It is the practice of insurers to transfer some of their risk portfolios to other parties or individuals through an agreement. This reduces the likelihood of having to pay a large insurance claim in case a disaster demands it. Basically, this is the business of the reinsurance intention point for an insurance company to reduce the risks associated with the guaranteed policies by distributing risks through an alternative platform. Young Money spoke with Phiwa Nkambule, co-founder and CEO, Riovic, an entrepreneur who has taken advantage of this market.
Video credits to CNBCAfrica YouTube channel