NAIROBI, Kenya, Apr 24 – Technology will be a key driver of micro insurance in Africa as insurers close the protection gap in driving the inclusive insurance agenda, experts have said.
Speaking at the ongoing Eastern and Southern Africa Regional Conference on Inclusive Insurance, the Insurance Regulatory Authority(IRA) Commissioner of Insurance Godfrey Kiptum urged insurers to adopt innovative business models that will curb the damages that hinder access to insurance.
Kiptum said despite Africa having one of the lowest insurance penetration rates in the world, the regions’ appetite for insurance is growing.
The conference in its 8th edition themed ‘Driving Inclusive Insurance Agenda : Closing the Protection Gap’, is being hosted by IRA and Munich Re Foundation in Nairobi from April 24-26, 2023.
On his part, CIC LIFE Assurance Managing Director, Mechack Miyogo says the region is ripe for microinsurance driven by partnerships, technology and customer focus approaches.
Apollo Group Chief Executive Officer Ashok Shah said there is huge potential in inclusive insurance to drive the premium uptake in the region, citing cost as a key factor inhibiting insurance growth.
The IRA 2021 Annual report indicates that Africa reported premiums of USD 74.2 billion accounting for 1.1 per cent of the world insurance premiums.
This was an increase of 6.2 per cent in premium compared to a decline of 1.9 per cent in 2020.
Africa’s long-term insurance premium grew by 7.1 per cent in real terms to USD 51.32 billion from USD 41.83 billion in 2020 whereas, the general insurance premium recorded a growth of 4.4 per cent to USD 22.88 billion from USD 20.05 billion in 2020 due to economic rebound from pandemic-induced recession in 2020.
