Insurance industry leaders from across Africa convened in Accra for the 4th Africa Network of Insurers Associations (ANIA) Annual General Meeting and Conference, where they discussed strategies for strengthening the continent’s insurance sector and expanding market penetration.

The meeting, which was launched at the Insurance House in Accra on Monday, March 9, brought together regulators, insurance companies, brokers, industry associations, policymakers, and development partners to deliberate on the challenges and opportunities shaping Africa’s insurance landscape.

The Commissioner of Insurance, Dr. Abiba Zakariah, who chaired the opening ceremony, highlighted the role of the ANIA, which was established in 2022 and ratified by the Africa Insurance Organization (AIO) in 2023, in promoting collaboration among insurers’ associations across the continent.

She noted that the network provides an important platform for sharing knowledge and developing strategies to strengthen insurance markets in Africa in line with Ghana’s insurance industry’s international outlook.

Dr. Zakariah, however, pointed to several challenges confronting the sector. She said many local insurers lack the financial capacity to underwrite large or complex risks, forcing them to depend heavily on foreign reinsurers. This situation often results in significant outflows of reinsurance premiums from the continent.

She also highlighted the slow pace of innovation in the industry, explaining that many insurers still rely on traditional distribution channels that are unable to adequately respond to emerging risks and the evolving needs of consumers.

Low insurance penetration remains a major concern across Africa. According to her, the continent’s average insurance penetration rate stands at about 3%, far below the global average of approximately 7.4%. The gap is largely due to limited financial literacy, low demand for insurance products, and persistent mistrust of insurance services among sections of the public, a situation she called on ANIA to address.

She further noted that the African insurance market is highly concentrated in a few countries, such as South Africa, Namibia, Mauritius, and Morocco, while several others, including Ghana, remain below the continental average.

The Director of the Financial Sector Division at the Ministry of Finance, Louis Kwame Amo, delivering his keynote address, reaffirmed the government’s commitment to strengthening Ghana’s financial sector and supporting the development of a resilient insurance industry.

He emphasised that insurance plays a critical role in protecting individuals and businesses against risks, mobilizing long-term savings, and supporting economic growth.

Mr. Amo also stressed the need for strong regulatory frameworks, innovation, and collaboration among industry players to address the challenges facing the sector.

He further underscored the importance of building public confidence in insurance through greater awareness and financial literacy, noting that improved understanding of insurance products will be essential to expanding insurance coverage across Africa.

The 5-day event is being hosted by the Ghana Insurers Association (GIA), which is one of the 17 Anglophone African countries that comprise ANIA. The President of the GIA, Boatemaa Bafuor-Awuah, stressed the importance of seamless cross-border market participation, as the challenges in each member country are not very different from the rest.

This was corroborated by the president of ANIA, Josan Kissakye of Uganda, who also reiterated the need for collaborations in all insurance business dealings across the continent. He cited insurance fraud as a major challenge that the insurance industry in Africa needs to address holistically.

Countries represented at the opening were Ghana, the host, Uganda, Kenya, Mauritius, and Zimbabwe.

Other speakers who shared the Ghana experience were the Insurance Brokers Association of Ghana (IBAG), the Chartered Insurance Institute of Ghana (CIIG), the Insurance Awareness Coordinators’ Group (IACG), the Ghana National Bureau of the ECOWAS Brown Card Insurance Scheme, and the West Africa Insurance Companies Association (WAICA).

Participants at the AGM collectively called for innovation, collaboration, and stronger market development across the continent.

Participants at the conference expressed optimism that the discussions and partnerships formed during the meeting would contribute to building a stronger and more inclusive insurance industry capable of supporting Africa’s economic development.