Denis Mironov / Shutterstock.com
The four largest European reinsurers have maintained a presence in Africa for some time. Yet for new players moving in, despite all the opportunities and potential for diversification, many challenges still exist. Intelligent Insurer investigates.
Large corporate risks dominate broker business managed through international programmes in Africa. In terms of importance, South Africa remains the most developed market by far, which explains why most global companies targeting Africa form their subsidiaries there.
In many ways, the appeal of the region is obvious. It has recorded stable economic growth of 5 percent a year since 2011 and per capita GDP of more than $1,000 in 23 countries.
Sunkara Rao, CEO and managing director of GIC Re South Africa Ltd, says that the economic growth is also filtering into insurance. Many African insurance markets are growing at a rate of more than 10 percent annually with a cession rate of more than 30 percent. What is more, many insurers are actively seeking reinsurance capacities. “And insurance penetration is very low, which can be leveraged, he says.
To continue reading, you need a subscription to Intelligent Insurer. Start a subscription today for £655.
In-house feature articles, the archive and expert comment require a paid subscription. Subscribe now.
Want to give it a try? We are offering a two week free trial to the Intelligent Insurer website – register and select “Two Week Free Trial” to begin access to the full Intelligent Insurer archive and read the latest news, features and expert comment. Begin your free trial here.
Is your 2 week free trial about to end? Upgrade to a 12 month subscription for £655 now.
If you have already subscribed please login.
If you have any technical issues please contact support.
Sub-Saharan Africa, Intelligent Insurer, South Africa, GIC Re, CKRe, reinsurance, AM Best, diversification