The African insurance sector is facing a marked concentration around a few countries, hinting at untapped growth potential for much of the continent.
The 2023 African insurance sector shows a strong geographic concentration. According to the annual report of the African Insurance Organization (AIO), the total revenue of the market stands at 63.5 billion USD, down 5.6% from 67.3 billion in 2022. This market is dominated by four countries—South Africa, Morocco, Egypt, and Kenya—which account for nearly 85% of total premiums on the continent. This structure raises questions about diversification and competitiveness in this strategic sector.
South Africa largely dominates the African insurance market, with a revenue of 43.3 billion USD, or 68.2% of premiums in 2023. This overwhelming weight places the country far ahead of its neighbors, highlighting significant inequality in the sector’s development across the continent. South Africa notably has a strong demand for life insurance, which constitutes 67.6% of the African insurance market, compared to 32.4% for non-life insurance. South Africa's share of life insurance premiums reaches record levels, showcasing a mature, well-established sector.
Morocco follows in second place, with an 8.7% market share, equating to about 2.5 billion USD in life premiums. Egypt and Kenya follow with 1.2 billion and 1.1 billion USD, respectively, rounding out the top four. These four nations concentrate almost 85% of the continent’s premiums, reinforcing a dynamic where the bulk of business volume is confined to a few countries.
The top nine African markets—South Africa, Morocco, Egypt, Kenya, Nigeria, Algeria, Tunisia, Namibia, and Côte d'Ivoire—together capture 93.3% of Africa’s total insurance revenue. These figures illustrate a fragmented demand across the rest of Africa, where the insurance market remains underdeveloped or dominated by limited local offerings. Outside of these few hubs, the sector faces major challenges with infrastructure, access to financial services, and awareness, limiting insurance penetration among the population.
The AIO report indicates that life insurance penetration in Africa stands at 2.4% in 2023, still below the global average of 2.9%. In terms of life premiums, the average per capita remains low, at about 31 USD, suggesting significant but largely untapped growth potential. On a global scale, emerging markets show life insurance penetration rates around 1.7%, a rate Africa exceeds, though the gap with more developed regions remains substantial.
Positive economic outlooks and the rise of an African middle class should help narrow this gap in the coming years, supporting increased demand for life insurance products. Indeed, with rising incomes and better access to financial services, insurers could see an expanded client base and greater growth opportunities.
Non-Life Insurance in Survival Mode
In the non-life segment, also known as property and casualty insurance, performance is more modest. In 2023, inflation-adjusted non-life premiums amounted to 20.59 billion USD, a decrease of 3.2% compared to the previous year. This segment represents only 0.5% of global non-life premiums, revealing the difficulty African insurers face in establishing this insurance category in developing economies.
The non-life insurance penetration rate remains low at 1.1%, while the average premium per capita is just 15.15 USD. This market is also dominated by South Africa, generating 8.5 billion USD in non-life premiums, followed by Morocco with 2.9 billion, then Kenya and Egypt with 1.34 billion and 1.30 billion USD, respectively. Despite this challenging context, the AIO report anticipates growth in this segment in the coming years, driven by economic growth, rapid urbanization, and infrastructure development that could boost demand for non-life insurance.