[2019-03-22] Mozambique’s insurers negotiate requirements to participate in natural gas projects

Source: Macauhub

The requirements set out by foreign groups for the participation of Mozambican insurance companies in natural gas projects are being negotiated and may be revised, said the president of Mozambican insurance company Emose.

Joaquim Langa said that the requirements “completely removed the possibility of participation of Mozambican insurers,” and added that Emose was already working with the Mozambican subsidiary of US group Anadarko Petroleum, “to find a solution that fits the reality of the country.”

One of the problems focuses on reinsurance, “and the focus is for Mozambican companies, led by Emose, to take on 100% of the risk, a significant part of which will be passed on to re-insurers deemed by the foreign groups to meet requirements.”

Langa, quoted by the Mozambican newspaper O País, said that the review of requirements is expected to reserve at least 30% of commissions of this service for insurers operating in Mozambique, in an action led by Emose in partnership with other eligible insurers.

The president of Emose highlighted the case of Italian group ENI, which requires insurance companies to have a turnover of more than US$500 million, “a requirement that is far from the capacity of Mozambican companies.”