Furthermore, streamlining the product range is essential to improve operational efficiency. South African insurers must address legacy products that inflate costs and hinder strategic growth. By streamlining these products, insurers can improve efficiency, strengthen their competitiveness, and ultimately position themselves as key contributors to a sustainable and fair future.
East Africa’s insurance sector has shown resilience and growth despite macroeconomic and geopolitical challenges due to increasing demand for risk transfer solutions. Recent changes have emphasized digital transformation and innovation in line with consumer expectations for accessible services. East Africa’s insurance penetration rate in 2022 was 1.39%, with Kenya leading the way at 2.14%, while Tanzania, Uganda, and Ethiopia had lower insurance penetration rates at 0.62%, 0.74%, and 0.3%, respectively. This presents both growth potential and challenges, requiring innovation and increased customer engagement. The future of the industry depends on its ability to adapt to challenges and turn them into opportunities for sustainable growth.
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