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Chuks Udo Okonta
The West African Insurance Companies Association (WAICA) is presently in discussions with Council of Ministers of Economic Community of West African States (ECOWAS) to provide insurance cover for infrastructure projects across sub region.
Confirming this development, at the ongoing WAICA 50th Anniversary and Conference 2023, in Victoria Island, today in Lagos, the Secretary General/CEO, WAICA, William Coker, said, the association is working with ECOWAS to ensure underwriters come under a consortium to participate in the internationally led infrastructure projects.
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, is not palatable, which was the reason why the association approached ECOWAS to assist in this regards.
Believing insurers in the sub-region have the capacity to underwrite such infrastructure projects, especially, under a consortium, he added that, this will not only improve the profitability and growth of the insurance industry, it will equally make the sector relevant in national and economic planning.
“Infrastructure Projects facilitators go to banks for funding, why not approach insurers in the sub-region for cover. Even we can’t do it as an individual company, insurance companies can come together as a consortium to provide cover.
“In this regards, WAICA has intitaited a proceeding with ECOWAS, it has gotten approval and 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 submitted that the development calls for rating, stressing that insurance companies have to up their games and acquire the requisite rating to participate in the business.
Meanwhile, the minister of Finance, Budget and National Planning, Dr. Zainab Shamsuna Ahmed, in her Opening Address said, the importance of enhancing multilateral cooperation with the objective of promoting international standards in fostering favourable investment environments and orderly markets in the West African sub region and beyond can
Consequently, she said, it has become imperative for the Insurance supervisory systems and practices to continually upgrade in order to cope with these developments to mitigate possible financial and systemic stability concerns arising from the insurance sector as they emerge.
Ahmed, who was represented by the commissioner for Insurance/CEO, the National Insurance Commission (NAICOM), Sunday Thomas, said, she was
pleased with the stride so far achieved by the West African Insurance Supervisors Association (WAISA) as regards the establishment of the College of Insurance Supervisors of the West African Monetary Zone (CISWAMZ) in February, 2022.
The college, she stressed, is saddled with the objectives of strengthening cross border insurance supervision, stating that, insurance in the whole of Africa has been characterized by low penetration and poor contribution to most African countries financial growth. Maintaining efficient, fair, safe and stable insurance market in the West African sub region, he said, must be promoted for the benefit of the policyholders and other stakeholders.
While believing in a new dawn, leveraging technological innovations, and a positive paradigm shift focused and poised to meet the anticipated surge in the demand and untapped side, he urged the delegates, at the event, to deliberate and recommend ways of repositioning the insurance industry in West Africa for global competitiveness.
