African insurance leaders sign pact to double penetration by 2040

During a summit in Cotonou, Benin, representatives from over 30 African nations and various international organizations gathered to address the low insurance penetration across the continent. Under the leadership of the Federation of Societies of National Law Insurance Companies in Africa (FANAF), stakeholders signed a pact aiming to double insurance penetration by 2040.

Currently, Africa receives less than 1% of global insurance premiums despite accounting for nearly 19% of the world's population. The average insurance penetration rate in Africa is approximately 1% of GDP, compared to a global average of 7%. Experts noted that the existing insurance models are often poorly adapted to the continent's needs, as they primarily target the formal sector while over 80% of African economic activity occurs in the informal sector.

To overcome structural barriers—including ineffective distribution channels, a lack of trust, and penalizing regulatory frameworks—the pact emphasizes the need for inclusive insurance. Additionally, industry leaders suggest that developing the insurance sector can serve as a vital lever for financial sovereignty, transforming collected premiums into long-term domestic savings to finance infrastructure and economic transformation.