African Insurance Sector: Progress Towards Solidity and Professionalization
The African insurance sector, still marked by significant disparities, is experiencing a gradual evolution towards greater solidity and professionalization. According to the 2025 annual report of the African Insurance Organization (AIO), Africa is showing a favorable economic dynamic, with the second-best GDP growth prospects in the world for 2025 and 2026. However, the insurance market structure remains extremely asymmetric, dominated by a few regional giants, while other countries, such as Tunisia, are positioning themselves in a stable and consolidating intermediate zone.
Market Leaders and Trends
South Africa maintains a crushing lead in the insurance sector, representing 83% of life insurance premiums and 54% of non-life insurance premiums on the continent. With a total of $38.4 billion in life insurance premiums and $12 billion in non-life insurance premiums, its penetration rate reaches 11.54%, exceeding the global average (6.8%). Behind it, Morocco confirms its solidity with $2.7 billion in life insurance and $3.2 billion in non-life insurance, representing a penetration rate of 4.1%. Kenya, Algeria, and Nigeria follow, although the latter remains under-exploited, with a very low insurance rate of around 0.2%.
Tunisia: A Balanced and Mature Market
Tunisia stands out in this landscape as a balanced and mature intermediate market. With a penetration rate of 2.28% in 2024, the country surpasses several African markets, including Kenya and Nigeria, although it remains far behind South Africa and Morocco. In terms of volume, gross written premiums (GWP) in Tunisia reach $813 million in the non-life sector, positioning it just after Algeria, while the life insurance sector records $312 million. These figures testify to a stable insurance economy, where local companies, particularly Tunis Re, play a key role in the sector's resilience.
Challenges and Solutions
However, despite progress, the continent remains faced with a data deficit and low financial inclusion, hindering the growth of the sector. To address this, the AIO is counting on the development of the African Insurance Data Repository (AIDR), a pan-African platform aimed at centralizing and standardizing market data.
