Afreximbank unveils Afrexinsure to boost insurance penetration in Nigeria, Africa

Afreximbank has unveiled Afrexim Insurance Management Company (Afrexinsure) to tackle problems of poor insurance penetration in Nigeria and other African countries.

At the unveiling, in Accra, Ghana, yesterday, president and chairman of the board of Afreximbank, Prof. Benedict Oramah, said the product was designed to create comprehensive offering of trade solutions that fully align with African development ambition. It will also ensure insurance premiums and capital are retained on the continent.

According to him, a major constraint limiting the expansion of African trade, currently, is over-reliance on external partners and inability of the continent’s financial architecture to drive economic resilience and development.

Oramah, who was represented by executive vice president, Intra-African Trade Bank, Kanayo Awani, said a robust African financial service industry remains imperative towards ensuring a buoyant economic ecosystem that would increasingly stimulate intra and extra-African trade and growth.

He said a robust insurance product can help drive enhanced business strategy for those engaged in intra-African trade, as well as enable global partners pursue their commercial interests and ambitions in Africa if risks associated with transactions and investments are reduced.

“The introduction of more innovative solutions by adding insurance to our portfolio of banking products would, therefore, help to reduce generational trade and infrastructure deficit and bring new impetus to the issue of low insurance penetration in Africa, particularly where it is fundamental to trade development of the bank.

“As financial services evolve to stimulate value creation for our economy, we remain focused on reducing the continent’s trade deficit, using our capital and financial solutions. Our services, delivered through co-creation with our partners, will ensure that the impact we desire is achieved for the prosperity of the continent,” he said.

Chairman of the board of Afrexinsure, K.C. Li, said introduction of insurance offerings would complement other initiatives of the bank and advance implementation of the African Continental Free Trade Area (AfCFTA).

He noted that Afrexinsure is aligned with the bank’s corporate strategy to provide a comprehensive suite of trade solutions to clients and partners.

He explained that the initiative would provide a focal point for insurance solutions and ensure the right-fit insurance solutions are secured.

Li added that the product would offer vital insurance solutions for trade and trade related investment across Africa.