According to the African Insurance Organization, Africa's insurance coverage gap is also a data gap.
AIO's annual “Africa Insurance Pulse 2026” report, prepared by Faber Consulting, examines how data-driven insurance can support inclusive growth across the continent.
The report argues that where risks cannot be reliably measured, insurers cannot set adequate pricing, innovate responsibly or scale sustainably.
It says this leaves households and enterprises vulnerable to shocks that could wipe out years of growth gains.
Jean-Baptiste Ntukmazina, Secretary-General of the African Insurance Organization, said strong data systems were essential for market development.
“Without better data systems, shared standards and the analytical capacity to translate information into insights, insurers cannot accurately price risk, reach the underserved or expand their business models,” Ntukmazina said.
“Bridging this gap is an institutional and technical task that requires investment, governance, and real collaboration between the public and private sectors.”
He said the issue extends beyond the insurance sector.
“The stakes extend far beyond the industry: data-driven insurance is part of the economic infrastructure that improves resilience and enables inclusive growth.”
The research identifies lack of data as a central constraint on the growth of the African insurance market.
Non-life insurance penetration across the continent remains well below global standards, with the most advanced market being South Africa, recording 2.3% of GDP against the global average of 4%.
The report said low-income markets often lack the data systems needed to expand risk protection and attract investment.
Without reliable and detailed data, actuarial modeling becomes uncertain, technical pricing requires higher safety margins and reinsurance costs increase.
The AIO said this could make protection either unavailable or ineffective for the populations who need it most.
A major part of the report focuses on mobile money.
In low-income African countries, the mobile financial ecosystem has achieved penetration rates far greater than traditional banking, reaching close to half of the adult population in some markets.
This has created a potentially significant data asset for insurance markets, the report said.
It argues that insurance growth in Africa depends on integrating into the mobile-based ecosystem rather than waiting for traditional banking models to mature.
Where this integration has occurred, AIO said, there has been massive outreach to previously uninsured populations.
The report also links insurance data quality to the sector's broader investment role.
It says insurance can raise capital and reduce fiscal risk, but only where data integrity supports confidence in underwriting, solvency reporting and claims management.
Where the data ecosystem is weak, systemic risk increases, capital costs increase and the ability of insurers to support infrastructure, agriculture and micro, small and medium-sized enterprise development is reduced.
The findings are based on a structured survey of insurers, reinsurers and brokers operating in Africa between March and April 2026.
Every organization surveyed cited high-quality insurance data as critical to their strategy.
Respondents cited operational necessity, governance requirements and competitive advantage, but also described a market hampered by inadequate detail, processing delays, systematic inaccuracy and non-standardised definitions.
These problems impact pricing, reservations and risk assessment, the report said.
Organizations rely on their proprietary data and public regulatory sources for external comparisons, while the use of alternative and third-party data remains limited.
The AIO suggested that market development outcomes are important.
For primary insurance markets, mispricing was the most commonly cited impact, followed by reduced underwriting appetite, more difficult access to reinsurance and capital markets, and increasingly restrictive terms.
For reinsurance markets, the report said data gaps force higher rates, tighter terms and higher attachment points, “depriving African insurers from effectively pricing out efficient risk-transfer solutions.”
The full report Africa Insurance Pulse 2026 is available here https://african-insurances.org.