NDAMU SANDU
An insurance unit of Afreximbank is hunting for local players as it seeks to appropriately price risk and make insurance support trade and economic growth on the continent.
AFREXInsure, which was launched during Afreximbank’s annual meetings last week, is an insurance management services company which offers specialty insurance solutions for trade and trade-related investments across Africa.
AFREXInsure CEO Jonas Mushosho (pictured) told Business Times that local players would be at the centre of the entity’s thrust.
“So by partnering with local players, then we are able to design appropriate solutions, price it appropriately in a way that is supportive of trade and growth of economies across the continent,” Mushosho said.
He said local players have the knowledge which will assist AFREXInsure to be able to appropriately price risk.
“If you don’t have local knowledge or you don’t understand a particular risk, you always load a risk premium on top of that and make insurance more expensive,” Mushosho said.
AFREXInsure completed its first insurance policy early this year after it facilitated the issuance of all-risk construction insurance cover to Oman Shapoorji Company for the construction of the US$80m Afreximbank Africa Trade Centre in Harare.
Mushosho said the project is important as it is a trade centre with a regional office, hotel and convention centre.
“To have been able to provide coverage and particularly knowing that a number of local players have no capacity to be able to support the size of that project it was very good for us to be able to demonstrate that we can work with local insurers, local brokers and bring them together with external service provider insurers to come up with a solution of a project that is taking Zimbabwe and Harare forward,” he said.
AFREXInsure offers a focal point for specialty insurance solutions and ensuring that the right-fit insurance solutions are secured.
It also offers vital insurance solutions for trade and trade-related investments across Africa, access to quality, best-in-breed specialty insurance and tailor-made specialty insurance solutions.
The entity provides African knowledge and risk expertise by leveraging its presence across the African continent and deep understanding of the African market.
Insurance solutions to be provided by AFREXInsure include cargo, construction, operations and energy.
