04 Jul 2013

 Insurance companies have to constantly develop and retain skilled staff in order to be competitive in the globalised world.

Speaking at the beginning of SADC Insurance Forum (SIF) in Gaborone on June 3, the organisation’s chairman, Mr Albert Nduna said the region had experienced flight of insurance skills as people sought greener pastures, hence there was need to nurture, develop and replenish the skill base continually.

Mr Nduna said there was potential for the development of the insurance market in SADC as most countries had been registering economic growth rates of above five per cent in the last few years driven mainly by resource exploration.

“Insurance plays a critical role in the development of the regional economy by not only providing alternative risk transfer mechanisms and offering financial security, but through mobilising savings for national development and employment creation,” he said.

He said the economy could not flourish unless properties and processes were well defined and protected. Mr Nduna, who is based in Zimbabwe, said regional development objects could only be achieved if a strong skills base including specialised skills were developed and retained to ensure superior performance and value addition.

He said SADC Insurance Forum was formed following the African Insurance Organisation (AIO) meeting in Zimbabwe in 2011 by 30 insurance practitioners in the SADC region. It was established to complement the efforts of other regional bodies on the African continent as AIO.

“The establishment of SIF was a response to a felt need that SADC is a unique African sub-region, and there was need to create a Forum for insurance players with a regional focus,” Mr Nduna said. He said the region was yearning for accelerated economic growth and development anchored on its vast natural resources and manpower base in order to alleviate poverty which is prevalent.

“The SADC region is also unique in that its people have come together so much over the centuries that there are strong bondages and common cultural perceptive and appreciation,” he said. He explained that the broad objectives of SIF were to promote cooperation amongst SADC insurance and reinsurance players, foster business networking, deepen insurance penetration, facilitate inter-regional trade and the creation of a vibrant insurance industry in the region.

The creation of SIF was also expected to unlock various opportunities for the insurance industry in the SADC region, he added. Mr Nduna said this included the creation of increased capacity to manage regional risks, the establishment of more insurance pools, increasing insurance penetration ratios through structuring products for the rural poor, promoting micro-insurance, drought insurance, agriculture insurance, strengthening of regulation of the sector and establishing a regional insurance company. ENDS