Africa Group Life Insurance: Do’s and Don’ts

Do not consider Africa as a single country:

  • 54 countries, 8 regional communities, 4 business languages
  • National or regional regulations
  • Few insurers operating across multiple countries

Respect insurance regulations:

  • Highly regulated markets - Regulation is not static
  • Protectionist markets/Domesticated markets

Do not “risk” with non-admitted business:

  • Non-admitted insurance is an illegal practice throughout Africa
  • Regulators regularly audit insurance programs

A co-ordinated approach is essential:

  • All parties to the transaction need to be aware of the requirements of the company and employees
  • Include all partners up front and define clear roles and incentives

Do not expect that regulatory requirements & best practice are the same:

  • Workmen’s Compensation is compulsory in the majority of markets
  • Few countries have minimum requirements for “Any cause” Group Life Benefits
  • Social insurance benefits are often confused with Pension, Group Life and Workmen’s Compensation
  • In the majority of cases social insurance programs offer inferior or inadequate benefits
  • Best practice is more market practice

Refine your health insurance strategy:

  • A comprehensive Health Plan does not result in comprehensive coverage or care
  • Administration & control is limited
  • Evacuation benefits are essential

Do not expect “insurance science”:

  • Little or no statistics exist at the moment
  • There is almost no mortality, morbidity or health tables in Africa
  • Claims experience is scarce
  • Mortality, Aids, Accidents & access to Healthcare drive differences in cost

In collaboration with Hollard Life Insurance