The future of insurance in Africa: a tech-enabled ecosystem driving economic growth

Deon de Klerk, Head of Africa Regions, Insurance and Asset Management at Standard Bank.

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For many, insurance has long been perceived as a “grudge purchase”—a financial obligation reluctantly checked off the list or not taken up at all.

However, as African economies emerge and undergo digital transformation, the role of insurance is rapidly shifting. It is evolving to be recognised as a critical enabler of economic growth, financial resilience, and inclusion across the continent.

With increasing adoption of digital and mobile platforms, the rapid emergence of artificial intelligence (AI), and a digitally savvy, youthful population, insurance is becoming more accessible, affordable, and adaptable to the needs of underserved populations and small businesses.

The future of insurance in Africa lies in creating tech-enabled ecosystems that deliver financial services solutions on a personalised basis, as and when required. Over time, this should not only close the protection gap but also serve as a key driver of economic expansion across the continent.

Insurance has always played a key role in managing risk, but in Africa, its role is becoming even more significant. With high poverty rates, growing income inequality, and limited access to financial services, insurance is emerging as an essential tool for driving economic growth and financial inclusion.

To achieve meaningful development, insurance companies must adapt to meet the diverse needs of local populations. Traditional methods of selling insurance products through agents are quickly becoming saturated.

New ways of accessing insurance—such as bancassurance—have already emerged. The rise of digital platforms is enabling insurers to deliver services more efficiently, while engaging with communities in ways that resonate with their everyday lives.

The future of insurance in Africa is not just about offering policies—it’s about providing solutions that help individuals and businesses thrive. Digital insurance is no longer optional; it is central to the future of financial services on the continent. It is becoming core to risk mitigation and a critical support mechanism for starting and growing both new and existing businesses.

One of the greatest barriers to insurance adoption in Africa is financial literacy. For many, insurance remains an abstract concept—difficult to understand and navigate. To address this, digital platforms designed to promote financial literacy are emerging as powerful tools for millions of Africans, helping them understand the value of insurance and its role in financial planning.

At Standard Bank, we’ve developed initiatives like the Financial Fitness Academy, which uses digital tools alongside hosted seminars to encourage individuals to reflect on their financial circumstances, dreams, and aspirations—and to put plans in place to achieve them.

Everyone has aspirations; they are not reserved for the wealthy—from saving for education to managing healthcare costs, investing, retirement savings, and protecting what matters most. These platforms don’t focus solely on selling insurance products but rather engage people in conversations about their broader financial needs.

This approach has proven successful, helping individuals understand the importance of financial planning while fostering long-term relationships with financial services providers, including insurers, who can meet their evolving needs.

Another key insight lies in the role of Africa’s informal economy. Many workers across the continent operate outside the formal financial system, relying on community-based savings groups called chamas in Kenya. These informal groups often function as de facto insurance systems, pooling resources to cover expenses ranging from funerals to business capital.

We’ve worked to digitise these informal structures, allowing us to engage more effectively with these communities. By creating platforms that streamline savings, track contributions, and facilitate payouts, we can integrate these informal savings groups into the broader financial ecosystem.

These platforms also provide transparency and security—features that were previously lacking in informal savings systems. Digitising these processes makes financial management more accessible and scalable, helping insurers reach larger, previously underserved populations.

In Africa, trust is a crucial factor in the adoption of insurance. Many consumers remain wary of financial institutions due to a lack of transparency, delayed claims, and general distrust. Overcoming this barrier is essential—and technology can play a pivotal role in rebuilding trust.

Through end-to-end digital engagement and fulfilment, embracing AI, and linking to existing digital infrastructure such as mobile wallets, insurers can offer faster claims processing, greater transparency, and personalised services through mechanisms people already trust.

The success of mobile payment systems like M-Pesa in Kenya shows that people are increasingly comfortable using mobile technology for financial transactions—even in remote areas.

Through these innovations, insurers can streamline their services and make offerings more accessible, building trust with consumers who may have previously been excluded from the formal financial system.

Africa’s youthful demographic is another key factor shaping the future of insurance. With high mobile penetration and a growing appetite for digital services, young people are increasingly open to tech-enabled solutions. However, the challenge is not just to provide insurance—it’s to engage this generation in a way that aligns with their values and needs.

Insurance providers must move beyond traditional, rigid policies and offer flexible, user-centric solutions that appeal to the younger generation. These solutions should be delivered via digital-first channels—such as mobile apps, social media, and mobile wallets—that are already integral to their daily lives.

We understand that young consumers don’t want to be sold insurance begrudgingly—they want to see the value of what they are purchasing. We must meet them where they are, with services that resonate with their goals and aspirations. By engaging with this demographic early, we can build long-term relationships and help them make informed financial decisions.

As the digital landscape continues to evolve, insurers must scale their operations to meet growing demand. This requires more than just adopting new technologies—it demands a fundamental shift in how insurers interact with their customers. Digital platforms must be designed with scalability in mind, enabling insurers to respond quickly to emerging needs while maintaining operational efficiency.

We are already seeing the potential of our Digital Insurance platform, which includes MobiLife—a Standard Bank Group-owned InsureTech—where we are successfully integrating truly digital insurance solutions with mobile-first features into our broader operations.

The platform has already reached over 2.3 million policies across nine countries. By leveraging AI and data-driven insights, we can offer more tailored services and expand rapidly, without the need for costly or complex system overhauls.

The future of insurance in Africa is undeniably tech-enabled. As mobile penetration increases, financial literacy improves, and digital platforms evolve, insurance will play a central role in the continent’s economic growth. The key to success lies in adopting a client-centric approach that prioritises transparency, flexibility, and convenience.

By embracing digital transformation, building trust through innovation, and engaging Africa’s youthful demographic, insurers can unlock new opportunities for financial inclusion and resilience.

The future of insurance in Africa is not just about offering products—it’s about creating a supportive ecosystem that empowers individuals and businesses to thrive, ultimately contributing to Africa’s broader economic growth.

Disclaimer:

This article does not constitute tax, legal, financial, regulatory, accounting, technical or other advice. The material has been created for information purpose only and does not contain any personal recommendations.

While every care has been taken in preparing this material, no member of Liberty gives any representation, warranty or undertaking and accepts no responsibility or liability as to the accuracy, or completeness, of the information presented. Please consult your financial adviser should you require advice of a financial nature and/or intermediary services.

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