Selling Insurance in Africa - How to Grow Users and Sales With Embedded Insurance
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Selling Insurance in Africa - How to Grow Users and Sales With Embedded Insurance

Selling insurance used to be a less desirable job in Nigeria and some parts of Africa a few years ago. Thanks to the recent evolution of InsurTech and friendly government policies, African insurance markets are scaling and integrating into mainstream economy sectors to grow usage, volume and profitability. 

A closer look at selling insurance in Africa before now..

The insurance industry in Africa represents less than 3% of insured catastrophe losses worldwide, although Africa is home to almost 18% of the entire human population. 

From this perspective, adoption of Insurance in Africa looks like a drop in the ocean compared to other regions with less population, however, there continues to be increased interest and focus from major international brokers, insurers and reinsurers who are being powered by digital insurance distribution infrastructure like Curacel to grow penetration. 

How big is Insurance in Africa?

Before the Covid-19 pandemic in 2020, the total market size of insurance premiums in Sub-Saharan Africa amounted to just over USD 50 Billion. Fast forward to 2022, The Africa insurance market was valued at USD 81.6 Billion according to the IMARC Group

Interestingly, the growth of the insurance sector in Africa is not slowing down anytime soon as the USD 81.6 Billion market size as of 2022 is exhibiting a growth rate (CAGR) of 7.1% to potentially reach USD 123.8 Billion by 2028. 

With this rapid growth staring us in the face, Insurance and non-insurance companies in Nigeria

must develop new strategies to reach a wider audience as the insurance landscape evolves. One of the unique strategies leveraged for selling insurance in both emerging and high-growth markets is Embedded Insurance

We will be unraveling potential for growing users and sales with embedded insurance and the best strategies to explore with this innovation in the next few paragraphs..

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A quick intro to Embedded Insurance in Africa

Embedded insurance is a form of digital bundling to sell insurance coverage to users at the point of sale. 

It is how companies incorporate insurance coverage into the sale of a product. It is important to users because they get coverage before they realize they need it. The goal of insurance companies is to catch you at the moment when you’re thinking of protecting your finances or a product you just purchased.

While embedded insurance has proven to be a great sales strategy for any insurance companies to adopt, let’s share with you our learning from helping insurance underwriters, Fintech, eCommerce, Logistics among other industry leaders sell insurance products and services across Africa. 

Growing Usage, Volume and Profits with Embedded Insurance 

Considering the market size and opportunity for insurance in Nigeria and Africa, we can see an untapped market of gain. Apart from the numbers, we need to consider the behaviours of African consumers. 

How can you improve sales and margin among African customers who pretty much do not prioritize insurance except when they are shopping, traveling or somewhat compelled to do so? 

1. Leverage Digital Channels and Technology

By embracing digital transformation, insurance brokers can effectively connect with a broader audience, increase customer satisfaction, and drive sales in the competitive African insurance market. 

You can sell more insurance products to the young African population by capitalizing on insurance distribution infrastructure that seamlessly integrates sales and engagement into websites, mobile apps, and social media platforms they use on a daily basis.  

These digital channels allow brokers to showcase their products and services, provide convenient quoting and purchasing options, and offer personalized customer experiences. 

Additionally, insurance and non-insurance companies can leverage artificial intelligence, data analytics, and automation technology to streamline operations, enhance underwriting processes, and deliver more accurate and efficient customer service. 

2. Create Compelling and Tailored Insurance Products

Understanding consumer needs is the first step to developing compelling offerings with comprehensive coverage and value. You must conduct market research, analyze data, and stay updated on emerging trends. Customisation, affordability, and innovative features can attract customers. 

You must streamline product offerings to suit the local market where you operate. For example, the ideal products for South African insurance consumers will differ considerably from Nigerian insurance consumers. 

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3. Build Partnerships With Relevant Industries

Another strategic approach that insurance brokers can leverage is to build partnerships within relevant industries that can help grow the customer base. 

For example, an insurance broker can partner with an airline to provide travel insurance during flight booking. These partnerships offer access to broader customer networks, cross-selling opportunities, and increased visibility. 

4. Provide Excellent Customer Service and Support

Excellent customer service is crucial for insurance companies in Africa. Building trust with insurance customers is a great way to improve customer retention. You can build trust with clear communication, timely response, and transparency. 

Customer support can be more efficient by leveraging technology to personalize recommendations. This enhances the customer experience. 

Sell more insurance in Africa, the Curacel way

Curacel partners are bridging business and insurance gaps with our products. Our flagship product, Curacel Grow's digital insurance platform helps Fintech, Credit, Logistics, eCommerce, among other companies in Africa acquire new users, grow sales and revenue with AI-powered embedded insurance products.

We help insurance companies with digital insurance management software as well as non-insurance companies with embedded insurance infrastructure that help them sell insurance services without having to build multiple insurance competencies or technologies. Learn more about the success stories of some of our partners

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