The opportunities for growth in Africa’s insurance industry are huge, despite recent economic and political uncertainty. The insurance industry has done well to adapt to continuous disruption, with technological advances now considered the most important global trend disrupting the industry. Despite the additional pressures of unrelenting regulatory and insurance accounting changes, and the huge costs associated with the changes, there are also some positive developments and opportunities for growth, according to a report issued by professional services firm PwC on Africa’s insurance industry.
Victor Muguto, Long-term Insurance Leader for PwC Africa says: “The insurance industry across Africa continues to be one of the most disrupted, but at the same time the industry continues to innovate and adapt to take advantage of the many opportunities for growth that are also emerging.
“In the years following the global financial crisis, economic and political uncertainty across the continent slowed down economic and insurance sector growth. Despite this, Africa’s insurance market remains one of the least penetrated in the world and the opportunities for growth are tremendous.”
PwC’s report titled Ready and Willing: African insurance industry poised for growth noted that while the African insurance industry is going through significant change and client expectations are changing, the rise of the new middle class and digital natives offers new opportunities for insurers, using technology, to better understand their customers and use customer data for more relevant product design and better pricing for risk.