Underwriting companies seeking for new businesses as well as retention of existing ones are currently engaging insurance brokers in strategic meetings ahead 2016 renewals, which commence in days, BusinessDay investigations have revealed.
The meetings, which have brought about a reving up of competition among insurers seeking to increase market share and returns on investment in Africa’s most populous nation, recently underpinned by economic hardship as a result of falling oil prices, are said to hinge on consolidating relationships and resolving service issues.
The insurance brokers who majorly control market share of the business to the tune of 70 percent, are currently playing host to these underwriting firms, which according to one insider, provides opportunity for the underwriters to resolve existing bottlenecks concerning claims and rates with their broker partners.
Gbenga Olawoyin, managing director/CEO, Prorisk Insurance Brokers Limited said, “Yes, this is the time underwriters try to engage us and resolve issues ahead renewal.”
Olawoyin added, “those meetings take our time because we also need to put our houses in order before we meet our clients few weeks from now. So, the underwriters try to resolve service issues during these meetings, ahead our placement decisions in December.”
Another broker said “For me, service delivery is not a fire brigade approach. If there are issues, underwriters should not wait till renewal period before they come to resolve them, so we take cognisance of those things in making our discisions.
Beginning from October/November each year, insurance companies across the globe begin firming up their positions in readiness for new business and retention of existing accounts for the coming year.
This time, business acquisition plans for 2016 have started, with underwriting companies lobbying brokers on new accounts and renewal of existing business. This is also the time for signing of reinsurance treaties with major reinsurance companies, locally and internationally.
An industry player who preferred not to be named said “what we have done is to secure our treaties for the coming year because it’s important to enable us file for bids in some corporate accounts.”
According to the source, his company has signed treaties with top reinsurers and reinsurance-brokers in the international market, including Swiss Re, to allow for bids in oil and the gas businesses for the coming year.
Corneille Karekezi, group managing director, Africa Reinsurance Corporation (Africa Re) said the Company is committed to developing the African market by building capacity for market growth.
“When the market situation goes south, foreign reinsurers will pull out, but we will remain here to support the local market and so that is why we are building capacity to accommodate as much of the risks from the continent as we can”, Karekezi said.
“The CEOs cannot be travelling to Europe and the UK all the time for meetings to secure reinsurance treaties, that is why having a strong reinsurer on the African continent was an important decision by founders of Africa Re,” Karekezi observed.
Renewal dates give the insurance company, the broker and the insured public the opportunity to make any necessary changes to the policy.
If the insurance company determines that the risk posed by the policyholder has changed, it may amend the policy, add restrictions or terminate coverage. General policy changes that affect all insured’s, also take place at policy renewal.
A change in risk may also trigger a premium change at renewal. A policyholder who has not filed any claims may see a premium reduction, while a policyholder with several claims may see an increase in premium.
If you find a better rate with another company or are unhappy with your company’s service, you may consider switching policies at renewal. You can also avoid cancellation fees that may be imposed for mid-term cancellations.
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