The consortium led by Mozambican Insurance Company (EMOSE), which includes Hollard Mozambique, is the winner of the public tender to provide insurance services for the transfer of parametric risk of tropical cyclones and precipitation.
According to Banca & Seguros magazine, the value of the tender is around US$4 million (approximately 260 million meticals). The sovereign insurance will be triggered in situations of severe events with major socio-economic impact, such as cyclones with category 3 or above, as was the case of cyclones Idai and Kenneth.
The contract is expected to last for one year with the possibility of renewal.
Due to its geographical location, Mozambique is classified as a vulnerable country and in recent times has been cyclically affected by extreme events, including droughts and floods.
World statistics on natural disasters show that the country has a high risk level, which means that the damage caused by natural storms has had damaging impacts on Mozambican society and economy, the effects of which are still being felt, setting back the government’s efforts to develop the country.
