Despite growing innovation in insurance products across Africa, particularly in climate and agriculture, weak trust at community level and persistent data gaps continue to undermine uptake and long-term sustainability. Tom Gitogo, the Group Managing Director and CEO of Britam, said that even where innovative products such as parametric insurance have demonstrated real impact in responding to disasters, sustaining participation over time remains a major hurdle. Speaking during a panel discussion at the annual general meeting of ZEP-RE (PTA Reinsurance Company) - a regional reinsurer owned by member states of the Common Market for Eastern and Southern Africa (COMESA) - he noted that while communities often embrace such solutions in the immediate aftermath of shocks, that momentum tends to fade as the sense of urgency declines. “Some of these products take hold in the first and second year, but over time, communities move on with their lives and stop paying premiums. Maintaining that long-term commitment remains a challenge,” he said. Gitogo explained that this pattern reflects a deeper issue of how insurance is perceived at the community level, particularly in low-income and climate-exposed areas where priorities shift quickly after recovery. “Affordability and understanding of insurance products play a role in weakening long-term engagement, especially where products are new or not fully understood. Even when premiums are subsidised, if people do not fully understand how the product works or what they are paying for, it becomes difficult to sustain participation,” he said. ALSO READ: Insurers' body vows to address delays in paying private health facilities Gitogo emphasised that beyond product innovation, there is a need for continuous engagement, education, and trust-building to ensure that insurance schemes remain relevant and valued over time. “It is not just about designing the product. It is about keeping people engaged, helping them see consistent value, and building confidence in the system,” he said. Data, policy constraints Hope Murera, Managing Director and Group CEO at ZEP-RE, said that the lack of reliable, locally generated data to support risk pricing and product design, is a gap that continues to limit the effectiveness and scalability of insurance solutions across the continent. “Many insurers still rely on external datasets that do not fully reflect Africa’s climate patterns and risk realities, often leading to pricing distortions that make products either unaffordable for communities or unsustainable for providers,” she said. Murera said that the challenge becomes evident at the product development stage, where limited data forces insurers to rely on assumptions rather than precise risk modelling. “When we are designing some products, there are significant data gaps, and that makes it difficult to price accurately. It shows how important it is for us to work together to build stronger data systems that reflect our own realities,” she said. She added that without stronger local data infrastructure, insurers will continue to struggle to design products that are both affordable and trusted by communities, particularly in high-risk sectors such as agriculture and disaster risk financing. ALSO READ: Chief Justice sounds alarm over rising insurance disputes From a policy standpoint, Grace Muradzikwa, the Commissioner of Insurance, Pensions and Provident Funds in Zimbabwe, said governments are increasingly turning to insurance as a tool for fiscal resilience, particularly as the cost of responding to disasters continues to place pressure on already constrained public budgets. Across many African countries, she said, disaster recovery is largely financed by governments, often forcing budget reallocations away from development priorities. This has pushed policymakers to look at insurance not just as a private sector product, but as a strategic instrument for managing national risk. “This shift comes with growing expectations for insurers to play a more active role in supporting national resilience, especially by designing solutions that respond to real economic pressures,” she said. She emphasised that for partnerships to work, insurers must align more closely with government priorities and approach engagement with practical, implementable solutions rather than highlighting challenges alone. “When you approach the government, you must bring a solution. Partnerships are most effective when insurers come with solutions, particularly in a context where fiscal space is limited and disaster-related costs are rising,” she added. Adalbert Rukebanuka, the Director General of Policy, Planning and Risk Reduction, the Ministry in Charge of Emergency Management, said that beyond trust and data gaps, the structure of capital within the insurance sector remains a critical constraint. “The capital available to insurers is commercially driven, often requiring short-term returns that are not aligned with the long-term nature of climate and disaster risk financing. This limits the ability of insurers to scale products targeted at vulnerable communities or high-risk sectors such as agriculture,” he said. Rukebanuka said that while demand for insurance solutions is growing rapidly, the type of capital needed to support them sustainably is still lacking. “The demand is significant, but the capital available is largely commercial in nature. What is needed is more patient, impact-driven capital that can support these solutions over the long term,” he said. A stronger collaboration between governments, development partners and the private sector, he added, should crowd in blended finance, which combines public and private resources to de-risk investments and make insurance products more accessible and sustainable.
