‘Don’t underestimate importance of good insurance cover’

Adequate insurance cover should top the agenda when contracts are being negotiated for the movement of cargo anywhere in Africa, according to South African-based shortterm insurance intermediary, Prestmarine International. Insurance and its cost should be one of the first considerations when drawing up a contract, says Susan Bester, marine marketing manager for Prestmarine International, and the importance of good cover for operations on the African continent should never be underestimated. “Often the subject of insurance only comes up when a contract has already been signed – it should in fact have been a consideration from the very beginning,” says Bester. “Africa poses very specific risk and that is reflected in the rates that are more expensive than Europe – an accident for example on a remote African road will be costly as the salvaging of cargo is near impossible, communications are limited and repair facilities are minimal.” While Africa poses much opportunity for transporters and insurers alike, it is important to consider the continent’s limitations, says Bester. “Administration does not always run as smoothly and due to communication problems one cannot always get hold of the right people, making it more difficult to sort out problems. All these are aspects that affect the rates.” But, says Bester, Africa remains a market that continues to grow. “While the recession did see a drop in volume, we remain optimistic about the opportunities the continent presents. Business is always growing whether it is power installations, communication development, hotels or the movement of pharmaceutical goods. While the mining industry has been very quiet following the global economic meltdown, it will pick up again providing much opportunity of its own.” Bester says border posts continue to pose a risk due to the delays and the administration problems as well as the lack of facilities to repack cargo properly after inspecting it, but it is a continent where improvements are taking place all the time. “Africa is definitely not business we are shying away from, but rather growing because despite carrying a possibly higher risk, it is a continent offering never-ending opportunities.”