Insurance In Africa Research Articles

Breaking Down Barriers: Preparing Africa's Insurance Market for AfCFTA Success

This article examines the regulatory challenges that affect the readiness of the African insurance sector for expansion and integration under the African Continental Free Trade Area (AfCFTA) framework. Employing a mixed-methods research design, the study integrates qualitative interviews with senior industry executives and quantitative survey data from key stakeholders to identify and evaluate the primary regulatory barriers impeding market preparedness. The analysis reveals several critical obstacles, including regulatory fragmentation, inconsistent enforcement of standards, and inadequate cross-border coordination. The findings suggest that addressing these challenges is crucial for realizing the full potential of AfCFTA in the insurance sector. The article concludes by providing strategic recommendations aimed at fostering regulatory coherence, enhancing market readiness, and supporting sustainable growth across Africa’s insurance markets.

Trust, Socioeconomic Factors, and Institutional Dynamics in Africa's Emerging Insurance Market

The study investigates the causality link between trust and insurance market development and the influence of socioeconomic and institutional factors on trust in insurance in the emerging market context. Relying on dual theories of bounded rationality and opportunism, VAR Granger Causality Test and the Two-Stage Least Squares (2SLS) analytical approaches, and a contextualised understanding of Africa's insurance market, the study finds a unidirectional causal link from trust to insurance market development, which suggests that market activities are driven by trust in insurance. Additionally, results show that trust in insurance is driven by socioeconomic and institutional factors in Africa’s insurance market. Against expectation, however, income inequality increases trust in insurance. But as expected, corruption reduces trust in insurance and human capital development increases it. The paper recommends reforms targeted at increasing trust within the socioeconomic and institutional framework. The findings provide useful insights into the growth paths of emerging insurance markets, which adds significantly to extant knowledge on the connection between trust and financial exchanges.

Invisible illness: The consequences of limited health insurance in Africa.

Limited health insurance coverage in Africa poses a significant challenge, impeding access to quality healthcare for millions of individuals. This paper synthesizes information from existing literature and research on the topic of limited health insurance coverage in Africa. The identified consequences and root causes are presented in a structured format. The consequences of limited health insurance coverage in Africa include increased financial burden on households, decreased access to health services, and inadequate coverage for essential health services. These consequences contribute to reduced utilization of healthcare services and negative health outcomes, including the deterioration of existing health conditions and the development of new health problems. The financial burden is particularly significant due to high poverty rates in Africa, forcing households to pay for healthcare services out of pocket and leading to considerable financial strain and even financial ruin. Additionally, limited health insurance coverage restricts access to necessary health services, resulting in delayed treatment, missed diagnoses, and poor health outcomes. The root causes of limited health insurance coverage in Africa are multifaceted and include factors such as poverty, lack of government support, and limited private-sector involvement. These systemic issues contribute to the persistence of inadequate health insurance coverage and hinder efforts to improve access to quality healthcare for African populations.

Evaluation of the Effects of Introducing Risk Management Tools in Agricultural Development: The Case of PADAER Senegal

This study aims to assess the effects of risk management tools on the agricultural performance of rural producers benefiting from the joint support of the Senegalese state and the International Fund for Agricultural Development (IFAD) through the co-financed project PADAER. Data collection covers two regions in Senegal: Kolda and Tambacounda. The sample comprises 1167 farmers, including 379 beneficiaries of the index-based insurance facilitated by PADAER (Programme d’Appui au Développement Agricole et à l’Entreprenariat Rural). The quasi-experimental method known as the propensity score matching method was used to determine the impact of subscribing to index-based insurance on the farmer’s production, agricultural investments, and annual income. Although the results of the estimates show that the project has not yet had any effect on production, without the intervention of this project, farmers would have recorded a loss of about USD 115 (FCFA 57,600). Not only did the index-based insurance for the harvest facilitated by the PADAER allow the beneficiary to cover this loss and realize a gain estimated at USD 25 (FCFA 12,749), but the added value of this paper is that it measures the effects of agricultural index-based insurance in Africa using real-world statistical data.

Economic Growth and the Insurance Sector in South Africa: Toda-Yamamoto

Abstract. Introduction. The connection between the real economy and the financial sector continues to be a subject of debate amongst scholars. There is a plethora of studies dedicated to unravelling the relationship between economic activity and financial progress. However, a large share of those studies has concentrated on banking and the capital market industries; the studies that have undertaken to decipher the connection between the insurance industry and prosperity in the economy are insufficient. Purpose. This study attempts to explore the link between South Africa's insurance industry and economic growth. The study made use of secondary time-series quarterly data and employed the Toda-Yamamoto (non-Granger causality) test. Results. Firstly, the findings show a uni-directional causal relationship running from long-term insurance to GDP percapita. Implying that the South African long-term insurance sector is supply-leading. Secondly, the results revealed that GDP percapita and the short-term insurance sector are interdependent (bi-directional relationship). Lastly, the findings showed a unidirectional causal relationship between GDP per-capita and total insurance assets. Conclusions. The results imply that the South African total insurance sector is supply-leading.

