L-R: Kayode Adigun Executive Director, Finance and Corporate Services, Tope Adaramola, Executive Secretary NCRIB, Olufunke     Adenusi, Vice president NCRIB, Olaotan Soyinka, MD/CEO, Sovereign Trust Insurance Plc, Prince Babatunde Oguntade, 22nd President, Nigerian Council of Registered Insurance Brokers, Ugochi Odemelam Executive Director, Marketing & Business Development, Sovereign Trust Insurance Plc, Emmanuel Anikibe (Executive Director, Technical, and Olugbenga Falade, Assistant Executive Secretary, NCRIB during the courtesy visit of the Council to Sovereign Trust Insurance Plc.

The President of the Council, Prince Babatunde Oguntade congratulated the Management and Staff of Sovereign Trust Insurance Plc on the 30 years anniversary of the Underwriting Firm.

He commended the efforts of the Management for the steady growth that the company has experienced under the leadership of the MD/CEO, Olaotan Soyinka.

In the same vein, he also extended his praises to the Visioners who envisioned the establishment of the underwriting firm 30 years ago and prayed that the company will continue to soar in the years ahead.

The NCRIB President equally called for the continued collaboration between the Council and Sovereign Trust Insurance Plc as he hinted on the project that the Council has embarked upon which he wanted Sovereign Trust Insurance Plc to be part of it.

The Managing Director/CEO of Sovereign Trust Insurance Plc, Olaotan Soyinka thanked the President and his delegation for finding the company worthy of their visitation in the new year.

He equally thanked members of the broking community in the country for the support and patronage that the company keeps enjoying over the last 30 years while also calling for more of such partnership in the years ahead.

The National Insurance Commission (NAICOM) and the Nigerian Civil Aviation Authority (NCAA) have established a joint committee on aviation related matters to drive insurance growth in the aviation sector in Nigeria.

The inauguration of the Committee was successfully held at the NAICOM Office in Abuja on Wednesday, January 22, 2025.

Mr. Olusegun Ayo Omosehin, the Commissioner for Insurance and CEO of the National Insurance Commission, was represented by Dr. Usman Jankara, the Deputy Commissioner Technical. Dr. Jankara warmly welcomed the team from Nigerian Civil Aviation Authority (NCAA) led by Mrs. Rominiyi F. Dorcas, the inauguration is marking the beginning of a new collaborative effort.

The Deputy Commissioner stressed that the National Insurance Commission’s primary responsibility is to regulate the insurance industry’s business activities and safeguard the interests of policyholders.

This comes in response to misconceptions that the Commission only serves the interests of insurance operators, rather than balancing the needs of both parties. By emphasising the Commission’s core mandate, the Commission aims to reassure the public that their protection is a top priority.

It was emphasised that the primary objective of the joint Technical Committee is to reaffirm the Commission’s long-standing commitment to safeguarding the interests of policyholders. In the event of any accident or incident, the Committee ensures that all affected third parties receive fair compensation and are properly indemnified.

The following are the terms of reference for the joint committee:

1. Verification of certificate of Insurance and other insurance related documents of airline operators, affiliate agencies, and NCAA service providers
2. Provide Technical support to NCAA on insurance matters.
3. Co-ordinate/facilitate resolutions of complaints of airline operators on insurance covers and services during periodic meetings.
4. Provide advice to NCAA on all aviation insurance related matters bordering on adequacy and validity.
5. Coordinate trainings/workshop/awareness programmes for NCAA/NAICOM and its stakeholders on aviation insurance.
6. Coordinate training on insurance and aviation matters.
7. Organise and attend periodic meetings of both organisations.
8. Carry out periodic review of the minimum insurance cover requirements by all persons/group of persons having a duty as operator/provider in the Aviation sector to maintain adequate insurance for their operations during periodic meetings.
9. Organise and attend periodic meetings with airline operators and insurance providers.
10. Carry out any other tasks as the Collaboration allows.

The DGM, Financial Health & Aviation Insurance, Mrs. Dorcas, the Leader of the NCAA Delegation, responded by making a commitment to thoroughly dedicate herself and her team to their responsibilities. She pledged to exhaust all efforts in ensuring the successful attainment of the committee’s objectives.

