• African insurance market seen reaching $166.1 billion by 2034
• Growth driven by digitalisation, reforms, and financial inclusion efforts
• AI, mobile platforms expand access and improve claims processing

The African insurance market is projected to grow from $98.5 billion in 2025 to $166.1 billion by 2034, representing an average annual growth rate of 5.79%, according to a report published Thursday, March 19, by IMARC Group.

The report, titled “Africa Insurance Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026–2034,” identifies regulatory reforms, financial inclusion efforts and rising digitalisation as the main drivers of growth across the continent.

Governments are introducing measures to strengthen consumer protection, harmonise cross-border regulations and expand microinsurance offerings targeting informal workers and low-income households. At the same time, insurers are extending services to rural areas that often lack access to traditional coverage, including crop and livestock insurance enabled by technological advances.

Demographic growth is also supporting demand for insurance products designed to protect households and businesses against financial risks. Rising literacy and awareness campaigns are further increasing uptake by improving understanding of insurance benefits.

Climate change is reshaping the sector as extreme weather events — including floods, droughts and cyclones — become more frequent and severe. In response, insurers are developing new risk assessment models and parametric products, which allow for rapid payouts based on predefined thresholds rather than lengthy loss assessments.

The report notes that rising demand is pushing insurers to adopt innovative strategies that expand financial inclusion and strengthen economic resilience across markets. Insurtech innovation, in particular, is expected to reshape the sector.

AI to shape the future of the sector

Mobile platforms and embedded insurance solutions are expanding access, particularly in regions with limited infrastructure. Insurers are partnering with fintech firms and leveraging mobile financial services to reach underserved populations in both urban and rural areas. Integrated mobile solutions now reach more than 18 million policyholders through partnerships with telecom operators that simplify enrolment via mobile payment systems.

These technologies enable faster claims processing, more personalised products and lower distribution costs, while helping build trust among consumers historically sceptical of insurance. Younger, digitally literate users are also driving a shift towards app-based, data-driven distribution models aligned with everyday mobile usage.

Microinsurance platforms, for example, now cover more than 3.5 million people in Ghana, Kenya, Nigeria and Uganda, with claims processed in an average of four hours through automated systems.

Artificial intelligence is expected to play a growing role in the sector by improving claims processing, fraud detection and product personalisation. In South Africa, large insurers report that AI tools have increased fraud detection rates by 35% while halving investigation times amid rising claims volumes.

AI is also streamlining operations for companies such as Nigerian firm Curacel, reducing claims processing times by up to 50% and improving customer experience. In Kenya, AI-powered chatbots such as Britam Bella provide 24/7 support and have boosted policy sales by more than 40%. More broadly, AI-driven microinsurance solutions are enabling insurers to tailor products to rural and low-income populations.

Walid Kéfi