Insurance industry leaders from across Africa gathered in Accra for the fourth Africa Network of Insurers Associations (ANIA) Annual General Meeting and Conference, where they discussed strategies to strengthen the continent’s insurance sector and increase market penetration.
The meeting, which was launched on Monday, March 9 at Insurance House in Accra, brought together regulators, insurers, brokers, industry associations, policy makers and development partners to deliberate on the challenges and opportunities shaping Africa’s insurance landscape.
Insurance Commissioner, Dr. Abiba Zakaria, who chaired the inaugural ceremony, highlighted the role of ANIA, which was established in 2022 and approved by the Africa Insurance Organization (AIO) in 2023, in promoting collaboration between associations of insurers across the continent.
He said the network provides an important platform to share knowledge and develop strategies to strengthen insurance markets in Africa in line with Ghana's international vision of the insurance industry.
However, Dr Zakaria pointed to a number of challenges facing the sector. He said many local insurers lack the financial capacity to underwrite large or complex risks, forcing them to rely heavily on foreign reinsurers. This situation often results in significant outflows of reinsurance premiums from the continent.
He also highlighted the slow pace of innovation in the industry and pointed out that many insurers still rely on traditional distribution channels that are unable to adequately respond to emerging risks and consumers' growing needs.
Low insurance access remains a major concern across Africa. According to him, the continent's average insurance penetration rate is about 3%, which is much lower than the global average of about 7.4%. This gap is largely due to limited financial literacy, low demand for insurance products and persistent distrust towards insurance services among a section of the public, a situation he called on ANIA to address.
He further said that the African insurance market is highly concentrated in a few countries such as South Africa, Namibia, Mauritius and Morocco, while many other countries, including Ghana, are below the continental average.
Louis Kwame Amo, Director of the Financial Sector Division at the Ministry of Finance, Delivering his keynote address, he reaffirmed the government's commitment to strengthening Ghana's financial sector and supporting the development of a resilient insurance industry.
He emphasized that insurance plays an important role in protecting individuals and businesses from risks, mobilizing long-term savings and supporting economic growth.
Mr Amo also stressed the need for strong regulatory framework, innovation and collaboration among industry players to address the challenges facing the sector.
He underlined the importance of building public confidence in insurance through greater awareness and financial literacy, noting that a better understanding of insurance products will be essential to expanding insurance coverage across Africa.
The 5-day event is being hosted by the Ghana Insurers Association (GIA), one of the 17 Anglophone African countries to which ANIA belongs. GIA President Botema Baffour-Avua stressed the importance of seamless cross-border market participation, as the challenges in each member country are not much different from those in the rest.
This was confirmed by the President of ANIA, Joson Kisake of Uganda, who also reiterated the need for cooperation in all insurance business transactions across the continent. He described insurance fraud as a major challenge that needs to be addressed holistically by the insurance industry in Africa.
The countries represented at the inauguration were Ghana, the hosts, Uganda, Kenya, Mauritius and Zimbabwe.
Other speakers sharing Ghana's experience included the Insurance Brokers Association of Ghana (IBAG), Chartered Insurance Institute of Ghana (CIIG), Insurance Awareness Coordinators Group (IACG), Ghana National Bureau of ECOWAS Brown Card Insurance Scheme and West Africa Insurance Companies Association (WAICA).
Participants at the AGM collectively called for innovation, collaboration and strong market growth across the continent.
Participants at the conference expressed hope that the discussions and partnerships formed during the meeting will contribute to building a stronger and more inclusive insurance industry capable of supporting Africa's economic growth.
Disclaimer: The views, comments, opinions, contributions and statements made by readers and contributors on this forum do not necessarily represent the views or policy of Multimedia Group Limited.
Disclaimer: The views, comments, opinions, contributions and statements made by readers and contributors on this forum do not necessarily represent the views or policy of Multimedia Group Limited.