As part of our inaugural “2021 In Review”, The Brief (TB) interviewed some of Namibia’s leading Executives to hear their thoughts about the year 2021 and what the future holds for their organisations and the sectors they operate in. We recently sat down with Namibia National Reinsurance Corporation (NamibRe) Managing Director, Patty Karuaihe-Martin (PKM), to discuss the reinsurer’s year in review and prospects for the future. Below is an extract of the interview:
TB: May you please briefly highlight NamibRe’s operations in 2021?
PKM: Despite the challenges posed by the COVID-19 pandemic, NamibRe continued to deliver on its objectives and mandate, and achieved considerable success in 2021. Our effectiveness and efficiency have yielded satisfactory financial results and we were able to contribute towards national development. NamibRe was able to participate, throughout this year, diligently and meaningfully in all engagements with industry, national, regional, and international stakeholders – these being virtual/online and in-person engagements. The year in a nutshell can be described as successful and a year of growth as we acquired new skills of innovation, resilience, and perseverance.
TB: What were the major milestones and achievements for NamibRe in 2021?
PKM: NamibRe celebrated 20 years of operational existence in 2021. This was a major milestone for us as we were able to showcase why we are a major role player in the industry: locally, regionally, and internationally. As part of our commemoration initiatives, we hosted a Regional CEO Roundtable Forum, a Golf Day, and other activities. The CEO Roundtable presented an opportunity for major industry players to collaborate and share valuable information on how to overcome the challenges posed by emerging risks in the world of business: Business Interruption, pandemic, and climate risks, to mention a few.
Another significant milestone relates to the full implementation of the NamibRe Act. This was made possible by an increase in the number of insurance companies complying with the gazetted notices. With the increase in compliance, the Corporation’s Gross Written Premium (GWP) continues to grow, making it possible for the Corporation to withstand the negative impact of COVID-19.
NamibRe’s brand has continued to grow as well local, regionally, and internationally. Thanks to our strong brand, I was re-appointed as Chairperson of the Organization for Eastern and Southern African Insurance (OESAI) Board of Directors; re-appointed as an Executive Committee member to the African Insurance Organization (AIO) as well as being appointed to serve on the UNEP FI Global Steering Committee and as 2nd Vice President to the NCCI. These appointments reiterate our commitment to service delivery and value addition in our industry.
Finally, NamibRe was able to declare a dividend to its shareholder, the Government of the Republic of Namibia. This is always a major achievement as we consistently aim to grow the shareholders capital and contribute towards the economic prosperity of Namibia.
TB: What would you say were the major challenges faced by NamibRe during the period under review?
PKM: NamibRe, like the rest of the entities in the insurance industry, was impacted adversely by the COVID-19 pandemic. The impact was felt on the human resource capacity as well as the business generation component of the Corporation. This presented us with several challenges, which we had to overcome to ensure business continuity. A decrease in Premium Income, an escalation in claims and uncertainty in the economic landscape were some of the major challenges faced during this year.
TB: The coronavirus pandemic affected economies across the world, what are some of the effects that COVID-19 had on your business and the sector in general?
PKM: First and foremost, the impact of COVID-19 is more mental than physical, it is beyond any economic activity as we have lost loved ones, especially during the 3rd wave. Our priority remains our people and how best we can assist and be supportive.
COVID-19 obviously has disrupted the way we do business, our traditional setup was inevitably transformed, we had to go digital to carry out our duties. Reinsurance sector is heavily built on a relationship premise, we look at doing business being more than a transaction and the new setup has challenged us to find ways of maintaining these relationships. We realized that investment in technology and systems will assist in efficiency, and we are fortunate to have implemented the strategy before the pandemic hit. Thus, the transition was not met with much resistance.
Financial impact due to COVID-19 is picking up, and we pride ourselves in honoring our obligations when required, and we are also looking at how we can assist our clients and communities where necessary. As witnessed, the Business Interruption claims have gained global momentum and this has also provided an opportunity for the future of insurance. How prepared are we to emerging risks and how much of value are we adding to finding optimal solutions?
Surely the landscape is transforming.
TB: In your opinion, what do you think businesses should do to survive in these challenging times?
PKM: We need collaborations and partnerships; these challenges are not standalone and affect all sectors across board. More than ever, we are focused on getting us all out alive, safe, and healthy.
There are no absolute solutions to challenges as we are still within the pandemic, however the small continuous improvements and changes are proving victorious, we must continue being resilient and steadfast in our causes.
We must embrace adaptability and create value, for businesses and the communities we serve.
TB: What lessons did you learn in the past year, both as an individual and as an organization?
PKM: As in individual, I’ve gained new admiration for human beings and our ability to overcome, recover and be resilient in the most difficult of circumstances. I’ve also learned new aspects of myself as a human being and my ability to endure and remain positive against all odds. I’ve learned that the world will go on – perhaps not as usual, but still – it will go on and we have to find new ways of conducting business, collaborating with each other and ensuring that we still reach our individual and collective destinies.
TB: What growth prospects lie ahead for NamibRe as we move into the New Year?
PKM: NamibRe will continue to grow its business locally and internationally in 2022. We will also continue to explore ways of increasing our market share and expand our footprint in foreign markets. We are confident about the compliance by the industry with the NamibRe Act and we are excited to build on already conducive relations with our local industry and external partners. Our focus in the new year will be on enhanced client relations, enhanced implementation of the NamibRe Act and enhanced Governance as a responsible corporate citizen. As we do all of this, we foresee a growth in our balance sheet and our ability to take on more of the market share in reinsurance.
We also foresee growth in our contribution to identified areas of development in the insurance industry and other related sectors as we conduct educational and information sharing platforms and initiatives.
TB: What else would you want to say to your various stakeholders?
PKM: NamibRe was fortunate in that a very competent and experienced new Board of Directors was appointed in September 2021. This Board has, from the onset, displayed a sense of ownership and custodianship for the entity that is reassuring. The level of expertise and experience of the Board will ensure due diligence in all our processes, which will in return culminate in business success and achievement of strategic objectives.
I wish to express our sincere appreciation to our shareholder for the trust in our abilities to execute our mandate. I also wish to express our appreciation to the insurance industry and our business partners at large and finally, a word of sincere appreciation to the NamibRe team for consistent excellence in all we do!
NamibRe Celebrates its 20th Anniversary!
A key milestone in 2021 was the NamibRe 20th Anniversary. This key milestone was celebrated with a few events. The events include the NamibRe Annual Run, the CEO Roundtable Discussions, and the Golf Day. More than one hundred (100) delegates from across the African continent and beyond attended the CEO Roundtable discussions, most of whom attended in person while the others attended the event virtually. Most if the delegates, including the local delegates also participated in the Golf Day. The delegates came from more than eight (8) African countries and the middle east. The countries include: Botswana, Kenya, South Africa, Nigeria, Eswatini, Zimbabwe, Tanazania and Oman.
The CEO round table discussions were held under the theme “The impact of COVID-19 on the reinsurance industry and post COVID-19 recovery strategies”.The panelists engaged in the discussion consented to the following as key strategic priorities for post Covid recovery: (1) Supercharge digital transformation to create digital enterprise, (2) developing new products and revenue streams, (3) upskilling and reskilling workforce for the new world of work, (4) improving resource efficiency and (5) re-engineering business models.
We wish to thank all our delegates, speakers, and panellists for making the CEO Round table discussions a success.
