Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • February 2016
02

Africa 'must close insurance gap' to sustain economic growth

Open-access content 26th February 2016

Sub-Saharan Africa has opportunities for growth in the corporate and industrial insurance market but the region needs to increase its insurance penetration for future economic development, according to Allianz Global Corporate & Specialty (AGCS).

The firm argued the industry was currently dominated by developed markets. Citing figures from a KPMG report, G7 countries alone account for almost 65% of global insurance premiums, but they only cover just over 10% of the world's population.

However, total premiums in Africa for both life and non-life sectors amounted to $71.9bn (£51.5bn) in 2012. The figure represents a penetration rate of 3.65%. This is "well below" the global average of 6.5%, but above the average for emerging markets of 2.65%.

AGCS added that the region's premium was predicted to grow by 4.5%-5% for 2016/17, according to the Regional Economic Outlook International Monetary Fund. 

But Delphine Maïdou, CEO in Africa at AGCS, warned that insurance needed to keep pace with investment and economic development.

Speaking at a risk management conference in London, she said: "Sub-Saharan Africa's continued growth depends on closing its vast infrastructure and skills gap, which needs innovative credit and investment solutions facilitated by public-private partnerships through a clear policy and legal framework.

"But for these solutions to work, they will require equally appropriate risk management and risk transfer solutions, which essentially means increasing insurance penetration."

Maïdou stated insurers needed to bring "innovative and agile solutions" to help businesses mitigate a range of business risks such as business interruption, fire and explosion and political risks.

Solutions include educating businesses, advising them on relevant risks management measures and ensuring these approaches are accessible in local markets.  

 

"It is also critical for all players in the industry to do their homework about the regulatory and legal aspects of insurance within each country so they devise relevant and fully compliant solutions," she added. 

This article appeared in our February 2016 issue of The Actuary.
Click here to view this issue
Filed in:
02
Topics:
General Insurance
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Actuarial Analyst - Lloyd's Pricing

London (Central)
£40000 - £60000 per annum + benefits
Reference
119072

Move from Reserving/Capital to Lloyd's Pricing? Get in touch...

London (Central)
£40000 - £55000 per annum + benefits
Reference
119071

Senior Validation Actuary - Lloyd's

London (Central)
£100000 - £140000 per annum + benefits
Reference
119070
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200