With the upsurge of terrorism carried out by the Boko Haram group in some parts of Northern Nigeria, foreign insurers from the UK and Lloyds market are in the country, discussing with local insurers and brokers for platforms to provide cover for these emerging risks.
The foreigners from Afro-Asian Insurance services, a UK-based firm which has explored the market in the past week, meeting with insurance and re-insurance firms, finally signed a deal with Shepherd Insurance Brokers Limited, a firm owned by former Insurance Commissioner, Oladipo Bailey.
Before now, other re-insurance brokers from Lloyds of London had visited Nigeria and had strategic meetings with FBN Insurance Brokers Limited and Continental Re-insurance plc, which focused on capacity building to develop risks for terrorism, including kidnapping, among others.
Terrorism risk before now was not given consideration, because it was new in the market and is part of exclusion, as well as because it is usually funded by government in some jurisdictions, on account of the size of risk exposure. It has however now taken a new dimension, following the upsurge.
Chris Davis and Peter De Kersaint Giraudeau, both senior brokers and account executives who led the Afro-Asian delegation to Nigeria, said there is huge potential for growth of insurance and re-insurance in the Nigerian market.
They said that though terrorism is a bad development, insurance coming to absorb the shock by providing risk in these areas, would help stabilise the economy and make the environment conducive for local and foreign investments. If there is no insurance and an effective means of compensation in the event of loss, many would not feel comfortable to do business here, Chris said.
According to them, Nigeria is going to be the hub to penetrate other parts of Africa, where there are similar incidents, particularly political violence and piracy, in which their company also has a lot of expertise.
“Africa is now the new Eldorado, having witnessed a lot of losses and declining growth in Europe, America and Asian countries.
“ There are lots of opportunities for us in these emerging risks, given our professional experience, and we also want to add value to the Nigerian economy” they said.
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