With cyberattacks targeting government coffers, a high-profile CNSS data leak in Morocco, and more frequent El Niños that left 20m facing hunger in Southern Africa last year: Africa’s insurance industry must build capacity to offer safety nets to mounting systemic threats. But with weather-related losses for Santam alone climbing 12% YOY to $36m and 91% of organisations globally expecting a significant rise in AI-driven cyber threats, can Africa’s insurance industry ($64bn in annual premiums) absorb such heavy losses? What is needed from governments and capital markets to reinforce the industry’s underwriting capacity?
Key points:
- Premium subsidies, becoming anchor clients, and growing reinsurance and national risk modelling capacity: How can governments & regulators boost insurance system readiness?
- Insurance linked securities and catastrophe bonds: What relief can capital markets provide, and could it extend to cyber risks?
- Tech partnerships and new collaborations: What’s needed to ensure parametric insurance linked to satellite and sensor data is equal to ground-level losses?