In spite of recent expansion, penetration remains low
In the context of its 43rd Conference & General Assembly in Marrakech, the African Insurance Organisation (AIO) presented the findings of its first Africa Insurance Baromenter, which is based on in-depth interviews with 28 senior executives from regional and international insurers, reinsurers and brokers.
The Barometer points out that “Africa holds great potential for the insurance industry”, as the local markets benefited by the economic boom of the past years, but “operators need to work hard and improve their standards to keep pace with the growth prospects”.
In spite of the growth and expansion seen in the past years, insurance penetration still remains exceptionally low, amounting to less than 1% in some countries, well below the global emerging market average of 2.7% in 2014.
There is “enormous growth potential within the industry”, said the report, even though according to the interviewees excessive competition, insufficient product differentiation and a shortage of skilled and experience insurance professionals are still the main obstacles.
AIO secretary general Prisca Soares said: “The Africa Insurance Barometer offers a succinct summary of the key regional insurance market data and highlights the relevant trends and developments of our industry”. She added: “We thereby provide greater transparency of the African insurance markets, while facilitating and encouraging an informed dialogue about its opportunities and challenges”.