Specialty insurance and teamwork needed to conquer complex risk
Mutual & Federal Insurance have announced that they are enhancing their client and broker proposition with the launch of new General Aviation, Kidnap & Ransom, Terrorism and Political Risk products and an expansion of their Property, Marine and Engineering underwriting appetite and risk capacity. Their enhanced proposition will increase choice for insurance brokers, buyers and investors, and enable more specialty insurance business to be retained in Africa.
Stylish shopping malls, modern office blocks and housing developments are all evidence of a dramatic change in the way people across sub-Saharan Africa live, work and think about their future. With a young and growing population, this transformation is predicted to accelerate . fuelling increased infrastructure investment – transportation, communication, water and energy as well as developments in leisure, hospitals, education and industry. .
This is going to create an increase in demand for large ‘specialty’ insurance, which many predict will soon exceed US$10bn – areas such as commercial property, construction, energy, terrorism, kidnap and ransom and political risk.
Mutual & Federal are the 2nd largest corporate insurer in South Africa, with clients including a number of the best known and largest companies, as well as leading positions in emerging sectors such as renewable energy. They are well positioned to take advantage of this growth but until now lacked the risk bearing capacity and range of products needed to maximise their potential.
This new platform for growth is part of a broader Old Mutual Emerging Markets strategy to enhance their specialty insurance customer value proposition in Sub-Saharan Africa, offering customised ‘specialty insurance’ solutions in nine product areas: commercial property; energy; construction; political risk and trade credit; mining; kidnap and ransom; terrorism; cargo, transit and delay in start-up; and general aviation.
Sam Boyd “Head of Corporate and Niche, Mutual & Federal explains “we’re are a strong competitor in South Africa and are excited that we will now be able to underwrite a broader portfolio of clients and be able to increase our participation in important and growing segments including the wholesale African business being placed into the Johannesburg market.
