Africa's insurance sector is growing rapidly due to growing demand from a growing middle class, a new report finds.
Global market research firm IMARC Group forecasts that the market is expected to reach above $166 billion by 2034, up from $98.5 billion in 2025. Better financial inclusion has also made access to insurance products easier: The report found that telecom operators are increasingly integrating with insurance companies, meaning more than 18 million people are now enrolled in insurance programs through mobile payment systems.
Micro-insurance offerings focused on sub-Saharan Africa informal sector – Nearly 80% of all workers have also expanded across the continent. Although most consumers are concentrated in South Africa, the report found that micro-insurance models cover more than 3.5 million people in Ghana, Kenya, Nigeria and Uganda. Focusing on fast payments – many of which are made in around four hours – these models specifically target rural populations, who are increasingly affected by unpredictable weather patterns and natural disasters resulting from climate change.