Economy
Survey Foresees Further Growth for Africa’s Insurance Sector
By Modupe Gbadeyanka
The opportunities for growth in Africa’s insurance industry are huge despite recent economic and political uncertainty, a report issued by PwC on Africa’s insurance industry has said.
It noted that the insurance industry has done well to adapt to continuous disruption, with technological advances now considered the most important global trend disrupting the industry.
The report, titled ‘Ready and Willing: African insurance industry poised for growth,’ further said despite the additional pressures of unrelenting regulatory and insurance accounting changes, and the huge costs associated with the changes, there are also some positive developments and opportunities for growth.
The survey comes at a time when economies on the African continent are starting to show signs of real growth on the back of recovering global commodity prices.
Victor Muguto, Long-term Insurance Leader for PwC Africa says: “The insurance industry across Africa continues to be one of the most disrupted, but at the same time the industry continues to innovate and adapt to take advantage of the many opportunities for growth that are also emerging.
“In the years following the global financial crisis, economic and political uncertainty across the continent slowed down economic and insurance sector growth. Despite this, Africa’s insurance market remains one of the least penetrated in the world and the opportunities for growth are tremendous.”
Top trends driving change in Africa’s insurance markets
Africa’s insurance industry is facing more disruption than any other industry, posing challenges for some while opening up business opportunities for others. The pace of change in the insurance industry has taken place more rapidly than originally anticipated and will accelerate further.
“Leading insurers are already implementing key strategies to focus on new customer behaviours and demographic shifts. The need to be agile in the face of a rapidly changing technological environment has never been more vital,” says Pieter Crafford, Financial Services Advisory Leader for PwC South Africa.
The survey identifies four main themes that are transforming the African insurance industry:
Technology and data ‘revolution’: Technology and data are now considered the most important global trend disrupting the industry, but they are also increasingly being used by the industry to accelerate growth. Across all of Africa, the increased use of technology, on the back of the exponential growth of mobile phones, has significantly contributed to the large amount of new customers and more tailored products. Technology presents insurers with powerful tools to better understand customer needs and expectations through data mining capabilities and artificial intelligence (AI).
However, it is expensive and not always easy for insurers to “go it alone”. Consequently, some insurers have formed partnerships with technology companies to improve operational efficiency and respond quickly to changing customer expectations. Technology, specifically mobile phones, social media, and data analytics are seen as the top enablers to increase access to new customers, at reduced cost and to analyse behavioural data, in order to design new, more appropriate products.
Regulatory and accounting changes: Behind technology, insurers also identified stringent risk based prudential capital and market conduct regulations as the second most disruptive issue. By now, most insurers are used to regulations and this has become “business as usual”. Insurers across the African continent have embraced the regulatory changes, and are ready and willing to comply with new legislation and regulations. But, while most insurers have adopted new ways of compliance, the introduction of IFRS 17 is also expected to add new pressure.
It is also positive to note that that the intensity of regulatory concerns is reducing among insurers. Fewer survey respondents (2017:61%) had concerns about the burden of regulation dampening risk appetite and stifling growth compared to 90% of respondents in 2014. Although the unrelenting regulatory changes come with increased costs and implementation challenges, they also present hidden opportunities for insurers to better manage risk, and allocate capital more appropriately. Some of the new regulations are expected to prompt insurers to redesign simpler and more appropriate products for customers. For example, the less onerous regulatory capital and conduct regulations being introduced by the pending Microinsurance framework in South Africa offer alternatives to reduce the costs of insurance at the lower end of the market
Convergence, the new “Scramble” for Africa’s customers: Changing demographics and social changes, in particular the rise of a middle class, are driving insurers, bankers, and non-traditional players such as retailers and mobile operators to compete for the power of owning customers and customer information. We have started to see a convergence of insurers and bankers around customers. While most of the major banks have had insurance operations for years, there has been a renewed interest by other banks to also start insurance operations. Likewise, some insurers are setting up separate banking operations, and mobile phone operations and retailers are pushing in. All of this is with the aim of owning more customers and cross selling various products to them.
In addition, insurers are also adopting multichannel distribution strategies and taking more direct ownership of their customer data and relationships. They are designing simpler products leaning towards technology based direct mobile and online channels of distribution. While the more complex products will still require intermediation, the use of brokers may gradually reduce as insurers invest in their own in-house channels.