In conclusion, Jankara announced the inauguration of the joint committee, following the agreement on the terms of reference. He emphasised the need for flexibility and automation of processes, expressing confidence in the committee’s ability to deliver due to the caliber of its members.

Mr. Ajuyah Omeresan Alfred (Asst. Director Special Risk), in his vote of thanks, reaffirmed NAICOM’s unwavering commitment to ensuring the aviation sector operates efficiently and effectively, both now and in the future.

L-R: Ayodeji Akinwande, Brand Manager, Heirs Insurance Group; Ngozi Okoli, Head, Marketing & Corporate Communications, Heirs Insurance Group; Hauwa Yahaya, Senior Partnership Manager, Slum2School Africa, and Oluyemi Alugo, Education and Innovation Manager, Slum2School Africa, at “The Good Project” event, a CSR initiative by Heirs Insurance Group in Makoko, Lagos. 

Heirs Insurance Group, Nigeria’s fastest-growing insurance Group, has rolled out a project to empower underserved communities with the training and benefits inherent in upcycling, as part of its sustainability goals.

Tagged “The Good project”, Heirs Insurance Group sensitised communities on the benefits of converting waste materials to reusable items, thereby reducing the consequences of climate action and uplifting the financial status of people.

In addition, the insurance group provided school supplies and a cash donation to over 500 school children of Makoko community, Lagos.

The Good Plastic Project reaffirms the Group’s commitment to environmental sustainability and community development. The project was executed in partnership with Slum2School Africa and Eco Barter, which both share its vision for sustainability and social impact.

Speaking about the project, Niyi Onifade, Sector Head, Heirs Insurance Group, said: “Through this project, we are demonstrating the potential of sustainability, emphasising its role in improving lives while preserving the environment. We are not only reducing waste and contributing to the upliftment and well-being of communities, we are also creating awareness for the financial benefits that upcycling offers.”

Onifade further reiterated that the monetary donation and school supplies were intended to provide hope and put smiles on the faces of children and their parents, especially at the start of a new year when families need all the support they can get.

The Good Project forms part of Heirs Insurance Group’s flagship sustainability initiatives, as it continues to lead by integrating sustainability into its core operations, demonstrating the power of corporate responsibility to drive meaningful change.

Heirs Insurance Group is the insurance subsidiary of Heirs Holdings, the leading pan-African investment company, with investments across 24 countries and four continents. With a rapidly expanding retail footprint and an omnichannel digital presence, Heirs Insurance Group serves both corporate and individual customers across Nigeria.

L-R: Bola Odukale, Director-General/CEO, Nigerian Insurers Association (NIA); Etofolam Felix Osuji, 2nd vice president, Institute of Chartered Accountants of Nigeria (ICAN); Emmanuel Otitolaiye, chairman, ICAN NIA Chapter; Davidson Alaribe, Diamond President, ICAN; Olufunso Otitolaiye, and Njum Uma-Onyemenam, Accountant-General of Abia State, during the inauguration of ICAN NIA Chapter by the ICAN President at the Insurers House in Lagos.

Dr. Emmanuel Otitolaiye, Chief Financial Officer (CFO) of Linkage Assurance Plc has been invested the Pioneer Chairman of the Institute of Chartered Accountants of Nigeria (ICAN) -Nigerian Insurers Association (NIA) Chapter.

ICAN-NIA Chapter was recently inaugurated by the 60^th President of ICAN, Davidson Alaribe in company of top accounting and insurance professionals in Nigeria at a ceremony held at Nigeria’s Insurers House in Victoria Island, Lagos.

Otitolaiye in his acceptance speech at the event said: “It is with great delight, sense of responsibility and immense gratitude to the Almighty God that I stand before this distinguished audience, today, to accept my election and formal investiture as the Pioneer Chairman of the ICAN-NIA Chapter.”

He said, him and his executive committee are committed to upholding the highest standards of professionalism, promoting excellence in the field of accounting, and advancing the interests of members.

