The five English-speaking West African countries, which are; Nigeria, Ghana, Liberia, The Gambia and Sierra Leone are set to insure infrastructural projects across the sub-region, LEADERSHIP learnt.
The concerned countries are doing this under the platform of the West African Insurance Companies Association (WAICA) in a bid to ensure that governments and international communities embarking on infrastructural projects across the sub-region, including Nigeria, insure them through West African insurance firms.
To this end, WAICA, it was learnt, is working with Economic Community of West African States (ECOWAS) on rating of underwriters that will be participating in these Infrastructural projects.
Confirming this development, at the ongoing WAICA 50th Anniversary and Conference 2023, in Victoria Island, Lagos yesterday, the secretary general/CEO, WAICA, Mr. William B. Coker, said, the association is working with ECOWAS on the ratings of underwriters in the sub-region so that they can participate in the internationally led infrastructure projects.
Stating that, while infrastructure project facilitators do approach banks for funding, they have neglected insurance of these projects through sub-region underwriters.
This, he said, is not palatable, which was the reason why the association approached ECOWAS to assist in this regards.
Believing insurers in the sub-region have the capacity to underwrite such infrastructure projects, especially, under a consortium, he added that, this will not only improve the profitability and growth of the insurance industry, it will equally make the sector relevant in national and economic planning.
“Infrastructure Projects facilitators go to banks for funding, why not approach insurers in the sub-region for cover. Even we can’t do it as an individual company, insurance companies can come together as a consortium to provide cover.
“In this regards, WAICA has intitaited a proceeding with ECOWAS, it has gotten approval and currently with the Council of ECOWAS to get their final blessings. This will change the landscape of infrastructure projects insurance in the sub-region,” he pointed out.
Meanwhile, the minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed, in her opening address said, the importance of enhancing multilateral cooperation with the objective of promoting international standards in fostering favourable investment environments and orderly markets in the West African sub region and beyond cannot be overemphasised.
Consequently, she said, it has become imperative for the Insurance supervisory systems and practices to continually upgrade in order to cope with these developments to mitigate possible financial and systemic stability concerns arising from the insurance sector as they emerge.
Ahmed, who was represented by the commissioner for Insurance/CEO, the National Insurance Commission (NAICOM), Mr. Sunday Thomas, said, she was pleased with the stride so far achieved by the West African Insurance Supervisors Association (WAISA) as regards the establishment of the College of Insurance Supervisors of the West African Monetary Zone (CISWAMZ) in February, 2022.
The college, she stressed, is saddled with the objectives of strengthening cross border insurance supervision, stating that, insurance in the whole of Africa has been characterized by low penetration and poor contribution to most African countries financial growth. Maintaining efficient, fair, safe and stable insurance market in the West African sub region, he said, must be promoted for the benefit of the policyholders and other stakeholders.
While believing in a new dawn, leveraging technological innovations, and a positive paradigm shift focused and poised to meet the anticipated surge in the demand and untapped side, he urged the delegates, at the event, to deliberate and recommend ways of repositioning the insurance industry in West Africa for global competitiveness.
