FANAF to explore oil & gas insurance

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By Favour Nnabugwu


The Federation of African National Law Insurance Companies (FANAF) displayed its ambition to capture the opportunities offered by a certain number of less exploited sectors, in particular that of oil and gas

FANAF at its 46th General Assembly, held on 23 May 2022 in Dakar, insurers were being urged to offer cover to deal with new emerging risks and to exploit the opportunities offered by the oil and gas sector in the oil and gas sector.

Chairman of the organising committee of the General Assembly, Souleymane Niane discovery of significant oil and gas reserves, added to Senegal’s significant mining and agricultural potential, raises “legitimate hope” for insurers who rely on their expertise in supporting projects and securing them through a “bold policy of prevention, mitigation and elimination of the most significant risks”. Achieving this objective goes through participation in the financing of companies and structuring projects of the state.

Under the theme, ‘Systemic risks, insurance and resilience’, the 46th General Assembly of Fanaf attracted 900 delegates from the African insurance market. The Senegalese Minister of Budget and Finance, Abdoulaye Daouda Diallo, focused on the decisive role of insurance in the gradual resumption of economic activities. Mr Diallo invited insurance players to include the agricultural world and the informal sector in their policies.

For the Minister, the pandemic, which has slowed the pace of economic growth, must push insurance companies to show more innovation and anticipation. He recalled, to this end, that multiple challenges are to be met with the resurgence of natural disasters likely to lead to additional budgetary costs.

“Climate risks must be at the heart of our concerns; natural disasters have a major responsibility for the fall in budgetary resources. Today is the time to act. The extreme natural phenomena that we have experienced in recent years require a need to adapt,” said Mr Diallo.

The upheavals caused by the health crisis must warn of future risks and promote growth-enhancing African insurance, argued Mr Niane. He promised support for the sector in favour of oil and gas, with participation in the financing of companies and well-structured projects.

For him, the Senegalese insurance market, which occupies third place in the CIMA zone, is placed in the irreversible trajectory of emergence. According to figures from the Senegalese Minister of Finance and Budget, Africa today represents less than 2% of the global insurance market and, according to industry statistics, the African citizen spends an average of $45 per year for insurance compared to $684 for South Africa alone and nearly $810 for the world average.

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