A discreet but crucial lever for development financing, insurance is once again at the forefront of international donors’ priorities. Present at the first General States of Insurance for All organized in Cotonou, the International Finance Corporation (IFC), a branch of the World Bank Group dedicated to the private sector, clearly states its ambition: to accelerate insurance inclusion in Africa by combining financing, technical assistance, and structural reforms. As a guest on Financial Afrik’s special program, Vincent Arthur Floreani, IFC Country Manager in Benin, details the institution’s strategy and the prospects of a sector that is still largely underexploited.
For the IFC, insurance is not just a segment of financial services. It is a tool for economic development in its own right. “Our mission is to eradicate poverty and promote inclusive and sustainable growth. In this context, insurance plays an essential role,” explains Vincent Arthur Floreani.
The IFC Country Manager identifies three major functions of insurance. The first is to protect households and businesses against shocks that could push millions of people into poverty. The second relates to social protection, particularly through health, life, or retirement coverage, which sustainably improve the living conditions of populations. Finally, insurance is a powerful mechanism for mobilizing long-term savings for the financing of economies.
This vision is reflected in significant financial commitments. Over the past twenty years, the IFC has invested nearly $2.5 billion in insurance companies worldwide, including about $1 billion in Africa. Among the supported groups are Activa in Central Africa and AXA in Egypt.
However, the institution no longer limits its action to financing alone. It now focuses on accompanying structural transformations in the sector.
For the past two years, the IFC has been supporting the Pan-African National Insurance Companies Federation (FANAF) in setting up its Observatory of Inclusive Insurance, with a particularly innovative focus on gender equality.
According to Vincent Arthur Floreani, the work done highlights a significantly underestimated economic potential. “We estimate that around $1.7 trillion in additional markets could be captured if insurance products better met the specific needs of women and if their access to services was strengthened.”
The issue goes beyond just female clientele. Studies supported by the IFC also show that the governance of the sector is still inadequately diversified. Barely 16% of the top management positions in African insurance companies are currently held by women, compared to a global average of close to 30%.
Moreover, according to the analyses presented at the General States, a better representation of women in leadership positions could improve companies’ profitability by up to nearly 30%.
The Observatory set up with FANAF now aims to translate these findings into concrete actions, by promoting both product innovation, the sharing of sector data, and the dissemination of best practices.
For the IFC, the future of African insurance depends not only on insurers’ financial capabilities but also on the quality of the ecosystem.
“While there is a need to finance insurance companies, there is also a need to support them in their transformation. And beyond that, the entire ecosystem needs to be structured,” emphasizes Vincent Arthur Floreani.
In this framework, FANAF appears as a strategic partner capable of rallying different actors and driving the necessary reforms at the regional level.
The IFC Country Manager also stresses the complementarity of international institutions present in Cotonou. Alongside the African Development Bank, UNDP, and other technical and financial partners, the goal is to build a coordinated approach rather than a competitive one.
The message to donors is clear: deepening the African insurance market requires combining several levers simultaneously. First, developing products that better suit the realities of populations. Then, supporting companies in their modernization, both financially and technically. Finally, strengthening sectoral institutions capable of organizing the market sustainably.
“The more people are covered, the more effective, accessible, and affordable insurance becomes,” summarizes Vincent Arthur Floreani, advocating for enhanced cooperation among all sector partners.
In Cotonou, where the General States of Insurance for All have placed inclusion at the heart of discussions, the IFC confirms its intention to make insurance a real tool for economic resilience, reducing inequalities, and mobilizing capital for African development. Behind the figures of investments made lies a shared conviction: without a deeper, more inclusive, and better-structured insurance market, sustainable financing for African development will remain incomplete.
