African businesses more exposed to disruptive scenarios

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"Africa is one of the fastest growing continents economically. The middle class is flourishing, the private sector is expanding into different countries in the continent, mining companies are shipping resources globally and governments and investors are investing into infrastructure and economic development. But these developments have increased local risks while exposing companies to global perils," said Delphine Ma?dou, CEO of AGCS Africa.

According to the 2015 Allianz Risk Barometer, risks facing businesses in Africa are in line with those facing businesses globally as business interruption and supply chain (46%), natural catastrophes (30%), and fire/explosion (27%) are the top three business risks in 2015. On a regional level, changes to legislation and regulation, cyber crime, market stagnation, loss of reputation or brand value, socio-political upheaval, intensified competition; theft, fraud and corruption were cited as additional risks.

Effects can multiply

"The growing interdependency of many industries means African businesses are now more and more exposed to an increasing number of disruptive scenarios. Negative effects can quickly multiply. One risk can lead to several others. Natural catastrophes or cyber attacks can cause business interruption not only for one company, but also to whole sectors," said Ma?dou.

Allianz's dedicated companies in corporate and specialty insurance, Allianz Global Corporate & Specialty (AGCS) Africa; trade credit insurance, Euler Hermes; and reinsurance, Allianz Re are providing comprehensive risk solutions to companies operating in Africa.

"We have made significant progress in covering some of the leading companies in South Africa and Africa. We offer our clients significant capacity and underwriting expertise, both for standalone risks or as part of a global programme," said Ma?dou. "Essentially, we exist to meet the insurance needs of our clients especially when they need us most."

Euler Hermes is a worldwide leader in trade credit insurance. "Euler Hermes plays a prominent role in helping leading South African, and in time broader African companies and exporters, grow their businesses, which in turn can only benefit Africans. Our proprietary intelligence network tracks and analyses daily changes in corporate solvency of over 40 million businesses globally. This means that we cover more than 200 countries representing over 92% of the global GDP," said Greg Nosworthy, MD of Euler Hermes South Africa.

Reinsurance solutions

Allianz Re provides tailoring reinsurance solutions to the diverse business needs of customers worldwide. "Africa presents one of the biggest growth market for insurers and reinsurers and Allianz Re is determined to work together with AGCS Africa and Euler Hermes to develop and grow the market by offering risk solutions that companies need in the continent," said Denis Pehar, head of client management at Allianz Re.

Their main collaboration levers are anchored on shared distribution channels, integrated solutions, shared infrastructure and resources. "We look at each risk individually and work together to provide an all-inclusive solution that covers corporate and specialty risk, trade credit and reinsurance solutions across different industries and sectors," explained Ma?dou.