Post on 13-Apr-2015
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Insurance and Financing in the Transport Sector
Si Salifou TRAORE
Administrator General
SOGERIS S.A.
ACCRA BORDERLESS 15/03/2013
Henry FORD
Henry Ford: « New York was not built by men but by insurers »
Without insurance, there would be no skyscrapers because no
worker would accept to work at such a height, risking a fatal fall
and leaving his family in misery.
Without insurance, no capitalist will invest millions to build similar
buildings that a simple butt of a cigarette could reduce to ashes.
Without insurance, no one would drive. A good driver is aware
that he risks at every moment to crash into a pedestrian.
WITHOUT INSURANCE, NO TRANSPORT
15/03/2013
GENERAL SITUATION
The contribution of insurance to the GDP of ECOWAS is weak – less than 1%
The penetration of insurance into the population is weak – less than 1%
General defiance regarding insurance
The involvement of insurers in decisions regarding financing is weak
High risks despite very significant potential
Absence of a systematic, concerted and continual approach between insurers and bankers in the search for a solution to the mastering of risks
Absence of an institutional approach to the management of risks
Consequence: The rate of change for banks and insurance companies is too slow to incite efforts to address the challenges on a national or regional level.
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Insurable Risk Mapping
- Transport risks: accidents,
- Risks linked to transported cargo: fire, theft
- Risks linked to warehousing: fire, water damage
- Risks of responsibilities of agents along the transport valuee
chain: transporter, shipper, handler, stevedore, dispatcher, etc.
- Risks lined to people: death, injury
- Financial risks: insolvency, deposit, operating loss
Finance programs do not sufficiently consider the role
of insurance notably for the management of financial
risks.
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What we propose
Modeling and Structuring in order to master the risks and
fully exploit the potentials, creating new opportunities to
reinforce the development of existing activities..
A new relationship between the bank and the insurer
based on the sharing and management of the collective
risks
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Roles of Banks and Insurers
INSURERS BANKS
Insure maritime transport
Grant funding
Insure transport locally
Insure the imported good
Insure warehousing locations
Secure the payment flows on behalf of
the insurer
Financing guarantee
Transfers and collateral
Transfers and collateral pledged to the
insurer
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Key points of finance measures
Insurance due to defaul on payment for insolvency
Deposit or Insurance of the deposit
Other insurance
Advantages for the borrower :
Better management of risks
Lowering of interest rates
Higher volume of credit awarded
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Example of structured finance in
Burkina Faso Truck fleet renewal for transport of petrol products
120 trucks financed at 90 millions FCFA /per truck
Partner Bank: Bank of Africa
Insurer: ALLIANZ / courtier SOGERIS
Unique contract, including :
- Financing at a reduced rate over 5 years
- Truck insurance during the period of the loan
- Insurance of fuel
- Deposit from Total
- Trucks as collateral
- Closed contract for delivery of petrol to Total
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SOME NOTES
◦ ECOWAS BROWN CARD: a managment instrument for claims
at the regional level for vehicles, although with some
implementation difficulties in certain countries.
◦ CODE CIMA : Regional law regulating the insurance practice in
the Member States of CIMA with difficulty for countries outside
of the CIMA zone.
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Summary
Integrate insurance and banks
Innovative financial measures/products
THANK YOU FOR YOUR ATTENTION
15/03/2013