By S, KNA
Africa’s insurance sector is poised for a significant transformation as industry leaders, innovators, regulators, and investors convened at the BimaLab Africa InsurTech Summit 2025 in Nairobi to explore strategies for inclusive growth, innovation, and resilience.
The two-day summit, themed “Insuring Africa’s Future: Innovation, Inclusion and Investment”, aims to address the low insurance penetration across the continent and highlight the potential of technology-driven solutions in reaching underserved populations.
Speaking at the opening ceremony on Wednesday, Godfrey Kiptum, Commissioner of Insurance at the Insurance Regulatory Authority (IRA), said insurance remains a critical tool for promoting financial inclusion, economic resilience, and social stability, particularly among low-income households, smallholder farmers, women entrepreneurs, and communities exposed to climate and economic shocks.
“Insurance is not just a financial product; it is a foundation for resilience, stability, and opportunity. Across Africa, innovators are leveraging digital technologies to solve long-standing challenges where traditional insurance models are too costly or inaccessible,” Kiptum said.
He highlighted parametric and index-based insurance, artificial intelligence, blockchain, and Internet of Things (IoT) enabled solutions as transforming how risks are assessed, monitored, and mitigated.
Kiptum emphasised that collaboration is essential for sector growth. “Innovation cannot thrive in isolation. Insurance requires access to capital, partnerships with insurers, regulatory clarity, and support from global partners to scale,” he said.
He also pointed to the role of regulatory sandboxes and forward-looking guidelines in enabling startups while ensuring consumer protection.
Kelvin Massingham, Director of Adaptation and Resilience at Financial Sector Deepening (FSD) Africa, praised the summit as a catalyst for nurturing Africa’s InsurTech ecosystem.
He noted that BimaLab, established in 2020 within the IRA before being adopted by FSD Africa, has grown significantly, supporting 135 InsurTech startups across 28 countries, developing over 150 products and reaching more than six million customers.
“Our ambition is to see Africa’s first unicorn in the InsurTech space emerge from BimaLab,” Massingham said. “Startups face numerous challenges, but access to mentors, investors, and regulators reduces these obstacles. The summit provides a unique ecosystem that fosters innovation and accelerates growth.”
Massingham drew parallels with Kenya’s fintech revolution, citing the success of M-Pesa and fintech unicorns like Chika Cash in demonstrating Africa’s potential to leapfrog legacy systems in insurance through digital solutions.
He emphasized that collaboration with regulators and stakeholders is key to enabling startups to innovate responsibly while scaling effectively.
Meanwhile, Daniel Mainda, Chief Executive Officer of the Nairobi International Financial Centre Authority (NIFCA), urged public and private institutions to create investment-friendly environments that support inclusive insurance.
He said Kenya is strategically positioning itself as a continental hub for startups, technology, and innovation, with the Nairobi International Financial Centre (NIFC) serving as an anchor.
“The rise of macro-insurance, parametric solutions, AI-driven risk assessment, and community-based distribution models demonstrates the transformative intersection between technology and inclusive insurance,” Mainda said. “Our goal is to ensure Africa builds resilient financial systems that protect lives, safeguard communities, and unlock sustainable growth.”
The summit brought together insurers, startups, investors, regulators, development partners, academia, and service providers to share insights, forge partnerships, and showcase innovative products. Discussions over the two days include panels, workshops, and masterclasses aimed at expanding insurance access for underserved communities, empowering women and youth, and enhancing resilience against climate and economic risks.
Participants also explored strategies to stimulate investments in InsurTech startups, design innovative products for low-income households and SMEs, and strengthen collaboration between regulators, insurers, and innovators.
“The summit is more than an event; it is a movement to redefine insurance in Africa,” Kiptum said. “By working collectively, we can ensure that insurance is not just a business opportunity but a tool to protect lives, empower families, and strengthen communities.”
With Africa’s insurance penetration currently below three percent of Gross Domestic Product (GDP), the summit’s focus is on innovation, inclusion, and investment.
Industry players say digital tools, partnerships, and forward-looking policies can bridge the gap, transforming insurance into a cornerstone of economic and social resilience across the continent.