African Insurance Organisation (AIO) has called on operators and stakeholders across African markets to tackle low penetration with aggressive marketing.
The President of AIO, Tope Smart, said this at the 48th Conference and Yearly General Assembly of the AIO in Nairobi, Kenya. He frowned at the low insurance penetration rate in the African market.
According to him, the African insurance industry remains one of the least penetrated in the world, with an average rate of two per cent, compared to the global average of around seven per cent.
“Our industry’s growth keeps getting low patronage because of the inability to build substantial capital reserves due to poor saving culture and premium flight while there is still heavy reliance on foreign expertise,” he said.
He said the insurance industry is still overwhelmed by poor public image and lack of trust, adding that “these and many more are the challenges we face today and we need to address them if we intend to secure a better future for the industry.”
He said the Golden Jubilee of the organisation will be marked by a symposium, where operators in the African market will discuss challenges facing the industry.