9 April 2008
interview
Lagos — Mr Protais Ayangma Amang, the new president of the Federation of Insurance Companies in Africa (acroymn FANAF) was elected in Bamako, Mali recently at the 32nd FANAF General Assembly and conference held in Mali.
In this interview with Patience Saghana, Mr Ayangma Amang says the Insurance industry in Africa cannot shy away from the menace of image problem confronting it. He says the Insurance industry in Africa needs Information and Communications Technology to be able to compete favourably in the global market while noting that the issue of public relations is paramount for the sector.
What is FANAF
FANAF is an international body for insurance companies with the objective of defending the general interests of member-companies while coordinating the activities of its members on the one hand, and facilitating and developing cooperation between member-companies on the other hand. Founded in 1976, it comprises 136 insurance and reinsurance companies and a guarantee fund. The FANAF is present in 26 countries.
Vison for Africa Insurance industry?
My vision for FANAF is to develop, popularise and democratise insurance in Africa. The African Insurance market represents less than 1 per cent of the Global Insurance market.
This situation must change if we want the African insurance industry to fully play its role in our environment. It is important to note that, by definition, insurers are institutional investors. The rise of a flourishing insurance industry is thus a must for our continent.
Who excatly is Mr. Protais Ayangma?
I am 56 years old, out of which 34 have been spent working in the Insurance industry. Since 1986, I have been the General Manager of the National Insurance Company, which later became known as La Citoyenne Assurances which I created and which is now part of COLINA GROUP since 2005. Moreover, I am the Vice-President of GICAM, the Cameroonian Employers Corporation, and President of the Trade Chamber Services section. I am also the president of the Community Affairs Against AIDS Coalition and President of the Press Group, among others.
Expectations of Insurance stakeholders in Africa
The need for security is a natural and universal one. But, it is necessary to take into account specific contingencies of political, economic, social and cultural nature, which make the accomplishment of our job much more difficult. Globally, the African Insurance industry has not been able to meet the expectations if one takes into consideration the bad reputation of insurers today.
However, as far as I am concerned, these obstacles constitute for us, African insurers, a great challenge. Insurance in Africa needs to be built. Being imaginative and audacious, we can invent a new insurance industry in Africa in accordance with the development of our various states. In this regard, we can draw inspiration from the example of the Indians.
This means creating insurance awareness among a greater number of people. To succeed, we count on the media (both print and electronic)and public relations to show the public what the insurers' job is all about and to take the African insurance industry to its rightful place.
Mostly, we intend to increase significantly our cashings rate with at least a progression of 12 per cent per year in the next six years.
Finally, we need the support of everyone in order to make a success of this ambition. Concerning the human resources aspect, we will call on the International Institute of Insurance as well as experts available in order to bring insurance as near as possible to the greater number of Africans.
Language difference
Some measures have already been taken in order to accommodate Anglophone countries in our organisation. Some of our member-countries are English-speaking. We have Nigeria, South Africa, Ghana, Kenya, as well as some Arabic-speaking countries. At different levels, we have the same problems in Africa.
Market development
The Insurance sector must become a real business with good reputation in order to make impact. The Insurance industry should take its place and play its role in terms of financing the economy. Moreover, it is a question of making the FANAF effective and credible. We need to make the change in the first place, then build on it to make a credible and effective tool, which is the vehicle for reform of our profession. We must be ambitious, imaginative and courageous.
Training
The development of our Enterprise depends on the quality of our men. We must identify our training needs and make sure they are satisfied.
Relationship with CIMA
We must maintain a continuing dialogue with them, constructive, proactive and disinhibited. We must gradually evolve a design from conservative and too static approach, to a dynamic and visionary approach to insurance.
Strengthening the Insurance industry in Africa We need to enhance the financial strength of our companies and engage in a struggle against the areas that do not permit us to expeditiously resolve our claims. We also need to invigorate the financial markets in terms of image, information and communications technology and public relations.
We must improve our image, we must communicate what we are doing. We must offer solutions to the problems that afflict our continent; for example, the fight against poverty. Above all, we must start with keeping our commitment - settling claims. We need to develop public relations and lobbying our leaders, international organisations, media and civil society. We cannot dispute the fact that things are difficult.
Expansion to East Africa
Of course. We are moving towards an all-inclusive option. Much more, FANAF is opening itself to others. Our aim is to democratise insurance in Africa. We thus need the support of fellow African members.
Overview of Nigerian market Nigeria represents one of our greatest markets considering its population. Unfortunately, the ills threatening FANAF in this area are also present in Nigeria, sometimes with greater acuity. To this high potential market, the same solutions we recommend elsewhere will be necessary. These are as follows:
I can finally say that we watch with much interest the restructuring in progress in Nigeria, which could be a source of inspiration to us.
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