African Insurers eye bigger role in unlocking growth as economy, population surge

As Africa’s economy expands and its population races toward an estimated 2.5 billion people by 2050, insurance leaders are positioning the industry as a critical enabler of the continent’s next phase of growth, calling for deeper financial integration, stronger regulation, greater innovation and expanded insurance inclusion.

The call came at the 48th General Assembly and Golden Jubilee celebration of the African Reinsurance Corporation (Africa Re) in Abuja, where policymakers, regulators and industry leaders reflected on the institution’s 50-year journey and outlined a vision for a more resilient and integrated African insurance market.

With Africa’s combined GDP estimated at more than $3 trillion and the continent projected to account for a quarter of the world’s population by mid-century, speakers argued that the insurance industry must play a far greater role in mobilising capital, managing emerging risks and supporting sustainable economic development.

Representing President Bola Ahmed Tinubu, Taiwo Oyedele, Nigeria’s minister of Finance and Coordinating minister of the economy , said the continent’s future prosperity would depend on stronger insurance markets and closer collaboration among African nations.

According to him, Africa Re’s 50-year success story demonstrates what can be achieved when African countries work together to solve African challenges through African institutions.

“Over the past few days, we have celebrated not only 50 years of institutional excellence but also 50 years of African cooperation, resilience and vision,” Oyedele said.

He noted that discussions during the anniversary events focused on financial integration, insurance regulation, disaster resilience, digital transformation and capital mobilisation, all of which are critical to Africa’s development agenda.

“The resolutions before this assembly today represent more than administrative decisions. They represent a collective commitment to building a stronger, more resilient and more integrated African insurance market,” he said.

Oyedele added that expanding insurance penetration would not only create profitable business opportunities but would also help reshape perceptions about Africa and attract greater investment to the continent.

“Our markets may differ, but our aspirations are shared. By embracing innovation, investing in technology, strengthening governance and expanding insurance inclusion, we can unlock enormous value for our economies and our people,” he stated.

Olusegun Omosehin, commissioner for Insurance/ CEO of the National Insurance Commission (NAICOM), described Africa Re as one of Africa’s most significant economic institutions, created to strengthen the continent’s financial sovereignty and retain insurance capacity within Africa.

Tracing the corporation’s origins to 1976, Omosehin said Africa Re was founded on the conviction that Africa could no longer afford to see substantial insurance premiums flow out of the continent.

“That act of collective statesmanship was not merely the creation of a reinsurance company. It was a clear declaration of Africa’s economic sovereignty,” he said.

According to him, Africa Re has evolved from a modest start-up into a billion-dollar equity powerhouse and one of the world’s leading reinsurers.

“This is not merely a commercial achievement; it is a continental triumph,” Omosehin said.

However, he cautioned that the corporation’s treaty-backed privileges and unique status come with responsibilities.

“When member states extend preferential concessions and when regulators accord special treatment, they do so with the expectation that Africa Re will use those privileges not merely to maximise returns for shareholders, but to deepen insurance penetration, build local capacity, transfer technical knowledge and remain at the forefront of developing Africa’s insurance industry,” he said.

Omosehin urged Africa Re and other market players to support regulatory harmonisation across the continent, strengthen partnerships and help close Africa’s vast protection gap.

He also stressed the need to prepare a new generation of African underwriters, actuaries and risk professionals capable of navigating challenges such as climate volatility, technological disruption, pandemic risks and macroeconomic instability.

“The true measure of Africa Re’s success lies in the depth of its contribution to Africa’s economic transformation,” he said.

Also speaking, Kunle Ahmed, chairman of the Nigerian Insurance Association (NIA) described Africa Re as a pillar of stability, underwriting capacity and regional integration whose role has become increasingly important amid a rapidly changing risk environment.

“For nearly five decades, this institution has stood as a shining testament to what African nations can achieve when we unite under a shared vision of economic resilience, retaining African wealth on African soil and fostering deeper intra-African cooperation,” Ahmed said.

He noted that emerging threats, including cyber risks, climate change and agricultural vulnerabilities, require stronger collaboration between insurers and reinsurers across the continent.

“The contemporary risk landscape demands that insurers and reinsurers forge deeper and more innovative alliances,” he said.

Ahmed further called on industry stakeholders to embrace technological innovation and leverage collective capital strength to build greater economic resilience across Africa.

He commended Africa Re’s management and board for maintaining strong financial performance while supporting local markets and advancing global best practices.

Moustapha Coulibaly, chairman, Africa Re board of directors highlighting the Institution’s success over the past 50 years, said from humble beginning, the intuition has to build a shareholders’ fund of over $1 billion. From humble beginnings in highly competitive international markets, we have built one of Africa’s most successful financial institutions through the unwavering commitment of our shareholders, member states, board and management.”

Coulibaly said, “Today, Africa Re is on track to generate approximately $1.3 billion in gross written premiums, while maintaining one of the strongest financial ratings among African financial institutions. Our upgrade to an A rating by S&P underscores the strength, resilience and credibility of the institution.”

“Having spent five decades building a strong and respected institution, our ambition now is to take Africa Re to the next level. Our strategic vision is to grow significantly in scale, strengthen our global presence and position Africa Re as a world-class reinsurance company that commands respect across international markets, the chairman said.