INTO AFRICA May 2017 Edition: Africa’s Insurance Markets Uncovered

LAGOS (Capital Markets in Africa) – Welcome to the May 2017 edition of INTO AFRICA, the publication with fresh insight into Africa’s emerging capital markets. This edition focuses on the Insurance sector and is titled: Africa’s Insurance Markets Uncovered marks an exciting time in the sector. Please download by clicking: INTO AFRICA PUBLICATION: MAY 2017 EDITION.

The insurance sector remains under-developed in Africa (it generates barely 1.7% of global insurance premiums) despite being home to 15% of the World’s population, recent economic growth and an emerging middle class with higher income and desire for a better quality of life. Other sectors have benefited immensely and capitalised on these favourable economic factors. The low insurance penetration in Africa is due to a wide variety of factors, including regulatory factors, market structure, lack of development of other segments of the financial sector, social/human development factors, and cultural/religious factors.

Indisputably, there is a considerable market prospect for insurance business in Africa. As with other emerging economies across the world, expansion in output will ultimately lead to an increasing pool of insurable assets. Growth in wealth and improved income distribution will also expand the population of insurable individuals. In addition, Africa’s growing use of technology, the expanding and increasingly urbanized population should drive demand for insurance in the continent. To be specific, governments’ enforcement of compulsory insurance and adoption of defined contribution pension schemes as well as favourable regulatory framework aimed at building local insurance sector capacity will continue to attract foreign insurance players into the markets. In general, we anticipate strong, sustained, long-term growth in insurance penetration across insurance businesses on the continent.

Please download by clicking: INTO AFRICA PUBLICATION: MAY 2017 EDITION.