Talent shortages – workforce of the future: Insurers also highlighted talent shortages as a top issue in our survey. This is notable in the areas of technology and actuarial skills. In order to attract and retain talent, insurers need to invest more in training their “workforce of the future”. Alongside this, employee expectations are changing. Employees of the future expect better work-life balance. The majority of insurers surveyed are already prepared for change, with 83% of survey respondents indicating that they either had prepared or were moderately prepared to establish a more flexible working culture to support employee work-life balance.
Insurers should not only be thinking about or investing in a workforce of the future. They should also start thinking about jobs that may not yet exist.
While the African insurance industry is going through significant change and client expectations are changing the rise of the new middle class and digital natives offers new opportunities for insurers, using technology, to better understand their customers and use customer data for more relevant product design and better pricing for risk. Insurers need to ensure that they can do so while navigating increasing regulatory compliance issues, overhauling legacy IT systems, and investing in a workforce of the future. Operational procedures and business structures will also need to be updated to become more efficient.
“Insurers across Africa face exciting new opportunities for growth on the back of a rising middle class and increased demand for new and innovative solutions. Most insurers know what to do – the winners will be those that are best at execution,” Crafford says.
“Insurers, who are client-centric, innovative, technologically up-to-date, and who invest in a workforce of the future, will lead the charge to increase insurance penetration levels in Africa,” Muguto concludes.
By Adedapo Adesanya
Pathway Advisors Limited, an issuing house and financial advisory firm, has announced the successful completion of the Series 2 Commercial Paper issuance for Veritasi Homes & Properties Plc.
The Series 2 offer, issued under Veritasi Homes’ newly registered N20.00 billion Commercial Paper Programme, raised N16.76 billion, significantly above its initial N12.00 billion target on the back of strong institutional demand.
This issuance builds on the company’s track record in the Nigerian debt capital market and follows the recently concluded N10 billion 3-year 20 per cent Series 1 Fixed Rate Bond Issuance, further reinforcing investor confidence in Veritasi Homes’ strong credit profile.
The 364-day tenor instrument attracted robust participation from a diverse pool of institutional investors, underscoring sustained confidence in the Company’s financial strength, operating model, and governance standards.
Commenting on the deal, the Founder/CEO of Pathway Advisors Limited, Mr Adekunle Alade (MBA, FCA, M.CIod), noted that the outcome further validates investor appetite for well-structured transactions in the Nigerian capital market.
“The strong oversubscription speaks to the market’s confidence in Veritasi Homes’ performance, governance, and repayment track record. We are pleased to continue supporting issuers with strong fundamentals in accessing efficient funding.’’
He further highlighted that Veritasi Homes’ consistent market activities since 2022, including successful issuances and full redemption of matured obligations, continue to strengthen its reputation among institutional investors.
“Pathway Advisors Limited remains committed to maintaining its leadership position within Nigeria’s capital markets through the origination and execution of transformative, value-driven, and commercially viable transactions by deploying innovative financial solutions and facilitating strategic capital formation across critical sectors.
“We are committed to supporting credible corporates in accessing efficient short-term and long-term financing solutions within the Nigerian capital market,” he said in a statement on Monday.
Speaking on the transaction, the Managing Director/CEO of Veritasi Homes & Properties Plc, Mr Nola Adetola, described the outcome as a strong endorsement of the company’s fundamentals.
“This result reflects the resilience of our business model, our growing market reputation, and the continued trust of the investment community. We are grateful to all institutional investors for their confidence in Veritasi Homes.”
He added that the proceeds from the issuance will be deployed to support the company’s working capital requirements, enhance liquidity, and complete the ongoing development activities across its real estate portfolio.
Mr Adetola also commended Pathway Advisors Limited for its advisory and arranging role in the successful execution of the transaction.
By Aduragbemi Omiyale
The Securities and Exchange Commission (SEC) has approved the transition to the T+1 settlement cycle for capital market transactions from June 1, 2026.
This is coming some months after Nigeria moved from the T+3 settlement cycle to the T+2 settlement cycle.
The T+ settlement cycle is the number of working days required to complete a capital market transaction, such as the trading of securities, shares, and others, from the first day the trade was executed by an investor.
