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Africa Specialty Risks sees parametric insurance as key to expansion

By David Whitehouse
Posted on Tuesday, 29 June 2021 17:42, updated on Wednesday, 30 June 2021 15:35

Mikir Shah, CEO of Africa Specialty Risks. Photo Supplied.

Africa Specialty Risks (ASR) plans to use event-based parametric insurance to increase its presence on the continent, CEO Mikir Shah tells The Africa Report.

The company is examining the introduction of marine, cybersecurity, aviation,  terrorism & kidnap and surety contracts, says Shah, the former CEO of AXA Africa Specialty Risks. ASR’s aim, he says, is “de-risking in and across Africa.”

In contrast to traditional insurance, where the exact loss suffered by a client is verified and then paid by the insurer, parametric insurance is paid out if a defined event occurs, regardless of the damage suffered. Examples include rainfall levels, crop yields and earthquakes. ASR says triggers are objective and verifiable, so there can be no dispute about the event.