Continental Re opens property/engineering risk services subsidiary

Continental Reinsurance plc, Africa’s largest private reinsurer outside of South Africa, has announced the launch of its new specialist subsidiary, Continental Property and Engineering Risk Services (CPERS).

CPERS has been established to meet the growing demand for specialist engineering-insurance risk advisory services that is currently being driven by Africa’s infrastructure and construction boom.

With Africa’s investment in infrastructure, rapid urbanisation, projected economic growth, rising middle-class, focus on regional integration and improved governance in many of Africa’s 54 nations, investing in construction on the continent is on a strong upwards trajectory.

Lawrence Nazare, executive director, Continental Reinsurance, says consequently, the demand for specialist engineering-insurance skills is also increasing, saying “it is imperative for Africa’s development, for African reinsurance companies to provide the required specialist insurance skills and expertise to support efforts to bolster the retention of African reinsurance premiums in the continent.

“For this reason, we have strengthened our core engineering capability by enhancing our existing offering.”

Historically, foreign reinsurance companies have provided the requisite engineering-insurance advisory skills and benefitted from premiums generated in Africa.

“The time has come for Africans to support Africa’s growth by utilising local engineering-insurance skills as well as fast-tracking the transfer of knowledge and training for insurance companies across the continent to ensure that Africa strengthens its capability to support its own growth,” says Nazare.

According to the firm, the four key functions of CPERS are: underwriting of engineering and construction risks in Africa; risk and advisory services; claims handling services, and training to the insurance companies.

Cassim Hansa, a professional civil engineer with over 20 years experience in both engineering and insurance industries in the USA and South Africa, has been appointed the managing director of CPERS.

“Insurance professionals in Africa are hungry for training and unless we step in and fill the urgent need for knowledge transfer in the insurance sector, Africa is at risk of losing the opportunity to foreign firms by not developing its own capabilities,” says Hansa.

CPERS is committed to facilitating skills transfer and training to develop a stronger specialist engineering-insurance sector on the continent by delivering training sessions in fast-developing regions in Africa.

In 2015, CPERS will conduct training in Harare, Lagos, Maputo, Nairobi, Gaborone and Lusaka. Before now, over 200 delegates from insurance companies have already attended training sessions delivered by Continental Re on engineering and property risk services in 2014, in key regions across Africa, including Lagos, Harare and Addis Ababa.

CPERS is registered in South Africa and will operate as a full subsidiary of Continental Re.

Continental Re is one of a few reinsurance companies in Africa committed to sustainable business and corporate responsibility by signing up to the UN Principles for Sustainable Insurance. Signatories to this accord commit to integrating environmental, social and governance issues into their core business strategies and operations.

 

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