Kearney

Africa’s insurance industry is entering one of its most dynamic periods in decades. As new technologies, evolving regulation, and cross-sector collaboration reshape the landscape, insurers are shifting from strategy to “industrialized execution” - translating ambition into tangible growth and inclusive impact.

This is the central insight from Kearney’s latest report, The State of African Insurance in 2025, which highlights how the convergence of regulatory reform, digital innovation, and rising consumer demand is creating a once-in-a-generation opportunity for transformation.

Although insurance penetration across most African markets remains below 3%, the report notes growing momentum. Risk-based capital frameworks, climate-resilience mechanisms, and digital distribution models are now taking root, laying the groundwork for a stronger, more adaptive industry.

“The next decade of African insurance will be defined by execution, not intention,” says Jo-Ann Pohl, Associate Director at Kearney Johannesburg.

“The leaders will be those who operationalise affordability, embed cover at the point of need, and scale technology to reach those who have been historically excluded and underserved. This is Africa’s moment to redefine insurance as a driver of growth, trust, and resilience.”

The report identifies three key imperatives driving the industry’s next chapter:

• Build multi-service ecosystems that integrate insurance with adjacent services such as healthcare, mobility, and financial management - turning protection into participation.
• Embed insurance seamlessly into everyday experiences through digital, retail, and telco partnerships that meet customers where they already are.\Simplify and bundle products to deliver affordable, relevant solutions that close protection gaps and accelerate inclusion across markets.
• Simplify and bundle products to deliver affordable, relevant solutions that close protection gaps and accelerate inclusion across markets.

These shifts are underpinned by a growing ecosystem of insurtechs, data-driven analytics, and purpose-led leadership determined to make protection accessible to every household and enterprise.

“Africa’s insurers are no longer just responding to change —they are shaping it,” adds Pohl. “By turning bold strategies into disciplined execution, the industry can support societal progress that is commercially sustainable.”

The report is available at https://www.kearney.com/industry/financial-services/article/the-state-of-african-insurance-in-2025