L-R: Bunmi Adeleye, Corporate Services, Leadway Assurance, Moderator; Seyi Ifaturoti, MD/CEO, Transparency Scape Insurance Brokers, Discussant; Joyce Ojemudia, MD/CEO, African Alliance Insurance PLC and PILA President; Abiba Zakariah, Group COO, WAICA Re, Guest Speaker; and Shaibu Ali, foremost Insurance expert, Discussant at the Women In Insurance Conference hosted on the sides of the 47th African Insurance Organisation Conference by the Professional Insurance Ladies Association (PILA).

The Professional Insurance Ladies Association (PILA) has recommended gender parity premised on equitable opportunities distribution as a viable pathway to growing the African economy following the devastating of covid-19.

Speaking at the Women In Insurance side event hosted by PILA at the 47th African Insurance Organisation (AIO) Conference, with the theme, Women Collaborating for Africa’s Economic Growth, Dr Abiba Zakariah, the Chief Operating Officer, WAICA Re, charged Women to recognise and acknowledge their strength by redefining “our objective from ‘gender equality’ to ‘playing our role.”

Zakariah stated that women, over and above their income-earning activities, are central to the household economy and the welfare of their families which often remains unseen and unaccounted for in GDP. “It has been shown that national economies lose out when a substantial part of the population cannot compete equitably or realize its full potential. Recent estimates suggest that gender parity overall has the potential to boost global Gross Domestic Product (GDP) by between $12 trillion and $28 trillion between now and 2025,” she concluded.

On changing the world’s perspective from being the weaker vessels, the WAICA Re boss advised Women professionals to be intentional about fixing our economies and thus earn respect and acceptance as partners in development.

Earlier during her welcome address, the President of PILA, Mrs Joyce Ojemudia, who doubles as the MD/CEO of African Alliance Insurance thanked the Chairman of the Organising Committee, Mrs Ebelechukwu Nwachukwu and indeed the entire AIO Council for integrating the PILA AFRICA Workshop into the AIO Conference. She further thanked the past President of PILA, Dr Tonia Smart, for her groundbreaking efforts in scaling PILA across Africa.

The highpoint of the event was the presentation of an award of honour to the outgoing Secretary-General of the AIO, Ms Prisca Soares. Aptly described as an amazon of the African financial services industry.

Soares was honoured for being a Pillar of Strength and Beacon of Hope for women professionals in particular and indeed, every professional across gender, in general. A tearful Ms Soares was full of praises for the leadership of PILA and thanked the association for finding her worthy of the honour.

Discussants at the event included Mrs Yetunde Ilori, the Director-General of the Nigerian Insurers Association, Mrs Seyi Ifaturoti, foremost broker and Mr Shaibu Ali, an insurance expert from Ghana while Bunmi Adeleye, a Communications Professional with Leadway Assurance Company moderated the event.

PILA Africa is an initiative of PILA Nigeria aimed at unifying and presenting a scalable platform for women in insurance across the continent.

 L-R: Wife of the new President of African Insurance Organisation (AIO), Dr. (Mrs) Tonia Smart, standing by her husband, Mr Tope Smart being decorated by Winner of the Africa Insurance Organisation (AIO) Hall of Fame, Mr Elhassani Muhammed and Chancellor of Swearing-in and representative of the outgoing AIO President and Group Managing Director/CEO, Africa Re, Dr. Corneille Karekezi at the investiture ceremony of the 2021 AIO Conference and General Assembly in Lagos.

Mr. Tope Smart, Group Managing Director/CEO of NEM Insurance Plc has been installed as the 47^th President of the African Insurance Organisation (AIO) at the 47^th AIO Conference & General Assembly in Lagos, Nigeria.

Smart in his speech unveiled a 5-Point Agenda to drive his leadership of the continental insurance body as follows:

• Increased Awareness
• Industry Digitalisation
• Collaboration with Other Insurance Markets
• Colloboration with the Government & Regulators
• Building the Trust of Insurance Customers/Consumers

Tope Smart, a graduate and an award winner from the University of Lagos also holds a Master’s Degree in Business Administration (MBA) from the University of Nigeria, Nsukka.  He is an Associate member of both the Chartered Insurance Institute of London and the Chartered Insurance Institute of Nigeria.

Tope, an astute professional, believes very strongly in the entrenchment of insurance in the mind of every Nigerian.  He is a Council member, Chartered Insurance Institute of Nigeria, Council member, West African Insurance Companies Association (Ghana), Council member, Nigeria-Britain Association, Vice President and NOW President, African Insurance Organisation (AIO) and a past Chairman of the Nigeria Insurers Association to mention but a few.

Tope sits on the Board of several companies amongst which are RegencyNem Insurance (Ghana) Limited and NEM Asset Management Limited.  In 2014, he was appointed by the Federal Government as Co-Chairman of Insurance Industry Transformation Committee.

He was also recently appointed as Chairman, Planning Committee of the University of Lagos Alumni Association’s Golden Jubilee Anniversary.

