Identifier
Created
Classification
Origin
09GENEVA282
2009-04-06 12:51:00
UNCLASSIFIED
US Mission Geneva
Cable title:
Insurance in Africa-Unmet Needs
how-toVZCZCXYZ0000 RR RUEHWEB DE RUEHGV #0282 0961251 ZNR UUUUU ZZH R 061251Z APR 09 FM USMISSION GENEVA TO RUEHC/SECSTATE WASHDC 8253 INFO RUCNMEM/EU MEMBER STATES COLLECTIVE RUEATRS/DEPT OF TREASURY WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUCNDT/USMISSION USUN NEW YORK 3000 RUEHBS/USEU BRUSSELS
UNCLAS GENEVA 000282
SIPDIS
STATE FOR IO/EDA and EEB/OMA
USUN for JLAWRENCE, COMMERCE for RDONOVAN, LCOSTA, CMUIR, and
PTHANOS
E.O. 12958: N/A
TAGS: ECON EINV EFIN UNCTAD
SUBJECT: Insurance in Africa-Unmet Needs
UNCLAS GENEVA 000282
SIPDIS
STATE FOR IO/EDA and EEB/OMA
USUN for JLAWRENCE, COMMERCE for RDONOVAN, LCOSTA, CMUIR, and
PTHANOS
E.O. 12958: N/A
TAGS: ECON EINV EFIN UNCTAD
SUBJECT: Insurance in Africa-Unmet Needs
1. Summary: In an UNCTAD Ad-Hoc Expert Meeting on Capacity-Building
in the Insurance Sector in Africa, experts discussed various types
of insurance (health, life, accident, catastrophe, political risk,
property insurance, and reinsurance) and five project proposals from
UNCTAD and the African Insurance Organization (AIO) aimed at
improving the regulatory environment for insurance in Africa and the
capacity of Africans to build an effective insurance sector. UNCTAD
emphasized that there is a high correlation between a country's
level of development and the extent of insurance coverage, and that
Africa is severely under-served. End Summary.
Background
--------------
2. At the twelfth ministerial meeting of the UN Conference on Trade
and Development (UNCTAD) held in Accra, Ghana in April 2008, member
states recognized the importance of a vibrant insurance sector to
development (para 117, Accra Accord) and mandated UNCTAD to provide
policy analysis and capacity building on: prudential regulatory
frameworks, the establishment of competitive insurance markets, and
human resources development, and emphasized that assistance should
especially be provided to African countries (para 157, Accra
Accord). The February 23 UNCTAD Ad-Hoc Expert Meeting on
Capacity-Building in the Insurance Sector in Africa, was a response
to this mandate. It was attended by about 20 experts and 15 member
state observers.
3. UNCTAD is the only body in the UN system that has a specific
mandate on insurance and has been working on insurance issues since
its founding in 1964.
Five project proposals
--------------
4. In the February 23 meeting, Ambassador Guy-Alain Emmanuel Guaze
(Ivory Coast) described the need for insurance in Africa, especially
the legal guarantees and security offered by insurance. He also said
Africans need to be educated about the value and role of insurance,
since many Africans consider insurance an unaffordable luxury.
5. UNCTAD and the African Insurance Organization (AIO) sought
fundinQor five projects to strengthen the insurance industry in
Africa. Project 1, which would last 18 months and cost US$542,700,
would provide affordable insurance software to African insurance
companies. Prisca Soares, Secretary-General of AIO said the
software was necessary to capture information in a standard form for
the development of statistics.
6. Project 2, focuses on the African Centre for Catastrophe Risks
(ACCR) and will help African governments plan and prepare for future
disasters by monitoring potential natural catastrophes, through the
use of scientific data. The purposed duration and estimated cost for
project 2 are 60 months and US$3,203,550.
7. Project 3, with a proposed duration of 24 months and cost of
US$544,660, supports development and implementation of regulatory
and supervisory structures for the insurance industry in Africa,
which would allow prudential monitoring of the sector. It provides
technical assistance for African governments to examine their
respective national insurance laws, and to make changes to the
supervisory structures as each government deems necessary.
8. Project 4, which has a proposed duration of 24 months and cost of
US$1,925,520, would support the development of African insurance
statistics, such as mortality tables. These new statistics would
enable the expansion of Life Insurance products and Pensions schemes
in Africa.
9. Project 5, with a 12 months duration and estimated cost of
US$357,080, would modernize human resources through training
insurance professionals to become trainers themselves (training the
trainers),and harmonization of curricula, textbooks, and
certification standards in Africa.
