Reinsurance giant, Africa Reinsurance Corporation says it is concerned about huge premium loss from Africa over lack of capacity on the continent.
According to the reinsurance giant, only 30 percent of the reinsurance premium from the continent is retained locally, while 70 percent is underwritten offshore, calling on players in the continent to redouble their effort by creating consumer value through innovations.
Africa Re said its leading technological innovation in the African insurance industry as part of efforts to deepen penetration and increase consumer value.
Corneille Karekezi, group managing director, Africa Re says digital transformation has redefined the business landscape, urging its partners (insurers) to make use of digital technology to align with today’s business requirement
According to him, customers will be at the center of this technological transformation, as the insured will decide needs, product types, as well as premium to pay.
Insurers therefore must be prepared to offer different alternatives for the consumers to choose from, urging players in the industry to work together with Africa Re to survive, create value and grow the market.
He says the company is committed towards ensuring that there is increased retention of premium in Africa.
Karekezi notes that Africa Re was developing its sixth strategic plan for the period (2019-2023), urging insurance companies to move out of their comfort zones and support market growth through innovations.
“If you as our customers do not survive, we will not survive; if you do not do well, we will not do well”.
He says the market should begin to look at these technologies as they are here to disrupt the space – genomics, IOT, robotics, cyber risks, cognitive systems, drones, as well as block chain.
“All of these are coming to redefine the market. We cannot escape it, so we must begin to prepare for it, Karekezi states.
“Africa Re has evolved a forward looking business development strategy aimed at utilising its deep insight and unique position on the continent to sustain its eminent status as a regional player”.
According to him, service delivery initiatives and product offerings are being launched on the back of skills improvement programme implemented for its staff.
“Appropriate systems are also being implemented to strengthen governance, risk management, underwriting discipline across the corporation”
