Africa Specialty Risks teams up with Neema on Political Violence

Africa Specialty Risks (ASR), the pan-African focused reinsurance group, has formed a collaboration with Mauritius-based Neema Insurance Managing Agency.

ASR is providing Neema with capacity, through ASR RE Limited (Bermuda), to launch a Political Violence Terrorism (PVT) reinsurance offering for SMEs in Africa.

ASR added that SMES are a significant driver of economic growth in Africa, and account for 80% of jobs across the continent with 44 million SMEs in Sub-Saharan Africa alone. 

ASR Re Limited (ASR Re) (Bermuda) was awarded a Financial Strength Rating of BBB+ (Good) by AM Best in its first year of operations in 2021. The outlook of the rating is stable and ASR aims to provide additional capacity to the African continent. 

Providing PVT cover at this level will help enable ASR to access the SME ecosystem through a partnership that offers affordable solutions to the broader African market. 

Zouheb Azam, head of Political Violence Underwriting at ASR, commented: 

“The African SME market was previously neglected with respect to PVT insurance coverage, and therefore could not access this vital protection in a continent where political violence and terrorism risks exist throughout. This partnership reflects a turning point in the SME market as it meets local demands and increases PVT insurance penetration in Africa.”

“We look forward to working with Neema to provide numerous SMEs across Africa with the level of resilience needed to cover against PVT risk and ensure consistent economic growth.” 

Sharon Ng, Principal Officer of Neema, added that the launch of this PVT product “is a direct result of the significant demand we have received coming from SMEs”.