African insurance leaders have called for urgent regulatory reforms and increased digital innovation to unlock the continent’s estimated $68 billion insurance premium pool and expand financial protection to millions of underserved people.
The call was made during the 52nd African Insurance Organisation (AIO) Conference, where industry stakeholders discussed strategies for accelerating insurance growth across the continent.
Participants argued that Africa’s low insurance penetration should not be viewed as a weakness. Instead, they described it as a significant opportunity for expansion and market development.
Speaking at the conference, the Commissioner for Insurance and Chief Executive Officer of Nigeria’s National Insurance Commission (NAICOM), Olusegun Ayo Omosehin, emphasized that the industry’s biggest challenge is not a lack of demand but limited access to insurance products.
According to him, Africa already commands an estimated $68 billion premium pool, demonstrating that strong demand exists wherever insurance services are accessible.
“Despite the recorded gap in Africa’s insurance penetration, the continent already commands an estimated $68 billion premium pool, signalling strong underlying demand where access exists,” Omosehin said.
He noted that the industry’s focus should shift toward developing innovative products and distribution channels that can effectively reach more people.
“The gap is not about willingness to pay—it is about our ability to design and distribute products that reach people where they are,” he added.
Industry leaders highlighted the role of technology in bridging existing coverage gaps, particularly in rural and underserved communities where traditional insurance channels remain limited.
Experts believe digital platforms, mobile technology, and data-driven solutions can significantly improve customer access while reducing operational costs for insurers.
They also stressed the importance of regulatory reforms that encourage innovation, strengthen consumer confidence, and create a more enabling environment for insurance companies to grow.
Insurance penetration across much of Africa remains among the lowest globally, despite the continent’s large population and growing middle class.
Stakeholders at the conference argued that increasing insurance coverage would not only strengthen the industry’s growth prospects but also improve financial resilience for households and businesses facing economic shocks, health emergencies, and climate-related risks.
The discussions underscored a growing consensus that expanding access, embracing digital transformation, and modernizing regulatory frameworks will be essential to unlocking Africa’s vast insurance potential.
As governments and industry players seek new ways to promote financial inclusion, the insurance sector is increasingly being viewed as a critical component of Africa’s long-term economic development strategy.
