iTOO Special Risks has entered into a strategic partnership with Osprey Underwriting Managers, which will see the two roll out and grow a specialist specie insurance proposition across iTOO’s established African footprint. The business will trade as iTOO-Osprey.
The partnership brings together Osprey’s almost two decades of experience in the specie market and iTOO’s deep understanding of niche and speciality products, laying the foundations for specie insurance in markets that are rich in mineral resources, including gold, platinum, diamonds, emeralds and precious stones.
Specie is a specialised niche in the insurance market that protects valuable goods such as cash, bullion, diamonds, fine art and valuable documents. iTOO currently has a presence in Namibia, Botswana, Lesotho, Mozambique, Zambia, Ghana, Tanzania and Kenya, which have an abundance of mineral reserves.
“While our focus is very much niche and speciality, specie is a niche that we have not yet explored. We were looking for the right partners to be able to leverage our footprint where we already have licences and people on the ground to take a step closer to our goal of being the number one speciality insurer in Africa,” says Dale Sutton-Pryce, Head of Partnership and International Business at iTOO Special risks.
“It’s a new partnership and we are looking to build it together in Africa. This overlap in licences and expertise between our two organisations is also expected to create cross-selling opportunities for the partnership.”
Similar to iTOO’s other product lines, Sutton-Pryce explains that this business will be built on an approach that will deeply embed the underwriters and niche products within the specific ecosystems of the industries in which they operate.
“This allows the Partners to develop a comprehensive understanding of the industry, the risks and the specific needs of their clients. By being deeply embedded in the ecosystem, iTOO-Osprey can provide specialised expertise and capabilities that a more generalist insurer would not be able to offer,” says Sutton-Pryce.
Richard Pearson, CEO of Osprey, says this is the ideal partnership for his company as it gets Osprey into the countries where it wants to establish a presence. He notes that Osprey had done exceptionally well in the South African market to grow its brand and position itself as the number one go-to specie insurer.
“But we’ve always had an interest in Africa. We have good in-depth knowledge of exactly what we want and what business we want to target. So, we can grow this relationship and also our footprint in Africa,” he says.
Pearson adds that the partnership will benefit from Osprey’s ability to adjust and adapt their insurance policies to suit the specific needs of their clients. This enables the company to provide an end-to-end insurance solution, where the client does not have to purchase multiple separate policies.
“This ensures there are no gaps in coverage, so when a claim arises, it’s clear who is responsible for paying. We set limits on each process, allowing clients to have better control and visibility over the risks,” he says.
“The client benefits from a single comprehensive policy that covers all their cash, valuables, diamonds or gold, among others. This gives the client confidence that their risks are fully covered under the policy.”
Ultimately, Sutton-Pryce and Pearson agree that the partnership between the two companies provides complementary skills – with Osprey having developed expertise in specie and risk management, while iTOO brings the network, balance sheet, reinsurance structures and local relationships.
“The partnership follows a ‘win-win-win’ ethos, where the broker, client and insurance company all benefit, which is important in niche areas where sometimes there is a ‘loser’ in the partnership. However, in this case, the alignment of interests and the ‘win-win-win’ approach is a key factor in making the partnership successful,” says Pearson.
Additionally, he notes that the business model of this partnership is very broker-driven, with the brokers being the key distribution channel in the targeted African markets. Osprey heavily invests in and leverages its relationships and partnerships with these specialist brokers. The broker-driven nature of the business is a key part of their approach, both for Osprey and iTOO.
Sutton-Pryce concludes that Africa has diverse challenges across different countries, and understanding these country-specific challenges is important. Given their diverse yet complementary strengths and expertise, the partnership is well positioned to successfully develop the number 1 specie insurance business in Africa.
If you have any questions or would like to explore specific opportunities for your clients, please contact us on itoo@ospreyuma.com.