10. Comment: This UNCTAD Ad Hoc meeting responded to strong African
demand for assistance in the development of their insurance sector,
but also highlighted the scarcity of statistics concerning that
sector. It was estimated that less than six percent of African
people, excluding South Africans, have any type of insurance, with
most of the insured being urban dwellers. Growth of the African
Insurance sector comes from a very low base, and is hindered by a
lack of reliable mortality tables and statistics as well as a lack
of creative ways to reach the large, poor, rural population. These
UNCTAD/AIO proposals would provide a modern regulatory and
supervisory structure for the insurance sector and develop a
sufficient number of African insurance professionals to begin
seriously addressing deficits in the sector. End Comments.
SIPDIS
STATE FOR IO/EDA and EEB/OMA
USUN for JLAWRENCE, COMMERCE for RDONOVAN, LCOSTA, CMUIR, and
PTHANOS
E.O. 12958: N/A
TAGS: ECON EINV EFIN UNCTAD
SUBJECT: Insurance in Africa-Unmet Needs
1. Summary: In an UNCTAD Ad-Hoc Expert Meeting on Capacity-Building
in the Insurance Sector in Africa, experts discussed various types
of insurance (health, life, accident, catastrophe, political risk,
property insurance, and reinsurance) and five project proposals from
UNCTAD and the African Insurance Organization (AIO) aimed at
improving the regulatory environment for insurance in Africa and the
capacity of Africans to build an effective insurance sector. UNCTAD
emphasized that there is a high correlation between a country's
level of development and the extent of insurance coverage, and that
Africa is severely under-served. End Summary.
Background
--------------
2. At the twelfth ministerial meeting of the UN Conference on Trade
and Development (UNCTAD) held in Accra, Ghana in April 2008, member
states recognized the importance of a vibrant insurance sector to
development (para 117, Accra Accord) and mandated UNCTAD to provide
policy analysis and capacity building on: prudential regulatory
frameworks, the establishment of competitive insurance markets, and
human resources development, and emphasized that assistance should
especially be provided to African countries (para 157, Accra
Accord). The February 23 UNCTAD Ad-Hoc Expert Meeting on
Capacity-Building in the Insurance Sector in Africa, was a response
to this mandate. It was attended by about 20 experts and 15 member
state observers.
3. UNCTAD is the only body in the UN system that has a specific
mandate on insurance and has been working on insurance issues since
its founding in 1964.
Five project proposals
--------------
4. In the February 23 meeting, Ambassador Guy-Alain Emmanuel Guaze
(Ivory Coast) described the need for insurance in Africa, especially
the legal guarantees and security offered by insurance. He also said
Africans need to be educated about the value and role of insurance,
since many Africans consider insurance an unaffordable luxury.
5. UNCTAD and the African Insurance Organization (AIO) sought
fundinQor five projects to strengthen the insurance industry in
Africa. Project 1, which would last 18 months and cost US$542,700,
would provide affordable insurance software to African insurance
companies. Prisca Soares, Secretary-General of AIO said the
software was necessary to capture information in a standard form for
the development of statistics.
6. Project 2, focuses on the African Centre for Catastrophe Risks
(ACCR) and will help African governments plan and prepare for future
disasters by monitoring potential natural catastrophes, through the
use of scientific data. The purposed duration and estimated cost for
project 2 are 60 months and US$3,203,550.
7. Project 3, with a proposed duration of 24 months and cost of
US$544,660, supports development and implementation of regulatory
and supervisory structures for the insurance industry in Africa,
which would allow prudential monitoring of the sector. It provides
technical assistance for African governments to examine their
respective national insurance laws, and to make changes to the
supervisory structures as each government deems necessary.
8. Project 4, which has a proposed duration of 24 months and cost of
US$1,925,520, would support the development of African insurance
statistics, such as mortality tables. These new statistics would
enable the expansion of Life Insurance products and Pensions schemes
in Africa.
9. Project 5, with a 12 months duration and estimated cost of
US$357,080, would modernize human resources through training
insurance professionals to become trainers themselves (training the
trainers),and harmonization of curricula, textbooks, and
certification standards in Africa.
10. Comment: This UNCTAD Ad Hoc meeting responded to strong African
demand for assistance in the development of their insurance sector,
but also highlighted the scarcity of statistics concerning that
sector. It was estimated that less than six percent of African
people, excluding South Africans, have any type of insurance, with
most of the insured being urban dwellers. Growth of the African
Insurance sector comes from a very low base, and is hindered by a
lack of reliable mortality tables and statistics as well as a lack
of creative ways to reach the large, poor, rural population. These
UNCTAD/AIO proposals would provide a modern regulatory and
supervisory structure for the insurance sector and develop a
sufficient number of African insurance professionals to begin
seriously addressing deficits in the sector. End Comments.