Part 2: Africa's insurance regulatory and political landscape
Political stability impact – 2025 elections and broker intermediation
In this 2nd-part of a 3 part series, OLEA Group’s, Ayouba SEYDOU, Director, of Placement and Reinsurance, talks to Kathy Malherbe, Freelance writer, about how the 2025 electoral landscape across Africa presents both opportunities and challenges for insurance markets.
Key markets, including several major economies, held elections in 2025 and continue to do so, potentially affecting regulatory policy continuity and market stability. Electoral periods typically witness increased infrastructure spending, political risk awareness and demand for specialised insurance products.
Insurance market volatility during campaign periods reflects broader economic uncertainty, with premium adjustments, capacity restrictions and enhanced due diligence requirements becoming commonplace. However, these periods also create opportunities for insurers with electoral risk expertise and brokers capable of navigating political transition complexities.
Brokers as market stabilisers during political transitions - Insurance brokers play crucial roles as market stabilisers during political transitions, serving as regulatory interpreters and compliance partners for international insurers unfamiliar with local political dynamics. Their risk assessment services during electoral uncertainty provide essential market intelligence, enabling informed decision-making regarding capacity deployment and risk retention strategies.
Cross-border placement expertise becomes particularly valuable during political transitions, as brokers navigate regulatory changes, maintain client relationships and ensure business continuity. Professional networks facilitating knowledge sharing among brokers across African markets create information flows essential for managing transition risks effectively.
Rise of state reinsurers and market dynamics - The emergence of government-backed reinsurance companies represents a significant market development across Africa. Ghana Re implemented a 20% local retention mandate, requiring direct insurers to place minimum percentages of their reinsurance requirements domestically. Kenya Re focuses particularly on agricultural insurance, supporting government food security objectives while building local reinsurance capacity.
More recently in the Francophone region we have seen the creation and operation for Faso Re. Whereas, Mali Re, Cameroun Re, and Benin Re are being discussed. Should we expect that the CIMA Region will soon see a state reinsurer in each country? Will there be a common legislation behind these? Many questions need to be answered.
Nigeria's state reinsurance initiatives reflect broader continental trends toward premium retention and capacity building through government-supported entities. These developments create complex competitive dynamics between state and private reinsurers, with political motivations often competing with commercial viability considerations.
“During political transitions, brokers become more than intermediaries, they act as market stabilisers, guiding insurers through regulatory complexity and shifting risk landscapes.”
