The need for better data has been highlighted by a new report from the African Insurance Organisation (AIO).
In its annual report, produced by Faber Consulting, the report maps how regional economic trends are shaping Africa’s insurance markets and underscoring the sector’s need for standardised, high-quality and timely insurance market data to build resilience and close insurance protection gaps.
Jean Baptiste Ntukamazina, secretary general, AIO said: “Strong, reliable data benefits everyone in Africa’s insurance market. The AIO is driving an initiative to support more systematic collection of insurance data, helping the sector grow sustainably and attract capacity. I encourage insurers, reinsurers, regulators and technology partners to participate and help build the information base we need for a stronger future.”
Macroeconomic backdrop – strong growth despite global shocks
Providing an overview of the wider economic landscape, the report revealed that, against global shocks and elevated uncertainty, Africa’s economy shifted up a gear in 2024.
Average real gross domestic product (GDP) growth increased to 3.3% from 3.0% in 2023, while real GDP per capita growth – an indicator for poverty reduction – improved slightly to 0.9% from 0.7%, according to the African Development Bank Group.
Key growth contributors were higher household spending, service sector expansion, a stabilising global economy, structural reforms, productivity gains and targeted public investment, including into infrastructure.
As Yared Mola, president of the AIO, said “Africa has the second-highest 2025 and 2026 economic growth outlook of all global regions, but continues to face many internal and external challenges, including from conflicts, geopolitical tensions and climate change. By expertly managing risk, innovating and investing, the African insurance sector is fundamental to building resilient, stable economies across Africa. The AIO is extremely proud to play a central role in championing and further developing the sector.”
Looking ahead, Africa maintains a strong 2025-26 growth outlook above the global average despite global growth downgrades from the 2025 trade and tariff conflict.
In terms of Africa’s regions, West Africa led GDP growth in 2024 at 4.5%, buoyed by investments, strong domestic demand and new oil and gas flows. Senegal stands out as Africa’s fastest-growing economy with growth projected to reach 10.3% in 2025.
East Africa, which saw 4.3% growth in 2024, the second-highest regional growth rate, has the strongest outlook: supported by reforms, infrastructure development, increasingly diversified economies and a growing share of intraregional trade. East Africa is expected to experience growth of 5.9% in 2025 and 2026.
Despite recent global shocks, many African economies have grown strongly over the past five years. According to IMF data, 42% have a higher real GDP compound annual growth rate (CAGR) than the world average, and 66% exceed the CAGR of advanced economies.
Insurance protection gap points to significant growth potential
A glance at penetration data shows both the shortfall and the opportunity. Only two African markets – South Africa (11.5%) and Namibia (7.4%) – exceed the 6.8% global average insurance penetration rate, according to Deloitte. All other markets are constrained by low financial inclusion, high informality and limited distribution capacity. This gap underscores structural challenges but also highlights the significant growth potential of the sector as Africa’s economies formalise and household incomes rise.
Premium volume is likewise highly concentrated. In the life insurance sector, South Africa continues to dominate, accounting for approximately 84% of Gross Written Premiums (GWPs) at US$38.4 billion, followed at a much lower level by Morocco (US$2.7 billion) and Kenya (US$1.5 billion), based on the latest available data. All other markets are below US$1 billion in GWPs.
Nonlife is also highly skewed – South Africa accounts for approximately 53% of GWPs (US$12 billion), followed by Morocco (US$3.2 billion), Kenya (US$1.6 billion) and Algeria (US$1.1 billion).
As reported by AM Best, Africa is supported by a resilient reinsurance sector. Sub-Saharan Africa (SSA) and Middle East and North Africa (MENA) reinsurers remained resilient in 2024 despite challenging risk environments.
Though capacity was still limited, many SSA reinsurers delivered double-digit returns on equity (ROE) and improved combined ratios thanks to stronger internal capitalisation, tighter risk selection and interest rates, supported also by the global hard market. Protectionist frameworks in some markets continued to favour local players and support stable loss ratios.
Similarly, in MENA, growth was supported by firm global pricing, inflation, mandatory cessions and infrastructure/energy demand. Abundant capacity was available from regional and global providers, but catastrophe losses and the challenging risk environment saw underwriting discipline maintained. Protectionist frameworks continued to shape market dynamics, with Saudi Arabia requiring 30% of cessions to local reinsurers as of 2025.
Market data as a growth and resilience catalyst
The report further highlights a core constraint of the African insurance sector – the lack of comprehensive, standardised, transparent market data.
Many African insurers do not have the necessary digital infrastructure for data collection and reporting, most regulators mandate only minimal, aggregated annual reporting, reported data rarely reaches brokers and reinsurers and there is no continental authority to curate or standardise data. This situation hinders effective risk assessment, drives up costs, discourages investment and constrains innovation. Markets are left without the visibility to make sound, data-driven decisions to build resilience and achieve growth.
Although more is needed to make a difference at the continental level, African regulators, insurers, industry bodies and technology providers are increasingly recognising this deficit and beginning to implement practical data-harmonisation efforts. One such example is the A2ii + Cenfri KPI benchmarking project – spanning Ghana, Kenya, Malawi, Mauritius, Uganda and the CIMA zone – which has improved claims turnaround, streamlined regulation and lifted penetration in underserved markets.
The report describes how the AIO is currently working towards a pan-African platform to aggregate, standardise and centralise insurance data, and includes a call to action to stakeholders to stand behind this and other vital initiatives to drive progress in respect of market data, for the benefit of all.
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