“As we navigate the ever-evolving landscape of business and finance, we must embrace innovation and stay at the forefront of emerging trends and technologies. The challenges we face require us to adapt, evolve, and continuously expand our knowledge and skills.”

Dr. Otitolaiye, pledging further said: “As chairman, I am dedicated to fostering a culture of lifelong learning and professional development, ensuring that our members have access to the resources and support they need to thrive in a rapidly changing world.”

He stated that his administration will focus on Membership Drive, Training and Events, through collaboration and partnerships.

“Our Chapter will actively seek opportunities to collaborate with organisations, regulatory bodies, and academia to strengthen the profession, advocate interest of members, and shape the future of the accounting profession in Nigeria.”

Davidson Alaribe, the Diamond President ICAN in his speech at the investiture said, with the inauguration of ICAN-NIA Chapter, accountants will be able to come together and contribute to the development of the profession and the economy as a whole.

While commending Dr. Emmanuel Otitolaiye, the new chapter for working so hard and building himself in the insurance and accounting profession to this level, he said the younger accountants should borrow a leaf from the new chapter chairman.

He urged the younger people to take their destiny into their hands and define their future. “Take a bold step and redefine your future by building yourself for a better future.”

Dr. Emmanuel Otitolaiye, who was born on 4^th September, 1972 in Egbeda-Egga Ijumu Local Government of Kogi State is a widely exposed finance expert with vast and well-rounded accounting and financial management experience cutting across financial, statutory reporting, performance management and business planning in insurance, manufacturing, and consulting.

Prior to joining Linkage Assurance Plc as CFO in December 2018, he was Head, Finance & Performance Management Group at Cornerstone Insurance Plc from January 2014 to November 2018. A role that has direct responsibilities for the supervision of the finance functions of the Group.

Dr. Otitolaiye worked at Alliance & General Insurance Plc – a member of the Fidelity Bond Group and Node Solutions Ltd as the Chief Finance Officer and Chief Operating Officer in respectively where he was responsible for all strategic and tactical matters as they relate to budget management, cost benefit analysis, forecasting needs, deal analysis, negotiations, and investor’s relations.

He joined FBN Life Assurance limited in 2010 as the pioneer Head of Finance where he successfully coordinated all activities towards securing operational funds from shareholders for the smooth take-off of the company and also championed the set-up of Standard Operating Procedure (SOP) covering all areas of the company’s activities.

Emmanuel started his working career with CFAO Nigeria Plc in 2000 as Credit Control Officer and later worked as the National Credit Control Manager at PZ Cussons Nigeria Plc from 2006 -2008 before joining Guaranty Trust Assurance (now Axa Mansard Insurance Plc) as Head, Management Account a positioned he held till 2010.

A multi-disciplinary professional, he is a Fellow of both Institute of Chartered Accountants of Nigeria (FCA) and Chartered Institute of Taxation of Nigeria (FCIT), Associate member, Chartered Insurance Institute of Nigeria (ACII) and Associate, Chartered Institute of Insurance Brokers (ACIB). .

He holds a Higher National Diploma in Banking and Finance from Lagos State Polytechnic in 1998, Master degree in Business Administration (MBA) from University of Ado –Ekiti, BSc Accounting from University of Lagos, MSc Accounting from Babcock University and PhD Accounting also from Babcock University.

Dr. Otitolaiye a man of many parts is currently the Chairman, Accounting Technical Committee of Nigeria Insurance Association (NIA-ATC) – an umbrella body of all Chief Financial Officers and Finance staff in insurance and reinsurance companies in Nigeria.

President, Egbeda-Egga Development Union, Financial Secretary, Agungi East Resident Association and many others. He has served in various ICAN committees e.g. ATSWA, Induction, Accountant Investigating Panel.

He has attended several top management training courses at home and abroad.

