Mitsui Sumitomo Insurance Co. (MSI), a member of MS&AD Insurance Group Holdings, has announced that its subsidiary, MSI Company (Europe) (MSIEU), has concluded its strategic alliance agreements to provide reinsurance capacity for ICEA Lion General Insurance Company in Kenya and International Commercial and Engineering Seguros (ICE) in Mozambique.
As part of the agreement, ICEA Lion and ICE will serve as local carriers for MSI’s Japanese customers in the East and Southeast Africa region, issuing local policies, responding to accidents, and offering risk management services.
In return, MSIEU will support the underwritten risks by providing reinsurance capacity, underwriting expertise, and assistance in communications with customers.
The arrangement will allow MSI to enhance its services to customers in East and Southeast Africa, where Japanese investment has been particularly active, supported by the Japanese Government’s commitments in the region.
MSI said the alliance recognises the enormous economic growth potential of the African continent, with its combination of high population growth, abundant natural resources, and relatively low insurance penetration.
In particular, East and Southeast Africa are expected to see considerable growth as suppliers of oil, natural gas and mineral resources, as well as promising consumer markets in terms of agricultural innovation and IT & communication development.
By utilising ICEA Lion’s and ICE’s offices as operational bases, MSI will also be able to further enrich its network in key African countries, which includes a research office established in 2015 in Johannesburg, South Africa, and an underwriting service network through partners in North and West Africa.