Source: The Herald – Breaking news.
Kudzanai Sharara in ACCRA, Ghana
AFRICAN Export–Import Bank, also referred to as Afreximbank, has launched a new entity, AFREXInsure, an insurance management services company that offers specialty insurance solutions for trade and trade-related investments across Africa.
Spearheaded by former Old Mutual Zimbabwe Group Chief Executive Officer Jonas Mushosho, who is the entity’s chief executive officer, AFREXInsure is seen as a single-entry point for specialty insurance needs in the continent and provides insurance management services on behalf of underwriters.
AFREXInsure looks to explore specialty insurance opportunities in sectors such as cargo, construction, operations and energy.
Entities and businesses involved in supporting trade and trade-related investments across Africa are eligible for the solutions that AFREXInsure offers.
Speaking at the launch of the entity here yesterday, Mr Mushosho, said the firm is an insurance manager which will accept delegation from a risk carrier to carry out a number of insurance management services that are along the insurance value chain.
“The risk carrier can be an insurer or a reinsurance entity. Then an insurance manager represents the risk carrier, and on behalf of the risk carrier, the manager will design implement and manage the required tailor made insurance solutions that are fit for purpose”.
AFREXInsure is licenced and regulated by the Financial Services Commission of Mauritius on the basis of delegated authority by AfricaRe who are the risk carrier.
Mr Mushosho said the choice of AfricaRe was because of its reach across Africa.
“We do however, in addition to the partnership that we have with such a big Pan-African entity AfricaRe, we do however collaborate with big and highly rated local players in the industry, and this is for good reason.
“Insurance works effectively when you diversify risk in collaboration with local partners and when you can strengthen the basis of the entire industry. So that collaboration with external partners is extremely important.”
Mr Mushosho said AFREXInsure targets bankable insurance policies that are measured by the quality of the insurance carrier, the quality of the security in terms of wording, capacity and history of the insurance carrier to pay claims as well as the price.
In Zimbabwe, Mr Mushosho said AFREXInsure is still negotiating with South Africa based parent companies of Zimnat (Sanlam) and Old Mutual PLC.
“What we are seeking to do is to develop specialty insurance, unfortunately specialty insurance requires specialised underwriting, specialised skills which is not well developed in the continent.
“Our aim and objective is to make specialty insurance readily available and readily accessible by players in the continent,” said Mr Mushosho.
AFREXInsure is looking to offer solutions to areas that international players are not providing services for because of lack of understanding of local knowledge and size of cover where there is a minimum threshold.
He said one of the key benefits that comes with services offered by AFREXInsure is that premiums will remain in the continent and help in capital formation.
“Insurance is very important in capital formation in the sense that you receive premiums and you invest them before you pay out any claims. This is opposed to premiums shipped out of the continent and help develop other countries”.
Offially launching AFREXInsure, Mr Benedict Oramah, president and Chairman of the Board of Directors of the African Export–Import Bank, represented by Mr Kanayo Awani, Executive Vice president at Afreximbank, said AFREXInsure is aligned with the Bank’s corporate strategy to provide a comprehensive suite of trade solutions to partners and clients.
Mr Oramah said said adding insurance to the Group’s portfolio will help ensure the availability of financing in a continent that has US$120 billion and US$100 billion annual trade and infrastructure financing gap respectively.
The launch of AFREXInsure was ahead of the opening ceremony of the 30th African Export-Import Bank (Afreximbank) meetings to be held here starting today.
The 30th annual meetings, which end on Wednesday, are being held under the theme “Delivering the vision. Building prosperity for Africans”.
President Mnangagwa arrived in Ghana yesterday where he joined continental and Caribbean leaders.
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