The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, Mr. Olusegun Ayo Omosehin paid a working visit to the Inspector General of Police, Federal republic of Nigeria, Mr. Kayode Adeolu Egbetokun at the Force Headquarters today, Friday, January 10, 2025

The Commissioner for Insurance Mr. Omosehin congratulated the IGP on his notable achievements, particularly the recent licence acquisition for the Police Insurance Company.  He reminded the IGP of his earlier request for assistance in enforcing all compulsory insurance policies, but this time narrowed his focus on Third-Party Motor Insurance.

The CFI pledged to provide the necessary support to ensure seamless enforcement of third-party motor insurance across the country.

To guarantee the success of this initiative, the CFI emphasized the need for a mass awareness campaign and education of the Nigeria Police Officers.

In response, the IGP expressed his alignment with the CFI for insurance, acknowledging the compulsory nature of third-party motor insurance in Nigeria. He emphasized that violating this law is punishable, yet unfortunately, only 30% of vehicles in the country are insured.

The IGP highlighted the numerous benefits of having insurance coverage, stressing the importance of protecting lives and property. He urged citizens to obtain at least a third-party insurance cover for their vehicles before driving on Nigerian roads.

To ensure compliance, the IGP announced that full enforcement of third-party motor insurance will commence on February 1, 2025.

Present at the meeting was the Deputy Commissioner, Technical, Dr. Usman Jankara, the Deputy Commissioner Finance and Administration, Mr. Ekerete Ola Gam-Ikon, Director Legal, Enforcement & Market Development, Dr. Talmis Usman, Director of Inspectorate, Mr. Bankole Ajebola, Senior Police Officers and others.

L-R: kayode Adigun, Executive Director, Finance and Corporate Services; Atinuke Lawal, Founder, Atinuke Cancer Foundation and Author of the book, ‘ATINUKE’-(CANCER MESSED WITH THE WRONG CHIC) with Segun Bankole, Head, Corporate Communications & Investor Relations, Sovereign Trust Insurance Plc.

The presentation of the Appreciation Plaque was carried out at the Corporate Head Office of the Underwriting Firm by the Founder of the Cancer Foundation, Atinuke Lawal, who herself is a cancer survivor.

Sovereign Trust Insurance Plc has been a collaborative partner of the Foundation over a couple of years. The Foundation is a decade old.

Mrs. Adesola Akintayo

Executive Director

Rex Insurance Limited

The Board of Rex Insurance Limited (Rex) is pleased to announce the appointments of key executives in the company.

They are Adesola Akintayo as Executive Director, Technical; Abayomi Kayode as Chief Financial Officer (CFO); Adeyinka Aderombi as Chief Digital Information Officer (CDIO); and Kazeem Sulaimon as Head, Underwriting.

These appointments have all been approved by our regulator, the National Insurance Commission (NAICOM)

Speaking on the new appointments, the Chairman, Board of Directors, Dr. Ike Chioke, said: “These new appointments will play a pivotal role in driving the company’s strategic initiatives and fostering continued growth.

With proven track records of success, they bring a wealth of experience and expertise to Rex Insurance. Their extensive background in their relevant positions make them an invaluable asset to the organization.”

Speaking further, he added that “they all have a strong reputation for innovative thinking, exceptional leadership, and a deep understanding of the industry landscape, and we are confident that their leadership will propel Rex Insurance to new heights and reinforce our position as an industry leader in the insurance landscape in Nigeria.”

Their strategic vision and ability to drive operational excellence will be instrumental in guiding Rex Insurance towards continued success and expansion.

Adesola with her extensive experience and knowledge of the insurance industry, will drive continuous growth and profitability as the Executive Director of the Technical Department of Rex Insurance. Abayomi is charged with a focus on ensuring the financial wellbeing of the organisation, optimizing resources, and driving long-term profitability. Adeyinka as the Head of IT will lead technological advancements, ensuring that IT infrastructure supports business growth, operational efficiency, and innovation in Rex Insurance, and Kazeem as the Head of Underwriting, which is the core of our business will ensure Rex Insurance becomes a major player in the insurance space, with the goal of strengthening risk management practices.

Furthermore, the company stated that these four appointments were done to ensure that Rex Insurance continues to exploit the opportunities that abound in the general insurance space and ensure continued growth for the company, especially as it seeks to focus on technical competence, financial growth, and become a digital insurance company, offering efficient and seamless services to its clientele.

