Shaun Crawford, global insurance leader, and Malcolm Rapson, partner, Africa insurance sector leader at EY explain the increasing regulatory challenges facing re/insurers in Africa and how the continent is working together to overcome them.
What impact can regulatory trends have on re/insurers entering or expanding within emerging markets?
Presently there are many separate regulatory regimes, which require on-the-ground understanding. Skills shortages, for example, in the actuarial space also pose a challenge. Most of the regulations involve capital adequacy requirements and financial stability, although we expect to see greater focus on areas such as the principles for treating customers fairly (TCF) and the Retail Distribution Review (RDR).
While it doesn’t necessarily stop other continents doing business there, it’s something that must be recognised. What we have found in insurers and people investing in Africa—and there has been significant interest in Africa in insurance financial services—is that it’s 54 countries, 54 separate legal jurisdictions and therefore separate regulators. One has to recognise the regulatory diversity across the continent.
EY, Africa, Shaun Crawford, Malcolm Rapson