Sompo International Holdings (SI), the overseas arm of the Japan-based insurance giant, has forged alliances with two major insurance groups in Africa, giving it access to new markets by leveraging their experience and local networks.
Sompo has pledged to work with Sanlam, a leading financial group in South Africa, which provides both life and non-life insurance in the country. It will also work with SAHAM Finances, one of the largest pan-African insurers, excluding South Africa. SAHAM operates in 26 countries, providing insurance, reinsurance, assistance, and third party administration services.
Since it established an office in Johannesburg in 2014, Sompo has continued to expand in Africa. The new partnerships will allow Sompo to better serve the African operations of Japanese companies, as well as widen its distribution network to bring its products to local businesses
“This strategic collaboration with Sanlam and SAHAM will allow us to bring the extensive global experience and broad product knowledge that SI possesses to our African clients,” said Nigel Frudd, chief strategy officer of Sompo International. “Many of SI’s specialty insurance products, such as crop, energy and weather risk, will be critical to aiding the future development of the continent. We look forward to strengthening the strong relationships with our partners through personnel exchanges as well as technical support across the region.”
The African insurance market is valued at around US$20 billion. Currently, it composes just 1% of the global market, but with a compound annual growth projected at 3.2% there is significant room and potential for growth.
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