Below are the profiles of the new appointees.

ADESOLA AKINTAYO – Executive Director, Technical 

Adesola Akintayo is the Executive Director, Technical, Rex Insurance Limited. She is a result-driven insurance professional with close to three decades of experience in underwriting, reinsurance, Claims and risk management.

Adesola started her insurance career with Royal Exchange Assurance Nigeria, (as the company was known then) in the Statistics Department, rising to become the Unit Head. She was later appointed the Head, Statistics & Reinsurance in the company.

She was also the Head, Statistics and Risk Management and was promoted Senior Manager/Head, Underwriting and Reinsurance Plc and then elevated to an Assistant General Manager, Technical Operations. She was moved up to the position of Deputy General Manager/Head, Underwriting/Reinsurance, Acting Head, Technical until her elevation and confirmation as the Executive Director, Technical (ED, Technical) at Rex Insurance Limited.

She holds an HND, Statistics from The Polytechnic, Ibadan and a master’s degree in business administration (Marketing) from Ladoke Akintola University. Mrs. Akintayo is an Associate of the Chartered Insurance Institute of Nigeria (ACII). 

ABAYOMI KAYODE – Chief Financial Officer (CFO)

Abayomi Kayode is the Chief Finance Officer (CFO) of Rex Insurance Limited. Prior to joining Rex Insurance, he was the CFO in 2 other insurance companies and was previously the head of Finance at a Life Insurance firm in Nigeria, where he also held other positions such as Head, Performance Management and later, Head, Premium Administration.

His previous experiences have given him the opportunity to set up the Finance and Investment processes, procedure and systems from the scratch and he has gained insights in strategy formulation and implementation as well.

He has over two decades experience in various Finance roles and vastly experienced with proven track record in financial management, financial and regulatory reporting, management accounting, mergers and acquisition, business process automation, compliance and capital management, and budgeting and strategy formulation as well as strategic leadership.

A Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), Abayomi is also an Associate of the Chartered Institute of Taxation of Nigeria (CITN) and holds an MBA in Financial Management from Ladoke Akintola University of Technology Ogbomoso and an HND from Ondo State Polytechnic.

ADEYINKA ADEROMBI – Chief Digital Information Officer (CDIO)

Mr. Adeyinka Aderombi is the Chief Digital Information Officer of Rex Insurance Limited and is an Information Technology leader with over 20 years’ experience in Information Technology and Digital Innovation, Transformation and Business.

Prior to joining Rex Insurance Limited, he was the Head of Digital Transformation at a composite insurance firm and has a varied work experience, with Liberty Holding Nigeria as Head, Business Solutions and IT infrastructure; Konga Online Shopping as Vice President, Product Management; General Electric International Operations Nigeria – Africa IT Infrastructure leader and Airtel Nigeria as IT applications and Billing Architect; among others.

Adeyinka holds a bachelor’s degree in computer engineering from Obafemi Awolowo University and an Executive MBA from Quantic School of Business and Technology. He also has a Certification in Digital Transformation from INSEAD, a master’s degree in Entrepreneurship and Innovation from the Rome Business School and a Post Graduate diploma in Artificial Intelligence and Machine Learning from the University of Austin, Texas

KAZEEM SULAIMON – Head, Underwriting

Kazeem Sulaimon is the Head, Underwriting, Rex Insurance Limited. He’s a Seasoned Insurance Professional with close to 2 decades of experience in Insurance Underwriting across various general insurance firms in Nigeria.

Kazeem’s career path has seen him traverse three (3) other general insurance firms where he cut his teeth in technical operations and underwriting.  A multiple award winner, Kazeem has been recognized as the Most Disciplined Staff – 2007, Best Operations Staff – 2009, Most Customer Oriented Staff – 2020 and his Underwriting Team also won the Best Team of the year in 2022.

He joined Rex Insurance Limited in May 2023 as a Senior Manager (Underwriting) where he has also won Rex Insurance Customer Experience Champion (2024) and the Best Team Player of the Year 2024.

