Associated Marine has seen
pleasing growth in market
share in Namibia over the
past year and chief operating
officer Mike Brews is optimistic
about more of the same for the
year ahead.
“We’ve put a lot of effort
into that market – which is still
our biggest in Africa – with
our Santam office providing
significant benefits.”
In a move designed to provide
a more streamlined service to
its customers, the company has
moved the management of its
Namibia book to the Cape Town
office.
“Because of the type of business
we get out of Namibia – which is
largely fishing vessels – our Cape
Town office was better equipped
to handle it because they do a lot
of fishing-type business. The Cape
Town market has similar clients
and similar brokers so there is a lot
of interaction.”
And while Namibia is a fairly
low-risk market – where insurers
and brokers talk to each other
and mitigation issues are taken
very seriously – concerns have
been raised over the age of the
fishing fleets. “We have been
very stringent about the surveys
we do on the vessels in terms of
seaworthiness and safety,” says
Brews. “A 30-year-old vessel
may look good, but we insist on
a thorough inspection to ensure
that all is as it appears to be.
We’re insisting on out-of-water
surveys by third party surveyors,
maintenance records and
maintenance plans.”
In terms of its roadfreight
insurance policies, the company
has aligned these with the business
practices of the country.
“Deals in Namibia are often
sealed with a handshake – and
that’s something that won’t
change,” says Brews.
“Our focus on haulier business
is now on a liability basis rather
than a physical loss of cargo.
We’re not insuring the cargo but
rather the haulier’s liability to
their client. If they contract on a
handshake they are liable and we
cover that liability.
“ It’s improved our claims
service because we’re not
insisting on documents they
don’t have – so claims are paid
more quickly and fewer claims
are repudiated because of lack of
documentation.”
The growth of the company’s
business in Namibia is in line with
its overriding objective to grow
its southern African footprint.
And it’s chosen to go the joint
venture route. “We have already
signed up six or seven JVs in
the region – and more are on the
cards,” says Brews. “Our partners
focus on general insurance and
when marine and hull enquiries
come up, we’re able to offer our
expertise.”
In view of the legal constraints
in most southern African countries
– where cargo must be insured
locally before it leaves the country
– it’s the most prudent option,
in Brews’ view. “They write the
business and we can back them up
on a reinsurance basis.”
CAPTION
Mike Brews … ‘more streamlined
service.’