RELATIONSHIP MARKETING AND MARKET PENETRATION OF INSURANCE IN LAGOS STATE, NIGERIA

<p>The relevance and contribution of insurance in nation building cannot be overemphasized. The insurance industry remains a major constituent and force in the global economy by virtue of the volume of resources it controls as premiums are collected and consequently its investment scale. Notwithstanding, customer patronage of insurance in Africa (except South Africa) is abysmally poor. Similarly, insurance market penetration in Nigeria is dismally low in comparison with other nations in Africa and beyond. While insurance penetration remains low at 0.4%, only 1.7 % of over 190 million people have insurance in place. This has been attributed largely to consumer apathy and subsequent low market penetration of insurance services. In order to help in identifying the areas that call for improvement, this study evaluated customer relationship marketing dimensions and market penetration of insurance in Lagos State, Nigeria. The study adopted a survey research design. The population of the study consisted of 375,000 estimated consumers of insurance services in Lagos State, Nigeria. A sample size of 1,650 consumers was drawn from selected Local Government Areas of Lagos State through the non-probability sampling technique. A questionnaire titled relationship marketing and market penetration of insurance was adapted and validated. The Cronbach’s Alpha coefficient for the constructs ranged between 0.76 and 0.90. A total of 1,650 copies of the questionnaire were administered, with a response rate of 80%. The data were analyzed using descriptive and inferential (multiple linear regression analysis) statistics. The findings revealed that relationship marketing has significant influence on market penetration of insurance (Adj. R2 = 0.124; F (5, 1306) = 38.222, p<0.05). Significant positive relationships were also found between some of the relationship marketing constructs and market penetration of insurance. The study concluded that relationship marketing dimensions of customer awareness, customer trust, customer service quality, product innovation and customization, and customer satisfaction are significant predictors of market penetration of insurance in Lagos State, Nigeria. Thus, to influence the market penetration of insurance, the adoption of relationship marketing is highly recommended.</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0565/a.php" alt="Hit counter" /></p>

Universal health insurance in Africa: a narrative review of the literature on institutional models

IntroductionSeveral African countries have introduced universal health insurance (UHI) programmes. These programmes aim to extend health insurance to groups that are usually excluded, namely informal workers and the indigent. Countries...

Ghana: health system review 2021

Abstract A health system review provides a detailed description of a health care system and of reform and policy initiatives in progress or under development. The health system review of Ghana serves as an effort to also assess the system's performance towards the attainment of universal health coverage (UHC). A workshop was organized in 2018 to develop a template for writing the health system review of Ghana. This serves as a pilot study to test the feasibility of using a template somewhat like that of the WHO European Observatory on Health Systems and Policies for writing health system reviews of African countries. The health system review of Ghana is the first to be written for an African country modelled after the HiT reviews by the European Observatory. One key characteristics of the health system of Ghana is the introduction and reform of the national health insurance scheme (NHIS) in 2003 and 2012 respectively. About 40% of the population are enrolled and 60% enrolled are exempted from premium payments. Ghana has since 2010 scaled-up a national telemedicine programme, becoming one of the first adopters and innovators in Africa to integrate digital health technologies into mainstream health care system. Since 2018, Ghana has implemented the NHIS mobile renewal service, which allows payment of health insurance coverage using mobile money technologies. Ghana is one of the first countries to introduce a nationwide health insurance in Africa. The NHIS is one significant effort towards health systems strengthening and achieving UHC. Enrolment in in the NHIS contributes to better access to health care and improved financial protection. However, not only is population coverage low, but there is a serious concern about the system's financial sustainability. A promising approach is to improve the mobile-money based intervention through the high mobile-phone penetration rates in Ghana to enable more effective household saving arrangements towards UHC. Key messages Ghana presents important lessons, including the introduction of a national health insurance. This contributes to better access to health care and improved financial protection. Ghana is exploiting the use of mobile phone technologies and has become one of the first adopters and innovators in Africa to integrate digital health technologies into mainstream health care system.

