Four hundred decision-makers from twenty African countries adopted the first Pan-African Pact for inclusive insurance on July 6-7, 2026 in Cotonou, Benin. The goal: to double the continent's insurance penetration rate by 2040, as Africa currently accounts for just 1% of global premiums while representing 17% of the world's population.
A near-absent market facing a massive need
The picture painted at these inaugural Insurance for All General States was stark: insurance penetration in sub-Saharan Africa remains below 1% of GDP, against a global average of 6%. In the 14 countries of the CIMA zone (Inter-African Conference on Insurance Markets), fewer than one household in twenty holds formal coverage. With rising climate shocks, pandemics and accelerating urbanisation, this protection gap represents a systemic risk to African economies.
FANAF at 50, more ambitious than ever
The Federation of African National Insurance Companies (FANAF), celebrating its 50th anniversary in 2026, organized the event at the Sofitel Cotonou Marina in partnership with the Benin Insurance Companies Association (ASA Bénin). Over 400 stakeholders — insurers, reinsurers, regulators, ministers and financing organisations — spent two days examining structural barriers and growth levers for African insurance markets.
A 2026-2030 action plan with broad ambitions
The Pan-African Pact adopted in Cotonou translates into a 2026-2030 action plan focused on sectoral priorities (agriculture, healthcare, microinsurance), inter-state coordination mechanisms and monitoring frameworks. Signatories emphasised that beyond pure risk protection, insurance can play a pivotal role in mobilising long-term savings, financing SMEs and supporting the green transition.
Why it matters
For decision-makers and investors in the Indian Ocean region, this Pact opens a continental-scale market. Economies like Mauritius — where the financial sector accounts for over 12% of GDP — or Madagascar, where rural populations are severely underinsured, stand to benefit from pan-African insurance players gaining scale. The signal is also political: Africa intends to structure and regulate this sector on its own terms, building on homegrown standards rather than importing European or Asian models.
Source: Financial Afrik / Notre Afrik / FANAF, July 2026