The Africa Innovation for Resilience (AIR) Conference, held in Kampala, brought together insurance regulators from various African countries to discuss the potential of technological innovation, specifically Artificial Intelligence (AI), in boosting insurance penetration in Africa. Alhaj Ibrahim Kaddunabi Lubega, the Chief Executive Officer of the Insurance Regulatory Authority (IRA) Uganda, was among the speakers at the conference.
In his address to representatives from numerous African countries and 13 regulatory bodies, Kaddunabi emphasized the importance of the insurance sector preparing for the transition to technological innovations such as AI. He highlighted the continuous shaping of the global landscape by technological disruptions, making resilience a necessity for sustainable development.
Kaddunabi also mentioned the potential of technology, particularly AI, to drive sales and manage 85 percent of customer interactions in the financial services sector by 2030. Current statistics show a large number of people across the African continent in need of insurance services, with Uganda’s insurance penetration standing at 0.88% in 2022, significantly lower than countries like Kenya and South Africa.
Elias Omondi, the Principal, Innovation for Resilience, FSD Africa, emphasized the importance of learning from countries with higher insurance penetration, such as South Africa, to address the challenges facing Uganda’s insurance sector. The role of technology in driving insurance penetration in Africa was also highlighted by Ms Kate Airey, the British High Commissioner to Uganda, who emphasized the opportunity for sector growth through technology.
Adding to the discussion, Mr Amos Lugolobi, State Minister for Finance and Planning at the Finance Ministry, urged insurers to embrace emerging technologies to address trust issues in the insurance sector and enhance financial inclusion.
Despite the challenges facing the insurance sector, research has consistently shown that the full implementation of a national health insurance scheme has the potential to significantly increase the insurance penetration rate, which currently stands at less than 1%.
In conclusion, the Africa Innovation for Resilience (AIR) Conference highlighted the pivotal role of technology, particularly AI, in shaping the future of the insurance sector in Africa. With the right strategies and technological advancements, there is great potential to increase insurance penetration across the continent and pave the way for sustainable progress.