In recognition of his outstanding achievements, Tope has won several awards amongst which are Distinguished Alumnus by the University of Lagos, University of Lagos Alumni Association Golden Jubilee Special Recognition Award amongst others. He is also a two-time winner of the Businessday Top 25 CEOs award.

Tope is an alumnus of Harvard Business School.

Jean Baptiste Ntukamazina

Secretary General

African Insurance Organisation (AIO)

According to the Africa Insurance Pulse 1/2021, on the “African Continental Free Trade Area” (AfCFTA), launched by the Africa Insurance Organisation (AIO), AfCFTA will create a single market covering more than 1.2 billion people, with a current gross domestic product of more than US$ 2.5 trillion.

The free flow of goods, services, people and capital under the AfCFTA is expected to boost intra-African trade and strengthen the competitiveness of African companies. The African insurance sector is optimistic about the AfCFTA but wishes to see regulatory integration.

As in the past, this year’s 6th annual edition of the African Insurance Pulse, conducted by Faber Consulting on behalf of the AIO, is based on careful market research and in-depth interviews with nearly 30 insurers, reinsurers, intermediaries, regulators and policymakers operating in Africa.

Jean Baptiste Ntukamazina, Secretary General of AIO, said: “The AfCFTA has significant potential to serve as a catalyst for transforming the African economy. For the AfCFTA to succeed, dynamic pan-African trade is required, which can only take root in a stable socio-political environment. The African insurance sector is ideally positioned to provide security, economic and financial stability and enable the development of societies and economies in Africa through its risk knowledge and risk transfer solutions. However, to play this important role, African insurers need integration or even harmonisation of insurance regulations.”

The service sector is by far the largest contributor to the continent’s GDP growth

In Africa, the service sector (including the insurance sector) made the largest contribution to GDP, with
53 % in 2020. The relevance of the services sector is even more significant, as the widespread informal sector is not included in most statistics. The African Union expects an increase in exported services and further growth in industries that are heavily dependent on services, such as manufacturing and agriculture. Liberalisation of the service sector is likely to be driven by the private sector, especially financial institutions, which will play an essential role in shaping policy.

Insurance growth in Africa has been driven by economic growth

The maturity of the insurance market is low in most African countries. Insurance penetration is expected to increase in African markets where insurance growth has been accompanied by structural reforms, such as market liberalisation, compulsory insurance enforcement, wider distribution, public-private partnerships, and a regulatory system promoting innovation and market access. The trend towards tighter capital requirements for insurance companies to ensure their solvency will establish stronger companies and promote job creation and build capacity in the industry. These reforms are crucial to increase the security and performance of the continent’s insurers.

Regional expansion of re/insurance business lags behind its potential due to trade barriers

While intra-African trade agreements have gradually seen a substantial reduction in tariffs on goods, non-tariff barriers, such as infrastructure gaps, the low quality of trade logistics, access to credit, and human capital, remain high for most African countries. Despite these efforts, the intra-African trade remains below its potential. This is also true for the insurance sector, according to the executives interviewed. Most insurers operate in just one or two markets. Even Africa’s reinsurers, acting as a shock absorber for cedants and economies, are challenged to diversify their portfolio because of many barriers and constraints in African insurance markets. Ahead of the implementation of the AfCFTA, a geographic expansion to build scale is the top priority for insurers and reinsurers alike.

Dr. Corneille Karekezi, Group Managing Director and CEO, Africa Re, commented: “Today’s trade restrictions within Africa are higher than those with the rest of the world. While intra-regional exports amount to roughly 50 % of trade in Asia and 69 % in Europe, in Africa only 17 % of exports remain within the continent. Therefore, it comes as no surprise that large hopes rest on the AfCFTA. According to the UN Economic Commission for Africa (ECA), intra-African trade is expected to experience a boost of 52 %, encouraging manufacturers and service providers, including re/insurers, to leverage economies of scale.”

Survey respondents are optimistic about the AfCFTA but hope for an integration of insurance regulation

Re/insurance players have much to gain from a continent-wide single market. Once fully implemented,

the eight strategic objectives of the AfCFTA will benefit re/insurance companies in Africa directly or indirectly. As a result, the expectations of the various insurance stakeholders for the AfCFTA are high. Many believe that the insurance pie will grow with the liberalised market access, facilitating an expansion beyond their current market range. In particular, re/insurers operating in one or a few markets see this as a unique opportunity to grow and diversify their risk portfolio.

When asked about the top three challenges to a successful implementation of the AfCFTA, respondents most frequently cited increased competitiveness, indicating that not all countries, sectors and economic actors are equally prepared to benefit from the implementation of a common market. Another top concern of the interviewed market participants is that insurance regulation differs widely across the continent and often poses hurdles to market access. Therefore, almost all respondents, including regulators and policymakers, agree that the current regulatory differences present a major obstacle to integrating African re/insurance markets.

About the African Insurance Organisation (AIO)

Established in 1972 in Mauritius, the African Insurance Organisation (AIO) is a non-governmental organisation recognised by many African governments. Following the headquarters’ agreement with the Government of Cameroon, the Permanent Secretariat of the AIO was set up in Douala.

