The West African Insurance Companies Association (WAICA) says it is engaging governments within West Africa towards enhancing risk management in infrastructure projects.
WAICA says the partnership will help countries achieve project plans, reduce losses and enhance the economic growth and development of the region.
Confirming this development, at the ongoing WAICA 50th anniversary and conference 2023, in Lagos, William Coker, the secretary-general/CEO, of WAICA, said, the association was working with ECOWAS to ensure underwriters come under a consortium to participate in the internationally led infrastructure projects.
He said WAICA was in discussions with the Council of Ministers of the Economic Community of West African States (ECOWAS) to provide insurance cover for infrastructure projects across the sub-region.
Coker noted that while infrastructure project facilitators in the sub-region do approach banks for funding, they have neglected insurance of these projects through sub-region underwriters.
This, he said, was not palatable, which was the reason why the association approached ECOWAS to assist in this regard.
He believed insurers in the sub-region have the capacity to underwrite such infrastructure projects, especially, under a consortium, adding that this will not only improve the profitability and growth of the insurance industry but also make the sector relevant in national and economic planning.
Infrastructure project facilitators go to banks for funding, so why not approach insurers in the sub-region for cover? Even if we can’t do it as an individual company, insurance companies can come together as a consortium to provide cover.
“In this regard, WAICA has initiated a proceeding with ECOWAS, it has gotten approval and is currently with the Council of ECOWAS to get their final blessings. This will change the landscape of infrastructure projects insurance in the sub-region,” he pointed out.
He said that the development calls for rating, stressing that insurance companies have to up their game and acquire the requisite rating to participate in the business.