2025 Outlook: The state of the African insurance market

Moroccow - The Worldwide Broker Network (WBN), a global network of over 150 top-tier independent insurance broking and employee benefits businesses, across 100+ countries, recently held its bi-annual conference in Marrakech, Morocco, where over 350 leading insurance professionals from around 80 countries met to discuss the current state of the global insurance market.

A featured panel, including representatives from Olea Group, Ascoma, EPEGA Group, and Verlingue - all firms either based in Africa or with business and operations in the region - focused on the continent’s expanding and evolving insurance landscape. Key topics included capacity constraints, the influence of foreign investment, anti-money laundering regulations, and advancements in environmental, social, and governance (ESG) initiatives.

Moderated by Jen Blair, WBN's Global Director of Property & Casualty and Product Development, the panel highlighted major challenges, emerging trends, and new opportunities shaping the African insurance market.

A continent of optimism and opportunity

The discussion highlighted a shared optimism that, despite regulatory challenges, Africa has huge potential for economic growth and is poised to become a key player in the global insurance market.

Rupert Weterings, Group Commercial Director at Olea Group, which operates in 38 African countries, described Africa as "the continent of the future." He highlighted two primary drivers of growth: the region's abundant oil, gas, and renewable resources, and its rapidly growing population of 1.4 billion. Michel Brabant, Account Director at Ascoma, which has served 23 African countries for over 70 years, emphasized this point, reminding delegates that by 2050, Africa is projected to house one-third of the world’s population.

Importance of a localized approach and the growth of regional markets

Axel Zoma, Director International Employee Benefits at Verlingue, a France-based firm with a substantial client base in Africa, emphasized the importance of a localized approach and the growth of regional markets. “There is no such thing as an African market; the industry here is increasingly centered on individual local markets.”

Weterings from Olea agreed, but also pointed out the logistical challenges presented by the continent’s vast size. “Localization is a major focus across Africa, with 50% local retention in some places. This makes sourcing local capacity difficult when appetite or expertise is limited. With over 50 countries, each with its own regulations, frequent changes are inevitable.”

Complexities facing African insurance leaders

Abdelhamid HABBOUBI, CEO of Morocco-based Epega Group, expressed frustration with local insurers' lack of effort to enhance their capacities. He noted that this stagnation could impede the growth of the insurance sector and the broader economy. He urged the industry to take proactive measures to satisfy customers' needs.

He went on to emphasize the significant regulatory responsibilities firms face, particularly in Morocco where Epega is headquartered, given the country’s stringent focus on anti-money laundering and counter-terrorism financing.

Brabant of Ascoma noted the ongoing challenge of securing highly rated reinsurance partners, a common difficulty for insurers in Africa as they seek reliable, high-quality reinsurers to support growth amid increasing risks and regulation. For example, with the exemptions for the oil sector, there is only one reinsurer with A rating in the CIMA area.

Habboubi (Epega) also addressed the Employee Benefits (EB) sector, which he believes remains underdeveloped and requires significant progress to close existing gaps. “There is a network of insurers across more than 40 countries, alongside support from global players like AXA and Allianz, for establishing pan-African programs.”

Weterings (Olea) raised the recent Sanlam/Allianz merger as a challenging development, noting that “we used to have two markets and some competition which served the continent better.” He highlighted that Africa accounts for just 2% of global insurance spend, with 90% of this concentrated in South Africa, which boasts the third-highest insurance market penetration globally.

Brabant (Ascoma) explained that the Sanlam/Allianz merger, now present in 27 African countries, also brings advantages, noting, “Having one insurer across multiple countries simplifies cross-border operations.” He shared an experience in the Democratic Republic of Congo where they aimed to offer affordable death insurance for funeral expenses at $10 per year, providing a $5,000 benefit. However, he highlighted cultural challenges around insurance adoption, which may require tailored approaches to build trust and acceptance in local markets.

Zoma (Verlingue) addressed the Employee Benefits (EB) sector, noting that capacity limitations are compounded by the market’s focus on price rather than innovation. He pointed out another challenge: in many African countries, an estimated 50-80% of local economies operate in the informal, unregulated sector, making it difficult to capture these segments through traditional insurance channels. Zoma suggested that insurers and brokers could tap into this sector by leveraging mobile technology, an effective distribution channel that could reach informal economies and increase insurance penetration across the continent.

Territories, Technology, and Talent

Weterings outlined Olea’s “three T” strategy—Territories, Technology, and Talent—as their approach to building a competitive advantage. “I believe you need to be as close to your clients as possible, geographically, hence our concentrated footprint in the region,” he explained. “As a young company founded in 2017, technology forms our backbone, ensuring we stay connected and efficient. Finally, talent is essential; we invest heavily in attracting skilled professionals back to Africa and developing talent within the continent.”

Zoma (Verlingue) emphasized the value of collaboration with WBN partners, a sentiment that Habboubi (Epega) echoed. “WBN serves as a kind of laboratory for our business, where we can share experiences with colleagues and trusted partners. This collaboration has allowed us to build a customized Employee Benefits platform tailored to Morocco’s system, culture, and regulations, which has greatly enhanced customer retention.”

Investing in Africa

Zoma (Verlingue) forecasted the emergence of regional leaders in African brokerage, along with increasing investment from China, India, and the Middle East, developments he believes “will reshape the African insurance market.”

Discussing regional investment, Brabant (Ascoma) noted that China has pledged $50 billion in investment for Africa over the next three years, while India, the continent's second-largest investor, has already invested $13 billion in recent years.

Abdelhamid from Epega, currently number four in the Moroccan market, also made referenced to the ‘big three’ firms and his belief that M&A is driving an exit from the African markets, which frees up more growth opportunities for WBN and its members. “There are 450 brokers in the Moroccan market, but only 30 who are genuinely in the market and looking to acquire to grow.”

Panel moderator Jen Blair of WBN concluded, “The optimism and ambition evident in each of these leaders signal a promising future for the African insurance industry. While challenges remain, we are committed to working closely with our members in delivering quality services to multinational clients around the world.”

WBN has an increasing footprint in Africa, with seven partners spanning 41 countries including Morocco, Nigeria, South Africa and Egypt, to name a few.