Lagos State is among other growing cities in sub-Saharan Africa with great potential to attract insurance and widen the scope of the industry.
Also, Ghana has been identified as one of most attractive African countries for insurance industry growth, and the country has the most attractive mix of risk and opportunities for the insurance industry, a survey of seven key markets in East and West Africa by Ernest & Young (EY) has found. The report noted that the sub-Saharan economies are among the fastest growing in the world and the outlook for the region’s gross domestic product (GDP) growth is strong despite falling commodity prices and the slowdown in China’s economic growth. It said that fast-growing cities, such as Lagos and Nairobi, along with many others in the region, are expected to record sustained growth in population and urbanisation, and the independence and self-reliance as societies urbanise, would generate more need for insurance. Low insurance penetration in the region, currently less than 3 per cent of the GDP, and the rising affluence and more disposable income among the middle class, are also expected to increase demand for insurance products.

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