Because of the risks involved in trading and insuring goods in the African market, there is increasing regulation of transport insurance markets in African countries.
"It has become very expensive to insure transport and goods in Africa because of the highly regulated environment,” said Carol Holness, senior associate at law firm Norton Rose Fulbright, speaking at last week’s Special Interest Group (SIG) Transport Forum held in Durban.
According to her, only locally licensed underwriters, brokers and loss adjusters - from thecountry of origin of the goods - are involved with the insurance of local assets, which presents challenges to over-border and in-transit shipments.
“Failure to comply can lead to the imposition of a fine or imprisonment of the wrongdoer,” she said.
