Major broker group excited about growing capacity for local market

As a result of the introduction of sweeping reforms within the African insurance industry, its key players are now able to provide high quality cover for multinational businesses, according to the leader of one of the continent’s largest insurers.

Addressing delegates at the Brokerslink Global Conference in Venice, Italy, Jean Kacou Diagou, chairman & CEO of NSIA Group, said: “In the past, insurance standards within some elements of the African market were simply not good enough. Many participants needed more discipline, more rigours and more integrity. But we have worked hard to change this situation.

“As a result of the considerable efforts of the Inter-African Conference on Insurance Markets (CIMA), which represents 190 companies with a combined turnover of 1.2 billion pounds, African insurers are now ready to do business.”

Diagou cited the recently established Article 541 of the CIMA code as an example of real change. It now forbids intermediaries to collect premiums and fractions of premiums or to make out or receive cheques made payable to their business. All payments of premiums must now be made directly to the insurance company to protect the policyholder.

In addition, by law, all brokers must demonstrate strong technical competence, be of good repute and reach set levels of solvency before they can qualify for approval by the state.

Other CIMA code articles have been developed to ensure at least 25 percent of the risk premium is retained at a national and regional level. Foreign insurers that do not comply with these new rules are also now prevented from trading in the CIMA area.

Diagou continued: “The market is now growing; it has a greater awareness of compliance, solvency, cost control and, overall, a real desire to finally get out of underdevelopment. Africa’s insurance industry has changed.”

In 1995, Diagou founded the New Inter-Insurance Company (NSIA) in Ivory Coast with just 457,000 pounds  most of which was invested by himself and his family. NSIA now has an annual turnover of more than 212 million pounds, employs 1,644 people (half of whom work in the insurance sector) and operates in 12 countries within West Africa and central Africa.

Modestus Anaesoronye