State Minister of Finance (General Duties), Hon. Amos Lugolobi, emphasized the critical need for African insurance leaders to adopt digital transformation in their operations to effectively manage business and administrative costs. Speaking at the Africa Innovation for Resilience (AIR) Conference 2024 in Kampala, Hon. Lugolobi highlighted the rapid evolution of digital technologies in sub-Saharan Africa,
“Digital technologies are rapidly changing the insurance landscape in sub–Saharan Africa and have the potential to enhance financial inclusion by providing access to unserved and underserved customers”, stated Hon. Lugolobi.
Supporting this call was Alhaj Kaddunabbi Ibrahim Lubega, the Chief Executive Officer of the Insurance Regulatory Authority of Uganda (IRA), who stressed technology’s pivotal role in fostering sustainable resilience amid current economic challenges. According to Alhaj Kaddunabbi, “Technological advancements are revolutionising how we assess risk, underwrite policies and settle claims. By leveraging these technologies, we can enhance efficiency, reduce costs and provide more personalised and accessible insurance products”.
He highlighted the low insurance penetration across Africa, citing figures below 5% in most countries compared to other economic sectors. He pointed out initiatives by the IRA, including the Insurance Regulatory Sandbox introduced in December 2020.
“To bolster the sandbox, we partnered with the Innovation Village to establish the InsureX program, enabling the IRA to provide incubation services to startups and FinTechs”, said Alhaj Kaddunabbi.
So far, the IRA Regulatory Sandbox has seen 8 applications, 4 of which have been approved, while the first cohort of the InsureX program had 9 applications, with 7 graduating in October 2023. Alhaj Kaddunabbi noted significant progress with 8 applications, 4 of which have been approved, while the first cohort of the InsureX program had 9 applications, with 7 graduating in October 2023”.
The Africa Innovation for Resilience Conference 2024, organized by FSD Africa’s Bimalab Accelerator in collaboration with Uganda’s Insurance Regulatory Authority, drew over 200 dignitaries from across the continent. Themed “Harnessing Innovation for Resilience,” the event explored critical topics such as climate resilience, digital innovation, regulatory frameworks, and gender integration in the insurance sector.
This conference underscored the transformative potential of digital innovation in advancing insurance accessibility and resilience across Africa, marking a pivotal moment for industry stakeholders to embrace technological advancements for sustainable growth and development.