Insurance Scheme Design And Case Analysis Of International Project In Africa

With the accelerated process of economic globalization and the rapid development of regional economy in Africa, the engineering contracting market has become one of the hot areas which attract attention form many international contractors. In recent years, facing the overcapacity reality, a growing number of Chinese construction contractors have begun to go abroad for contracting projects overseas. Africa is also the main battlefield of China’s construction enterprises.Despite Africa’s vast engineering contracting market has brought opportunities for international engineering contractor, the specific realities of African has also brought many challenges. It is necessary for the contractor to have a clear recognition of project risk in Africa, and then take targeted measures to response various risks, such as insurance, which is often used in international practice.Firstly, some basic knowledge referring to the engineering insurance are introduced, including the connotation, characteristic’s,prerequisite, insurability, and the basic types and elements of engineering insurance.Secondly,the background of insurance scheme for international engineering projects in Africa is analyzed. From the perspectives of internal risks and external risks, the typical risks of engineering projects in Africa were analyzed. The necessity of insurance for engineering projects in Africa was explained. Then the major types of insurance were described.Thirdly,the insurance scheme for engineering projects in Africa is analyzed. In this part, the relation between the types of engineering insurances and risks are analyzed, the risk value model is developed, the approach to calculate the rankof insurance’s priorities, the method to calculate the insurance amount, the related rate and the insurance coverage and the selection of insurance companies are also introduced.Finally, taking the railway projects in Nigeria participated by author as an example, the empirical analysis is carried out about the determining procedure of international engineering insurance programs in Africa. The results show that the insurance scheme established can well cover all risks of project.