Determinants of uptake and strategies to improve agricultural insurance in Africa: a review

AbstractWeather shocks affect smallholder farmers and pastoralists in Sub-Saharan Africa unequally. Agricultural insurance has emerged as a safety net option to protect farmers’ welfare. However, in comparison to other regions, fewer African farmers and pastoralists have adopted agricultural insurance. This review synthesises broad recent literature on why insurance take-up has remained low and highlights six key themes, including: (1) product quality, (2) product design, (3) affordability, (4) information and education, (5) behavioural and sociocultural factors, and (6) the role of government in enabling markets. We shed light on how insurance uptake can be encouraged.

Social Health Insurance in Africa: Lesson from Ghana

This paper discusses social health insurance, healthcare utilization, financial protection and quality of care. The primary purpose of the research is to provide an overview of evidence from up-to-date studies about the effects of Ghana’s Social Health Insurance Scheme on improving access to healthcare, reducing financial hardship, and providing quality care for the insured. Systematization of the literary sources indicates that healthcare costs hinder poor people from accessing healthcare services when needed. Social health insurance is one intervention used to support individuals to access healthcare services irrespective of their socioeconomic status. The methodological basis of this study is a systematic literature review through the searches of PubMed and Google Scholar databases. The author included studies that assessed the effects of SHI on financial protection, access to healthcare and quality of care. He also excluded studies with limitations that will hinder the reliability of the review’s findings. The author screened, extracted data and cross-checked the extracted data. The systematic review presents the results of an empirical analysis, which identified 209 articles and included 14 studies in this review: financial protection (7 studies), healthcare utilization (4 studies) and quality of care (4 studies). Among these studies, one study reported both utilization and financial protection. These studies were published between 2014 and 2020. social health insurance provides strong evidence of a positive impact on improving access to healthcare and protecting insurees against financial hardship. However, most insured people were not satisfied with the quality of care from the social health insurance providers. The results of this review remain relevant to policymakers, especially in developing countries where social insurance is not available for poor and vulnerable people. With the political will and determination, social health insurance is possible in any developing country.

Information Asymmetry and Insurance in Africa

ABSTRACT In this study, we assess the relevance of decreasing information asymmetry on life and non-life insurance consumption, by using data from 48 African countries during the period 2004–2014. Reduced information asymmetry is proxied by information sharing offices, namely: public credit registries and private credit bureaus. The empirical evidence is based on the Generalized Method of Moments. The findings show that information sharing offices increase insurance consumption with a comparatively higher magnitude in life insurance penetration, relative to non-life insurance penetration. Practical and theoretical implications are discussed.

Enhancing ICT for Insurance in Africa

This study assesses how enhancing information and communication technology (ICT) affects life insurance and non-life insurance in a panel of forty-eight African countries with data for the period 2004-2014. The adopted ICT dynamics are: mobile phone penetration, internet penetration and fixed broadband subscriptions. The empirical evidence is based on Generalized Method of Moments. The results show that enhancing mobile phone penetration and fixed broadband subscriptions has a positive net effect on life insurance consumption while enhancing fixed broadband subscriptions also has a positive net impact of on non-life insurance penetration.

Information Asymmetry and Insurance in Africa

In this study, we assess the relevance of decreasing information asymmetry on life and non-life insurance consumption, by using data from 48 African countries during the period 2004-2014. Reduced information asymmetry is proxied by information sharing offices, namely: public credit registries and private credit bureaus. The empirical evidence is based on the Generalised Method of Moments. The findings show that information sharing offices increase insurance consumption with a comparatively higher magnitude in life insurance penetration, relative to non-life insurance penetration. Practical and theoretical implications are discussed.

Is it Cash or Card? National Health Insurance Scheme of Tanzania: A Decade and Half of Progress

This paper explores the perspectives of Tanzanians since the introduction of the National Health Insurance Fund (NHIF) a decade and half ago. It examines the key objectives of the program by evaluating the impact of this program in meeting the health needs of Tanzanians. The study addressed specifc challenges posed by the program and experiences users have with the program. Study was undertaken in eastern Tanzania. Several respondents mentioned the easy access to better health provided by the scheme at a lower cost. Though several decried the poor quality of services and the rather limited options for accessing health care, most were of the view that Tanzania is on the right track in expanding health coverage to its citizens. As we better understand the role of social health insurance in Africa, the Tanzanian experience offers a window on how to expand health coverage to millions of Tanzanians.

