The insurance sector is rapidly expanding in Africa as firms, households, and governments
are increasingly becoming customers in life insurance, non-life insurance, and reinsurance
markets. In 2019, Africa’s insurance premiums were valued at $68.15 billion1 . The largest
insurance markets can be found in South Africa, Kenya, Egypt, Nigeria, Algeria, Angola, and
Tunisia, which together comprised 83% of all African premiums in 20192. Africa’s insurance
sector is often overlooked within the broader financial service markets, despite its longterm
development and financial potential to impact overall economic growth. Insurance
penetration is growing slowly on the continent due to challenges to disposable income which
prevent consumers and firms from broadening the African insurance sector. Broadening the
insurance sector in Africa is critical given the current increased risk appreciation of Africans
as they face short-term and long-term disruptions caused by the COVID-19 pandemic3. This
report aims to offer business leaders an overview of Africa’s biggest opportunities and risks
in the insurance sector, discussing trends, drivers, perspectives, and strategies for effective
investment. It also provides policymakers with some solutions related to the areas that need
to be improved to attract private investors, accelerate insurance coverage development, and
contribute to growth and poverty alleviation.

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