Insurance adoption in Africa low despite increasing awareness – report

Insurance adoption remains low and uneven across select African nations, a study has revealed.

Conducted by research firm GeoPoll, the study polled respondents in Kenya, Ghana, Nigeria, South Africa, Tanzania, and Uganda, and reveals that just 46 per cent of the respondents have taken an insurance policy.

On the other hand, the majority, 54 per cent, reported having never held any insurance policy. This is despite insurance awareness being relatively strong across the surveyed nations.

Over one-third (39 per cent) indicated they are very familiar, knowing several insurance products and providers, while another 32 per cent reported being somewhat familiar, with limited detail.

On the other hand, 15 per cent said they had only heard of insurance products but were unsure how they work, and a similar share admitted they are not familiar at all.

“These results suggest that while knowledge of insurance is widespread, there remains a significant segment of the population with only surface-level or no understanding,” the report read.

GeoPoll attributed the low uptake mainly to high premiums, cited by 37 per cent of respondents.

This was followed by the 24 per cent who pointed to a lack of clear information or understanding of insurance products, reflecting gaps in consumer awareness and education.

Smaller proportions mentioned limited availability of relevant products (14 per cent) and a perception that they do not need insurance (14 per cent), while 12 per cent identified other factors.

The findings suggest that cost and knowledge gaps remain significant hurdles to expanding insurance coverage across the surveyed nations and the region.

When asked about their confidence in insurance providers, respondents expressed a wide range of views.

The largest proportion, 42 per cent, reported having mixed feelings, indicating partial trust but lingering doubts.

About one-quarter of respondents expressed trust (23 per cent), while a nearly equal share (23 per cent) admitted to being cautious or sceptical.

A smaller segment, 13 per cent, said they do not trust insurance companies at all.

“These findings suggest that although trust exists, it is fragile, with scepticism and uncertainty shaping consumer perceptions of the industry.”

Specifically in Kenya, the insurance market is noted to have gained momentum, with the sector’s return on equity rising from 7.5 to 11.5 per cent and Gross Written Premiums (GWP) increasing by 11 per cent over the past three years to 2025, according to a study by Deloitte.

Analysing data from 2015 to 2023, the findings show a consistent upward trend in GWP.

“This growth is primarily driven by increased policy uptake within existing customer segments and greater awareness of insurance among the population,” Deloitte says in the study report.

“However, a deeper analysis of the claims and expense ratios reveals important challenges that insurers need to address to sustain profitability.”

Despite this progress, it reckons the country’s insurance penetration rate remains low compared to the global average of 7.0 per cent.

The professional services firm puts Kenya’s insurance penetration at 2.39 per cent.