Valéry Safarian on Building Resilient Mining Insurance Structures in Africa

In a sector where complexity often overshadows clarity, Valéry Safarian brings strategy, structure, and steady guidance to the conversation. As Board and Shareholders Advisor at SFA and a key figure in several insurance organizations, Safarian is reshaping how mining companies across Africa think about risk. His message, shared during this year's Mining Indaba in Cape Town, carries a clear theme: insurance must rise from transactional paperwork to a tool that strengthens governance and long-term resilience.

Insurance as Strategic Governance

Safarian challenges the outdated view of insurance as a passive requirement. From his perspective, insurance functions as an active component of corporate oversight that supports shareholder protection and operational continuity. He helps leadership teams tie insurance programs to business strategy so that risk structures support the company's long-term goals.

'Insurance should support strategy', he notes. 'When structured properly, it becomes an anchor for stability.'

Africa's Regulatory Maturity

One of the strongest forces shaping this shift comes from regulatory reform. Across African jurisdictions, insurance and reinsurance rules have grown significantly more structured, enforceable, and closely supervised over the past decade. Safarian explains that regulators now expect transparency in reporting, proper local placement of policies, legally compliant retentions, and clear approval for reinsurance abroad.

'This is not the Africa of the past', he said during Indaba. 'Regulators take their role seriously, and compliance forms the foundation of credible risk management.'

He points to efforts such as CIMA reforms in West and Central Africa and the FSCA's rigorous oversight in South Africa as examples of stronger systems emerging across the continent. Mining companies must move away from loosely structured offshore arrangements and adopt programs aligned with local regulations.

The Role of Local Insurers

Safarian highlights a critical player in this evolving model: the local insurer. Rather than acting solely as a policy issuer, the local insurer becomes the coordinator, bringing international survey recommendations to life on the ground.

'Who makes sure the recommendations actually turn into action?' he asks. 'The local insurer is the one who stays close to the site.'

Local insurers conduct follow-up inspections, work with local engineers, document improvements, and verify alignment with environmental and mining regulations. Their involvement reduces future losses and builds confidence among reinsurers who rely on accurate documentation.

Prevention Over Payouts

Safarian places strong emphasis on prevention. He encourages the use of risk engineering, technical surveys, and follow-up inspections to reduce the likelihood of claims. Local insurers are responsible for confirming that fire systems are installed correctly, electrical systems are safe, and structural risks are addressed before an issue arises.

This shift improves long-term insurability and strengthens investor trust, particularly in regions where on-the-ground coordination is critical.

Valéry Safarian consulting with local insurance stakeholders on regulatory compliance and risk management in rising markets.

Governance That Builds Confidence

In his advisory role, Safarian supports boards and shareholders in building insurance structures that attract capital, meet regulatory expectations, and reinforce operational stability. He describes an effective mining insurance program as one that includes local policy issuance, strong AA-rated treaty reinsurance, optional captive participation, and global facultative support.

This structure supports financial strength, meets legal requirements, and signals reliability to international partners.

Looking Ahead: Competitive Advantage Through Compliance

As enforcement tightens across African markets, Safarian sees compliance and coordination as strategic advantages.

'Africa is not inherently high risk', he says. 'It is complex. With the right structure, companies can operate with confidence.'

Mining companies that embrace regulatory expectations, strengthen prevention efforts, and work closely with capable local insurers will be better positioned to compete, attract investment, and maintain steady operations. With experts like Safarian guiding the shift, the future of mining insurance across Africa moves toward structure, resilience, and long-term stability.