{"id":707756,"date":"2023-07-31T06:44:10","date_gmt":"2023-07-31T04:44:10","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=707756"},"modified":"2023-07-31T07:30:20","modified_gmt":"2023-07-31T05:30:20","slug":"into-africa-the-insurance-industry-is-burgeoning","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/707756\/into-africa-the-insurance-industry-is-burgeoning\/","title":{"rendered":"Into Africa \u2013 the insurance industry is burgeoning"},"content":{"rendered":"\n<p><em>Richard Hood, CEO of Olea South Africa<\/em><\/p>\n\n\n\n<p>It\u2019s unsurprising that South African companies across all sectors are expanding into Africa.\u00a0 <\/p>\n\n\n\n<p>When you consider the GDP growth of 0.4% locally, versus Sub-Saharan Africa\u2019s economic growth of 3.6%, it makes sense to do business in these emerging markets.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.apio.co.za\/\" data-type=\"URL\" data-id=\"https:\/\/www.apio.co.za\/\" target=\"_blank\" rel=\"noreferrer noopener\">Contact Olea South Africa to learn more.<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>In addition, barriers to entry for business in Africa are far less stringent than those in Europe.<\/p>\n\n\n\n<p>This trend has been accelerated post-Covid and in light of the war in Ukraine. <\/p>\n\n\n\n<p>Leveraging opportunities on the African continent is not only astute but logical, and has been a focus for private equity companies and private investors.<\/p>\n\n\n\n<p>\u2018That said, doing business in Sub-Saharan Africa requires intimate knowledge of the insurance legislation and regulation,\u2019 cautions Richard Hood, CEO of Olea South Africa. <\/p>\n\n\n\n<p>As of today (<em>31 July 2023<\/em>), Apio Group has formally rebranded to Olea South Africa after becoming part of Olea Group of companies in 2021. <\/p>\n\n\n\n<p>Clients will benefit from Olea\u2019s Unique Selling Point as the only Pan African broking business in South Africa, with an extensive footprint operating in North, West, Central, East and Southern Africa (24 territories in total).<\/p>\n\n\n\n<p>Olea South Africa offers a blend of South African expertise and market capacity, with locally based servicing capability for both domestic and cross-border operations. <\/p>\n\n\n\n<p>\u2018In addition, the globalisation of business means we are perfectly equipped with a head office in Paris and a strong African presence,\u2019 says Hood.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why a South African portal for insurance in Sub-Saharan Africa?<\/strong><\/h3>\n\n\n\n<p>The Olea Group provides service to companies investing in Africa as well as local brokers not established on the continent. <\/p>\n\n\n\n<p>The team offers innovation and advice to clients who are increasingly sensitive to the proper management of their risks on the African continent.<\/p>\n\n\n\n<p>Hood says, \u2018South Africa\u2019s financial system is highly developed and advanced technologically. This supports clients going into Africa who need to comply with local legislation but want full access to SA capacity and capability.&#8217;<\/p>\n\n\n\n<p>&#8216;The advantage of having a physical presence in each territory allows us to structure integrated solutions which accommodate regulatory requirements.&#8217;<\/p>\n\n\n\n<p>&#8216;Olea South Africa is a viable alternative to the traditional corporate insurance brokers in Africa through our extensive network, led by owner-managed businesses, which brings a different culture and client engagement,\u2019 says Hood.<\/p>\n\n\n\n<p>Additionally, through Olea, clients are able to reinsure into the South African market. <\/p>\n\n\n\n<p>\u2018Customers wanting to go into Sub-Saharan Africa still access South Africa\u2019s insurance capacity,\u2019 explains Hood. <\/p>\n\n\n\n<p>\u2018If a company invests in multiple countries, it can be quite fragmented dealing with different partners and brokers. We are able to leverage Olea\u2019s buying potential, through an integrated programme which provides economies of scale, efficiency and uniformity.&#8217; <\/p>\n\n\n\n<p>\u2018Obviously, all legal aspects and compliance will be respected thanks to our local presence,\u2019 Hood adds.<\/p>\n\n\n\n<p>Interestingly, 70% of insurance premiums on the African continent are paid in South Africa. <\/p>\n\n\n\n<p>This is due to a greater scope of products, and it\u2019s an ideal platform from which to reinsure into the South African market if a specific offering is not available.<\/p>\n\n\n\n<p>Vincent de Charnac\u00e9, Olea CEO East and Southern Africa, says, &#8216;Having boots on the ground is imperative in Africa where insurance regulations are country specific.&#8217; <\/p>\n\n\n\n<p>&#8216;Olea is licenced and compliant in each of the different regions and, apart from ensuring the broker and the clients are protected, we would not do anything to jeopardise our licence.&#8217;<\/p>\n\n\n\n<p>Hood adds, \u2018Olea is a member&nbsp;of&nbsp;the&nbsp;Financial&nbsp;Intermediaries&nbsp;Association&nbsp;(FIA), which represents the top insurance brokers in South Africa, with a focus on maintaining the industry\u2019s rigorous professionalism&nbsp;and&nbsp;integrity.&#8217; <\/p>\n\n\n\n<p>&#8216;We are committed to upholding&nbsp;FIA\u2019s constitution&nbsp;and&nbsp;respecting its&nbsp;Code&nbsp;of&nbsp;Conduct. In addition, the company belongs to the French South African Chamber of Commerce.&#8217;<\/p>\n\n\n\n<p>\u2019Our clients demand transparency and information, especially when they have multiple country operations,\u2019 says Charnac\u00e9. <\/p>\n\n\n\n<p>\u2018Our unique in-house reporting tools provide all of the data, including access to their portfolios, claims, history and any other documents on a dashboard at the touch of a keyboard.\u2019<\/p>\n\n\n\n<p>The growth of the insurance industry in Africa is exponential, not only due to a burgeoning middle class, but because expectations have changed. <\/p>\n\n\n\n<p>Charnac\u00e9 says employees are pushing for greater benefits in Sub\u2013Saharan Africa &#8211; in fact demanding them.&nbsp; <\/p>\n\n\n\n<p>\u201810 years ago, medical insurance in Sub-Saharan Africa was considered a benefit by employees, it was an incentive to attract the best workforce. Currently this is accepted as a given,&#8217; says Charnac\u00e9.&nbsp;<\/p>\n\n\n\n<p>&#8216;The same applies now to life insurance \u2013 it wasn\u2019t a high priority and, if offered, would be considered a benefit.\u2019 <\/p>\n\n\n\n<p>He believes that in a couple of years, employees will expect life insurance as a standard part of their remuneration package. This translates into a considerable growth potential for insurers.<\/p>\n\n\n\n<p>In 2021, Africa\u2019s insurance premiums (life and non-life) amounted to 74 billion US dollars. <\/p>\n\n\n\n<p>This continues to expand, creating more opportunities for business and concomitant insurance, whether it be in construction, mining or the transport industry.<\/p>\n\n\n\n<p><strong><a rel=\"noreferrer noopener\" href=\"https:\/\/www.apio.co.za\/\" target=\"_blank\">Contact Olea South Africa to learn more.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Apio Group has formally rebranded to Olea South Africa after becoming part of Olea Group of companies in 2021. <\/p>\n","protected":false},"author":10,"featured_media":707764,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[18322,18320],"class_list":["post-707756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-apio-group","tag-olea-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/707756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=707756"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/707756\/revisions"}],"predecessor-version":[{"id":707790,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/707756\/revisions\/707790"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/707764"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=707756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=707756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=707756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}