This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Library
Insurance regulation and innovation: An assessment of 8 African insurance markets
To support regulatory authorities in sub-Saharan Africa in promoting inclusive insurance market development, there is a need to strike a balance between innovation and the accompanying risks that arise. The study reviews and assesses the state of innovation in eight African countries: Ethiopia, Ghana, Kenya, Malawi, Nigeria, Rwanda, Uganda and Zimbabwe.
The assessment focused on the current state of innovation in the market, the existing challenges and impediments in the enabling environment for innovation. Specific actions were identified for regulators to take to support innovation while balancing the risks.
By exploring the underlying infrastructure, talent pipeline, market engagement enablers, access to finance, regulatory environment, and supervisory support, the project found that:
-Low penetration rates persist
-The market is dominated by non-life insurance and life insurance is growing off a low base
-Compulsory insurance remains a key driver of uptake
-There is limited voluntary retail reach
-Insurers largely innovate to improve efficiency and better serve their existing customer base
-Insurtech sectors are still nascent and have a B2B focus
These country reports include a detailed assessment of the insurance market of each country as well as structural, market engagement, regulatory and supervisory recommendations to overcome the market’s key innovation constraints. The key actions to address the identified regulatory and supervisory constraints are to
-Close remaining gaps regarding digital distribution and licence categories
-Reconsider the sandbox design to ensure it is fit-for-purpose
-Earmark capacity for innovation and coordinate across departments
-Adapt and streamline the supervisory approval process
-Broaden the monitoring framework for innovation
-Invest in upgrading supervisory systems