Mozambique’s state insurer, Emose, warned on Monday that insurance policies do not cover the damage caused by the post-election demonstrations in the country despite the claims it has received.
“In general, they are not covered,” said the chairman of the board of directors of the Mozambican Insurance Company (Emose), Janfar Abdulai. However, he acknowledged that occasionally, some companies have policies that make exceptions.
“It should be noted that under the policy, demonstrations caused by political events are not covered,” said the director, who was speaking to journalists in Maputo on the sidelines of the 34th national meeting of managers and staff of the insurance company, one of the largest in the country, owned by the state.
On 30 December, the Confederation of Economic Associations of Mozambique (CTA) told Lusa that more than 500 businesses had been vandalised during the post-election demonstrations in Mozambique since 21 October, and at least 12,000 people had been left without jobs.
At least 327 people have died, including around two dozen minors, and around 750 have been shot during the protests, according to the Decide electoral platform, a non-governmental organisation that monitors electoral processes.
These demonstrations and stoppages have caused widespread destruction of public and private facilities, as called by the then-presidential candidate Venâncio Mondlane, who did not recognise the official results of the general elections on 9 October.
Speaking at today’s Emose meeting, Janfar Abdulai said that the current context of the insurance sector in Mozambique requires “a proactive, informed stance that is strategically adjusted to the dynamics of the market”.
“The past year has tested us, with complex challenges driven by socio-political and economic factors. However, we have been able to respond with rigour and competence, to ensure that we will continue operating and strengthening the trust of our customers, partners and stakeholders. But let’s be clear: what has brought us this far will not be enough to take us forward,” said the board of directors chairman.
“The insurance sector is constantly changing. Competition is intensifying, regulatory requirements are becoming stricter and risks are taking on new configurations. Faced with this reality, we can’t just react. We must anticipate, plan precisely and execute efficiently,” he added.
Lusa previously reported that Emose had reversed its losses from recent years (up to 2022) and that, in 2023, it would make a profit of 43.4 million meticais (€65,000) despite losing market share and leadership.
According to Emose’s 2023 report and accounts, to which Lusa had access, the insurer recorded losses of more than 1,193 million meticais (€17.8 million) in 2021 and 52.5 million meticais in 2022 (€784,000).
Emose’s life insurance gross premiums fell by 0.5% in 2023 to 3,208 million meticais (€46.1 million), while non-life insurance premiums fell by 0.4% to 19,037 million meticais (€274 million).
As a result, Emosa’s share of the Mozambican insurance market fell by 3.6 percentage points, from 18 to 14.4 % (in 2023), falling behind Hollard (16.5% share) and Portugal’s Fidelidade (14.8%).
The Mozambican state has a 31% direct stake in Emose’s share capital and, through the Institute for the Management of State Holdings (IGEPE), a 39% stake. Other small shareholders include the Cooperative of Technical Managers and Emose Workers, with a 20% share.
Mozambique’s insurance market has 19 authorised companies. Emose has led it for over 40 years. It was created two years after national independence through the nationalisation and merger of the Lusitânia, Tranquilidade de Moçambique, and Nauticus insurance companies.
Lusa
