Nigerian insurers and other African counterparts are planning to build a pool to underwrite catastrophic risks on the continent.
This was disclosed during the 45th annual general meeting of the African Insurers Organisation in Accra, Ghana.
In the report presented to the members on the creation of the African pool for catastrophe, the AIO stated that following a report given during its annual general meeting two years ago concerning the feasibility study carried out which was found by the executive committee of the AIO to be inclusive, an ad hoc committee was required to look into models that could be considered for the pool.
It noted that the ad hoc committee would propose the model to be adopted and the minimum amount to be subscribed in order for the pool to be established.
The AIO stressed the need for members to support the pool when established as it would give an opportunity to provide capacity and share expertise on how best to cover these risks.
According to the organisation, the ad hoc committee is also of the view of establishing a pool that would stand the test of time.
The ad hoc committee also noted that the AIO members needed to lobby regulators for government support.
While explaining plans to curb premium flight and other issues militating against financial inclusion on the continent, the AIO stated that the executive committee decided to engage insurance supervisors.
It noted that a meeting was held in 2017, which discussed how premiums could be retained on the continent.
According to the AIO, it was decided that there was a need to hold such meetings on a regular basis to consider pertinent matters concerning the insurance industry.
The association also stressed the need for investment in capacity building across the entire industry including insurance companies, regulators, associations and institutions.
It emphasised research and product development, as well as development of industry laws and regulations.
Source: The Punch Website