Africa’s insurance sector is increasing momentum due to greater demand from a growing middle class, a new report found.
The market is expected to top $166 billion by 2034, up from $98.5 billion in 2025, global market research firm IMARC Group forecast. Greater financial inclusion has also facilitated access to insurance products: Telecom operators have increasingly integrated with insurance companies, meaning that more than 18 million people have now enrolled in insurance programs via mobile payment systems, the report found.
Micro-insurance offerings, which focus on sub-Saharan Africa’s informal sector — around 80% of all workers — have also expanded across the continent. Though a majority of consumers are concentrated in South Africa, micro-insurance models cover more than 3.5 million people in Ghana, Kenya, Nigeria, and Uganda, the report found. Focused on fast payouts — with many conducted in around four hours — these models target rural populations in particular, which are increasingly impacted by unexpected weather patterns and natural disasters provoked by climate change.