32nd Edition – February 2024

As we reflect on the natural catastrophes that befell our dear continent in recent times, there is a candid question that always comes to mind: “How else could we harness our energy and resources to efficiently mitigate such expensive risks, now that science and technology are yet to predict their occurrences with accuracy?”. Quite a legitimate question, because the dreadful sight of the aftermath of the recent natural catastrophes on the African continent left no one indifferent.

The list in 2023 was just too long and too costly. We mention here these few: the EARTHQUAKE of 8 September 2023 in Morocco (death toll: nearly 3,000 people, economic cost: nearly US$ 10.7 billion, reconstruction cost: US$11.7 billion in the next 5 years); the FLOODS in Libya (death toll: more than 5,000 Libyans died and more than 10,000 remain missing, economic loss: unknown but very high, reconstruction cost: US$ 1.8 billion); in the Democratic Republic of Congo (death toll: more than 400 lives); Rwanda (death toll: more than 131 lives) and the CYCLONE in Mozambique (cyclone Freddy’s death toll: over 1,400 lives) 

In the face of this dramatic outlook, we need innovative solutions that would enable more inclusive insurance coverage in order to get beyond the “traditional indemnity-based approach”.

As we put the focus of this 31st edition of Africa Re News on natural catastrophes (Nat Cat), our main article is entitled, “Natural Catastrophe Risk Financing: Challenges and Opportunities for African (Re) Insurers”, written by Dr. Phocas Nyandwi, our Director of Central Operations and Special Risks. The write up is a reflection of a concerned African (re)insurer on the way forward for NatCaT risk mitigation in Africa.

On the same topic, you will also read in this edition about the experience of South Africa in a very insightful interview given by Viviene Person, Chief Executive of the South African Insurance Association (SAIA). I use this opportunity to say a very big thank you to her for accepting to share with our readers the South African experience on various aspects of the industry including IFRS17 implementation, the original regulatory model in South Africa, and many more.

This 31st edition also has a vivid report of the recent Africa Re Insurance CEO Forum for East and Southern Africa which took place in Mombasa, Kenya from 25 to 26 January 2024. The theme was: “Adopting market Standards for Sustainable Insurance Industry in Africa”. It was another opportunity for our Corporation to support excellence in the industry as part of our mission.

I wish you a pleasant reading.