KIGALI, May 4 (Xinhua) -- Africa is grappling with a widening insurance gap as officials and policymakers call for urgent action to strengthen financial resilience and protect economies from growing risks.
Speaking at the ZEP-RE annual meetings 2026, organized by ZEP-RE (PTA Reinsurance Company), a reinsurer institution in Africa and a specialised institution of the Common Market for Eastern and Southern Africa (COMESA), and the government of Rwanda in the capital, Kigali, on Monday, policymakers and industry stakeholders warned that millions of people and businesses remain vulnerable to shocks ranging from natural disasters to economic disruptions, according to a statement by Rwanda's Ministry of Finance and Economic Planning.
"Africa is underinsured. Insurance penetration stands at just 2.7 percent compared to a global average of 7 percent. That gap represents hundreds of millions of people who, when disaster strikes, have nothing between them and destitution," Yusuf Murangwa, Rwandan minister of finance and economic planning, was quoted as saying in the statement.
He added that, for the insurance industry to thrive, governments need to create an enabling environment, align regulation, and champion financial inclusion. However, product innovation, distribution, reach, and reinsurance capacity are for the industry to build.
Speaking at the meeting, Hope Murera, ZEP-RE's managing director and group chief executive officer, underscored the growing urgency of strengthening risk financing mechanisms across African economies.
"When disasters occur, recovery is too often financed through debt, placing additional strain on already constrained fiscal space. Insurance has a critical role to play in absorbing shocks and enabling faster, more sustainable recovery," she is quoted in the statement.
"Africa remains significantly underinsured, and addressing this requires deliberate collaboration across governments, regulators, and industry. The decisions taken in forums such as this must ultimately translate into protection for communities and businesses across our markets," said Simon Chikumbu, vice-chairperson of the board of directors at ZEP-RE, at the event.
The event featured a high-level roundtable discussion that focused on disaster risk financing, including protection of public assets and fiscal stability, and inclusive insurance.
"We must stop thinking of insurance as a niche financial product and start treating it as a strategic tool for economic resilience, fiscal stability, and inclusive growth. More than 80 percent of catastrophe-related losses in Africa go uninsured, meaning the burden falls on households, businesses, and governments when they can least afford it," said Soraya Hakuziyaremye, governor of the National Bank of Rwanda at the meeting.
The event, which runs through Tuesday, has brought together senior government officials, regulators, industry leaders, development partners, and private sector stakeholders from across Africa, according to organisers.
ZEP-RE was established in 1990 under the then Preferential Trade Area, a precursor to COMESA, to develop the insurance and reinsurance industries and support capacity building. ■