In an era of trade disruption, currency swings, and political uncertainty, businesses across Africa and the Middle East – MEA are rethinking how they manage risk. Insurance, once seen mainly as a safety net, is increasingly viewed as a tool that supports growth, trade, and confidence in emerging markets.
As cross-border trade within Africa expands, and links between the Middle East and global markets deepen. Demand is rising for insurance solutions that go beyond traditional risk transfer. Companies want protection that is simple, fast, and informed by local realities.
“Businesses today require protection that is simplified, digital, and intuitive. At the same time still grounded in a strong understanding of local political and economic conditions.” Says Christine Gikunda, principal officer at EIRS [Pty] Limited – Kenya. She notes that this shift reflects a broader change in how firms view insurance, from a reactive cost to a strategic enabler.
From Insurance as a Safety Net to Strategy
The opportunity is significant, but so are the challenges. According to the Deloitte Africa Insurance Outlook, East Africa’s insurance sector has shown resilience despite economic pressure and geopolitical risk. In 2022, regional insurance penetration stood at 1.4 percent. Kenya led with 2.14 percent, while Tanzania, Uganda, and Ethiopia recorded 0.62 percent, 0.74 percent, and 0.3 percent, respectively. These figures point to both growth potential and structural gaps.
Regulatory changes, climate-related shocks, and upcoming election cycles are expected to test the market. Yet analysts remain cautiously optimistic. Expanding regional trade frameworks, rising foreign investment, and supply chain diversification are supporting demand for trade credit and political risk solutions.
Risk specialists argue that data-led insights and strong partnerships with global insurers and reinsurers are becoming essential, especially for complex cross-border deals. Faster risk assessment and clearer decision-making are now critical advantages.
“Effective risk management in Africa and the Middle East requires more than standard insurance products,” says Abhishek Jain, CEO at EIRS. “It requires local knowledge combined with strong analytics to spot risks early and support informed decisions.”
Looking ahead, the role of insurance in the region appears set to evolve further. As access to finance, trade resilience, and economic stability become more connected, protecting cash flow and managing political risk are increasingly seen as foundations for long-term competitiveness, not optional extras.
