1. DRIVING INSURANCE PENETRATION AIO CONFERENCE 2017 Raimund Snyders

2. GLOBAL ECONOMIC PERSPECTIVE
WORLD
EAST ASIA & PACIFIC
Summary
Slow down in global trade
Weak investments in Developed
Markets
2016 Global GDP growth – 2.3%
US policy uncertainty impacting on activity.
Euro-Zone subdued domestic and export demand to continue into 2017.
Prospects
Stable / rising commodity prices in 2017 – 19.
Emerging and Developing Markets to grow at 4.2% in 2017 (4.7% in 2018 – 19).
2017 Global growth forecast at 2.7% .
US expansionary fiscal policy to boost growth.
2017 Euro-Zone growth – 1.5% ( 1.4% for ).
Summary
Growth trend dominated by China 6.7% output expansion.
Regional growth excluding China is at 4.8%.
China growth to remain gradual as economy shifts from industry to services.
Return of political stability buoyed FDI inflows to EAP.
Currencies stable against US$.
Prospects
Regional growth (including China) will ease to 6.1% in 2017.
Significant FDI inflows from China , Japan to support infrastructure projects.
Smaller Island economies remain vulnerable to natural disasters and adverse FDI movements.
 In terms of insurance penetration, which is defined as the total written premiums as a share (%) of a country's gross domestic product (GDP), Africa is one of the most underinsured regions worldwide. Among them is Nigeria, which has the largest economy in the sub-Saharan region but an insurance penetration rate of 0.3%. 
In stark contrast is South Africa, who's penetration rate is one of the highest in the world at 16.99% and accounts for three quarters of insurance uptake in this region. 
Sub-Saharan Africa is currently a region of economic growth, with the International Monetary Fund (IMF) predicting emerging markets and developing economies at the forefront of growth for at more than double the rate of advanced economies.
there is both a need and opportunity to grow this industry the future of the insurance industry in sub-Saharan Africa is one to watch. 
Source: World Bank

3. AFRICA ECONOMIC OUTLOOK
Summary
20116 growth shrunk to 1.5% from 3.1% in 2015.
Low commodity prices.
Weak export demand.
Drought.
Political unrest and insurgency.
Notable weakness in South Africa, Nigeria and Angola which account for 66% of regional GDP.
High Current Account deficits.
Currency and inflation pressure.
Drop in FDI inflows due to low commodity prices.
Prospects
2.9% growth for 2017 and 3.6% for 2018.
Commodity prices rise but remain below post–global crisis levels for the foreseeable future.
Exports demand to remain weak
By 2019 maturing infrastructure investments to bolster growth.
Economic diversification to help improve fiscal positions.
Source: World Bank

4. AFRICA INSURANCE LANDSCAPE
Sub-Saharan Africa represents a market of over 935 million people
Combined GDP around $1.6 trillion
Africa is one of the most underinsured regions worldwide.
Nigeria, the largest economy in the sub-Saharan region with insurance penetration rate of 0.3%. 
South Africa, combined penetration rate is one of the highest in the world at 16.99% and accounts for three quarters of insurance uptake in this region. 
Top African insurance markets account for 92% of Gross Written Premium
There is both a need and opportunity to grow this industry.
 In terms of insurance penetration, which is defined as the total written premiums as a share (%) of a country's gross domestic product (GDP), Africa is one of the most underinsured regions worldwide. Among them is Nigeria, which has the largest economy in the sub-Saharan region but an insurance penetration rate of 0.3%. 
In stark contrast is South Africa, who's penetration rate is one of the highest in the world at 16.99% and accounts for three quarters of insurance uptake in this region. 
Sub-Saharan Africa is currently a region of economic growth, with the International Monetary Fund (IMF) predicting emerging markets and developing economies at the forefront of growth for at more than double the rate of advanced economies.
there is both a need and opportunity to grow this industry the future of the insurance industry in sub-Saharan Africa is one to watch. 
Source: Axco Insurance Information Services

5. AFRICA INSURANCE LANDSCAPE
Source: Timetric

6. TREND OF INSURANCE PENETRATION OF SELECTED AFRICAN COUNTRIES SINCE 1970.
The perception of Kenya as the financial hub in the Eastern and Central Africa by foreigners might have increased her insurance penetration from 0.10% to 2.8% by This might have led to the long-run positive effects of insurance on growth in this country/
Published in: D.O. Olayungbo; A.E. Akinlo; David McMillan; Cogent Economics & Finance  2016, 4,
DOI: /
Copyright © 2016 The Author(s)

7. PENETRATION CRITICAL SUCCESS FACTORS
Effective ICT infrastructure
Effective Cost Control
Mass Portal - aggregator
Enabling Regulatory Environment
Good Underwriting Skill(s)
Effective Financial/Payment System
Strong Insurance Industry Fraternity
Reliable household income

8. PENETRATION CHALLENGES
Poor insurance awareness
Remote/ dispersed rural clientele
Inconsistent communication technology
Lack of innovation
Over / Lack of appropriate regulation
Unreliable / poor income levels.
Complex products
Corruption
Language diversity

9. WHAT WILL ENCOURAGE INSURANCE PENETRATION.
Awareness and Education
Implement compulsory insurance demand scheme
Efforts and policies should be geared towards the awareness and education on the benefits of insurance demand.
financial reforms and insurance policies such as recapitalization and consolidation policies that can sustain and deepen insurance market should be pursued by the government and the insurance regulatory authorities of these countries.
This is important especially for African countries that are characterized by government ownership of insurance companies and opposed to liberalization reforms.
Compulsory insurance demand scheme can be implemented for private, government workers, and all vehicle owners in these countries
More recent technology, including smart contracts, blockchain and bitcoin could further reduce costs associated with claims administration, fraud losses and inefficiencies. Bitcoin has demonstrated a practical application of blockchain It sidesteps the lack of banking infrastructure and problems afflicting e-commerce in Africa.
The combination of microinsurance, mobile payments, smart contracts and bitcoin could increase insurance penetration throughout the continent, laying a firm base for sustainable growth.
Recapitalization and consolidation policies government and the insurance regulatory authorities
Smart contracts, blockchain and bitcoin
microinsurance, use of technology.

10. WHAT CAN WE LEARN FROM SOUTH AFRICA
Close to 200 years of insurance
High level of consumer confidence
High level of Market competition
Understanding the customer needs.
Innovation and new technologies
Marketing strategies
Customer centric product development

11. CONCLUSION Source: TED TALK
Source: TED TALK

12. ThANK YOU