Mikir Shah : “Mauritius is a strong and competitive market”

Mikir Shah, CEO of AXA Africa Specialty Risks, has been targeting Mauritius with the endeavour to turn it into a hub and regional centre for its specialised insurance in Africa. In this interview, he analyses the insurance sector and talks about his ambitions. He also reveals the nature of the operations of his firm and the reasons why Mauritius was chosen to be its regional centre.

How does the insurance sector stand at global level right now?
Much of the industry is still examining the impact of the recent hurricanes in the Atlantic, storms such as Ophelia and major earthquakes in Mexico. Insurers and reinsurers are trying to pay their claims as quickly and efficiently as possible. From our perspective, we do all our business in Africa and we are perceiving lots of opportunity across the continent.

What is your assessment of the performance of the Mauritian insurance sector?
We have been impressed by the level of expertise in the market and the desire to expand both in terms of volumes and the number of lines of business the market can offer. It is a strong and competitive market locally.

We believe the markets are very competitive and we try to differentiate ourselves by providing an extremely high level of service with bespoke insurance covers that provides solutions to the client via their brokers.

How attractive is the insurance market in Mauritius when compared to the African market in general?
It is an attractive market, one of the first we entered after setting up AXA Africa Specialty Risks. We have made it our hub for the region, holding a number of events and seminars to make sure we play a significant part in the market. We are here to add our expertise and additional capacity, working with the local market. We only offer specialty products; we don’t offer any retail products.

What has been the state of the markets this year?
Despite some strong headwinds such as the recent commodity shock or the political instability of some territories, Africa is still on its way to growth. The provision of tailored Corporate and Specialty Risks solutions is a crucial de-risking tool to make business growth sustainable and provide investors with the comfort and the protection they need to keep investing in African countries and businesses.

Is it going to be easier to make money, particularly if we look at your current global, local and regional situations?
We believe the markets are very competitive and we try to differentiate ourselves by providing an extremely high level of service with bespoke insurance covers that provides solutions to the client via their brokers.

In your opinion, which segment of the insurance industry holds the greatest potential for growth?
As a specialty business, we are witnessing growth across all lines of businesses but in particular; Construction, Political Risk and Trade Credit, Political Violence and Terrorism and Energy hold lots of opportunity for us.

Insurance is nowadays more and more seen as an investment product. What does that tell us about the changing nature of this business?
As an insurer and reinsurer of specialty risks, we see ourselves as the facilitator that allows deals to be completed, projects realised and finances made available. Risk mitigation and suitable insurance products can make a huge difference to a project getting off the ground. We are seeing more and more demand for our products in this area.

Mauritius was an obvious choice for us. There is a sound regulatory environment, good governance and availability of skilled staff. As we do a lot of business in both English and French, having multi-lingual staff is a great advantage too.

What are your ambitions for your operations in Mauritius?
We opened our office in Mauritius very soon after we started the business, our Lloyd’s cover holder is based here and we have a bustling and energetic team. We recently held a breakfast briefing with eighty insurance market participants and the enthusiasm for our presence in Mauritius is very pleasing. We want our Mauritius operations to go from strength to strength.

Why did you choose Mauritius as a hub for Africa?
Mauritius was an obvious choice for us. There is a sound regulatory environment, good governance and availability of skilled staff. As we do a lot of business in both English and French, having multi-lingual staff is a great advantage too.

What can be the greatest challenge for Mauritius to be a regional hub?
As with any country trying to develop its financial services offering, momentum is key. We know there is excellent potential for growth both in Mauritius and across Africa, momentum will be the key factor.