Participants at meeting say financial crisis is limiting funding, raising premiums for insurance coverage on continent
Geneva, 26 Feb. 2009- Experts on the African insurance sectorsaid this week that countries on the continent -- especially as the effects of the global financial crisis spread -- need assistance in their efforts to provide modern, effective insurance coverage to domestic businesses and populations.
The African Insurance Organization (AIO) and participants in an Ad-hoc Expert Meeting on Capacity-building for the Insurance Sector in Africa , held 23 February, requested UNCTAD to assist African nations in updating their laws and regulations on insurance; to support the African Centre for Catastrophe Risks, established in Casablanca, Morocco, in 2004 under UNCTAD sponsorship; and to help African countries train personnel so that insurance services are effectively and professionally provided and managed.
They also requested assistance in expanding information-technology (computer and Internet) services for supervisors and insurers; and in developing key actuarial statistics to underpin the provision of life insurance and other insurance products.
Some 45 experts from Africa, from multilateral and international organizations, from the private sector, and from diplomatic missions and civil society attended the meeting.
The global economic crisis has already had a significant negative impact on Africa, they said: there have been decreases in investment, in exports of primary commodities, and in employment. In the area of insurance, participants said the crisis has led to a decrease in demand for insurance services and capital available for insuring risks on international markets, as well as difficulty in renewing treaties related to insurance. In addition, there have been problems with higher premiums for re-insurance, they said.
The morning session of the meeting dealt with the challenges facing the African insurance sector, and potential solutions and opportunities. The afternoon meeting focused on public- and private-sector perspectives on the African insurance business and on how to finance insurance that encourages economic development.
Presentations also were made on the nature and frequency of catastrophic risks in Africa, and the need to secure funding for suitable insurance coverage, especially through the African Centre for Catastrophic Risks.
Guy-Alain Emmanuel Gauze, Ambassador of Côte d´Ivoire, who chaired the meeting, in his closing remarks termed UNCTAD a powerful "tool available for African countries."
Participants urged the organization to play a catalytic role in promoting and supporting "South-South" and regional cooperation that might strengthen the African insurance sector. And UNCTAD was requested to seek greater assistance for the insurance sector from the international donor community.
