Emose Declares Protests Losses Uncovered by Insurance Policies in Mozambique
Mozambican state-owned insurance firm Emose has declared that it does not cover losses resulting from political protests following recent elections. While some policies may have exceptions, Abdulai emphasizes that political events typically fall outside of coverage. The protests have led to over 500 business vandalizations and thousands of job losses, with significant casualties reported. Emose achieved profit in 2023 after previous losses, although its market share continues to decline amid growing competition.
Emose, the state-owned insurance company of Mozambique, announced that losses incurred from protests following recent elections are generally not covered by its insurance policies. According to Janfar Abdulai, the company’s chairman, while some companies may have exceptions, political demonstrations typically fall outside the purview of their coverage. This statement came during a press briefing in Maputo, coinciding with the 34th annual meeting of Emose’s staff and managers.
Protests that erupted post-election have resulted in significant economic fallout. The Confederation of Economic Associations of Mozambique (CTA) reported that over 500 businesses were affected, and approximately 12,000 people lost their jobs since the October 21 demonstrations began. The electoral platform Decide documented that at least 327 people have died amid the protests, with around 750 shot, highlighting the severe social unrest following the elections held on October 9.
The unrest was sparked by the actions of Venâncio Mondlane, a presidential candidate who disputes the legitimacy of the official election results. During the Emose meeting, Abdulai emphasized that the insurance sector must adopt a proactive approach to navigate the current socio-political and economic challenges effectively. He reflected on the past year’s difficulties, affirming the company’s commitment to maintaining operational continuity and customer trust amid such turbulence.
Abdulai noted the evolving landscape of the insurance industry, signifying that it demands adaptability and strategic foresight. He cautioned that understanding present conditions is crucial, as competition in the insurance market intensifies and regulatory demands grow. The company must develop precise plans and implement them efficiently to remain viable in the changing environment.
Despite earlier losses, Emose returned to profitability in 2023, reporting earnings of 43.4 million meticais (about €65,000). This turnaround follows losses recorded in the previous two years, including over 1.19 billion meticais (approximately €17.8 million) in 2021 and 52.5 million meticais (about €784,000) in 2022. However, Emose’s market share decreased from roughly 18% to 14.4%, now eclipsed by competitors such as Hollard and Fidelidade.
Emose is primarily state-owned, with the government holding significant stakes, totaling 70%, combining direct ownership and interests through the State Participation Management Institute. The Mozambican insurance market now includes 19 registered companies, and Emose, established shortly after independence, previously dominated the sector for over four decades, reflecting significant changes in ownership and competition within the market.
Emose has clarified that losses from post-election protests will not be covered by its insurance policies, underscoring the limitations of standard coverage during political demonstrations. Despite navigating a challenging economic environment and previous years of significant financial losses, Emose reported a return to profitability in 2023. The company’s market share, however, has declined as competition increases, highlighting the need for strategic adaptation in the evolving insurance landscape in Mozambique.
Original Source: clubofmozambique.com
