Insurance regulators’ response to COVID-19

The report analyzes how insurance regulators in 31 sub-Saharan African countries responded to COVID-19, proposing a four-phase framework (Identify, Implement, Monitor, Adapt) to handle systemic risks. Key findings highlight the importance of risk-based supervision (RBS), proactive digital communication, and the need for real-time data via Suptech. It also identifies emerging future risks, including climate change, cyber-security, and political unrest.

• Regulators face a critical trade-off between maintaining financial stability (prudential mandate) and ensuring consumer protection (market conduct mandate) during crises. For example, the Insurance Regulatory Authority (IRA) in Uganda prioritized policyholders by requiring insurers to cover COVID-19 health claims despite policies generally excluding pandemics.
• Relying solely on routine quarterly and annual reports is insufficient for understanding systemic risks, as these tools lack the speed and scope required for timely decision-making. Some regulators, such as the Pensions and Insurance Authority (PIA) in Zambia, remained dependent on these reports, which hindered their ability to pronounce the mid-term impact of the pandemic.
• Risk-based supervision (RBS) is more effective than compliance-based approaches for monitoring industry weaknesses and guiding proportionate responses. Regulators in Namibia (NAMFISA), Zambia (PIA), and Zimbabwe (IPEC) noted that compliance-based requirements made it harder to identify entities in distress.
• Proactive engagement and coordination between different regulatory authorities are essential to avoid regulatory uncertainty. In South Africa, the Prudential Authority (PA) and Financial Sector Conduct Authority (FSCA) issued joint communications on business interruption insurance to ensure cohesion.
• The adoption of Supervisory Technology (Suptech) can shift monitoring from a 'backward-looking' process to a predictive and proactive one, reducing compliance costs and increasing efficiency. However, the pandemic delayed the implementation of online reporting platforms for CIMA and the PIA.
• Non-binding recommendations, such as allowing premium holidays, foster trust and support consumers without requiring onerous legislative changes. 47% of surveyed industry respondents stated that supervisor-allowed premium holidays supported their business.
• Requiring the submission of business continuity plans (BCPs) and stress tests enhances industry preparedness for future risks. The IRA in Uganda reviewed BCPs for adequacy, while the PIA in Zambia mandated stress tests on liquidity, capital adequacy, and solvency.
• Regulators are increasingly concerned about future systemic risks, specifically climate change, cyber-security, and political unrest. The PA in South Africa is exploring incorporating climate risk into industry stress testing, while IPEC in Zimbabwe is considering cyber risk frameworks.

APA

Beyers, N., Scribante, K., & Gray, J. (2022). Insurance regulators’ response to COVID-19. FSD Africa. https://fsdafrica.org/wp-content/uploads/2025/05/Insurance-regulators-response-to-COVID-19_March-2022.pdf

Chicago

Beyers, Nichola, Karien Scribante, and Jeremy Gray. Insurance regulators’ response to COVID-19. FSD Africa, 2022. https://fsdafrica.org/wp-content/uploads/2025/05/Insurance-regulators-response-to-COVID-19_March-2022.pdf.

Wikipedia

{{cite report |last1=Beyers |first1=Nichola |last2=Scribante |first2=Karien |last3=Gray |first3=Jeremy |title=Insurance regulators’ response to COVID-19 |publisher=FSD Africa |date=March 2022 |url=https://fsdafrica.org/wp-content/uploads/2025/05/Insurance-regulators-response-to-COVID-19_March-2022.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{beyers2022insurance, author = {Beyers, Nichola and Scribante, Karien and Gray, Jeremy}, title = {{Insurance regulators’ response to COVID-19}}, institution = {FSD Africa}, year = {2022}, month = mar, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Insurance-regulators-response-to-COVID-19_March-2022.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }