Financial crisis limits funding

WINDHOEK – Experts in the insurance sector said the global financial crisis is limiting funding and raising premiums for insurance coverage on the African continent.

Delegates at an ad hoc experts’ meeting on capacity-building for the insurance sector in Africa in Geneva, Switzerland that took place on February 23 said countries on the continent need assistance in their efforts to provide modern, effective insurance coverage to domestic businesses and people, a statement issued recently on the United Nations Conference on Trade and Development (UNCTAD) fs website said.
The African Insurance Organisation (AIO) and participants requested UNCTAD to assist African nations in updating their laws and regulations on insurance and to help African countries train personnel so that insurance services are effectively and professionally provided and managed.
‘The global economic crisis has already had a significant negative impact on Africa. There have been decreases in investments in exports of primary commodities and employment, h the website said.
In the area of insurance, participants noted that the crisis has led to a decrease in demand for insurance services and capital available for insuring risks on international markets, as well as difficulty in renewing treaties related to insurance.
In addition, there have been problems with higher premiums for re-insurance, delegates said.
– Nampa