Barbara Bako, Abuja.
African insurance regulators and industry leaders have called for accelerated regulatory reforms and greater adoption of digital technologies to address the continent’s low insurance penetration and expand access to financial protection.
The call was made during a high-level panel session at the 52nd African Insurance Organisation (AIO) Conference in Cairo, Egypt, where participants stressed that Africa’s insurance protection gap presents a significant growth opportunity for the industry.
Speaking at the event, the Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, said Africa’s estimated $68 billion insurance premium pool demonstrates that demand for insurance products exists where access is available.
According to him, the challenge is not a lack of willingness by consumers to purchase insurance but the industry’s ability to design and distribute products that meet people where they are.
“The gap is not about willingness to pay—it is about our ability to design and distribute products that reach people where they are,” Omosehin said.
Panelists identified inadequate distribution channels as a major factor limiting insurance penetration across the continent, noting that traditional agent driven models fail to reach large segments of the population, particularly those in rural communities and the informal sector.
To address this challenge, participants advocated wider adoption of mobile-first distribution strategies, embedded insurance products, community-based delivery channels, and other digital solutions capable of reaching underserved populations.
They observed that Africa’s growing digital ecosystem provides a strong foundation for expanding insurance access, citing the continent’s more than 500 million mobile subscribers and over 350 million mobile wallet users as potential channels for low-cost insurance distribution and efficient claims payments.
The discussion also highlighted the importance of modernizing regulatory frameworks to support innovation and sustainable growth within the insurance sector.
Recommended reforms included a transition from rule-based supervision to principles-based regulation, implementation of risk based capital requirements, and the expansion of regulatory sandbox initiatives that allow insurers to test innovative products and services.
Nigeria’s ongoing insurance reform programme, NIIRA 2025, was referenced as an example of efforts aimed at encouraging innovation while maintaining appropriate regulatory oversight.
Addressing concerns about emerging technologies, Omosehin noted that while innovations such as artificial intelligence and blockchain offer significant efficiency gains, they also introduce new risks, including data privacy concerns, cybersecurity threats and algorithmic bias.
He emphasized the need for strong consumer protection measures and trust-building initiatives to support wider adoption of insurance products.
Panelists agreed that innovation and consumer protection must advance together to create a sustainable insurance market capable of serving a broader segment of Africa’s population.
The session concluded with a call for greater collaboration among regulators, insurers and technology providers to raise insurance penetration levels across the continent to between three and five per cent over the next five to seven years.
The conference noted that the convergence of regulatory reform, technological advancement and growing market demand presents a unique opportunity to reshape Africa’s insurance industry and accelerate its contribution to economic development.
The African Insurance Organisation Conference is the continent’s leading gathering of insurance regulators, industry executives and stakeholders, providing a platform for discussions on policy, innovation and the future of insurance in Africa.
Good production costs money and you can support what we do. Please find our details below👇🏾👇🏾👇🏾 Account name: MARKET ONLINE MEDIA Bank: UBA Acc No: 1026401930.
