All Posts in "Day: September 27, 2021"

Africa Re, IFC sign deal to encourage smaholder farmers get insurance

By Favour Nnabugwu

 

 

Insurance companies in Africa sre encouraging smallholder farmers to access insurance at affordable terms while underwriters  develop new products that will will help advance agriculture insurance in the country.

The culminated into a deal between Africa Reinsurance Corporation (Africa Re) and the International Finance Corporation (IFC), a member of the World Bank Group.

Africa Re and IFC agreement will help facilitate the development of agriculture insurance market space in Nigeria.

Deputy Managing Director/Chief Operating Officer, Africa Re, Mr. Ken Aghoghovbia, “This initiative would certainly go a long way in moving Nigeria towards its goal of food security in line with Africa-Re’s mission to support African economic development.”

Aghoghovbia, expressed satisfaction with the partnership as it will go a long way in assisting Nigerian insurers to develop appropriate insurance products for smallholder farmers and help move Nigeria towards its goal of achieving food security.

These index insurance products will help protect farmers against environmental risks such as drought, floods, erratic rainfall and other natural hazards..

They believed that the African agriculture insurance market has encountered several challenges that have resulted in the very low penetration levels of this class over the years, but the products became riddled with high costs of administration and the inherent fraud risks made it difficult for underwriters to implement.

Patoma Admin by — September 27, 2021 in Insurance 0
Insurers, reinsurers to erase premiums going offshore – Africa Re

By Favour Nnabugwu

 

 

Insurers and reinsurers in Africa are determined to erase the unpleasant trends of the continent’s premiums going abroad.

The Group Managing Director of Africa Reunsurance Corporation, Africa Re, Dr. Corneille Karekezi while surging the potentials African Continental Free Trade Area (AfCFTA).

He said, “A significant portion of insurance premiums are still leaving the continent. We will not relent in our effort and determination to reverse this ugly trend.”
 Karekezi expressed fears that all the potentials may not hatch to command the prosperous new Africa insurance and this he maintains, remains remains a challenge.
The Africa Re GMD xrayed how the economic integration initiative enables the operators in the Africa insurance industry leverage the largest trade area in the world in terms of the number of member countries since the formation of the World Trade Organisation.
Despite the concern that the challenges are not coming down in a short term after commencement of the free trade agreement, Africa Re helmsman hope is still ignited, his comments, “We hope that the expected boost of intra-Africa trade from AfCFTA will also result into much needed improvement in insurance penetration on the continent.”
That expected boost that Karekezi hope rests on is the $450bn potential income gains at stake and African insurers/reinsurers should not be laid back but get on the starting blocks fully prepared for the enormous potentials.
But with an eye for all times AfCFTA inclusive, he says, “On our part, we will continue to retain more and more business on the continent and offer different capacity building initiatives across the continent. That is our mission.”
Patoma Admin by — September 27, 2021 in Insurance 0