The Game-Changing Trends Shaping Africa’s Insurance Revolution

An Interview with Peace Okhianmhense-Philips– Chief Digital Officer, Heirs Insurance Group

In 2025, Africa’s insurtech landscape is poised for a transformative leap, driven by rapid technological advancements and a burgeoning demand for accessible insurance solutions. The continent’s insurance market, valued at approximately USD 92.9 billion in 2024, is projected to reach USD 160.9 billion by 2033, reflecting a compound annual growth rate (CAGR) of 6.03%

This growth is primarily driven by factors like increasing mobile penetration, rising digitalization, and a growing demand for innovative insurance solutions tailored to the African market (to bridge the existing protection gap).

Despite this substantial market size, insurance penetration remains low across many African nations, signaling immense growth potential. Africa’s insurance penetration rate is low, averaging around 3% compared to the global average of 6.1%. This indicates a vast untapped market ripe for insurtech innovation.

Mr.Peace Okhianmhense- Philips, the Chief Digital Officer of Heirs Insurance Group shared some thoughts on the game-changing trends that will shape Africa’s insurance sector in 2025 and beyond.

The game-changing trends shaping insurtech

“In 2025, AI takes centerstage globally and this will also cascade to the African continent. The insurance industry is not left out. Insurtech will thrive with innovations such as AI-powered virtual assistants that will streamline customer interactions and resolve basic complaints, as well as enhance claims experience with Claims BOTs. In addition, the industry will record AI chatbots that will assist companies in delivering seamless digital channels that reach all demographics”, Mr. Okhianmhense-Philips said.

He added, “Partnerships will remain vital for industry growth, allowing insurers to reach diverse demographics through collaborations with telecom providers, fintech platforms, and digital ecosystems. At Heirs Insurance Group, we have taken up the challenge of democratizing access to insurance by introducing digital platforms that achieve this, such as *1100#, our USSD platform, which enables policy renewals for individuals without internet access, and our chatbot, Prince, which helps customers solve quick customer queries via WhatsApp.”

How can stakeholders should prepare and leverage these trends

Mr. Okhianmhense-Philips enjoined industry players to prioritise investments in inclusive technologies such as offline-capable services and AI-driven tools to bridge accessibility gaps. He remarked that strong partnerships with telecom providers and fintech platforms are essential to expanding reach and improving operational efficiency. A focus on customer-centric innovations, such as embedded micro-insurance, will further enhance insurance penetration.

The most exciting Insurtech innovations that will gain momentum

As we navigate through 2025, the convergence of technology and insurance in Africa is set to redefine risk management and protection, making insurance more accessible and tailored to the unique challenges and opportunities within the continent.

Mr. Okhianmhense-Philips has this to say: “The integration of AI in insurance is revolutionising the sector by enhancing efficiency, personalisation, and accessibility. At Heirs Insurance Group, our Smart Chatbot, Prince, is a prime example of this transformation. Prince allows customers to conveniently renew policies via WhatsApp, with plans to blend cutting-edge AI for unmatched convenience. These innovations are setting new standards for accessibility, making it easier for customers to engage with insurance services anytime, anywhere.”

Insurance is more accessible and affordable with technology

As digital transformation accelerates, insurtech startups are not only reshaping traditional insurance models but also enhancing accessibility and affordability for underserved communities across the continent.

According to Mr. Okhianmhense-Philips, “Technology has democratised insurance in Africa, bridging gaps in accessibility and affordability. As digital ecosystems expand, insurtech startups are leveraging artificial intelligence, machine learning, and IoT technologies to offer personalized, efficient, and customer-centric insurance products. This digital transformation is not only enhancing customer experience but also driving operational efficiency across the insurance value chain.”

He stated further, “For example, Heirs Insurance Group’s *1100# USSD platform empowers customers in rural areas without internet access to renew their policies seamlessly. Similarly, there are platforms that offer innovative, low-cost plans tailored to low-income earners, promoting financial inclusion. These solutions ensure that a wider audience can access insurance services, regardless of their location or income level.”

He advised innovators and entrepreneurs in your sector looking to succeed in 2025 to embrace partnerships as a pathway to scale and innovate. He added that “Collaborations with the digital ecosystem, including telecom providers, fintech platforms will help expand reach and enhance service delivery. Focus on solving real challenges, such as access and affordability, by leveraging transformative tools like embedded insurance, AI-driven solutions, and digital channels.”

Mr. Okhianmhense-Philips asked key players to prioritise a culture of data-driven insights to understand customer needs and develop tailored products. “Data is definitely king in this transformation agenda. A customer-first approach, combined with innovative, scalable solutions, will be the key to thriving in 2025 and beyond,” he observed.

He concluded by saying, “Educating and upskilling in emerging technologies will be an essential factor in guaranteeing success for key players in the insurance industry. This rapid expansion is fueled by the rise of microinsurance, climate risk solutions, and the integration of artificial intelligence, all tailored to meet the unique needs of the African populace.”