Insurance Market in Africa- The expansion in the development of insurable goods led to the development of insurable market since Africa is overpopulated and survives in any developments but economically, socially and otherwise.
The African Insurance Market has been waxing rapidly and many people know about it. The country that has the highest growth rate though has reduced a little is South-Africa as proven by experts.
North Africa, South Africa, East Africa, West Africa, and Sub-Sahara are the five sub regions in African continent. In insurance sector in East Africa, the highest country is Kenya while in West Africa; the highest are Nigeria and Ghana due to their high influence.
Most persons have had confidence in Insurance and are willing to try insurance as government has helped the industry by bringing out rules and regulations that improved practices in insurance sector which would benefit everyone in the long run.
I know you must have heard either through News Stations, Sparkgist or other media were the FG – Federal Government made insurance mandatory.
We have so many insurance in Nigeria such as life assurance, property insurance, health insurance, car insurance and others due to the help of these factors; Government policy that favours the people, financial stability and available distribution channels.
There are series of ways of making paying in Africa which would make insurance to be easily accessed and convenient to everyone. Nevertheless, it will also make the market grow faster; that is making payment through mobile phones or systems.
The to and fro movement of money within the market makes the market strong matured and strong to accept new market.
Insurance policies to know if it supports the growth of insurance or not…
Renowned insurance personnel stated that
Some countries, like Sudan, have liberal policies and allow you to take everything in and out of the country. Others will limit the amount you can hold to as little as 20%; others will let you go as high as 40%.
The rate of corruption in a country affects Insurance and legal structure should be looked into to know if it can help the company.
The survival of insurance of insurance company in Africa depends of how much ready they are to face challenges that must come up. Culture is one the factors that must be considered which insurance company must abide by while moving to another African country.
In recapitulation of all, I would like to suggest some of the factors that I think would help to enhance the effectiveness of insurance company in Nigeria.
Trust is one of the major factors that is needed in the African Insurance Industry. For the company to be willing to run effectively even in time of difficulty.
To come to a conclusion, I will like to speak about the right things to do and how to ensure a smooth business running in the African Insurance Industry.
Also they should all develop the mindset of developing the market and also developing themselves at the process.
Any investment must be viewed as a two-way street. Most of the employees will come from the local community, and what they think will carry forth and affect business. Investors must also consider how regulators will view the organization. What the regulators think can spell success or failure. A company “must come with the intention of actually investing, not just profiting.” All of this should come together to form the business model.
In nutshell, try to develop the mindset of developing the market and build the spirit of trust.
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