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insurance sector in Angola is dominated by the state-owned National
Insurance and Reinsurance Company, Ensa,
which enjoyed a monopoly for more than two decades.
With the liberalisation of the sector through new legislation passed
last year, there is now competition for Ensa’s share of the market.
The new entrant is AAA Seguros and other insurance companies are also
being set up. “At the moment we are effectively handling the competition
from AAA Seguros,” says Ensa president Aleixo
Augusto.
“We
are not afraid of competition. Competition must occur, but we must prepare
the necessary weapons so that we don’t get hurt in the marketplace.
I believe competition is good because it creates quality.”
As the market develops in Angola, he suspects that some social burdens
may be lifted from the government’s shoulders. “More insurance
activity will bring social security benefits and help the economic development
of the country. The insurance sector can complement social security.”
Mr Augusto, who has been with Ensa since its creation in 1978, adds:
“With the development of Angola, new investors are coming here
and they will require guarantees for their investments.”
Ensa,
which covers most areas of insurance, is to gain new status as an autonomous
society before being sold by the government. “The state is preparing
the legislation to sell part of Ensa’s shares,” he adds. “When
the law is approved, we are counting on the participation of several
partners to help us apply new technology and train staff.”
Ensa’s main clients are in the petroleum business. Few Angolans
have any form of personal insurance, but the long-term prospects for
developing new products and markets are good.
The government has created the Instituto do Supervisao do Seguros, a
watchdog body which will track the development of the sector.
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