Casablanca – At the Africa Financial Industry Summit 2025, representatives of Deloitte, SUNU Assurances, the Moroccan Insurance Federation, and ZEP-RE discussed the means by which the Africa-based insurance sector can bolster itself against intensifying climatic risks, food insecurity, and cyber-attacks.
The forum brought to attention the rise in the number and severity of disasters associated with climate change, including droughts, floods, and heat-related events, adding new stresses to insurers still dealing with a lack of capacity in the market.
It was highlighted that parts of the continent still have high levels of exposure, with fragmented regulatory systems, and weak coordination between governments and insurance authorities slowing effective responses.
The speakers also noted that Africa is not only increasingly vulnerable to global cyberattacks and data thefts, but the awareness and preparedness levels are still low. They also urged regulators to invest in awareness programs and risk mapping to ensure that the public is aware of their weaknesses.
The experience in Morocco was noted as a model that can be applied. Morocco’s public-private partnership for catastrophe risk coverage through mandatory insurance with a national solidarity fund has helped to compensate the insured and the uninsured. The system’s design—grounded in data, regulation, and credibility—was presented as a blueprint for building resilience elsewhere on the continent.
Other voices highlighted the role of technology and artificial intelligence in improving accuracy and credibility associated with risk transfer arrangements.
From the use of satellite information for drought monitoring to the adoption of parametric solutions that facilitate quick disbursements, innovation was seen as critical in closing the protection gap.
One of the factors mentioned as simultaneously a challenge and an opportunity is the penetration level of the market in the realm of insurance. This is still at a less than 2% level in several markets and is yet to reach a critical level.
The next decade will determine if Africa can move forward to proactivity in dealing with disasters instead of just reacting to them.
