The underwriting of formal insurance business in Mozambique started in the beginning of the 20th century.
After Mozambique attained independence in 1975, a new state-owned insurer was formed following the nationalisation of infrastructure of the insurance companies that were operating in the market at that time.
Unfortunately for the new nation, the war of independence was immediately followed by a protracted, brutal and highly destructive civil war. In the early 1990s, as part of thestrategy to end the civil war, the government of Mozambique initiated a process of political and economic reforms. In terms of the economy, a process of economic restructuring and market liberalisation was initiated. For the insurance sector, this lead to the termination of the state monopoly and creation of space for the re-emergence of private sector insurance companies and the unbanning of insurance brokerage services. Following the termination of the monopoly of the state insurer, the duties of supervision of the insurance sector was shifted to the Ministry of Finance.
In 1999, the Mozambican government passed a piece of legislation paving the way for the formation of the insurance regulatory body – Inspecção Geral de Seguros (IGS). In the most recent reform of the insurance regulatory framework, the mandate of the regulatory body was broadened. This more autonomous entity was renamed Instituto de Supervisão de Seguros de Moçambique (ISSM).
Following the termination of the state monopoly, the insurance sector has become more refined. Mozambique is still very lightly penetrated by the insurance industry. Over the past five years though, a lot of growth has taken place and there are now around eight insurance companies in the country.
There are two principal classes of compulsory insurance in Mozambique.
Firstly, it is compulsory to insure with a locally registered insurance company, such as Hollard Mozambique, for motor third party liability for any vehicle intending to circulate on the national roads, whether the vehicle has a local or foreign registration. For foreign registered vehicles, Hollard has a network of authorised agents who can issue this insurance at all key entry points into Mozambique.
Secondly, all businesses and organisations are required to have workman’s compensation insurance to cover their employees in the case of a work-related accident.
Hollard Moçambique Companhia de Seguros, a Mozambican short-term insurance company, and a subsidiary of Hollard Insurance Company Ltd of South Africa, was formed in 2001. Hollard Vida, the life insurance subsidiary of Hollard Mozambique, started operating as a separate license in 2008. Although the life and non-life businesses of Hollard have separate licenses, the businesses are managed by a common management team.
In the insurance intermediary sector, there are more than 40 brokers and numerous insurance agencies. Hollard Mozambique currently deals with all of the top 10 firms in Mozambique and other credible emerging brokerages.
In addition to the principal office in Maputo, Hollard Mozambique has full service branches in the key provincial cities of Beira, Nampula and Tete. We also have a network ofagents at all the key border posts.