Saturday, November 27, 2010

In and Out of African Insurance Organisation

• Posted by Modou S. Joof on May 31, 2010 at 11:04pm
• View Modou S. Joof's blog

Banjul, The Gambia (TNBES) The African Insurance Organisation (AIO) is one continental body that has had since its inception members withdrawing, reinstated, suspended as well as new members coming in on an annual basis.

The AIO recently concluded its 37th Annual Conference and General Assembly from 22nd to 26th May 2010 in Banjul and it was revealed in its report that Morocco’s Compagnie d’assurances et de Reassurances, ES-SAADA and United Kingdom’s Mediterranean Insurance and Reinsurance Company
has withdrawn their membership of the AIO.

The report did not highlight in detail reasons for the withdrawal of the two insurance companies, noting only that the Moroccan company has merged with CNIA Assurance to form CNIA SAADA, a company which is also a registered member of the AIO, while the UK Company is reported to have been put into a run-off.

Though the main objectives of AIO are the promotion of inter-African co-operation and development of a healthy insurance and reinsurance industry in Africa, it is a fact that the continental body has an insurance penetration of roughly 1.0 percent and less than 10 percent of the insurable population in Africa is actually insured.

“The industry has not measured up to other competing products in the financial services industry within the Continent, particularly the banking sector.” The report also reveals the reinstatement of Kenya’s First Reinsurance Brokers Ltd and Zimbabwe’s Zimmat Lion Insurance Company Limited.

Nonetheless, eight other insurance companies are facing suspensions and the report indicated that their membership will be terminated if outstanding subscriptions are not paid up by the end of the 37th Conference.

The affected companies include Egypt’s Delta Insurance Co. and National Insurance Co.; Morocco’s Mutuelle Agricole Marocaine d’Assurance and Mutuelle Centrale Marocaine d’Assurances; Nigeria’s Risk Watch Insurance Company; Senegal’s Intercontinental Life Insurance Company (ILICO)’ Sudan’s Red Sea Insurance Company; and Tunisia’s Aon Socarest.

The representative of the Red Sea Insurance of Sudan told the Conference that his company will settle its subscription fee as soon as it completed a transfer of funds. He explained that the process of transferring funds from Sudan has been very difficult due to American embargo on Sudan.

On the other hand, there had been a number of nine new companies from Cameroon, Djibouti, Gabon, Ghana, Kenya, Libya, Mozambique and Nigeria that has joined the AIO.

On the financial aspect, AIO reveals that the audited accounts for the financial year ending 31st December recorded a surplus of $388, 050 against $391, 533 for 2008.

AIO recorded an income of $911, 514 against $875, 007 at the end of 2008 for the period under review.

Nonetheless, expenditures were higher than those of last year ($523, 464) compared to $483, 475 for the year 2008, recording a surplus of $388, 050 against $391, 533 as in 2008.

The report has it that the Secretariat has been challenged to observe proper budgeting in 2011 especially in the areas of bank charges, expenses and salary expenses in order to avoid such overrun in the future.

It is also recommended that the Secretariat endeavour to channel part of the surplus into strengthening the industry through capacity building.

No comments:

Post a Comment

The views expressed in this section are the authors' own. It does not represent The North Bank Evening Standard (TNBES)'s editorial policy. Also, TNBES is not responsible for content on external links.