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Mozambique: EMOSE wins contract to provide disaster insurance – Carta
1:01 CAT | 01 Dec 2022
File photo: Notícias
The Mozambican Insurance Company (EMOSE) has been contracted by the state to provide sovereign insurance against natural disasters, Chairman of the Board of Directors Joaquim Langa announced on Tuesday (29-11).
The day before, though (Monday, 28-11), Deputy Minister of Economy and Finance, Carla Louveira, had said that there was still no contracted company.
“EMOSE has already won and has already signed the contract with the state,” Langa said when asked if the company had competed to provide disaster insurance.
Speaking on the sidelines of the International Conference on Sovereign Disasters Insurance, the EMOSE CEO explained that the contract is for three years, and only for the rainy seasons. The premium would be US$4 million per season, corresponding to US$12 million over three years.
Sovereign insurance is taken out by governments to protect people and property from bad weather.
Langa did not specify the indemnity margins, but explained that “indices were established, both for insurance activation and indemnities. Therefore, when there is reason, we will have to compensate those affected, up to the limits established. The compensation is channelled in the first instance to the policyholder – in this case, the government – and will then be redistributed to the affected parties”.
The operation of this type of insurance, also known as the “Disaster Risk Management and Resilience Programme”, is supported by the World Bank.
READ: Mozambique: World Bank cuts support to Disaster Management Fund
The government is also contemplating another insurance programme, called the ‘African Risk Capacity Program’, in partnership with the African Development Bank (AfDB). This insurance will carry a premium of US$2 million.
By Evaristo Chilingue
Source: Carta de Moçambique
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