Insurance emerges as key driver of economic growth

LIVINGSTONE MARUFU IN VICTORIA FALLS

Insurance is emerging as a critical pillar of Africa’s economic growth, enabling businesses, farmers and households to manage risk, unlock investment and withstand economic shocks, Insurance Institute of Zimbabwe (IIZ) president Dr Clementine Chinyuku has said.

Speaking at the Southern Africa Insurance Indaba 2026, Dr Chinyuku said insurance should be repositioned from being viewed merely as a compliance requirement or an expense incurred after a disaster into a strategic economic enabler that supports investment and sustainable development.

“We must also rethink insurance’s place in Africa’s development agenda. It should never be viewed merely as a compliance requirement or an expense incurred after disaster strikes. Insurance is an economic enabler,” she said.

She said insurance improved the efficiency of the financial sector, particularly by facilitating access to credit for the private sector and giving investors the confidence to commit capital to productive ventures.

“It creates confidence for investment, supports entrepreneurship, protects livelihoods, strengthens agricultural productivity and provides the financial security upon which sustainable growth depends.

“No economy can fully realise its potential when businesses remain one disaster away from collapse, farmers are exposed to unpredictable weather or households lack protection against life’s uncertainties,” Dr Chinyuku said.

She said the Indaba provided an opportunity for industry players to address protection gaps, develop products for emerging risks, strengthen small and medium-sized enterprises and build insurance markets that were both commercially sustainable and socially relevant.

According to Dr Chinyuku, the future of the industry would depend not simply on reaching consensus, but on constructive debate, collaboration and the willingness to translate commitments into action.

Africa, she said, needed more than an expansion in insurance coverage. It needed products that consumers trusted, businesses valued and communities could readily access when risks materialised.

She challenged delegates to measure the success of the Indaba by its ability to deliver better products, stronger institutions, greater inclusion, deeper trust and lasting impact across African markets.

“Let us challenge convention, build partnerships across borders and commit ourselves to an insurance industry that is resilient, inclusive, trusted and ready for Africa’s future,” she said.

Drawing parallels between the insurance industry and Victoria Falls, one of the world’s most remarkable natural wonders, Dr Chinyuku said the iconic landmark symbolised strength, resilience and continuity.

She said true strength was not about standing still, but about adapting, enduring and moving forward.

The Zambezi River, which gathers strength from numerous tributaries, crosses national borders and surges forward with tremendous force, offered an important lesson for the insurance industry, she said.

“Insurance, too, exists to help individuals, businesses and economies navigate uncertainty, recover from setbacks and move forward with confidence.

“Our purpose is not simply to pay claims. It is to restore confidence, protect livelihoods and enable progress,” she said.

Dr Chinyuku urged industry players to anticipate and prepare for the risks Africa would face in the future, warning that the changing risk environment demanded a fundamental shift in how insurance products were designed and delivered.

She said the Indaba’s theme, “Futureproofing Africa’s Insurance: Building Resilient, Inclusive and Technology-Driven Markets”, was particularly relevant given the continent’s changing economic and technological landscape.

“Across our continent, climate change is redefining risk, technology is transforming business models, cyber threats are intensifying and consumer expectations are evolving. Yet affordability and accessibility remain significant barriers to insurance inclusion, while regulatory and governance expectations continue to rise.

“These realities demand more than incremental change. They require us to make innovation practical, inclusion meaningful and technology more human. Above all, they require us to protect the one foundation upon which our industry depends: trust,” Dr Chinyuku said.

“Without trust, there is no insurance industry.”

The Indaba attracted insurance industry experts and delegates from Zambia, Botswana, South Africa, Mozambique, Tanzania, Kenya, Dubai and other markets, providing a platform for regional dialogue on the future of insurance.