OESAI aiming to facilitate conducive business environment for Insurance sector

The 42nd Annual conference of the Organization of Eastern and Southern African Insurers (OESAI) has kicked off with the theme 'Creating the Future of Insurance Now'. This event, happening in Rwanda, comes at a time when the insurance industry in the region has been witnessing significant developments. From a surge in car insurance tariffs by up to 73 per cent to major consolidation and mergers among insurance companies, the landscape is evolving rapidly. To shed light on these trends and explain their impact on the sector, CNBC Africa sat down with the Secretary General and CEO of OESAI, Linet Macharia. The discussion delved into the importance of increasing insurance penetration on the continent and the efforts being made to facilitate a conducive business environment for insurers. Macharia highlighted key factors driving these changes and the strategies being implemented by OESAI to support the growth of the insurance industry. One of the critical issues addressed was the recent acquisitions and mergers within the sector. Macharia emphasized the significance of having financially stable insurance companies to provide consumer protection. She pointed out that the influx of foreign investments in acquiring local insurers signifies the potential and growth opportunities present in the African insurance market. The consolidation of companies aims to strengthen the industry and reassure consumers about the stability of their insurance providers. Furthermore, Macharia addressed the issue of rising insurance premiums, particularly in the car insurance segment. She attributed this trend to the need for insurance companies to price their products adequately in response to increased claims and challenging economic conditions. The lack of understanding about insurance concepts among consumers was also identified as a contributing factor to pricing dissatisfaction. Macharia emphasized the importance of educating the public about the role of insurance in providing financial security and managing risks. Additionally, she underscored the role of research and advocacy in shaping favorable policies and regulations for the insurance sector. OESAI's focus on supporting research and innovation aims to empower young insurance professionals to contribute ideas for enhancing the industry. By advocating for policies that create a conducive business environment, OESAI seeks to drive the growth of insurance penetration in Africa. With the continent having some of the lowest insurance penetration rates globally, there is immense potential for expanding the reach of insurance services to more people. As OESAI continues to collaborate with insurance companies across Eastern and Southern Africa, its efforts are geared towards fostering a thriving insurance market that benefits both businesses and consumers.