Key trends on: How the insurance sector in Eastern and Southern Africa is being impacted by and responding to COVID-19

This fact sheet presents findings from a June 2020 survey of 68 insurance sector players across 19 jurisdictions in Eastern and Southern Africa, conducted by FSD Africa, the Organisation of Eastern and Southern Insurers (OESAI), and Cenfri. The document details how COVID-19 accelerated digitalization, negatively impacted operational stability and premium collection, and highlighted gaps in risk coverage for businesses.

• Digital sales and remote onboarding face significant hurdles, particularly for insurers and microinsurers. Only 17% of insurers and 6% of microinsurers currently use remote KYC onboarding. The primary barriers cited by insurers are a lack of internal systems and uncertainty regarding whether regulations permit such practices.
• The pandemic negatively impacted core business operations, leading to widespread reductions in new sales, premium collections, and renewals. Over 50% of respondents reported these reductions. Consequently, there are high levels of concern regarding prudential stability, specifically concerning liquidity, solvency, and the maintenance of minimum capital requirements.
• Insurers have implemented temporary relief for consumers, such as communication campaigns to clarify coverage (57% yes, 24% in progress) and extended premium payment periods (44% yes, 14% in progress). However, support for agents has been minimal, with only 8% of respondents providing minimum payments to offset lost commissions. Additionally, 24% of respondents have already laid off workers, and 16% are in the process of doing so.
• Risk coverage for COVID-19 varies by product type, with households generally better protected than businesses. Life, health, and hospitalization products showed higher rates of explicit inclusion or lack of exclusion. In contrast, business interruption and event cancellation insurance predominantly did not cover COVID-19 risks, often due to exclusions for pandemics or unknown viruses in business continuity plans.
• Regulatory responses have focused on providing flexibility for premium collection and enabling digital sales, but sector players indicate a need for further government intervention. Requested support includes inclusion in fiscal stimulus packages, tax relief, and regulatory certainty for electronic signatures and e-KYC.

APA

FSD Africa (2020). Key trends on: How the insurance sector in Eastern and Southern Africa is being impacted by and responding to COVID-19. https://fsdafrica.org/wp-content/uploads/2025/05/OESAI-survey-infographic-26.08.20-2.pdf

Chicago

FSD Africa. Key trends on: How the insurance sector in Eastern and Southern Africa is being impacted by and responding to COVID-19. 2020. https://fsdafrica.org/wp-content/uploads/2025/05/OESAI-survey-infographic-26.08.20-2.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Key trends on: How the insurance sector in Eastern and Southern Africa is being impacted by and responding to COVID-19 |date=June 2020 |url=https://fsdafrica.org/wp-content/uploads/2025/05/OESAI-survey-infographic-26.08.20-2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2020key, author = {{FSD Africa}}, title = {{Key trends on: How the insurance sector in Eastern and Southern Africa is being impacted by and responding to COVID-19}}, institution = {FSD Africa}, year = {2020}, month = jun, url = {https://fsdafrica.org/wp-content/uploads/2025/05/OESAI-survey-infographic-26.08.20-2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }