AIO Calls On Stakeholders To Tackle Low Penetration

The African Insurance Organisation (AIO) has urged operators and stakeholders across African markets to tackle low penetration with aggressive marketing.

Tope Smart, the President of AIO, Tope Smart, made this assertion at the 48th Conference and Yearly General Assembly of the AIO in Nairobi, Kenya as he frowned at the low insurance penetration rate in the African market.

Smart said 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 added that the insurance industry is still overwhelmed by poor public image and lack of trust.

"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.”