Securing African brokers' futures on the global reinsurance stage

African reinsurance brokers are not limited to operating on the continent. Given their deep knowledge of emerging markets, African brokers are in a unique position to compete in the global reinsurance space. However, this requires brokers to build strong, exportable skills and develop robust cross-border talent pipelines.

Exportable skills are those that are in high demand by reinsurers and their clients. They focus on core and future-forward competencies capable of serving growing needs in the global reinsurance market.

Developing core competencies

Such skills include developing technical reinsurance expertise as well as regulatory and compliance knowledge.

Technically, brokers should work towards growing advanced underwriting skills, specifically in property, casualty, and specialty lines, as well as competency in the areas of pricing, reserving and capital modelling.

A deep understanding and practical knowledge of risk analytics is also critical, most notably in the areas of catastrophe modelling - an area of growing global importance - and actuarial analytics.

On the note of analytics, an understanding of general digital and analytical tools is recommended. Knowing how to use data analytics, machine learning and insurtech tools like RMS, AIR and Guidewire, as well as how to apply Blockchain and smart contract use in reinsurance, are significant strategic advantages.

Reinsurance brokers also need to ensure that they cultivate a rigorous knowledge of regulatory and compliance guidelines. Familiarity with Solvency II, IFRS 17, NAIC and Lloyd's standards is essential.

Regulations and licensing conditions differ in other countries, so it is important to remain cognisant of cross-border compliance requirements and licensing nuances in foreign markets.

A final skillset, sometimes overlooked in our sector, is that of the soft skills needed to ensure seamless integration into new markets.

It is imperative that African brokers are fluent in cross-cultural negotiation and communication, understanding nuances within the markets they plan to operate, and are proficient in foreign languages. It is worth developing individual staff proficiency in French, Arabic, Portuguese, and Mandarin.

Furthering education and global certifications

Global recognition opens doors and helps to level the playing fields between African and international brokers.

Regardless of existing qualifications, individuals should look to continually interrogating their professional standing. There are a number of global accreditations that help to expand competency in the areas of insurance, reinsurance, and related fields.

These include an Associateship (ACII) or Fellowship (FCII) of the Chartered Insurance Institute, UK; an Associate in Reinsurance (ARe) from The Institutes, USA; and executive MBAs or specialised risk management programmes with accredited global institutions.

Creating regional talent hubs and cross-border placements

Even with the right staff skill set and accreditations, African brokerages find it challenging to make the right connections abroad or take that initial leap from the continent into the international reinsurance space.

To address this, it is crucial that businesses work to develop pan-African and global career mobility pathways. Firms can partner with regional reinsurers like Africa Re and Zep Re to access rotational programmes.

They can also look at launching brokerage fellowships with secondments in London, Dubai, or Singapore, or facilitating intra-African placements through ECOWAS, COMESA, and SADC alliances.

Building broker alliances and global networks

Beyond this, African brokers must focus their efforts on gaining scale and global market access. The easiest way to do this is by pursuing strategic partnerships with international brokers such as Gallagher, Aon, and Marsh.

But brokers can also join global broker networks like UNIBA, WBN or Brokerslink, or create their own African broker syndicates to pool capacity and service multinational clients.

Leveraging technology for remote reinsurance support

One interesting approach worth considering is positioning African brokers as remote talent hubs providing global reinsurance support.

This would involve establishing African centres of excellence for data analytics, documentation, and underwriting support, and offering 24/7 support to global clients using lower cost but highly skilled African teams.

The possibility of exporting reinsurance tech products, such as insurtech solutions for claims and modelling could also be explored. 

Policy support and industry advocacy

Brokers operating within Africa but with an eye on global expansion should work with governments and insurance regulators to harmonise regulatory standards with global norms, and secure tax incentives for export-ready insurance services.

Showcase success stories

Ultimately, moving into foreign territory requires brokers to build their brands and credibility by promoting their businesses and unique offerings to the international industry.

Participating in global conferences like Monte Carlo Rendezvous, Baden-Baden, and others; publishing insights on African risk markets in global industry journals; and developing high-profile case studies from complex deals (i.e., sovereign risk, agriculture etc.) help achieve this objective.

Future global reinsurance leaders

There's room for African brokers to spearhead initiatives that build this capacity, help make these connections, and expose the reinsurance talent on the continent to wider audiences.

This could be in the form of a pan-African reinsurance broker academy providing cross-border training and a placement platform for brokers, or a centralised, online African reinsurance talent export hub that actively connects African brokers with global opportunities.

Another idea is some sort of global fellowship for African brokers, taking the form of a 12-month programme placing top talent in international firms for real-world experience, or even a digital skills accelerator that teaches data analytics, cat modeling, and automation in reinsurance.

The possibilities are endless, as are the opportunities for our brokers.

I honestly believe that by leveraging their deep knowledge of emerging markets, developing tech-forward capabilities and building trusted global networks, African reinsurance brokers can compete in the international arena.

Not only that, but by investing in the right talent and partnerships, they have the potential to lead the way in specialised, high-growth areas of global reinsurance.