Insurance policies align with business practices

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.’