Unlocking the Potential of Africa’s Insurance Sector: A Research-Driven Approach by Frontier Dominion

Introduction

The insurance industry plays a pivotal role in risk management, financial intermediation, and economic resilience. Insurance companies such as Sanlam, Britam, and Jubilee not only provide protection against everyday risks but also serve as significant institutional investors. In Africa, while potential abounds—with gross written premiums exceeding US $68 billion annually as at 2021—the sector remains underdeveloped. Penetration averages just 2–3 percent across the continent, compared to a global average of 7 percent, and is hidden behind low digital adoption, fragmented regulations, and poor data quality. These challenges, if not addressed with precision, hinder the sector’s ability to scale and attract long-term investment.

At Frontier Dominion, we understand that unlocking the value of Africa’s insurance industry requires more than just capital—it demands credible data, local market intelligence, and a structured understanding of risk. As an American market intelligence specializing in improving the investability of African projects, we deliver in-depth, context-driven insights that empower insurance companies, investors, and regulators to make sound, forward-looking decisions.

Pain Points in African Insurance Markets

1. Low Market Penetration and Consumer Trust: Consumer awareness of insurance remains weak. For instance, Ghana’s penetration as of 2018 lingered around 1 percent and remains below 2 percent as of 2025, and surveys reveal deep mistrust in claims outcomes and a lack of understanding of insurance terms. Cultural norms—like reliance on community-managed funeral funds—further complicate uptake.

2. High Cost & Poor Digitalization: Delivery expenses in markets like Ghana, Kenya, Nigeria, and Rwanda often exceed 80 percent of revenue due to manual, paper-heavy processes. A reliance on in-person agent-based sales and outdated legacy systems increases costs and limits product innovation.

3. Data Scarcity and Quality Challenges: Insurers operate with fragmented data and minimal integration. This makes accurate risk pricing, customer segmentation, and claims monitoring nearly impossible. Without structured, reliable data, insurers struggle to launch new products or scale efficiently.

4. Regulatory Fragmentation: Africa’s insurance landscape comprises many divergent regulatory regimes. While South Africa and Mauritius maintain stronger frameworks, most markets are fragmented, inhibiting cross-border operations and complicating compliance.

5. Investment Uncertainty: Insurance companies invest heavily, yet face challenges in identifying high-quality, de-risked opportunities, particularly outside South Africa. Political risk, currency instability, and unpredictable legal environments undermine investor confidence.

Insurance Companies in Focus

• Sanlam Group, the largest non-bank financial services provider in Africa, operates in over 30 countries. It has actively expanded through acquisitions such as Saham Finances, aiming to scale in North and Francophone Africa.

• Britam Holdings, based in Kenya, offers life and general insurance across seven East African countries. It has partnered with Swiss Re and IFC, demonstrating the value of institutional investor relationships.

• Jubilee Insurance, headquartered in Nairobi, serves markets in Kenya, Uganda, Tanzania, Burundi, and Mauritius, with ambitions to expand its footprint.

Despite their scale, even these leading insurers grapple with low digital adoption, complex regulations, data gaps, and distribution inefficiencies.

How Frontier Dominion Solves These Challenges

Frontier Dominion, an American market intelligence specialist dedicated to improving Africa-focused investability, offers insurance companies actionable insights across five core areas:

A. Consumer and Market Segmentation Research: We conduct granular studies—examining demographic, behavioral, and cultural insights. These help insurers identify customer segments with the right product mix (e.g., micro-insurance for informal workers, funeral cover in urban centres). Our research supports tailored and culturally aligned product strategies.

B. Digital Readiness & Cost Optimization Audits: We evaluate legacy infrastructure and process maturity, benchmarking insurance companies on operating efficiency. Our analyses reveal opportunities for digitization—such as eKYC, remote onboarding, and automated claims processing—to reduce cost ratios and enhance scalability.

C. Data Strategy & Ecosystem Integration: We assess data maturity, mapping silos across actuarial, underwriting, and distribution functions. By crafting roadmaps for data consolidation—whether via cloud-based wrappers or modern data warehouses—we ensure insurers can tap analytics and AI for risk modelling and customer intelligence.

D. Regulatory Mapping & Risk Intelligence: Our team provides up-to-date mapping of regulatory requirements across jurisdictions—from licensing and solvency to data protection regimes. This empowers insurers to navigate Nigeria’s NAICOM rules, Kenya’s IRA standards, or Ghana’s NIC protocols with confidence and speed.

E. Investment Feasibility & Risk Assessments: Frontier Dominion evaluates investment opportunities in infrastructure, fintech, or insurtech tied to insurance objectives. We conduct political risk analysis, currency stress testing, and governance reviews aligned with institutional investor due diligence, helping insurers deploy capital safely and efficiently.

Conclusion

Africa’s insurance market is on a growth trajectory—with McKinsey forecasting double-digit compound annual growth from 2020 to 2025. Yet the path to scale demands transformation: building trust, modernizing infrastructure, streamlining regulation, and leveraging data. Frontier Dominion offers insurers the strategic research foundation to meet these demands—transforming uncertainty into opportunity and enabling insurers like Sanlam, Britam, and Jubilee to confidently expand their reach, optimize operations, and attract global capital.