Maravi

Mapipo urges African insurers to design appropriate products

Mapipo urges African insurers to design appropriate products
Written by Nchima Nchito Jr
Friday, May 08, 2009 5:31:53 PM

AFRICAN insurers and intermediaries have a heavy responsibility of improving the general standard of living of the continent, registrar of Pensions and Insurance Authority (PIA) Chris Mapipo has said.

During the Organisation of Eastern and Southern African Insurers (OESI) training seminar in Lusaka yesterday, Mapipo said this could be done through financial intermediation role and designing appropriate insurance products.

“The fact that the world is experiencing the worst global financial recession means that the demand on the insurance industry for higher coverage across a wide range of risks will most likely increase, yet clients’ capacity remains limited,” he said. “Africa will sooner than later demand much more capacity than its present share globally.”

Mapipo added that there would be increased demand for specialist insurance products within the OESI largely due to increased trade and infrastructure development.

“Building up the talent pool of experienced and highly competent underwriters, claims managers and brokers in these specialised areas is key success factor,” he said.

He said the role of insurance intermediaries had also evolved.

“From the traditional role of matching and placing of insurance risks for their client with insurers and reinsures, insurance intermediaries have moved up the value chain to essentially provide enhanced services in order to remain competitive and relevant,” Mapipo said. “The risks faced by their clients have become much more complex given the expanded business markets beyond traditional boundaries.

Underwriters and the insurer’s intermediaries alike have had to keep up, not only in understanding the developments within their client’s areas of operation but also complex nature of the potential risks exposures that their clients face. Only then can they provide value added risk management and insurance services.”

Mapipo expressed hope that the insurance sector would rise to the current economic challenges.

And OESI chairperson Irene Muyenga said the main challenge faced by the organisation was re-capitalisation and the enhancement of its capacity in order to handle huge risks.

Labels: CHRIS MAPIPO, GREAT DEPRESSION II, INSURANCE

posted by MrK @ 4:34 PM