In a notice on Monday, the SEC, which is the apex capital market regulator in Nigeria, said it was authorising the new system to “promote an efficient, fair, and transparent capital market.”
Under the new arrangement, equities and commodities traded by investors at the market would be cleared and settled by the Central Securities Clearing System (CSCS) within one day.
The agency noted that the migration to a T+1 settlement cycle forms part of its ongoing market modernisation initiatives aimed at enhancing market efficiency and strengthening risk management. reducing counterparty exposure, improving liquidity, and aligning the Nigerian capital market with international standards and global best practices.
“Accordingly, all eligible trades executed in the Nigerian capital market shall settle one business day after the trade date (T+1),” a part of the statement noted.
It was stressed that “Friday, May 29, 2026, shall be the final trading day under the existing T+2 settlement cycle. Trades executed on Friday, May 29, 2026, and Monday, June 1, 2026, shall both settle on Tuesday, June 2, 2026. All trades executed from Monday, June 1, 2026, onward shall be subject to the T+1 settlement cycle.”
SEC tasked all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other relevant stakeholders to take all necessary measures to ensure full operational readiness and compliance with the new settlement framework.
“Market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date,” it further stated, promising to continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition.
The regulator said it remains committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern. resilient and globally competitive Nigerian capital market.
By Adedapo Adesanya
The Budget Office of the Federation has defended the delay in publishing three outstanding Quarterly Budget Implementation Reports, saying the situation arose from the repeal and re-enactment of the 2025 Appropriation Act and the subsequent extension of the budget’s implementation period to June 2026.
The last publication on the budget office’s website is Q3 2025, a development that breaks the Fiscal Responsibility Act amid the country’s rising borrowing costs and mounting fiscal pressure.
In a clarification statement, the DG of the Budget Office, Mr Tanimu Yakubu, said public concerns over the absence of the reports must be understood within the constitutional and fiscal framework governing public finance administration in Nigeria, stressing that a fiscal year is not strictly tied to the January–December calendar, but is instead a legislative construct defined by appropriation laws passed by the National Assembly.
“The fiscal year is not necessarily synonymous with the calendar year. The calendar year is a fixed chronological construct of twelve months running from January to December.
“The fiscal year, however, is a juridical and legislative creation whose duration, commencement, and terminal date are determined by the extant appropriation framework enacted by law,” he said.
Mr Yakubu claimed that the recent reporting delay followed the Repeal and Re-enactment of the 2025 Appropriation Act concluded in December 2025, alongside an extension of the budget’s execution period.
These changes, he said, effectively altered the operational timeline for fiscal reporting and necessitated comprehensive reconciliations before publication of the affected quarterly reports.
“In substance and in law, therefore, the fiscal year becomes not merely a chronological concept, but a legislatively sustained expenditure window,” he explained.
The Budget Office further noted that Nigeria’s fiscal practice has historically accommodated adjustments such as supplementary budgets, rollover provisions, and implementation extensions, particularly for capital projects, to ensure continuity and prevent wastage of public resources.
It added that similar practices exist in other jurisdictions, where fiscal years are defined by law rather than fixed to the calendar year.
Citing constitutional provisions, the office referenced Sections 80 and 81 of the 1999 Constitution (as amended), which require that public expenditure be backed by appropriation laws rather than a rigid annual cycle. It maintained that as long as legislative authority exists, expenditure remains valid within the approved framework.
The DG also pointed to judicial precedents underscoring the supremacy of the National Assembly in public finance matters, noting that executive spending must align with statutory approval.
He also explained that the current reconciliation process involves revenue performance reviews, cash flow adjustments, debt analysis, and inter-agency coordination to ensure accuracy and audit integrity of the outstanding reports.
Mr Yakubu then assured that the missing quarterly reports are being finalised and will be released in phases in the coming weeks, adding that reforms are underway to strengthen digital reporting systems and improve transparency and timeliness in fiscal data publication.
In his words, “Accordingly, the outstanding Quarterly Budget Implementation Reports are being finalised and will be released in phases over the coming weeks.
“In parallel, the Budget Office is strengthening its digital reporting architecture, data harmonisation systems, and institutional coordination mechanisms to support more comprehensive, timely, and analytically robust fiscal reporting in line with evolving international public finance reporting standards.”
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