Africa Specialty Risks Unveils Groundbreaking Lloyd’s Consortium Focused on African Markets
In a groundbreaking move for the African insurance market, Africa Specialty Risks (ASR) has introduced Baobab, marking the launch of the first Africa-focused Lloyd’s Consortium. This initiative aims to enhance insurance capacity across Africa and the Middle East, paving the way for significant advancements in the region’s emerging markets.
Overview of Baobab Consortium
Launched on January 1, 2025, the Baobab Consortium offers an impressive insurance capacity of up to $21 million. It caters to various sectors, including:
- Political Risk
- Trade Credit
- Political Violence and Terrorism
- Property
- Energy
- Construction
- Liability
Leadership and Backing
The consortium is spearheaded by ASR Syndicate 2454 and enjoys the backing of several prominent Lloyd’s Syndicates, showcasing robust support from global insurers. ASR utilizes its deep local knowledge, expertise, and distribution networks throughout Africa and the Middle East to create a unique partnership model for Lloyd’s Syndicates.
Addressing the Insurance Gap
This innovative model not only facilitates access to developing markets but also addresses a significant unmet need for insurance within local economies. Currently, risks originating from Africa constitute only 2% of the Lloyd’s market, highlighting the region’s vast untapped potential.
Future Capacity Partners
Baobab is designed to attract additional capacity partners throughout the year. ASR’s multiple distribution hubs across Africa and the Middle East are instrumental in ensuring efficient capital deployment, which is vital for sustainable economic growth in the region.
Tailored Underwriting Solutions
By offering tailored underwriting solutions, Baobab aims to:
- Close gaps in insurance coverage
- Unlock opportunities for insurers
CEO’s Vision
ASR’s CEO, Mikir Shah, emphasized the critical need for specialized local knowledge in unlocking potential within Africa and the Middle East. He stated, “Africa and the Middle East offer deep pools of opportunity for insurers but require specialist local knowledge and tailored underwriting solutions. ASR can offer a unique African-focused platform that increases access to local markets while providing developing economies with additional global insurance capacity.”
Shah also expressed his gratitude to the Syndicate partners, saying, “I would like to thank our Syndicate partners for supporting this Consortium. We look forward to growing the Baobab Consortium in the coming months as we work to bring further meaningful global capacity to the region and accelerate sustainable economic growth.”
For more insights into emerging markets and insurance solutions, visit ASR or explore Lloyd’s of London.
