The World Bank’s International Finance Corporation (IFC) is arranging a guarantee facility of up to $50 million to cover the reinsurance credit risk of ZEP-RE, a leading reinsurer in Africa headquartered in Nairobi, Kenya.
Established in 1990, ZEP-RE delivers “inclusive & innovative” re/insurance solutions across the continent to close the protection gap, manage risk, and support sustainable growth in growing Africa’s resilience.
It reportedly offers its clients a full range of reinsurance products and direct microinsurance solutions, leveraging strategic partnerships and technology/digital platforms.
The guarantee facility from the IFC will enable ZEP-RE to expand its outreach and enhance its performance through underwriting additional, more profitable, and higher-quality business.
According to the IFC, the facility will be complemented by advisory services (AS) to support the launch and expansion of digitally driven derisking solutions for smallholder farmers and SMEs (including women-owned SMEs (WSMEs)) across Africa.
The IFC noted that the most significant, expected project-level outcome from its facility is increased access to agricultural insurance for farmers.
“Beyond the project-level outcomes, IFC anticipates that the project will grow the insurance market in Africa, increase the resilience of the insurance market, and help close the protection gap in Africa,” the Corporation added.
