African Reinsurance Corporation in line with its mission of developing African insurance market manages Insurance Pools on behalf various African insurance markets.
An Insurance Pool is a risk sharing arrangements where national governments, Insurance companies come together to form an entity which can provide protection to insurance companies against catastrophic risks such as floods, earthquakes and other special perils. The Pool arrangement helps to develop local capacity for the respective insurance Markets.
Africa- Re since 1983 have been providing technical support to the African insurance market in the management of Pools. As at date, we have three (3) managed Pools in our portfolio namely;
• African Aviation Insurance Pool which started in 1983 is being promoted by the African Insurance Organisation for Aviation Businesses.
• African Oil & Energy Insurance Pool which started in 1989 is being promoted by the African Insurance Organisation for Oil & Energy Businesses.
• Energy & Allied Insurance Pool of Nigeria which started in 2014 is being promoted by the Nigerian Insurers Association for Oil & Energy Business.
Benefits of the Pools to local insurance development include but not limited to the following;
• Creates capacity within Africa for energy & aviation insurance risks emanating from Africa, thus reducing the foreign exchange outgo on reinsurance.
• Market training and manpower development facilities to build technically competent underwriters.
• Provides confidence to the local market through:
- Retrocession treaties with rated securities offering more confidence to the local market.
- Management by an A- rated reinsurance Corporation (AFRICA-RE) with qualified and well experienced staff.
- Adequate technical reserves and diversified business base.
• Relieving individual countries in Africa of the burden created by relative absence of specialist oil & aviation insurers and underwriters in the local market.
• Providing coverage for the insurance needs of the market, facilitating risk surveys and promoting risk management.
Please click the link below to access the respective Pools website.
