insurer with more than 10 years industry experience]