Africa-Press – Nigeria. EFFORTS to build an integrated cross-border insurance market in Africa remain stalled as fragmented regulation, weak infrastructure and limited industry collaboration continue to block progress, an expert has said.
The industry expert spoke during the just-ended Southern African Insurance Indaba organised by the Insurance Institute of Zimbabwe, which was held in Victoria Falls.
During the event, cross-border insurance was identified as a vital tool for unlocking trade, investment and economic resilience across Africa.
However, it also emerged that there were impediments to the continent’s integration efforts.
Old Mutual Life Assurance general manager Linda Mariwande told NewsDay Business that the continent’s ambition to create seamless cross-border insurance cover was being undermined by the absence of harmonised regulatory systems across regional blocs.
She said insurers were unable to provide consistent cover when rules shift from one jurisdiction to another, forcing businesses and transporters to navigate a patchwork of frameworks that complicated trade.
“The biggest problem right now is the fact that we don’t have seamless regulation. And because of that, you also can’t have seamless cover,” Mariwande said.
“What is expected in Zimbabwe is not necessarily what is expected in Kenya, Uganda, or Nigeria. Once you move from Sadc to Ecowas, the rules automatically change.”
She said the lack of regulatory alignment raised compliance costs, introduced uncertainty and slowed trade flows — deterring the very integration espoused in the African Continental Free Trade Area agreement.
Beyond regulation, she added, inadequate road, rail and border infrastructure remained a major practical barrier to the efficient movement of goods, directly affecting the insurance industry’s capacity to underwrite regional trade.
“We do provide sophisticated structures in terms of financing, but we also need the hard infrastructure — the road, the rail, the continuity across borders. When that is missing, movement of goods becomes difficult,” Mariwande said.
She said African insurers must confront fragmentation within their domestic markets.
The insurance executive said the lack of shared platforms, systems and pooled capabilities was driving up operational costs and weakening competitiveness, especially for smaller players.
“We are here talking about integration across Africa, yet we don’t even have integration within the country,” Mariwande said.
“Systems are one of the biggest cost drivers. If we had common platforms and spaces where we shared resources and skills, it would help the entire industry.”
She urged insurers to collaborate in areas where competition does not add value, such as technology systems, product development capacity, and technical skills, while maintaining healthy rivalry in core commercial areas.
On revenue implications, Mariwande warned that Africa is losing significant potential by operating in silos.
With Zimbabwe’s insurance penetration at about 1% of the economy, she said the industry is under-collecting resources that could otherwise be channelled toward national development.
“In a country that needs infrastructure, collecting only 1% of GDP (gross domestic product) through insurance means there’s so much left on the table,” Mariwande said.
“We have the capacity to mobilise savings and investments that can help develop our own infrastructure.”
She said unlocking cross-border insurance potential required a coordinated effort to standardise regulations, build shared systems, and strengthen physical infrastructure — reforms considered essential for unlocking trade, boosting participation, and expanding insurance coverage across the continent.
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