KIGALI, May 4 (Xinhua) — Africa is grappling with a widening insurance gap as authorities and policymakers call for urgent action to strengthen financial resilience and protect economies from rising risks.
Speaking at the ZEP-RE Annual Meeting 2026 organized by ZEP-RE (PTA Reinsurance Company), a reinsurer in Africa and a specialized institution of the Common Market for Eastern and Southern Africa (COMESA) in the capital Kigali on Monday and organized by the Government of Rwanda, policymakers and industry stakeholders warned that millions of people and businesses remain vulnerable to shocks ranging from natural disasters to economic disruptions, according to a statement from Rwanda's Ministry of Finance and Economy. Remain sensitive. Plan.
“Africa is underinsured. Insurance penetration is only 2.7 percent compared to the global average of 7 percent. This gap represents millions of people who have nothing to fall back on and poverty when disaster strikes,” the statement quoted Yusuf Murangwa, Rwanda's minister of finance and economic planning, as saying.
He said that, for the insurance industry to flourish, governments need to create an enabling environment, align regulation and promote financial inclusion. However, product innovation, distribution, reach and reinsurance capacity remain to be built by the industry.
Speaking at the meeting, ZEP-RE Managing Director and Group Chief Executive Officer Hope Murera underlined the growing urgency of strengthening risk financing mechanisms in African economies.
“When disasters strike, recovery is often financed through debt, placing additional pressure on an already limited fiscal position. Insurance has an important role to play in absorbing shocks and enabling a faster, more sustainable recovery,” he was quoted as saying in the statement.
Simon Chikumbu, Vice Chairman of the Board of Directors of ZEP-RE, said at the event, “Africa is still grossly underinsured, and addressing this requires deliberate collaboration between governments, regulators and industry. Decisions taken in forums like this must ultimately translate into protection for communities and businesses in our markets.”
The event featured a high-level roundtable discussion that focused on disaster risk financing, including the protection of public assets and fiscal sustainability and inclusive insurance.
“We must stop thinking of insurance as a niche financial product and start considering it as a strategic tool for economic resilience, fiscal sustainability and inclusive growth,” Soraya Hakuziaremi, governor of the National Bank of Rwanda, said at the meeting. More than 80 percent of disaster-related losses in Africa are uninsured, meaning the burden falls on households, businesses and governments when they can least afford it. Are capable.”
The event, which runs until Tuesday, brings together senior government officials, regulators, industry leaders, development partners and private sector stakeholders from across Africa, according to organisers.
ZEP-RE was established in 1990 to assist in developing and capacity building the insurance and reinsurance industries under the then Preferential Trade Area, the predecessor of COMESA.