To date, 28 out of 29 insurers which are members of the Association of Insurers of Senegal have signed up to join an oil risk pool, said Mr Mr Adama Ndiaye, president of African Federation of Insurance Companies (FANAF).
In an interview with Reussir Business, he said that the insurers delegate to the pool the power to negotiate, subscribe and manage oil contracts on their behalf. Each pool member companies will have an equal share of the risk. The pool also collaborates with Senegalese Reinsurance as well as representatives of oil companies. It is responsible too for building the capacity of manpower in the insurance sector to raise the level of expertise.
Oil majors are known for their propensity to play on the division among the different insurance players, Mr Ndiaye said. He added that oil companies engage in fronting, leaving little business for the local market.
Aware of this situation, the authorities have adopted, since 2016, a very protective regulation which, if it is properly applied, will allow the domestic economy to retain more business. He said, “This will can only be fully implemented if the market shows solidarity, adopts common rules and favours general interests.”
By Middle East Insurance Review
