Improving insurance penetration across Africa through enhanced insurance inclusion -
Summary of the 10th Africa Regional Conference on Inclusive Insurance

By Dirk Reinhard, Vice Chair, Munich Re Foundation and Edwin Sikaitwa, Inclusive Insurance Expert, FSD Zambia.

The 10th Africa Regional Conference on Inclusive Insurance / 4th IFE Annual Microinsurance Conference were successfully hosted by the Insurance Federation of Egypt (IFE), in collaboration with the Munich Re Foundation, FinProbity Solutions and the Microinsurance Network. The event brought together professionals from around the world to share experiences and discuss key issues related to inclusive insurance.

The 10th AfCII aimed to share insights on how to make inclusive insurance profitable and viable. In the run-up to the conference, Alaa Al-Zoheiry, Chairman of the IFE, said: 'Africa stands at a critical juncture. With a rapidly growing population, diverse economies, and increasing financial challenges, there is an urgent need for innovative solutions that expand access to insurance across the continent. This conference therefore represents a great opportunity for all stakeholders to come together and explore ways to foster greater financial inclusion, creating more accessible, affordable and effective insurance models for all and bridging the gap in insurance access to create a more inclusive future for all Africans”.

Topics covered at the conference included digital insurance, top-line and bottom-line strategies for inclusive insurance, agricultural and climate risk insurance, customer-centricity in inclusive insurance, regulation for innovation, and the future of inclusive insurance.

Egypt's microinsurance market sees notable growth
At a workshop for regulators, Dr Moustafa Khalil, Deputy Assistant to the FRA Chairman, shared insights on Egypt's inclusive insurance journey. According to data from the Insurance Federation of Egypt and the Financial Regulatory Authority (FRA), the number of individuals covered by microinsurance in Egypt has increased significantly. Nine life insurance companies and five property and casualty companies currently offer a variety of microinsurance products, including credit life insurance, personal accident insurance, insurance for death and disability, health insurance, hospital cash insurance, credit fire insurance, agricultural and livestock insurance, electronic equipment insurance and liability insurance.

The number of individuals covered by microinsurance products in Egypt has increased substantially, rising from 9.5 million in 2023 to 10.4 million in 2024. This represents growth of 10.3% in just two years, indicating growing demand for these types of insurance product. The expansion of coverage is a positive development for the Egyptian market as microinsurance products play a critical role in providing financial protection to low-income individuals and households..

Topline strategies

Lorenzo Chan, the CEO of Pioneer Insurance in the Philippines, recalled that, nearly 20 years ago, his company were looking for growth beyond the highly competitive regular insurance market. “We tried to grow by cutting rates and increasing commission. But if you want to grow, why not go downmarket to those who don't have insurance” Chan said. Twenty years later, with over 25 million microinsurance clients and a profitable business, Pioneer had even transferred the microinsurance approach to its regular business. They pay claims quickly, have a trained internal team of adjustors, track turnaround times and hence improve client value – a key success factor for any insurance business.

Learnings from the conference: the six Ps

The 10th AfCII shed light on the complex issues surrounding the adoption of insurance on the continent. The key takeaways can be summarised into six essential principles: Protection, People, Profitability, Patience, Partnerships and Platforms.

Protection: A fundamental need

It became clear that low-income individuals and households are particularly vulnerable to unforeseen events such as death, illness, floods and droughts. Insurance, as a risk management tool, offers financial protection against such losses. However, experts cautioned that insurance alone is not enough; it must be combined with other interventions aimed at improving resilience and productivity to have a deeper impact on the real economy.

People: The customer's perspective

The value of insurance should not be measured solely from the insurer's perspective by focusing on technical key performance indicators (KPIs). Instead, the real value of insurance lies in its ability to meet customers' needs. Customer-centricity is therefore crucial in the design, development and distribution of insurance products to deliver genuine value. As one expert noted, product features should be intentionally designed to address the specific needs of those they serve.

Profitability: A viable business case

The question of whether there is a viable business case for inclusive insurance was addressed by looking at several success stories from Africa and Asia. With the right business model, inclusive insurance can be both sustainable and profitable. This presents investors with an opportunity to generate profits while contributing to a deeper social purpose. As the industry continues to evolve, it is likely that more companies will explore inclusive insurance as a viable business opportunity.

Patience: A necessary virtue

The development and implementation of microinsurance products is a time-consuming process, typically requiring 3–5 years to reach meaningful scale. This necessitates patience and a willingness to learn, relearn and unlearn among stakeholders in the microinsurance sector. Experts emphasised that rushing into product development or implementation can lead to costly mistakes and undermine the long-term viability of the venture.

Partnerships: A crucial component

The role of partnerships in the successful rollout of microinsurance products cannot be overstated. Insurers should prioritise finding partners who share their vision and can efficiently facilitate product distribution, premium collection and claims settlement. For long-term sustainability, these partnerships must be mutually beneficial to all parties involved. As one panellist observed, an ideal partner is trusted by the public and can leverage their existing network to facilitate the growth of the insurance business.

Platforms: Leveraging technology

Inclusive insurance products are often characterised by low premiums and high volumes. Digital platforms can significantly reduce distribution costs by lowering the cost of customer acquisition. However, experts cautioned that combining high-touch and high-tech approaches is vital in informal markets, where most low-income clients are found. In these markets, trust is established through human-to-human interaction and reinforced by digitalisation, ultimately leading to more effective and sustainable insurance solutions.

As the insurance industry grapples with increasing penetration in Africa, these six principles offer a roadmap to success. By prioritising protection, people, profitability, patience, partnerships and platforms, insurers can establish a meaningful presence in the continent's vast and underserved markets.

What’s next?

The microinsurance market in Africa is expected to continue growing, driven by increasing demand for affordable insurance products. With its large and growing population, Egypt presents a significant opportunity for insurance companies to expand their reach and provide critical financial protection to low-income individuals and households, setting an example for other countries in Africa. As the market continues to evolve, we are likely to see more innovative products and distribution channels emerge, which will further increase access to microinsurance for those who need it most.

About the event

The 10^th Africa Regional Conference on Inclusive Insurance (AfCII) which served as the 4th Microinsurance Conference of Egypt was hosted by the Insurance Federation of Egypt supported by the Munich Re Foundation, FinProbity Solutions and the Microinsurance Network. Around 350  participants attended the event representing over 30 countries.