West African insurers look to mitigate region’s infra project risks 

 

By Cynthia Ezekwe 

 

• Mulls engagement with ECOWAS

 

The West African Insurance Companies Association (WAICA) has disclosed plans to partner with regional governments within West Africa towards mitigating risks associated with infrastructure projects.

WAICA says the partnership will help countries achieve project plans, reduce losses and enhance the economic growth and development of the region.

William Coker, the secretary-general/CEO of WAICA, disclosed this at the  WAICA 50th anniversary and 2023  conference held in Lagos, noting that the  association was working with the Economic Community of West African States (ECOWAS) to ensure underwriters come under a consortium to participate in the internationally led infrastructure projects.

The secretary general noted that WAICA was in discussions with the Council of Ministers of  ECOWAS to provide insurance cover for infrastructure projects across the sub-region.

Coker frowned at the neglect of insurance by infrastructure project facilitators in the sub-region who approach banks for funding, stating that he believes  insurers in the sub-region have the capacity to underwrite such infrastructure projects, especially, under a consortium, adding that this will not only improve the profitability and growth of the insurance industry but also make the sector relevant in national and economic planning.

“Infrastructure project facilitators go to banks for funding, so why not approach insurers in the sub-region for cover? Even if we can’t do it as an individual company, insurance companies can come together as a consortium to provide cover,’’ he said.

In light of the above, WAICA said it has initiated a proceeding with ECOWAS and is currently working towards finalising the process with the Council of ECOWAS, as a major step to revamp  the landscape of infrastructure projects insurance in the sub-region. 

He said that the development calls for rating, stressing that insurance companies have to up their game and acquire the requisite rating to participate in the business.