Business
Insurers’ forum to discuss credit and political risk
Security personnel keep vigil in the wake of post election violence last year. Photo/FILE
Posted Monday, October 5 2009 at 00:00
With backing from reliable reinsurers such as Africa Re and the East African Reinsurance Company, there are indications that local insurers will also play a pivotal role in providing the cover.
In August, Jubilee Insurance and the African Trade Insurance Agency partnered to cover businesses against political violence, terrorism and sabotage risks in a landmark deal worth Ksh30 billion ($384.6 million).
“The cover is gaining prominence in improving the risk-return profile, satisfying lenders and attracting partners as well. Some lenders insure their entire loan portfolio in the risk political environment while others insist on the borrowers obtaining the insurance but ensure the interest of the lender is noted in the insurance cover,” said Macharia Kihuro, a risk management practitioner at the panafrican housing financial institution, Shelter Afrique.
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