What is the story behind the creation of the insurance sector and the pension plans?
When the Government adopted the macroeconomic politics of the pension funds and insurance sector it approved a framework for transparency and competitivity in the insurance sector in 1998, and with the institutionalization of the pension funds in 2000.
From 2005 and when there were more insurance companies, the Government enforced some insurances to be compulsory, such as for labor accidents and professional illness, and for civil liability in cars.
Could you talk about the liberalization of the market?
In 1987 there was a Program of SEF (SANEAMIENTO ECONOMICO FINANCEIRO) which changed the framework due to the national and international atmosphere. The program wanted to better the population’s living conditions in Angola. This program started to open the markets and a careful liberalization was soon introduced, as for instance in the banking sector.
How many competitors are there in the market?
In 2009 the insurance market had a turnover of 644 Million US Dollars, which means that there has been a significant openness in the market. And now with the compulsory civil liability for cars these numbers are going to keep increasing.
What is being done in Angola to promote the culture of the insurance market?
As the GDP is growing exponentially this will mean that the market will be more and more active. The Government is applying politics to turn some special insurance products into compulsory ones, and so making the general public become more familiar with the market. Nevertheless the insurance companies have to play their part and help with the communication campaign of the sector.
What are the best options for the German community to invest in the insurance sector in Angola?
Taking into account that the GDP is growing enormously that is the most important factor for investors to come to Angola, rather than the specialties of the insurance sector. Therefore foreign investors will come, and are coming, due to the macroeconomic positive situation in Angola.
What is the role of the Instituto de Supervisao de Seguros?
The ISS indirectly advises the insurance companies, and also approves the authorization of new insurance companies. The ISS controls directly the initial activities of insurance companies, and it controls inspection activities in the sector.
Are the foreign investors obliged to invest with an Angolan company?
Yes, they are. The Law obliges for there to be a 30% of Angolan participation. Also, the Minister for Finance has to give his approval.
How would you like the insurance and pension funds in Angola to be portrayed in the international arena?
Angola is part of the Reinsurance African Society, a society created to develop the sector in the continent. Angola is as well part of the international arena through the reinsurance procedure of the companies with its international branches.
What is the foreseeable future for the sector?
Through the Trianual Plan (2012-2015) some more reinsurance products will be compulsory; there will be some micro-insurance products for the agricultural sector among others. We also want private companies to help with the sector, in order to create a more competitive environment.
What message would you tell the German community to invest in the sector?
The market is open for investment, and the legal framework provides a transparent environment for investors.
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