The president of the African Insurance Organisation, Tope Smart, warned delegates that insurance penetration has been dropping, from 2.78 percent in 2019 to 2 percent in 2020.
Insurers from across the continent gathered in Zanzibar recently to turn talk into positive action for Africa’s insurance industry.
“In 2019, while the global average penetration rate was 7.20 percent, that of Africa was 2.78 percent. In year 2020, while the global average went up to 7.40 percent that of Africa came down significantly to about 2 percent This should be of great concern to us as a region,” he said.
Mr Smart blamed the low insurance penetration on low income, low awareness level, failure to embrace digital technology, high level of financial exclusion, lack of infrastructural and distribution channels, lack of domestic skills, shortage of data and the challenge of brain-drain facing insurers.