Technology, Education, Life and Non-life Insurance in Africa

ABSTRACT This article examines the relevance of information and communication technology (ICT) in modulating the effect of education on life insurance and non-life insurance consumption in 48 African countries for the period 2004–2014. The empirical evidence is based on generalized method of moments. The following main findings are established. First, from the nexuses between education, ICT and life insurance, there are positive conditional effects from the interaction between: (i) broadband subscriptions and primary school enrollment; (ii) broadband subscriptions and secondary school enrollment and (iii) internet penetration and tertiary school enrollment. Second, from the nexuses between education, ICT and non-life insurance: (i) there is a negative net effect from the interactions between mobile phone penetration and primary education while positive net effects are apparent from the interactions between: mobile phone penetration and secondary school enrollment; secondary school enrollment and broadband subscriptions and; tertiary school enrollment and broadband subscriptions.

Health Insurance in Sub-Saharan Africa: A Scoping Review of the Methods Used to Evaluate its Impact.

We conducted a scoping review with the objective of synthesizing available literature and mapping what designs and methods have been used to evaluate health insurance reforms in sub-Saharan Africa. We systematically searched for scientific and grey literature in English and French published between 1980 and 2017 using a combination of three key concepts: “Insurance” and “Impact evaluation” and “sub-Saharan Africa”. The search led to the inclusion of 66 articles with half of the studies pertaining to the evaluation of National Health Insurance schemes, especially the Ghanaian one, and one quarter pertaining to Community-Based Health Insurance and Mutual Health Organization schemes. Sixty-one out of the 66 studies (92%) included were quantitative studies, while only five (8%) were defined as mixed methods. Most studies included applied an observational design (n = 37; 56%), followed by a quasi-experimental (n = 27; 41%) design; only two studies (3%) applied an experimental design. The findings of our scoping review are in line with the observation emerging from prior reviews focused on content in pointing at the fact that evidence on the impact of health insurance is still relatively weak as it is derived primarily from studies relying on observational designs. Our review did identify an increase in the use of quasi-experimental designs in more recent studies, suggesting that we could observe a broadening and deepening of the evidence base on health insurance in Africa over the next few years.Electronic supplementary materialThe online version of this article (10.1007/s40258-019-00499-y) contains supplementary material, which is available to authorized users.

Technology, Education, Life and Non-Life Insurance in Africa

This article examines the relevance of information and communication technology (ICT) in modulating the effect of education on life insurance and non-life insurance consumption in 48 African countries for the period 2004-2014. Education is measured with primary school, secondary school and tertiary school enrollments. ICT is measured with mobile phone, internet and broadband subscriptions. The empirical evidence is based on generalized method of moments. The following main findings are established. First, from the nexuses between education, ICT and life insurance, there are positive conditional effects from the interaction between: (i) broadband subscriptions and primary school enrollment; (ii) broadband subscriptions and secondary school enrollment and (iii) internet penetration and tertiary school enrollment. Second, from the nexuses between education, ICT and non-life insurance: (i) there is a negative net effect from the interactions between mobile phone penetration and primary education while positive net effects are apparent from the interactions between: mobile phone penetration and secondary school enrollment; secondary school enrollment and broadband subscriptions and; tertiary school enrollment and broadband subscriptions.

Time to abandon amateurism and volunteerism: addressing tensions between the Alma-Ata principle of community participation and the effectiveness of community-based health insurance in Africa

### Summary box The 1978 Alma-Ata declaration asserted that primary healthcare ‘requires and promotes maximum community and individual self-reliance and participation in the planning, organisation, operation and control of primary...

Adoption and impact of credit-linked crop index insurance: a case study in Mali

Linking insurance with credit is a promising approach towards overcoming the main difficulties of scaling up crop insurance in Africa. The current research revealed that credit-linked crop insurance adopters in Mali were on average larger households than non-adopters, were living more often from subsistence agriculture, were less patient and less likely to produce maize, while operating on smaller farms. However, propensity score matching revealed that changes in terms of production decisions or wellbeing were limited compared to credit-users. To achieve scaling, linking crop insurance with credit should not only be beneficial for banks to limit their exposure (on a mandatory basis), but should become beneficial as well for smallholders (in terms of better access to credit, lower interest rates or less required collateral).

Adoption and impact of credit-linked crop index insurance: a case study in Mali

Linking insurance with credit is a promising approach towards overcoming the main difficulties of scaling up crop insurance in Africa. The current research revealed that credit-linked crop insurance adopters in Mali were on average larger households than non-adopters, were living more often from subsistence agriculture, were less patient and less likely to produce maize, while operating on smaller farms. However, propensity score matching revealed that changes in terms of production decisions or wellbeing were limited compared to credit-users. To achieve scaling, linking crop insurance with credit should not only be beneficial for banks to limit their exposure (on a mandatory basis), but should become beneficial as well for smallholders (in terms of better access to credit, lower interest rates or less required collateral).