Insurers target global competitiveness on back of Africa’s rising growth potentials

Africa’s rising economic growth being supported by resources boom, industrialisation, infrastructure development and rapid urbanisation presents growth opportunity for the insurance industry to increase its relevance and become competitive globally, analysts have said.

The analysts, who spoke at the ongoing African Insurance Organisation (AIO) conference and general assembly taking place in Tunisia, Tunis, believe also that rising employment levels, demography, social change, technology, environmental change, regulatory change and hopefully political stability would help insurance industry build capacity that will enable it support the continent. Jean-Baptiste Ntukamazina, president of AIO, said as insurers, operators must take advantage of the opportunities and benefits from the perspective growth in various sectors.

The predicted positive changes of African economies will impact on healthcare services, housing and urban infrastructure, protection of assets and increased savings, among others, says Ntukamazina.

“These are exactly the opportunities we have to tap in by proposing new products, increasing insurance penetration, improving distribution techniques and cost-cutting, among others.”

“And because our profession is risk taking, we can boost, push and support other businesses by mitigating their risks and hence ameliorating the lives of our populations.”

Ntukamazina noted that insurers as important actors of Africa’s economy will need to rise up to threat on economic activity, stating that this year’s theme of the conference, ‘African insurance facing mass events’, is apt and of great importance.

“But, for our different economies to prosper, we need favourable political environment, security and good governance. That is why our political leaders should understand that the prosperity of their different nations is among their first responsibility. The promising Africa cannot arise without peace, security and good governance”, he said.

Salim Chakcn, minister of finance, Tunisia, said government is looking up to the insurance sector in the continent to assist it mitigate risks and mobilise long term funds for infrastructure development.

Chakcn noted that government would continue to initiate policies and programmes that support small and medium scale business, as they are potential consumers of insurance.