Continent-wide insurance momentum required to close protection gap
By Freeman Ya Ngulu.
At a recent African Insurance Exchange seminar in Sun City, South Africa, NamibRe’s Managing Director Patty Karuaihe-Martin remarked in a panel discussion that insurance penetration for the continnent as a whole, is extremely low, in the order of only 3%.
Under the theme “Collaborate, Cultivate and Create,” the seminar hosted a range of insurance experts, with the focus on the so-called ‘protection gap’ during the panel discussion. The consensus is that this gap is enormous in Africa, and that the vast majority of private individuals and households, basically survive without any substantial insurance other than funeral policies.
Patty made several noteworthy contributions to the discussion urging the insurance industry to find African solutions to African problems, citing the recent instance of widespread damage as a result of the snowstorms and flooding during this past winter.
Citing the dismall insurance penetration across the continent, she said many Africans are exposed to the risk of financial loss, especially in the agricultural sector.
Among other challenges, she reminded the audience about the challenges of MSM enterprises not having business interruption covers and lessons learned from Covid19, that left some governments with no other option but to utilize funds in an attempt to bail out small enterprises. “If we don’t act now, we will run the gravest risk of becoming uninsurable in future,” she said, cautioning the industry not to forego the opportunity to offer African innovative local solutions.
With a Call to Action for the industry, she urged local insurers to collaborate to close the protection gap in Africa.
