ICONThe African insurance industry is undergoing a period of digital transformation. Intermediaries — brokers, agents, and agencies — remain at the heart of the distribution chain, bridging insurers and customers. However, as insurance products diversify and customer expectations shift toward real-time, digital-first solutions, intermediaries face pressure to modernize their operations.
One key enabler of this transformation is the adoption of core insurance systems tailored to the African market. Installing such systems requires careful consideration of both business realities and technological needs. Below are the key criteria intermediaries in Africa must meet when implementing a core insurance system.
1. Regulatory Compliance
Insurance is among the most regulated industries globally, and Africa is no exception. Each country has its own insurance regulatory authority, from the Insurance Regulatory Authority (IRA) in Kenya to the National Insurance Commission (NAICOM) in Nigeria. A suitable core insurance system must:
- Support Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols.
- Generate reports aligned with regulators’ requirements.
- Maintain comprehensive audit trails to enhance accountability.
For instance, the Kenya Data Protection Act (2019) stipulates strict handling of client data, meaning intermediaries’ systems must have embedded compliance checks [Kenya Law, 2019].
2. Scalability and Flexibility
Intermediaries in Africa operate at various scales — from small agencies in rural areas to multinational broker networks in urban centers. A modern core system should:
- Scale with business growth, supporting increasing numbers of policies and customers.
- Allow configuration of workflows to suit both small-scale agents and large brokers.
- Enable addition of new insurance products without extensive redevelopment.
Cloud-based platforms such as Software-as-a-Service (SaaS) models have proven especially effective in ensuring scalability while keeping costs manageable [PwC Africa Insurance Survey, 2023].
3. Integration Capabilities
Insurance is no longer a siloed industry. Brokers and agents need systems that connect seamlessly with insurers, reinsurers, and third-party service providers. A system must:
- Offer API-driven integration with insurers’ core systems.
- Support payment ecosystems such as mobile money (M-Pesa, Airtel Money), which dominate African markets.
- Integrate with accounting software and CRMs for operational efficiency.
According to McKinsey (2022), insurers who adopt open integration strategies in Africa see faster premium growth, particularly in retail segments such as motor and health insurance.
4. User Experience and Accessibility
Africa’s mobile-first economy demands that insurance systems be intuitive and mobile-friendly. For intermediaries, this translates into:
- User-friendly dashboards for underwriters, brokers, and agents.
- Mobile-first portals and apps, since mobile penetration in Sub-Saharan Africa stands at 46% and continues to rise [GSMA, 2023].
- Multilingual interfaces for diverse markets, from English and French to Kiswahili and Arabic.
Accessibility is key to adoption, particularly among agents who may lack deep IT expertise.
5. Data Security and Privacy
With sensitive customer data at stake, intermediaries must ensure systems comply with local and international data protection laws. Requirements include:
- Encryption and role-based access controls to secure customer records.
- Compliance with frameworks such as the Nigeria Data Protection Regulation (NDPRhttps://www.dlapiperdataprotection.com/index.html?t=law&c=NG) and Kenya’s Data Protection Act.
- Cloud hosting arrangements that include regular updates and security patches.
A report by Allianz (2023) highlighted cyber risks as one of the top three threats to African insurers, reinforcing the importance of robust security systems.
6. Cost-Effectiveness
Insurance intermediaries in Africa operate in markets where affordability drives customer uptake. The same principle applies when adopting technology. Core systems must be:
- Cost-effective, with subscription or usage-based pricing models.
- Cloud-enabled to avoid heavy infrastructure investment.
- Customizable to prevent overpaying for unnecessary features.
A Deloitte Africa Insurance Outlook (2022) report noted that cost pressures remain the top barrier to digitization for African insurers, underscoring the need for affordable system options.
7. Support and Training
No technology deployment succeeds without adequate training and support. Intermediaries require:
- Localized customer support that understands African market realities.
- Training modules for brokers, agents, and administrative staff.
- Ongoing vendor support to manage system upgrades and changes.
Case studies from Mayfair Insurance Kenya and Intra Africa Assurance, where digital systems were implemented with structured training programs, show higher adoption and customer satisfaction [ICON Limited, 2024].
8. Analytics and Reporting
Modern intermediaries must transition from transactional processes to data-driven decision-making. A robust core insurance system should:
- Provide real-time dashboards and reports.
- Enable performance tracking for brokers and agents.
- Support custom reports for insurers and regulators.
McKinsey (2021) found that African insurers leveraging analytics in distribution improved efficiency by up to 15% in underwriting processes.
9. Speed of Deployment
Time-to-market is critical for intermediaries who cannot afford long downtimes. The right system should:
- Offer ready-to-use templates for common insurance products.
- Provide low-code/no-code configurability.
- Allow deployment within weeks rather than months.
Faster deployment cycles reduce disruption while ensuring quick return on investment.
10. Customer-Centric Features
Ultimately, intermediaries exist to serve customers. Core systems must enhance customer engagement by offering:
- Self-service portals for policy management and claims.
- Multi-channel communication through SMS, WhatsApp, and email.
- Tools to improve retention, such as automated renewal reminders.
A GSMA (2022) study showed that African customers increasingly prefer digital-first engagement channels, especially among younger demographics.
Conclusion
For African intermediaries, installing a core insurance system is not simply about digitization — it’s about sustainability, compliance, and competitiveness in an evolving market. By ensuring the system meets the criteria of compliance, scalability, integration, accessibility, security, affordability, and customer-centricity, intermediaries can future-proof their operations.
The right system empowers brokers and agents to serve clients faster, strengthen insurer relationships, and unlock the full potential of Africa’s growing insurance markets.
References
- Kenya Law. (2019). Data Protection Act, No. 24 of 2019. Government of Kenya.
- PwC. (2023). Africa Insurance Survey 2023. PwC Africa.
- McKinsey & Company. (2021). Insurance in Africa: Growth opportunities through innovation.
- McKinsey & Company. (2022). Unlocking growth in African insurance through digital ecosystems.
- GSMA. (2022, 2023). The Mobile Economy Sub-Saharan Africa. GSMA Intelligence.
- Allianz. (2023). Risk Barometer: Top business risks 2023.
- Deloitte. (2022). Africa Insurance Outlook.
- ICON Limited. (2024). Case Studies in Insurance Digital Transformation: Mayfair Insurance & Intra Africa Assurance.