This week, PwC released a report - from its survey - that focuses on Africa's insurance industry with findings that signal opportunities for Africa's insurtech startup. The findings of the report show that the industry is evolving. They also point out a couple of new opportunities.
"The opportunities for growth in Africa’s insurance industry are huge despite recent economic and political uncertainty," the press release reads.
The report also hints at the potential and the relevance of technology when it comes to building an insurance industry for the future.
Victor Muguto, Long-term Insurance Leader for PwC Africa, said:
"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."
Technology is a key driver of the industry according to the report. "Across all of Africa, the increased use of technology, on the back of the exponential growth of mobile phones, has significantly contributed to a large number of new customers and more tailored products."
Yet, in some cases, the players are falling short when it comes to developing the necessary technology. One of the reasons is because it is "expensive and not always easy for insurers to “go it alone”."
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This presents an opportunity to insurtech startups in form of startup-corporate collaborations. Startups like Jamii and Bismart that are developing mobile insurance products are potential candidates for this.
This could be in form of a partnership or strategic investment. It would save the players in the insurance industry from spending tonnes of money on coming up with such products internally.
Additionally, in the survey, insurers highlighted talent shortages as a top issue. The notable areas were technology and actuarial skills.
This, again, presents an opportunity for the acquisition of insurtech startups like Naked Insurance that bring transparency to the insurance process as well as Pineapple that offers peer-to-peer insurance. These kinds of acquisitions would be focused more on talent than the product.