The President of the Ghana Insurers Association (GIA), Boatemaa Bafuor-Awuah, has warned that insurance penetration across Africa remains critically low at around three percent—well below the global average of 7.4 percent. She emphasized the urgent need for stronger collaboration, innovation, and public awareness to expand insurance coverage across the continent.

Speaking at the 4th Annual General Meeting and Conference of the Africa Network of Insurers Associations (ANIA) in Accra, Ms. Bafuor-Awuah highlighted the importance of seamless cross-border market participation, noting that many challenges confronting African insurance markets are similar across countries.

Chairing the opening ceremony, Ghana’s Commissioner of Insurance, Dr. Abiba Zakariah, said the continent’s low penetration rate reflects persistent structural challenges within the industry. Limited financial literacy, low demand for insurance products, and lingering public mistrust are key factors contributing to Africa’s underdeveloped insurance market.

“This gap underscores the urgent need for stakeholders to build confidence in insurance products and improve public understanding of the sector,” Dr. Zakariah said.

The five-day conference, which opened at Insurance House on March 9, 2026, brings together regulators, insurance companies, brokers, industry associations, and development partners to discuss strategies for strengthening Africa’s insurance sector.

Dr. Zakariah noted that ANIA, established in 2022 and ratified by the African Insurance Organisation in 2023, serves as a vital platform for collaboration among insurers’ associations. It enables members to share knowledge and develop strategies aimed at improving market resilience.

Despite the opportunities, the Commissioner highlighted several structural weaknesses, including the limited financial capacity of many local insurers to underwrite large or complex risks. This often forces reliance on foreign reinsurers, resulting in significant outflows of reinsurance premiums from Africa. She also pointed to the slow pace of innovation in the sector, with many insurers relying on traditional distribution channels that may not adequately respond to emerging risks and evolving consumer needs.

Louis Kwame Amo, Director of the Financial Sector Division at Ghana’s Ministry of Finance, reaffirmed the government’s commitment to strengthening the financial sector and supporting a resilient insurance industry. He stressed that insurance is vital for protecting individuals and businesses, mobilizing long-term savings, and supporting economic growth. Amo emphasized the need for robust regulatory frameworks, innovation, and closer collaboration among industry players to address sector challenges.

Meanwhile, ANIA President Josan Kissakye of Uganda called for deeper collaboration among insurers across Africa, identifying insurance fraud as a major challenge requiring coordinated action.

Countries represented at the conference include Ghana, Uganda, Kenya, Mauritius, and Zimbabwe. Other stakeholders that contributed to discussions included the Insurance Brokers Association of Ghana, the Chartered Insurance Institute of Ghana, the Insurance Awareness Coordinators’ Group, the Ghana National Bureau of the ECOWAS Brown Card Insurance Scheme, and the West African Insurance Companies Association.

Participants at the conference called for greater innovation, stronger partnerships, and sustained market development to build a more resilient and inclusive insurance industry capable of supporting Africa’s economic growth.