Hope for microinsurance as Swiss reinsurer boosts high-risk products

Underwriting Africa has partnered with Swiss Reinsurance to cover high-risk sectors, which include oil and gas, aviation, trade credit, political risk insurance, microinsurance, bonds, sureties and guarantees.

Swiss Reinsurance is the second-largest reinsurance company in the world, with assets amounting to more than $250 billion (Sh25.8 trillion), while Underwriting Africa is a boutique insurance company that focuses on high-risk categories. The latter firm is headquartered in Nairobi, with representative offices in London and Paris.

Speaking at a function to mark the partnership, the director of Ol Suswa Energy, Mugwe Manga, said: “This partnership is of key significance as there exists a gap locally in provision of high-risk insurance, as well as limited capacity for large insurance transactions, most of which are turned over to overseas organisations to handle.

“The fall-back from this is that a sector like geothermal energy isn’t as highly exploited as it could be. It constitutes only 44 per cent of the country’s national grid, yet globally, Kenya is ranked number six in the world in terms of geothermal potential. This energy source has a 98 per cent efficiency rate compared to hydroelectric and wind energy.”

On his part, Lukas Muller, Swiss Re’s head for North and South-Saharan Africa, added: “Africa’s time is now. Too long has it been a sleeping giant. It’s about time for it to awake to its massive potential.”

— James Wanzala