04 July 2016, Abuja — Micro-insurance across Africa is beginning to take its rightful place in the insurance market as the premiums that is written from the class stands at $756 million in 2014.
This was disclosed to Vanguard in Abuja by Microinsurance network and Munich Re Foundation when the duo released the 2015 landscape of micro insurance Africa in Königstein.
A breakdown of the $756m microinsurance written premiums in the region showed a 1.1precent total premium of $69bn generated on insurance premium in the Africa insurance market with South Africa and six other countries including Nigeria. Chairman of the Microinsurance Network, Michael J. McCord said there has been an upward of diversification in the coverage of the business.
“It is great to see indications of a maturing African market with an increasingly diversified coverage. Whilst life and credit life products are still widely spread on the market, new types of bundled covers, especially in health and personal accident are being developed. Looking at the subset of products for which claims, administrative expenses and commission ratios were reported, the study showed clear profitability for many products with more than half of products with combined ratios below 75%.”
He further expressed that there is a great progress in micro insurance in the continent, “The release provides an in-depth analysis of the evolution of microinsurance in the African region in terms of products, delivery channels, regulations and profitability indicators to the industry, building upon the data released in the African landscape.”
*Favour Nnabugwu – Vanguard