African insurance industry leaders have called for bold regulatory reforms and digital innovation to close the continent's insurance protection gap and unlock inclusive economic growth across the continent.
Participating in a high-level panel discussion at the 52nd African Insurance Organisation (AIO) Conference, Mr Olusegun Ayo Omosehin, Commissioner for Insurance/CEO of Nigeria’s National Insurance Commission (NAICOM), emphasised that Africa’s low insurance penetration represents a multi-billion-dollar opportunity rather than a limitation.
“The gap is not about willingness to pay—it is about our ability to design and distribute products that reach people where they are,” he said, according to a NAICOM statement.
Despite Africa’s low insurance penetration, the continent already commands an estimated $68bn premium pool, signaling strong underlying demand where access exists.
Distribution failure
A key theme of the discussion was that distribution failure—not lack of demand—is the primary driver of low insurance penetration. Traditional agent-based models fail to reach up to 90% of the addressable population, particularly in rural and informal sectors.
Panelists emphasised that scaling insurance across Africa requires a shift to: mobile-first distribution, embedded insurance models, community-based delivery channels and digital infrastructure unlocking access.
Africa’s rapidly expanding digital ecosystem is enabling this transformation, with over 500m mobile subscribers and more than 350m mobile wallets. These platforms provide ready-made infrastructure for low-cost, scalable insurance distribution and claims payments.
The panel highlighted the importance of regulatory evolution in unlocking growth, particularly through transitioning from rule-based to principles-based supervision, implementing risk-based capital frameworks, and expanding regulatory sandboxes for innovation.
Mr Omosehin said that while technologies such as AI and blockchain are driving efficiency, emerging risks include data privacy, cybersecurity threats, and algorithmic bias. As a result, consumer protection and trust-building were identified as critical to scaling adoption.
The panel underscored that Africa’s insurance sector is at a defining moment, where the convergence of regulatory reform, digital innovation, and market demand creates a unique opportunity to transform the industry.
The 52nd AIO Conference, attended by more than 2,000 participants, took place from 5th to 9th June.