Notes

Captive Insurance Insurance Broking & Danger Management
Still, this was not a mass mid-market purchase, as it was perceived as fairly an expensive class of insurance. There are large progress opportunities inside the area, significantly in Ghana, Botswana, Zambia, Nigeria, Tanzania, Namibia and South Africa, with the latter being the most mature of these markets. From a political risk standpoint, sovereign debt is certainly one of the biggest threats to restoration for the area, with some African countries already defaulting on cost. As properly as impacting the capability of political risk insurance within the area and driving pricing up, it'll have a knock-on effect with the viability of future infrastructure projects.
On common, fee increases of around 15-20% are being sought, with higher will increase for distressed accounts. In a quantity of international locations, as a lot of a risk as attainable is retained in the local market, with very strict protocol ahead of risks being positioned into the international market. While cowl just isn't as broad in other sub-Saharan African international locations — and the impact from COVID-19 is considerably much less — most insurers have maintained their general capability. However, they are shifting in the path of decreasing capability deployed on high-hazard occupancies or less protected locations.
From the insurer’s perspective, the Agri Crop opportunity stems from developing innovative solutions for the sometimes uninsured small- and medium-sized farmers. A higher proportion of medium and large businesses within the agriculture sector (80%) – compared to 70% throughout all sectors – most popular a dealer to help in navigating the advanced Agri Crop insurance market. More than 90% of Santam’s Agri Crop insurance policies are offered via a dealer with solely a handful of skilled farmers insuring instantly. Additionally, inflation, interest rates and foreign money volatility all impression farmers’ profit margins. Diesel prices have been sharply higher in H (with a 12% enhance at the time of scripting this in August 2023) driven by greater oil costs and a decline within the rand towards the US dollar.
casualty reinsurance
In aviation reinsurance price erosion was observed in both main insurance and reinsurance on account of the great underwriting results recorded in prior years. The business nevertheless continues to be enticing, prompting the company to enlarge its premium volume. The outcome of the renewals in credit and surety reinsurance - the place around 75% of the portfolio was renewed - was satisfactory for Hannover Re. We have observed vital push-back from brokers on behalf of purchasers, especially where fireplace or flood risk mitigations would require multiples of annual insurance premium to put in.
There is less urge for food for smaller airline operators as a result of current lack of commerce and quantity. Due to the unprecedented nature of 2020, the fallout from 2019 Ethiopian Airlines crash was not really seen — although this can likely have an effect when the world totally reopens. Cyber insurance in sub-Saharan Africa is entering a agency market cycle, though not at the severity seen in other parts of the world. Taking a holistic view, one of many key medical initiatives in South Africa at present is the institution of its National Health Insurance (NHI).
In November 2022, Santam and the eThekwini municipality signed a MoA to limit the impression of future disasters following the floods that took place in April and May of that yr. Santam has additionally undertaken a drone survey project to extract important risk data on six rivers in the flood-affected areas; and donated R4 million to the municipality to purchase specialised private protecting equipment for a hundred newly appointed firefighters. Going ahead, Santam additionally intends to support the town with local weather change adaptation planning utilizing the Green Book (more on this below). Farmers ought to rigorously study their policy wordings to make sure they're getting probably the most complete cowl.
Africa Reinsurance Consultants Limited (ARC) is specialised in reinsurance broking operating globally with an emphasis on African markets. In North America the treaty renewals had been satisfactory total; not quite 50% of the portfolio was up for renewal on this area. Particularly pleasing was the state of affairs in Canada, where on the entire sizeable rate will increase have been secured. The premium quantity for whole business in North America grew by round 7% as at 1 January 2012. Of this, a premium quantity of EUR 3,one hundred thirty million was renewed, while treaties value EUR 347 million have been either cancelled or renewed in modified form.
Having built this capacity over time, appetite has been able to stand up to the recent financial downturn brought on by COVID-19. Projects involving wet works or mining do require detailed underwriting info, however typically, quotes have needed little change to wording. Surrounding territories, like Botswana and Namibia, are experiencing comparable situations as typically they acquire their reinsurance from South Africa. Demand for tailored solutions in the space of structured reinsurance stays brisk, benefiting Hannover Re thanks to its leading market position. The premium volume booked by Hannover Re in this segment has now reached roughly EUR 5 billion.

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