Friday, July 1, 2022

FMRE steps up re-insurance public education drive

FMRE Property and Casualty Botswana (FMRE), the re-insurance company originating from Zimbabwe, is making its presence felt in Botswana through a number of education programs as part of capacity building drive.

Re-insurance is a little known subject in Botswana, but it is gaining its way into the country as the multi-billion insurance sector becomes sophisticated. There are currently two re-insurance companies in the country.

FMRE Botswana Managing Director, Ian Tavonesa, said they want to be one of the biggest re-insurance companies in Africa.

“We (also) want to provide superior service to our clients and shareholders,” Tavonesa said.

This week, the company conducted a workshop for the media personnel on re-insurance and Tavonesa said the move is aimed at building capacity.

“We must do a lot of capacity building in this country,” he added. Already the company is mulling a trainee program for retirees to impart them with insurance and re-insurance skills.

The concept of reinsurance may be relatively new in Botswana even though the practice itself is not necessarily new in the country, mostly with external partners. Most of insurance companies are re-insured in South Africa. Under re-insurance, the latter insure the insurance companies.

Currently, there are no re-insurance brokers in Botswana and Principal Officer for FMRE P&C Botswana, Samuel Rimai, said it is only a matter of time.
Rimai said re-insurance is important as insurance companies will be using someone’s strength and avoid catastrophic risks while at the same time it helps in expertise transfer. Insurance companies normally choose a re-insurance company looking at the size of the potential loss.

Although in the past there were questions about the ability of its parent company to make a large payouts, the company has clarified that its underwriter is well capitalised.

“In terms of financial security, we are covered. FMRE is underwritten by a large Zimbabwean company,” Rimai assured the market.

FMRE Property and Casualty was established in 2003 as First Mutual Reinsurance and it is a dominant player in the Zimbabwean reinsurance industry and underwrites significant business from the African continent.

It is planning to cover areas in Botswana that insurance companies are reluctant to go into, including cover for agriculture.

“We will provide insurance for the crops, poultry and livestock. We want to cover that bull in Maun and cow that drops calves every year,” Tavonesa said.

FMRE also provides cover for bonds and guarantees, engineering, fire, marine, motor, liability and miscellaneous accidents.

The company is a wholly owned subsidiary of Africa First Renaissance Corporation (AFRE) an investment holding entity with interests in life assurance, short term insurance, reinsurance, property holding entity and actuarial services.

RELATED STORIES

Read this week's paper