African insurers facing climate change, cyber-risks and pandemics

economic impactAccording to the insurer AXA, African countries have to fear three main risks in the next five years: climate change, cyber-risks and pandemics. The effects of climate change are strongly felt in Africa.

In recent years, we no longer speak of periods of drought but of torrential rains, floods, epidemics, destruction of crops , infrastructure and property. The impact of natural disasters is aggravated by the low insurance penetration rate, which excludes any monetary compensation.

Digitalization at an accelerated pace is a new risk. While the digital transformation offers opportunities for social and economic development, it also brings its share of risks with the rise of cybercrime.

In the end, the health situation due to Covid-19 has a direct impact on the major African countries’ economies. In South Africa, a country where insurance has its place in the culture, policyholders find themselves in an impasse because of inadequate insurance contracts with regard to the pandemic risk.

The coverage of these three risks is a growth driver for African insurers who must nevertheless raise more funds in order to engage in this path.

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