Digital Insurance: Opportunities For Businesses In Africa

digital insurance

Digitising insurance in Africa would play a vital role in inclusive development across the continent. As the name reads, it suggests that digital insurance is an insurance policy offered online or via a mobile app. The term has evolved to accommodate trends like embedded insurance. 

For insurance and non-insurance businesses, digital insurance will guarantee against colossal capital investment and credit to distribute insurance. It reduces time-to-market and therefore increases the willingness of insurance and non-insurance businesses to sell insurance, which might be especially important to protect Africans from financial loss.

According to observers in the sector, digital insurance adoption is bound to grow with the higher participation by traditional insurance companies in Africa. When this happens, it can fast-track the high demand for insurance in Africa. So, what opportunities does digital insurance create for insurance and non-insurance businesses in Africa? 

Scalability and Flexibility

African businesses that embrace digital insurance can scale their operations effectively and quickly through the use of cloud technology. Cloud technology offers flexibility and noticeably reduces the overhead costs of operation. Insurance operating software built by Octamile’s engineering team ensures that your Whitelabel insurance software is scalable when the need arises, frequently updated, maintained and does not require huge investments in hardware to get started. The speed and flexibility of a solution like Octamile’s insurance OS allow businesses to replicate their successful business models faster.

Speeds Development through Competition and Innovation

Competition in the digital insurance market will prompt massive development and disruption in the African insurance market. Insurance providers can utilise innovation to target niche sections of underserved markets or policy administrations and cut their business expenses. As digital insurance platforms become popular in the market, new customers will be acquired and reshape how incumbents think about delivering value to consumers.

Creation of Beneficial Partnerships

When  MTN and Airtel Nigeria announced licenses to offer digital finance solutions, many saw a threat for challenger finance brands. In reality, it provides a huge opportunity to entrench digital insurance through building partnerships. Such partnerships between traditional insurance, insurtechs and mobile network operators to offer insurance will help diversify the operators’ income streams, simplify insurance access, grow the incumbent’s portfolio and enhance customer loyalty. 

New data points from operators can further help the insurance ecosystem understand the behavioural tendencies of underserved sectors. It would lead to more tailored policy products for the target customer and rapidly increase their reach. 

Also, partnerships with mobile network operators permit insurance and non-insurance businesses to profit from the partner’s brand image and reinforce trust in the insurance market. 

In conclusion, insurance and non-insurance companies that bank on the digital insurance opportunities to further develop their margins will gain a significant portion of the overall industry in Africa as the industry keeps growing. 

Achieving it will require expanding technology data, creating innovative products, recapitalising and solidifying investment. After taking on these strategies, successful businesses will help create and promote the digital insurance culture. They will also benefit from seeing their brands as pioneers of digital insurance solutions in Africa.

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