The AIO aims to develop a healthy insurance and reinsurance industry in Africa and promote inter-African
co-operation in insurance. The AIO has currently 356 members from 48 countries in Africa and 16 international associate members from overseas.

Jean Baptiste Ntukamazina

Secretary General of AIO

According to the Africa Insurance Pulse 1/2021, on the “African Continental Free Trade Area” (AfCFTA), launched today by the Africa Insurance Organisation (AIO), the AfCFTA will create a single market covering more than 1.2 billion people, with a current gross domestic product of more than US$ 2.5 trillion.

The free flow of goods, services, people and capital under the AfCFTA is expected to boost intra-African trade and strengthen the competitiveness of African companies. The African insurance sector is optimistic about the AfCFTA but wishes to see regulatory integration.

As in the past, this year’s 6th annual edition of the African Insurance Pulse, conducted by Faber Consulting on behalf of the AIO, is based on careful market research and in-depth interviews with nearly 30 insurers, reinsurers, intermediaries, regulators and policymakers operating in Africa.

Jean Baptiste Ntukamazina, Secretary General of AIO, said: “The AfCFTA has significant potential to serve as a catalyst for transforming the African economy. For the AfCFTA to succeed, dynamic pan-African trade is required, which can only take root in a stable socio-political environment. The African insurance sector is ideally positioned to provide security, economic and financial stability and enable the development of societies and economies in Africa through its risk knowledge and risk transfer solutions. However, to play this important role, African insurers need integration or even harmonisation of insurance regulations.”

The service sector is by far the largest contributor to the continent’s GDP growth

In Africa, the service sector (including the insurance sector) made the largest contribution to GDP, with
53 % in 2020. The relevance of the services sector is even more significant, as the widespread informal sector is not included in most statistics. The African Union expects an increase in exported services and further growth in industries that are heavily dependent on services, such as manufacturing and agriculture. Liberalisation of the service sector is likely to be driven by the private sector, especially financial institutions, which will play an essential role in shaping policy.

Insurance growth in Africa has been driven by economic growth

The maturity of the insurance market is low in most African countries. Insurance penetration is expected to increase in African markets where insurance growth has been accompanied by structural reforms, such as market liberalisation, compulsory insurance enforcement, wider distribution, public-private partnerships, and a regulatory system promoting innovation and market access. The trend towards tighter capital requirements for insurance companies to ensure their solvency will establish stronger companies and promote job creation and build capacity in the industry. These reforms are crucial to increase the security and performance of the continent’s insurers.

Regional expansion of re/insurance business lags behind its potential due to trade barriers

While intra-African trade agreements have gradually seen a substantial reduction in tariffs on goods, non-tariff barriers, such as infrastructure gaps, the low quality of trade logistics, access to credit, and human capital, remain high for most African countries. Despite these efforts, the intra-African trade remains below its potential. This is also true for the insurance sector, according to the executives interviewed. Most insurers operate in just one or two markets. Even Africa’s reinsurers, acting as a shock absorber for cedants and economies, are challenged to diversify their portfolio because of many barriers and constraints in African insurance markets. Ahead of the implementation of the AfCFTA, a geographic expansion to build scale is the top priority for insurers and reinsurers alike.

Dr. Corneille Karekezi, Group Managing Director and CEO, Africa Re, commented: “Today’s trade restrictions within Africa are higher than those with the rest of the world. While intra-regional exports amount to roughly 50 % of trade in Asia and 69 % in Europe, in Africa only 17 % of exports remain within the continent. Therefore, it comes as no surprise that large hopes rest on the AfCFTA. According to the UN Economic Commission for Africa (ECA), intra-African trade is expected to experience a boost of 52 %, encouraging manufacturers and service providers, including re/insurers, to leverage economies of scale.”

Survey respondents are optimistic about the AfCFTA but hope for an integration of insurance regulation

Re/insurance players have much to gain from a continent-wide single market. Once fully implemented,

the eight strategic objectives of the AfCFTA will benefit re/insurance companies in Africa directly or indirectly. As a result, the expectations of the various insurance stakeholders for the AfCFTA are high. Many believe that the insurance pie will grow with the liberalised market access, facilitating an expansion beyond their current market range. In particular, re/insurers operating in one or a few markets see this as a unique opportunity to grow and diversify their risk portfolio.

When asked about the top three challenges to a successful implementation of the AfCFTA, respondents most frequently cited increased competitiveness, indicating that not all countries, sectors and economic actors are equally prepared to benefit from the implementation of a common market. Another top concern of the interviewed market participants is that insurance regulation differs widely across the continent and often poses hurdles to market access. Therefore, almost all respondents, including regulators and policymakers, agree that the current regulatory differences present a major obstacle to integrating African re/insurance markets.

About the African Insurance Organisation (AIO)

Established in 1972 in Mauritius, the African Insurance Organisation (AIO) is a non-governmental organisation recognised by many African governments. Following the headquarters’ agreement with the Government of Cameroon, the Permanent Secretariat of the AIO was set up in Douala.

The AIO aims to develop a healthy insurance and reinsurance industry in Africa and promote inter-African
co-operation in insurance. The AIO has currently 356 members from 48 countries in Africa and 16 international associate members from overseas.