26 Nov 2014

The insurance sector can become an industry on its own with relevant industry qualification, says head of actuarial department at Botswana Life, Ms Sethunya Molosiwa.

Speaking at the 37th Organisation for Eastern and Southern Africa Insurers (OESAI) annual conference, Ms Molosiwa said businesses that were funded by the capital available in the life insurance industry would lead to more employment creation.

She said the development of debt and equity markets would also facilitate new employment opportunities within the financial sector adding that to the financial benefits of additional tax revenue there would be social benefits of higher employment rates.

On one hand, Ms Molosiwa noted that lack of appropriate and adequate infrastructure had been identified as an impediment to economic growth in Africa and that the insurance industry had a long term investment horizon making it an appropriate source of infrastructural development funding.

“The use of public private partnership could help governments fund these crucial developments while maintaining appropriate debt level,” he said. The purchase of government bonds by life insurers could give government’s access to necessary funding, she added.

However, she said that there was a serious shortage of skills necessary to fully develop the life of insurance industry on the continent, noting that skills that are currently in short supply includes insurance accountants, actuaries, software developers and insurance professionals.

“Some of the shortage is global hence African companies find themselves competing for resources with multinationals from developed countries,” she said. ENDS