Emerging markets: Africa
Many insurers operate not just in long-established markets with huge turnovers, but also in regions that are home to much smaller, emerging markets.
Some of these countries are playing catch-up in terms of capital and key strategies including digitisation, perhaps a decade or two behind the rest of the world. But this is resulting in rapid changes and growth opportunities that all insurance firms need to understand. In this section, we turn the spotlight on Africa, which includes some of the fastest-growing insurance markets in the world. Read on to discover key themes in a continent that presents massive challenges and opportunities.
Emerging markets: Africa
Trend 5
Market forces in the African insurance sector are causing rifts between regulators and firms that want business to remain local, and modernisers intent on opening up the industry to seize on undoubted opportunities for growth.
To take this chance, companies require capital. This is giving rise to large foreign firms entering or further establishing themselves on the continent – the likes of Prudential, Axa and Allianz – and also a wave of mergers as businesses battle to raise funds.
In 2022, for example, Sanlam (the largest non-banking financial services company in Africa) and Allianz agreed to combine their current and future operations to create the ‘largest pan-African non-banking financial services entity on the continent’. These deals serve to extend the reach of African insurers by leveraging the scale, resources and technology of global players.
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