Insurance companies in Africa have been urged to build capacity through partnership and consolidation of businesses to reduce premium flight, a major problem of the insurance industry in Africa.
Continental Reinsurance Plc, largest privately owned reinsurance Company in Africa, believes that retaining more risks emanating from the continent would aid development, generate employment, and make Africa more competitive in the global business environment.
Femi Oyetunji, group managing director of the Continental Re said this during the fourth edition of the firm’s annual African insurance chief executive officers’ summit with the theme, “Prepared for the future: Building our insurance legacy,” in Dakar, Senegal recently.
He said, “At Continental Re, our mantra is, “keep African premiums in Africa”. But we can’t achieve that if we are so fragmented.”
Oyetunji noted that Nigeria has 50 insurance companies, Ghana 46, Kenya 47 companies, Mozambique 18 companies and Liberia with a population of only four million having 20 insurance companies.
According to him, clients were more interested in protection, and less bothered about where it was coming from, which makes them to consider ability first before neighborliness.
“We must therefore merge our operations, within country and across borders, so we have large insurance and reinsurance companies with balance sheets that are better able to ensure lasting legacy and compete with the biggest and the best in the world,” he said.
During the seminar, Continental Re organised a gala dinner to announce winners of the second edition of the Pan-African Re/insurance Journalism Awards.
Entries were received from French and English speaking journalists from 13 African countries.
Gareth Stokes of Commercial Risk Africa (South Africa), was awarded the Pan-African Reinsurance Journalist of the Year Award for his article “Botswana in search of growth;” Josiane Kouagheu of Agripreneur d’Afrique (Cameroon) was awarded Best Re/Insurance Industry Feature Article for her story, “In Cameroon, agriculture does not attract insurers;” and Isaac Khisa of Independent Publications in Uganda was awarded Best Re/Insurance Industry Analysis and Commentary for his article, “Insurance industry tops Shs 700bn.”
Continental Reinsurance initiated the awards in 2016 to recognise and acknowledge the good work of media on the continent. Continental Reinsurance is a composite reinsurer, writing business in more than 50 countries across the African continent.
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