Kazeem Sulaimon holds a bachelor’s degree in business administration and master’s degree in risk management, both from the University of Lagos. He’s an Associate of both the Chartered Insurance Institute of Nigeria (ACII) and the Risk Management Association of Nigeria (RIMAN).

About Rex Insurance Limited (Rex)

Rex Insurance Limited (Rex), is licensed by the National Insurance Commission (NAICOM) to offer the full range of general and special risks insurance products and with decades of experience in the Nigerian market, Rex Insurance has an enviable reputation for technical competence and financial strength.

With a vision of being the “Preferred Nigerian Insurance Company”, our strategic direction within the next 5 years is to focus on growth and profitability with the aim of growing the company’s gross premium written and be amongst the Top-3 general insurance companies in the market.

To achieve these objectives, we will continue to innovate and differentiate our products offerings, invest in research and technology to build capacity, undertake market insights for strategy and decision-making, and reposition our brand as reliable, innovative and more visible across all the market segments.

Rex Insurance seeks to undertake an improvement in our service delivery, optimize our operational capabilities and engage, develop and retain the best human capital to make Royal Exchange General Insurance Company one of the best places to work in Nigeria.

Operating from twelve (12) business locations nation-wide to ensure maximum outreach and complete accessibility to its customer base, the company has an unwavering dedication to its core values of Resilience, Efficiency, eXellence, Integrity & Teamwork (REXIT), the company continues to maintain its lead in underwriting majority of the corporate risks in Nigeria.

One of the major challenges of insurance business in Africa is low penetration despite the huge population of the continent.

As at 2024, the 54 countries that make up the continent had a total population count of 1.5 billion.

As insurers grappled with this hindering setback to sustainable insurance industry growth, the COVID-!9 pandemic of 2020 came with the promise of digitalisation to scale some of the challenges of reaching the vast majority of potential customers outside the brick-and-mortar model at a relatively lower cost.

In this article, Prince Cookey of Business Journal explores the problem of low insurance penetration in Africa and the promise of digitalisation to close the gap.

Why Low Insurance Penetration in Africa

In 2022, South Africa was reputed with insurance market penetration of 11.3%, the highest on the continent. It was quickly followed by Namibia at 7%; Morrocco (2.1%); Kenya (1.2%) and other countries in Africa coming in at less than 1% percent.

In 2021 however, the penetration level in Africa stood at 2.1%, which was regarded as the second lowest in the world after the Middle East with 1.7%.

In contrast, the United States of America (USA) accounted for the highest insurance penetration in 2022 as the value of generated market premium came to almost 12% of the country’s Gross Domestic Product (GDP).

And for Africa, The Africa Report of September 23, 2024 states that even a ‘1% increase in the insurance penetration rate would automatically lead to a 4.8-point increase in GDP growth on the continent.’

In an interview with New African magazine on the reasons for such low insurance penetration in Africa, Eunice Kinungi, the CEO of Kenya’s Griffin Insurance stated that “insurance, unfortunately, does not have the best reputation, and there is a general distrust of insurance companies perpetuated by poor customer service and unpaid claims.”

According to the Journal of Financial Risk Management, some of the reasons for low insurance penetration in Botswana are poverty and lack of awareness.

In the Journal of Developing Country Studies (2020), the lack of funds for intense marketing of insurance products and services to potential clients was also cited as a reason, But other reasons monitored by insurers include poor legal and judicial systems, lack of qualified personnel,  religious beliefs, poverty and lack of awareness as the cited case of Botswana.

Atlas Magazine: Insurance Penetration Rate 2022 in Africa

Digital Economy as Enabler

A key feature of the digitalisation concept in addressing low insurance penetration is rapid mobile connectivity and growing ownership of smartphones in Africa.

A GSMA report of November 6, 2024 stated that ‘by the end of 2023, nearly 44% of the population in Sub-Saharan Africa subscribed to a mobile service, amounting to 527 million subscribers.’

