African insurers urged to help banks, institutions manage rising risks
As institutions in Nigeria and other countries in Africa integrate their operations for global competitiveness amidst rising risk management issues, insurance companies in the Continent have been urged to leave their comfort zone and provide risk absorbing products.
We are of the view that it is time these companies emerge from their comfort zones to take up the opportunities that are being presented by the developments in the global and African markets, Benedict Oramah, president of the African Export-Import Bank, said this at the 20th Anniversary Lecture of Mutual Benefit Assurance (MBA) plc held in Lagos.
“African Insurance companies should begin developing innovative products that address specific needs of the continent. They should: Begin providing Credit Insurance to African banks and other financial institutions to enable them extend medium to long-term credit to African entities engaged in trade and trade projects.
This is an important means to also ensuring improved access to credit by Small and medium scale enterprises, who – as we all know – are the engine of growth of the continent; develop political risk insurance to attract foreign investments into the national economies; and design health and medical insurance products that covers persons who are affected by outbreak of pandemics.”
Oramah, who was represented by Chief Economist and Director of Research, Hippolyte Fofack, said institutions such as ours have a great deal of role to play in ensuring a sustainable development of the continent.
“We must work together to design innovative products that deal with the emerging challenges and risks in the global and African economies, especially at a time when more than ever Africa needs to marshal all necessary tools and resources if it is to achieve Sustainable Growth and Development and better position itself in the global economic landscape.”
Moving forward, it is our proposition that we explore ways in which we could collaborate to address some of the growth and development challenges of the continent. In this regard, MUTUAL could leverage on the Bank’s coverage of 37 member countries to expand geographically.
Akin Ogunbiyi, group managing director, said in May, this year in Tunis, Tunisia, Mutual Benefits Assurance plc most deservedly achieved a first in the history of Insurance in Nigeria by being adjudged the most innovative insurance company in Africa, in a keenly contested award ceremony sponsored by African Reinsurance Corporation (Africa Re).
Ogunbiyi told audience at the event that Mutual Benefits have demystified the myth that this potentially huge business of spreading risks in order to promote substantial investments in the productive sector, cannot thrive in the “informal” sector even better than it is doing in the “formal” sector.
MUTUAL’s entrepreneurial initiative of growing the insurance business has made us a leader in Nigeria as well as the entire African continent, Ogunbiyi said.
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