Skills to grow the in­dus­try

RISKSA Magazine - - Managing Risk -

“We re­alised that there is still a true op­por­tu­nity for growth in the sec­tor, which is not be­ing met, so Con­ti­nen­tal Re es­tab­lished the Con­ti­nen­tal Prop­erty and En­gi­neer­ing Risk Ser­vices (CPERS). Granted, it is a fairly lengthy name for a com­pany, but we opted for some­thing that ex­actly de­scribed what we do. Our fo­cus is specif­i­cally on the en­gi­neer­ing in­sur­ance side in par­tic­u­lar. We have seen that there is still a great need for un­der­writ­ing skills in the projects that are funded on the con­ti­nent – es­pe­cially since the fun­ders in most cases, stip­u­late that there should be a sig­nif­i­cant lo­cal com­po­nent to the par­tic­i­pa­tion on the project. And be­cause th­ese are fairly so­phis­ti­cated builds, one needs ex­pe­ri­enced in­di­vid­u­als from the en­gi­neer­ing fra­ter­nity that know how poli­cies should be struc­tured,” Hansa ex­plains. “Fa­cil­i­tat­ing with un­der­writ­ing is re­ally the core rea­son­ing of se­cur­ing a devel­op­ment with CPERS. Then in or­der to make sure that the lo­cal mar­ket is fairly and ad­e­quately able to deal with th­ese kinds of so­phis­ti­cated classes of projects, we try to re­tain those skills on the con­ti­nent, so the train­ing com­po­nent is very im­por­tant as well,” he con­tin­ues. Hansa notes that not many of the lo­cal in­sur­ers on the con­ti­nent have the re­quired sta­bil­ity rat­ing to par­tic­i­pate in ma­jor projects, how­ever. “There is that dy­namic where lo­cal leg­is­la­tion and reg­u­la­tors are try­ing to stem the tide of pre­mium ex­it­ing the coun­try, be­cause they have to be able to grow the cap­i­tal to pay for the loan from the World Bank, or whichever en­tity granted the loan for the project. On the other hand, the fun­ders need to have some sense of safety and that they have their cap­i­tal in­sured with sta­ble in­sur­ers. Which means that the vast ma­jor­ity of th­ese projects still end up with the large multi­na­tional in­sur­ers and pre­mi­ums still leave the coun­try,” Hansa says. “The truth is that if we con­tinue not to do any­thing but talk about it – as is the case now – we will still be sit­ting with the same sit­u­a­tion in twenty years’ time. This is why we are now work­ing to­wards set­ting up the mech­a­nisms to de­velop the know-how, and in­te­grate them with the es­tab­lished in­sur­ance in­sti­tu­tions,” Hansa says. The other key ar­eas that CPERS fo­cuses on are risk and ad­vi­sory ser­vices, and claims han­dling ser­vices. The op­por­tu­ni­ties from the con­ti­nent with one of the fastest grow­ing economies on the planet are far from over. While the many real risks as­so­ci­ated with try­ing to com­plete a project, can and do stall ma­jor builds al­most ev­ery day, new sites are con­stantly be­ing read­ied for con­struc­tion. It is just a mat­ter of pick­ing the project with the best chances of suc­cess.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.