In his publication (African Countries with the Highest Number of Mobile Phones) of July 26, 2024, Kofi Diallo stated: “As of 2024, Nigeria leads Africa with a mobile phone penetration rate of 85%, with 92% of adult males owning a smartphone. South Africa follows with a mobile phone penetration rate of 82%, translating to approximately 54 million mobile phone connections.”  

Digitalisation and Insurance Penetration

A recent report by the Oxford Business Group (OBG) states that the conditions for technology-led insurance adoption have continued to improve.

According to OBG, as of the beginning of 2023, there were an estimated 122.5 million Nigerians using the Internet and nearly 194 million mobile phone connections.

The number of mobile Internet subscriptions stood at 152.2 million as of October 2022, up 8.7% year-on-year compared to the 140 million reported in October 2021.

“Nigeria’s insurance sector has been upended by the global growth in digitalisation, meaning that investing in digital infrastructure has become imperative for companies to remain competitive,” Lekan Ajisafe, CEO of Lagos-based insurance company, Post Assurance Brokers told OBG.

“The digital adoption rate has been robust, permeating the entire value chain, and the regulators have taken the initiative by automising their portal.”

A February 25, 2022 Report by Cenfri on Understanding insurance distribution and automation in Africa (Lucia Schlemmer and Nigel Bowman), states:

“Limited digitalisation of the insurance sector in Africa constrains uptake. Less than 10% of adults across nine sub-Saharan African countries have private insurance. The low uptake is in part due to high delivery costs and low levels of digitalisation. African insurers, banks and brokers typically rely on manual processes for selling insurance, onboarding and engaging with clients and settling claims. Insurers also tend to have costly and outdated legacy systems, which limit their integration and automation capabilities with distribution partners, who then struggle to originate and administer policies efficiently.

Digitalisation of processes presents opportunities for efficiency gains. COVID-19 strengthened the imperative for insurance markets to digitalise, as the lockdowns and restrictions in movement constrained insurers’ operations and new sales. In addition, distributors face increasing pressure to lower operating costs, increase productivity, automate tasks and efficiently meet compliance requirements.”

Mr. Akinjide Orimolade, Managing Director/CEO, Stanbic IBTC Insurance Limited (Nigeria) stated in ‘Digitalisation Potential in Addressing the Challenge of Low Insurance Penetration in Africa’ that

digitalisation can significantly boost insurance penetration in Africa in six key areas:

Enhanced Accessibility: Digital platforms can reach a wider audience, including remote areas, through mobile apps and online portals, allowing customers to purchase and manage policies without visiting physical offices.

Streamlined Processes and Cost Reduction: Automation can simplify processes, reduce paperwork, and cut costs for insurers, leading to lower premium products, faster turnaround time and making insurance more affordable.

Improved Customer Engagement and Transparency: Real-time engagement through digital channels helps insurers understand customer needs better. Data analytics and blockchain enhance transparency and trust, with customers able to track claims in real time.

Personalised Products: Digital tools allow insurers to analyse data and offer tailored insurance products, increasing their relevance and appeal.

Education and Awareness: Digital platforms can educate the public on the benefits of insurance using social media, online campaigns, and educational apps.

Fraud Prevention: Improved data collection and analysis through AI and machine learning detect and prevent fraudulent claims, enhancing the efficiency and reliability of the insurance sector.

The Challenge

The lingering question in the market is how far digitalisation can go to solve the problem of insurance penetration in Africa.

Again, the Centri report stated: “However, digitalisation is not a silver bullet. While improved digitalisation and integration can help insurers and distributors overcome many of the challenges faced in distributing insurance, the needs and realities of the markets in which they operate need to be considered. Consumers lack trust in, and have a poor understanding of insurance and often lack the digital skills required to engage through fully remote channels. A digital approach thus needs to be balanced with in-person engagements.”

Conclusion

The Covid-19 pandemic of 2020 has become an unexpected blessing to the insurance sector in Africa. The pandemic created the need for digitalisation which in turn has rapidly assisted underwriters in Africa to rapidly increase insurance penetration beyond the traditional means of providing insurance products and services.

In essence, digitalisation remains the future of insurance business in Africa given the growing numbers of the youth population and digital means of communication on the continent.