• South Africa’s insurance penetration reached 11.54% in 2024

• Namibia ranked second with 7.41%, both above the global average

• Insurtech firms drive micro-insurance and digital inclusion across Africa

South Africa and Namibia recorded the highest insurance penetration rates in Africa in 2024, according to the annual report of the African Insurance Organization (OAA) published on Monday, October 20, 2025.

Insurance penetration, measured as the ratio of gross insurance premiums to GDP, reached 11.54% in South Africa, one of the highest rates globally. In Namibia, the rate stood at 7.41%. These two southern African countries are the only economies on the continent where the insurance-to-GDP ratio exceeds the global average of 6.8%. Mauritius ranked third with a penetration rate of 4.97%.

The low insurance penetration observed across most African countries reflects limited financial inclusion, low purchasing power, the large informal sector, and the restricted distribution capacity of insurance companies. The disparities highlight the structural challenges of expanding access to insurance in Africa but also underline the sector’s significant growth potential as economies formalize and household incomes rise.

Insurtechs reshape the market

The report notes that many insurtechs are disrupting the African insurance market, where large untapped opportunities remain. These agile startups are working to close coverage gaps by launching mobile-first micro-insurance products with integrated distribution, instant enrollment, and low pay-as-you-go premiums designed to reach customers inaccessible to traditional insurers.

Their products, covering life, health, and agricultural risks, mainly target low-income populations and informal workers. For example, Kenya’s Turaco, which has expanded to Uganda and Nigeria, partners with digital platforms and employers to offer affordable health insurance. Another Kenyan company, Paula, provides index-based insurance for crop and livestock losses, along with advisory tools that help small farmers manage climate risks such as droughts, floods, and pests.

Despite limited financial resources, African insurtechs are transforming actuarial models through digital technologies such as the Internet of Things (IoT), blockchain, artificial intelligence, and drones to better segment products, assess risk profiles, and tailor coverage to clients’ actual needs.

Top 10 African countries with the highest insurance penetration rates in 2024:

South Africa (11.54%)

Namibia (7.41%)

Mauritius (4.97%)

Morocco (4.10%)

Botswana (2.46%)

Tunisia (2.28%)

Kenya (2.25%)

Eswatini (2.23%)

Zambia (1.32%)

Zimbabwe (0.2%) Nigeria (0.2%)