African Reinsurance Corporation has signed a partnership agreement with the Impact Insurance Facility of the International Labour Organisation.
During the partnership signing ceremony in Lagos, the Managing Director, Africa Re, Mr. Corneille Karekezi, said the partnership was in form of financial assistance to support mutually-selected initiatives and activities of the ILO’s impact insurance facility.
According to him, it has the aim of developing the capacity of insurance providers to offer valuable products to the financially excluded population, promoting cross country collaboration and sharing of good practices among African countries.
“The partnership fits perfectly in the mission of Africa Re, which is to foster the development of the insurance and reinsurance industry in Africa, to promote the growth of the national, regional and sub-regional underwriting and retention capacities and to support African economic development,” he said.
He said that the extension of better insurance coverage to more low-income households, small enterprises and smallholder farmers was an initiative under its corporate social responsibility.
He observed that the low income population had been neglected by the mainstream insurance industry for long while the bottom of the pyramid of the African economies was the most vulnerable.
This, he said, was prone to various risks such as accidents, deaths, floods, drought and loss of livestock and properties.
If harnessed, he said microinsurance could unleash the potential of millions of communities, households and individuals to be protected against such risks and accelerate their development.
He said that Africa Re’s corporate social responsibility fund comes to alleviate the existing scarcity of resources to develop suitable microinsurance products, distribution channels and systems.
According to him, supporting the microinsurance development has three benefits, which are the contribution to uplift the needy; to strengthen the societies and economies; and to grow the current insurance industry.
The managing director said the firm established a CSR fund in 2013, financed through a portion of its net profit every year.
“The main focus of the Africa Re Fund is risk management for development,” he said.