Technology will be a key driver of microinsurance in Africa as insurers close the protection gap in driving the inclusive insurance agenda.
Speaking at the ongoing Eastern and Southern Africa Regional Conference on Inclusive Insurance, the 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 region’s appetite for insurance is growing.
The conference in its 8th edition themed ‘Driving Inclusive Insurance Agenda : Closing the Protection Gap’, is being hosted by the Insurance Regulatory Authority of Kenya (IRA) and Munich Re Foundation in Nairobi from April 24-26, 2023.
The conference is a combination of high-quality training and plenary sessions and is supported by the Association of Kenya Insurers, APA Insurance, Britam, CIC Insurance, Old Mutual, AB Consultants, FinProbity Solutions, Africa – Re and The Microinsurance Network.
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% of the world insurance premiums. This was an increase of 6.2% in premium compared to a decline of 1.9% in 2020.
Africa’s long-term insurance premium grew by 7.1% in real terms to USD 51.32 billion (2020: USD 41.83 billion) whereas, the general insurance premium recorded a growth of 4.4% to USD 22.88 billion (2020: USD 20.05 billion) due to economic rebound from pandemic-induced recession in 2020.