Pricing: a priority for non-life insurers in Africa

What if your company’s growth and sustainable long-term profitability depended on your pricing and underwriting policies?
The African non-life insurance market is a case in point.

Everyone agrees that Africa is virtually absent from the world map of non-life insurance and that the African market is the world’s largest reserve of growth potential. This is a first paradox for this continent, which saw the birth of one of the oldest forms of financial solidarity (and insurance) among the Phoenicians.

All indicators point in the same direction: from insurance penetration rates on the continent (on average half that of the rest of the world) to economic development generating a rapid growth in insurance needs. Given the crucial function of insurance as an enabler of economic development, every new asset or person covered for any additional risk is good news for the continent. This trend is so strong that the COVID crisis will not fundamentally change it and will, at worst, only delay it by a few months or years.