Placing big cover in small African insurance markets

Not only are many economies in Africa fairly unstable, presenting risks in their own rights, but the insurance industries in many African countries have only recently been entrusted to the private sector.As such manyAfrican insurance providers are financially insecure, technically deficient or have poor reputations for the payment of claims.

"And until regional insurance agreements like those in the European Union are in place (and this is a long way off in Africa) the situation is likely to become more, rather than less, restrictive - requiring ever more specialist knowledgeand a reliable local presence throughout Africa", says Michael Duncan, Executive Leader Global Practice at Alexander Forbes Risk Services.

To deal with the many uncertainties and unknowns facing the investor in Africa, Alexander Forbes uses its own Market Security Committee to monitor the financial security of the local insurers that their clients place cover with in various African markets.

“This gives our clients the comfort that only reputable and financially secure insurers will be used”, saysDuncan.

Furthermore,“We actively encourage local insurers to appoint a professional rating agency to undertake regular assessments of their financial security”,adds Duncan.

The security of local insurers is alsoimportantto the international institutions that finance acquisitions in Africa.Without it investments are unlikely to attracts erious capital.

In reality, says Duncan, “A compromise is usually reached between the often onerous requirements of the lenders and the limited availability and extent of local cover.”Getting this compromise right requires a broker with an in-depth knowledge of the local insurance market and its limitations.

Duncan often comes across dubious insurers and brokerages operating in Africa.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Duncan often comes across dubious insurers and brokerages operating in Africa.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

In reality, says Duncan, “A compromise is usually reached between the often onerous requirements of the lenders and the limited availability and extent of local cover.”Getting this compromise right requires a broker with an in-depth knowledge of the local insurance market and its limitations.

Duncan often comes across dubious insurers and brokerages operating in Africa.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Duncan often comes across dubious insurers and brokerages operating in Africa.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

“This gives our clients the comfort that only reputable and financially secure insurers will be used”, saysDuncan.

Furthermore,“We actively encourage local insurers to appoint a professional rating agency to undertake regular assessments of their financial security”,adds Duncan.

The security of local insurers is alsoimportantto the international institutions that finance acquisitions in Africa.Without it investments are unlikely to attracts erious capital.

In reality, says Duncan, “A compromise is usually reached between the often onerous requirements of the lenders and the limited availability and extent of local cover.”Getting this compromise right requires a broker with an in-depth knowledge of the local insurance market and its limitations.

Duncan often comes across dubious insurers and brokerages operating in Africa.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Duncan often comes across dubious insurers and brokerages operating in Africa.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

In reality, says Duncan, “A compromise is usually reached between the often onerous requirements of the lenders and the limited availability and extent of local cover.”Getting this compromise right requires a broker with an in-depth knowledge of the local insurance market and its limitations.

Duncan often comes across dubious insurers and brokerages operating in Africa.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Duncan often comes across dubious insurers and brokerages operating in Africa.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

“For example, whether intentional or not, we often find examples of local brokerages withholding premiums from insurers. If premiums are not paid over to insurers timeously by an intermediary, cover will be invalidated and subsequent claims rejected”.

Similarly, local brokerages often have very limited technical knowledge, coupled with inadequate Professional Indemnity cover, sometimes as little as US$ 50 000.

“If incorrect or inadequate cover is arranged, the client needs to know that his broker has a reasonable level of professional indemnity protection in place to make good any shortfalls which may arise”, says Duncan.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.

Furthermore, with few African countries having an Insurance Ombudsman to which complaints can be referred, having a sound intermediary is essential.

It is therefore essential to have access to a reputable intermediary with a proven African track record and on-the-ground presence if an organisation is to both comply with local insurance legislation while still accessing the benefits of any global or regional insurance programmes.