In order to reap the rewards of the African Continental Free Trade Area (AfCFTA) agreement, insurance regulators and companies in Africa have been urged to persuade their individual governments for a change in insurance policy.
According to Mohammed Ibn Chambas, the action aims to make sure that the insurance industry benefits from the free trade agreement, which has the potential to support Africa’s efforts to increase trade, investment, and job creation.
On September 25, Ibn Chambas spoke to attendees at the opening ceremony of the AISADC/AIRDC educational conference in Accra. He argued in favor of laws and regulations that would safeguard the interests of companies and policyholders.
“The primary mandate of all members of the Association of Insurance Supervisory Authorities for Developing Countries (AISADC) being to set rules and regulations for the proper functioning of the respective insurance industries and to protect the interests of policyholders, I would urge AISADC to lobby their governments to change their policies in favor of the AfCFTA agreement,” he stated.
Touching further on the importance of the free trade pact, Mr. Ibn Chambas said the insurance sector has helped address certain aspects of economic hardships and offered financial protection in Africa.
“Several global macroeconomic and geopolitical challenges, such as rising inflation, ongoing cross-border disruptions in some regions, and continuing COVID-19 concerns, threaten to decrease growth and profitability.
“The difficulties associated with embargoes on some economies and the disruptions to supply chains and maritime transport have threatened our efforts to establish a global economy based on the principle of the free flow of goods and services,” the renowned diplomat said.
He continued, “Yet, in my opinion, things would have been much worse if we hadn’t had insurance to play a critical role in promoting disaster resilience by providing financial protection and preventing negative economic hardships after the disasters.”
He however charged insurance regulators and insurance firms to center engagements that will propel the sectors growth, regulation, technological advancement, insurance expansion and equity.
The 22nd Conference of the Association of Insurers and Reinsurers in Developing Countries (AIRDC) / Association of Insurance Supervisory Authorities for Developing Countries (AISADC) was held on the theme; “Building Resilience in the Heat of a Global Economic Tussle.”