Price Forbes has launched a new construction practice in South Africa with the appointment of three experienced market specialists – Alvin Dye, Paul Jacobs and Kagiso Sephiphi – to a newly formed team, effective immediately.
The build-out formalises a joint venture with Price Forbes’ London construction team and is intended to create a two-way platform between South Africa and international markets for complex construction risks.
The move comes at a time when brokers and insurers are tracking an active pipeline of infrastructure, energy and industrial projects across Africa, and when the ability to blend local market knowledge with London market capacity is increasingly seen as a competitive advantage.
The new unit is structured around three core areas: a retail offering serving Africa-centric clients across the continent; outward wholesale placement, with the South African team working in partnership with London to access global markets; and a reverse flow of business, in which London’s international construction clients with African project exposure can be supported on the ground by the South Africa team.
That model is aimed at addressing some of the structural challenges in placing African construction risks.
Large and technically complex projects – particularly in sectors such as power, mining, transport and renewables – often require a combination of domestic capacity, regional markets and London or other international specialist support.
A coordinated approach between Johannesburg and London is intended to streamline placement, align coverage standards and improve servicing for projects that cross borders and regulatory regimes.
Alvin Dye joins as head of construction and will report directly to Kenny Thorpe, chairman of Price Forbes South Africa. He has almost three decades of industry experience and has held senior roles at major broking firms, including regional practice head at Marsh and head of construction at Willis SA.
Dye will be responsible for growing the construction practice and developing a specialist offering for Price Forbes' clients in Africa and further afield.
Dye added: “This is an exciting moment for Price Forbes in South Africa. We have assembled a team with deep specialist expertise and a clear vision for what we want to build. We have real appetite and I’m looking forward to seeing how we grow,” said Dye.
Paul Jacobs joins as account executive. He brings more than 40 years’ experience across the construction and engineering markets, having held roles at firms including Willis, Marsh and Alex Forbes. He will be responsible for developing local and international business within the construction practice and contributing to the growth of Price Forbes’ specialist capabilities in South Africa.
Meanwhile, Kagiso Sephiphi joins as junior account executive. He brings a decade of construction insurance experience to the role, having progressed through broking roles at both Marsh and Willis South Africa, where he developed expertise in risk management solutions for complex construction project.
Sephiphi will focus on technical broking within the construction practice, with an initial emphasis on large infrastructure and, over time, a planned expansion into renewable energy.
The emphasis on technical broking and renewables is notable.
African markets are seeing increasing activity in utility-scale solar, wind and other alternative energy projects, often backed by development finance institutions and international investors. Those projects carry distinct construction all risks, delay in start-up and operational exposures, and typically require bespoke wordings and close coordination between local and international markets.
As project sponsors seek to address infrastructure and energy gaps across the continent, demand is growing for brokers who can structure programmes that satisfy both local regulatory requirements and the expectations of global lenders and investors.
That includes navigating compulsory local cessions, fronting arrangements and reinsurance structures, while still accessing London and other international capacity for large limits and specialist perils.
At the same time, the construction and engineering segment has been trading in a more disciplined underwriting environment globally, with insurers focusing on project selection, contract quality, risk engineering and claims performance. Brokers with strong technical capability and access to multiple markets are likely to be better placed to secure capacity and terms for clients against that backdrop.
