Insurers reach 233 billion kwanza in premium volume

The chairman of the Board of Directors of Aeseg, Elmer Serrão, advanced the data in the opening of a forum on banking and insurance, promoted by the Association of Economic Journalists (Ajeco).
Elmer Serrão also said that in 2020 compensation amounting to 92 billion kwanzas was paid, representing an accident rate of around 40 percent.

According to the head of Arseg, regarding the volume of premiums in the non-life branch, it represented 98 percent of premiums collected, against 2 percent in the life branch.

"Therefore, we all have a crucial role in reversing this situation", said Elmer Serrão.

In Angola, the life and non-life penetration rate is 0.7 percent of Gross Domestic Product (GDP), of which life has 2.5 percent, which is "a penetration rate close to zero". said Alexandre Carreira, chairman of the executive committee of Nossa Seguros, stressing the need to seek experiences from neighboring countries such as Namibia, with a life service penetration rate of 5 percent, and South Africa (10 percent).

Regarding the pension fund, the chairman of the board of Arseg said that last year a total of 36 pension funds were registered, nine of which were open and 27 closed, whose asset portfolio amounted to a total of 567 billion kwanzas.

Elmer Serrão expressed concern about the "still low" penetration rate of the insurance sector in relation to GDP, which is due to the current economic situation, aggravated by the covid-19 pandemic, further influencing the "low insurance culture existing in Angola" .

To change this framework, Serrão defended the increase in financial literacy as the main vector for increasing the insurance culture and increasing the penetration rate, through actions within the scope of protocols already signed, as well as joint actions with the supervisory board newly established financial system, to encourage greater knowledge of the general public about the sector in particular and about the financial market in general.

"The economic and financial situation is still one of the main challenges that must be overcome. Oil is still the main 'commodity' of the country, whose price is subject to fluctuations in the international market, with a significant impact on the Angolan economy, to which are added the consequences of the unprecedented economic downturn caused by the covid-19 pandemic", said Elmer Serrão.

The official expressed optimism and good prospects for the insurance sector in Angola, taking into account the efforts of the Angolan government in economic stabilization and to encourage foreign investment.

"Especially in the context of carrying out new projects in the field of industry, agriculture, among others, which in turn will boost the demand for products and services in the insurance and pensions sector in the medium and long term", he considered.

For this year, one of Arseg's priorities is to continue the process of reviewing the sector's legal framework, with emphasis on matters relating to the insurance contract, pension funds, tariff systems, mandatory motor vehicle liability insurance, insurance plan. accounts and the definition of new minimum share capital for the exercise of insurance activity.

Currently, the insurance, mediation and pension fund market has a range of 23 insurance companies, 1230 insurance intermediaries and eight pension fund management entities.