Agency News
Barbara Bako, Abuja.
Insurance regulators and industry stakeholders have identified regulatory innovation and digital technology as critical tools for increasing insurance penetration and expanding financial protection across Africa.
The position was expressed during a panel discussion at the 52nd African Insurance Organisation (AIO) Conference in Cairo, Egypt, where participants examined strategies for addressing the continent’s persistent insurance protection gap.
Among the speakers was the Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, who argued that Africa’s low insurance penetration should be viewed as a growth opportunity rather than a weakness.
According to him, the continent’s estimated $68 billion premium market reflects significant potential for expansion if insurance products can be made more accessible to consumers.
Omosehin noted that the major challenge facing the industry is not a lack of demand but the inability to effectively distribute insurance products to millions of people, particularly those living in rural communities and working in the informal sector.
He said traditional distribution models have proven inadequate in reaching a large percentage of the population, making it necessary for insurers to adopt more innovative approaches.
Participants at the session highlighted mobile technology, embedded insurance solutions and community-based distribution channels as key pathways for broadening access to insurance services.
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They pointed to Africa’s growing digital economy, supported by more than 500 million mobile phone users and over 350 million mobile wallet accounts, as an important foundation for expanding insurance coverage and simplifying claims payments.
The panel also stressed the need for regulatory frameworks that encourage innovation while safeguarding policyholders. Suggestions included the adoption of principles-based supervision, risk-based capital requirements and the creation of regulatory sandboxes to support the testing of new insurance products and technologies.
Nigeria’s insurance reform programme, NIIRA 2025, was cited as one of the initiatives aimed at promoting innovation and strengthening industry competitiveness.
While acknowledging the benefits of emerging technologies such as artificial intelligence and blockchain, Omosehin warned that regulators and operators must address associated risks, including cybersecurity threats, data privacy concerns and potential algorithmic bias.
He maintained that consumer trust remains central to the future growth of the industry.
The panel concluded that stronger collaboration among regulators, insurers and technology firms would be essential to achieving higher insurance penetration rates across the continent over the next several years.
Participants expressed optimism that sustained reforms and digital transformation could significantly improve access to insurance services, particularly for underserved populations, while enhancing economic resilience across African countries.
