KIGALI Rwanda (Xinhua) --
African insurance firms still lag
behind in terms of digital innovation which poses a
serious threat to the growth of the industry, an expert
said Monday in Rwandan capital city Kigali.
hosting the 42nd Annual General Assembly of
the Federation of African National Insurance Companies (FANAF).
theme is “The African Insurance facing Disruptions.” It
has brought together more than 800 eminent
personalities, insurers, re-insurers, experts and other
stakeholders in Africa and beyond to discuss challenges
and opportunities in the insurance sector in Africa.
several trends currently disrupting the insurance
industry across Africa, many of which are
technology-related, said Victor Ndiaye, founder of the
Performances Group, a continental management consulting
firm based in Senegal.
The pace of
technological advancement in the insurance sector is not
on the same level of evolving global technologies,
Ndiaye said at the meeting.
He called on
African insurance companies to focus more on embracing
many of these digital innovation trends in the face of a
challenging and complex digital market environment.
Some of the
key trends that are disrupting insurance sector on the
continent include an increased use of internet by
insurance companies, the use of big data to improve
claims processing, and an increasing demand on cyber
insurance, experts said at the meeting.
insurance industry on the continent is facing challenges
like low levels of ICT usage and innovations, which are
key enablers to insurance companies to remain relevant
and competitive, Rwandan finance minister Claver Gatete
disruptions open up a field of opportunities and
challenges that must be addressed by various actors who
are prepared such as private sector including the
insurance actors,” the minister told the meeting.
concurred that apart from technological advancement, the
disruptions in the insurance sector in Africa also
emerge from different areas like urbanization trends,
changes in the agricultural sector, population increase,
and environmental changes.
nearly 17 percent of the world population, while only
generates 1.5 percent of global insurance contracts as
of a few years ago, said Rwandan President Paul Kagame
when opening the meeting.
three-quarters of Africa’s contribution comes from South
Africa, and the rest of the continent’s combined
accounts for less than one-half of one percent of the
world market, Kagame said.
Senegal, FANAF was created in March 1976 to promote the
interests of insurance sector in Africa. FANAF now has
206 member companies from 29 African countries.