During the conference “Insurance Markets in Mozambique: A Step towards Mega-Projects”, held today, insurance entrepreneurs and experts addressed the challenges and opportunities related to large-scale projects in Mozambique. The event emphasised the need for a gradual and strategic approach to ensure the success and sustainability of these ventures.
Isaias Chembeze, Emose’s commercial director, emphasised that the insurers’ strategy must seek a solid foundation, with an emphasis on literacy, financial literacy, security and perception, before moving on to larger projects.
“The main focus for insurers at the moment should not just be to enter mega-projects, but to consolidate themselves as a robust company capable of facing the risks posed by multinationals in their activities,” he emphasised.
Although he spoke of the path that insurance companies must follow, he did not fail to mention the challenges they face when trying to access mega-projects, relating it to the Ruvuma project.
“In 2014, specific legislation was created to oblige the contracting of national insurance as a way of mitigating the risks of these ventures in the country. However, ambiguous interpretations in the insurance section led to the perception that national companies did not have the capacity to take on these risks, opening up space for contracts with foreign insurers.”
Amid the various approaches discussed, businesspeople emphasised the importance of a structured entry by insurers into the mega-project market. The main suggestion is to approach the national market in a segmented way, concentrating on specific “slices”, namely domestic insurance, such as motor, work accidents and funerals.
At the same time, Mozambique is making efforts to identify and exploit opportunities in major projects, with a view to capitalising on the significant potential for insurance premiums associated with these ventures. These elements could prove fundamental to the country’s long-term success in this industry.