General Insurance Article - The insurance industry in Sierra Leone digs deep for growth


 Sierra Leone’s promising mining industry has driven growth of the country’s overall economy. While this will boost the demand for insurance products, there is a long way ahead for an industry that is still underdeveloped and inadequately supervised. 
 
 Up until 2010 iron ore production in Sierra Leone was minimal. With the discovery of new deposits in 2011, the country is expected to become one of Africa's largest iron ore producing countries by 2017. The growing mining industry will require a large labor force, and according to a new report from Timetric this will lead to increased demand for employer liability insurance over the next five years. This comes as great news for the country’s insurers at a time where the industry is struggling with a number of challenges including low penetration rate, rising unemployment, and a weak regulatory framework.

 Inadequate supervision of insurance authority

 The major concern for the insurance industry is inadequate regulation, which needs to be more focused, coherent, and in line with international best practices. The weak regulatory framework is also the reason behind the underdeveloped nature and low penetration of insurance.

 The Sierra Leone Insurance Commission (SLICOM) is responsible for the supervision and licensing of insurance companies, brokers, loss adjusters, and agents in the country. However, the industry does not provide SLICOM adequate data on its financial condition. In addition, SLICOM is also running too low on resources to justify its role in dealing with important stability issues like possible insolvency. It also has a shortage of professional staff, adequate training, manuals, analytical tools, and technology. Today there are eight insurance companies and six brokers operating in the country, however some of these companies only started their operations recently and currently do not contribute a significant amount of revenue to the industry.

Back to Index


Similar News to this Story

Sleighing the risks by giving Santa the insurance he needs
While you might be the most magical employer in the world, we know that even you aren’t immune to the risks of running a global delivery service! From
Diversity improving in insurance and long term savings
Key figures from the Association of British Insurers’ latest Diversity, Equity and Inclusion (DEI) data collection highlight the work of insurers and
Almost a third of homeowners have been victims of burglaries
Research commissioned by Co-op Insurance reveals that almost one in three (29%) homeowners have been the victims of theft from their home. The member-

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.