Insurers seek growth as household cover stays low

Insurance penetration remains low, but underwriters see the gap as an opportunity rather than a ceiling. New distribution partnerships and simpler digital products are lowering the cost of reaching households that have never held a policy.

The traditional model depended on agents and brokers, whose commissions make small policies unprofitable. Embedding cover in everyday transactions — transport, retail and mobile money, for example — spreads that cost across far more customers.

Trust and claims

The larger obstacle is trust. The industry's reputation for slow claims settlement deters first-time buyers, and underwriters acknowledge that faster, more predictable claims handling matters more than pricing for a new customer.

Regulators have pushed for faster settlement timelines and clearer policy language, moves the industry has broadly supported as a way to rebuild confidence.

If the new channels hold, insurers say the next decade could be defined by volume rather than premium rate increases.