Africa Insurance News : Average Insurance Penetration Rate in Africa Dropped to 2% –AIO

The Africa’s normal insurance penetration rate dropped from 2.78% in 2019 to 2% in 2020 . This is even as the worldwide average penetration rate was 7.20% in 2019 and went up to 7.40% in 2020 , according to the President of African Insurance Organization (AIO), Mr. Tope Smart.

He attributed the low insurance penetration on the continent to low pay, low awareness level, inability to embrace digital technology, high level of financial exclusion, lack of infrastructural & distribution channels, insufficient domestic skills and a shortage of data, even as insurers also battle brain drain. He explained that regulators were not keeping pace with innovation, as timing and implementation of regulatory changes must be investigated, he stressed that, lack of consumer trust as existence of weak companies erode trust, pricing and other market related issues, cultural related issues, fragmentation and over competition, were hindrances to the insurance penetration on the continent.

Source-

https://www.sunnewsonline.com/africas-average-insurance-penetration-rate-dropped-to-2-aio/

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