Prudential Group plc has launched a new report on life insurance markets in sub-Saharan Africa capturing the benefits of life insurance in economic growth.
It reveals that life insurance uptake is still low across the region despite being a driver of growth, jobs and stability. According to the research, life insurance offers the region an opportunity to mobilise large-scale domestic savings for long term and local currency investment.
“Africa’s economy is expected grow at 1.5% in medium term, this will then see an increase in life insurance uptake marginally,” said Ms Jane Kiringai, Senior Economist and Ag. Head of office at World Bank.
Life insurance consumption in Kenya remains mostly in the motor, fire, industrial and personal accidents. This is attributed to poor attitude towards personal life insurance cover and socio-cultural aspects of life. “We shall partner with banks to enhance the education of consumers on the benefits of insurance to their lives. Financial literacy has to be part of the curriculum,” said Mr Matt Lilley, CEO Prudential Africa.
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Cultural beliefs hinder the uptake of life insurance cover even though Kenya is on the verge of technological innovativeness. Outgoing British Ambassador to Kenya Dr Christian Turner acknowledged the availability of opportunity in Kenya, noting that initiatives like life insurance will boost the country’s goal of achieving a double-digit economy.
“This is an opportunity to create jobs and enhance growth. There are barriers but our major challenge is to change the perception. It is here, it is active, strong and the innovation is great,” said Dr. Turner.
Prudential Plc boasts 24 million customers across the world with 23,047 employees in different countries. However, the number could grow spontaneously by 2020. Four thousand job opportunities are targeted for Kenya by that year now that Nairobi is the regional head office for East Africa. Kenya is also the regional leader in life insurance according to the highlights.
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