Post Recession: African Insurance Operators Hopeful On  Sector’s Growth

AIO Secretary General, Prisca Soares

By CLEMENT NWOJI, Abuja

Insurance operators in African region have expressed optimism on future growth potential of the sector, notwithstanding the just exited economic recession which persisted between 2015 – 2016.

The Secretary General of Africa Insurance Organisation (AIO), Prisca Soares, expressed this view  at the 45th conference and General Assembly of the organisation taking place in Accra, Ghana.

Specifically, she stated this at the third edition of the African Insurance Barometer launched at the conference.

Citing a survey conducted by her office on the state of the regional markets after the recession, she explained that the insurance executives polled for the survey, expect that the gradual recovery of the continent’s economy from its deep recession in 2015 and 2016 will positively impact on insurers’ rates and earnings and will ease the pressure from excess capacity and fierce competition.

Soares  said: “This year’s Africa Insurance Barometer demonstrates that confidence is returning to Africa’s insurance markets.

“According to the AIO members polled for this survey, policy makers and regulators pay greater attention to our sector while consumers have started to realise the benefits insurance offers in protecting their assets.

“Our industry currently accounts for insurance premiums of US$ 60.7 billion, which in US$ terms represents a decline over the previous year. However, in local currency, premium volume has not declined since 2011.

“In fact, with the advent of new technologies and the ambition of our industry to create and deliver tailored products to clients continues to grow, our relevance as a key sector for the prosperity and progress of Africa’s economies has greatly improved.”

The AIO Secretary General observed that abundant natural resources, the young and growing societies, an expanding middle class and the advent of new technologies have driven  insurance demands in the continent adding that the recent economic recovery, though still fragile in some countries , has added further momentum to the continent’s insurance outlook.