The African insurance industry is still developing in many countries across the continent. The insurance industry in Africa represents less than three percent of insured catastrophe losses worldwide, although it’s home to almost 18 percent of the global population. However, despite the low levels of insurance uptake, there continues to be increased interest and focus from major international brokers, insurers and reinsurers. In 2020, the value of insurance premiums in Sub-Saharan Africa amounted to just over 50 billion U.S. dollars.
Who leads the African insurance market?
Sanlam is a South African financial services group that offers investment, financial, and retirement advice in addition to providing insurance. In 2022, Sanlam had the highest turnover of insurers on the African continent. However, when considering the brand value of insurance companies in Africa, Old Mutual (also based in South Africa) surpassed Sanlam by over 500 million U.S. dollars. Reinsurance refers to a type of insurance whereby one insurer purchases insurance from another insurance company in order to balance the insurance market, or to protect the initial insurer from the risk of major claims. In 2020, Munich Reinsurance of Africa generated the highest revenue of reinsurers in this region. However, in terms of shareholder’s equity, the market was led by Africa Re, with shareholder’s equity reaching over one billion U.S. dollars.
Insurance in South Africa
South Africa has the largest and most established insurance market in Africa, accounting for a significant share of insurance premiums written on the African continent. In 2021, life and non-life insurance penetration in South Africa reached just over 12 percent – about five percent above the global average. In 2022, health insurance was the most common type of insurance taken out by South Africans, and in a survey conducted in South Africa throughout the year, around 30 percent of respondents stated that they feel well informed about their personal insurances.
