Deloitte releases the East Africa Insurance Outlook Report 2025: The next era of insurance
Deloitte has today released the East Africa Insurance Outlook Report 2025. The report takes a deep dive into the opportunities in the insurance sector focusing on Kenya, Tanzania, Uganda, and Ethiopia.
Nairobi, Kenya, 14 April 2025 — Deloitte has today released the East Africa Insurance Outlook Report 2025. The report takes a deep dive into the opportunities in the insurance sector focusing on Kenya, Tanzania, Uganda, and Ethiopia. Many East Africans, especially in rural areas, do not have access to traditional banking and insurance services. By leveraging financial inclusion initiatives, insurers can reach millions of uninsured individuals. The total insurance penetration stands at 1.57% across the region in 2023, with insurance penetration at 2.61% in Kenya, 0.60% in Tanzania 0.83% in Uganda, and 0.3% in Ethiopia.
The East African insurance sector is demonstrating unprecedented resilience and adaptability amidst evolving market dynamics, showcasing significant growth fuelled by economic expansion, increased financial literacy, and digital transformation. Recent regulatory enhancements are bolstering stability and consumer confidence, positioning the industry for a transformative future.
Charles Luo, Deloitte East Africa Financial Institutions Services Team Leader, observed, “Reporting under IFRS 17 has now become an integral part of operations for insurers in East Africa and the globe, reshaping the way the industry operates and how it reports its financials. While the initial adoption of the standard presented significant challenges, including the complexities of contract grouping, risk assessment, and revenue recognition, insurers have now largely overcome these hurdles. The transition, once marked by uncertainty, is now becoming more seamless, and its integration into daily operations is increasingly smooth.”
As insurers face challenges such as low penetration rates and macroeconomic volatility, strategic changes and innovations are essential to unlock the sector's full potential. Advanced risk assessment models and data-driven underwriting are being embraced by insurers, enhancing pricing accuracy and improving claims efficiency in a competitive landscape.
In a digital age, data is revolutionising industries through artificial intelligence (AI), which is no longer a theoretical concept but a crucial element in shaping business strategies. Intelligent systems, or AI agents, are automating processes and delivering real-time insights, transforming how organisations operate. This shift is not merely about adopting new technologies – it is about embracing a new era of decision intelligence that will redefine the future of work and business.
Commenting on the report, Timothy Machira, Deloitte East Africa Audit & Assurance Associate Director, noted, “Customer expectations in the insurance industry have evolved. Today’s consumers seek seamless, transparent, and personalised experiences that cater to their unique needs. Insurers must innovate beyond traditional policy issuance and engage customers actively, streamline claims processing, and offer flexible coverage options. By fostering trust through personalised interactions and efficient service delivery, the sector can ensure accessibility, reliability, and enhanced customer satisfaction.”
For more information contact:
Rebecca Berre-Yeri
Marketing and Communications Manager
Deloitte East Africa
Mobile: +254 719 039 033
Email: rberreyeri@deloitte.com
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