Here Is The Business Case For Insurance Pooling In Africa

Africa is rapidly emerging as the next frontier for global business expansion. With its population projected to reach 2.5billion by 2050 and urbanization accelerating across the continent, Africa presents a compelling growth story.

Global multinationals are increasingly setting their sights on African markets, attracted by the continent’s youthful demographics, expanding consumer base, and fast-growing economies, including Kenya, Nigeria, and Rwanda.

With thriving sectors including technology, agriculture, renewable energy, and business process outsourcing, the continent presents a compelling investment destination for global firms from the global North, the Asian Tigers, and the Middle East.

As these multinationals scale their presence across multiple African markets, their operational needs, particularly around risk management and insurance, are becoming more complex and demanding.

To match this complexity, the insurance industry must evolve. One of the most strategic solutions gaining traction is insurance pooling, a model that consolidates insurance coverage across multiple markets into a single, cohesive programme.

This model allows companies operating in multiple countries to combine all their insurance needs under one centrally managed structure. For example, rather than purchasing separate policies in Kenya, Uganda, and Rwanda, a multinational can operate under one master policy with locally compliant components in each market.

According to the IMARC Group’s African Market Report 2025, the African insurance market is projected to exhibit a compound annual growth rate (CAGR) of 6.03% during 2025-2033, to reach USD 160.9billion by 2033. Yet, penetration remains below 3% in most countries, highlighting both the opportunity and the inefficiencies that pooling can help address.

Kenya stands at the heart of this transformation. As the gateway to Africa, Kenya has become the preferred regional headquarters for global corporations. Drawn by its robust infrastructure, a growing pool of skilled professionals, reliable connectivity, and comparatively stable business, tax, and security environment, it is a natural base for regional decision-making and pan-African operations.

For insurance providers, this represents an opportunity. Multinational businesses require solutions that match their scale, complexity, and operational footprint. Given Africa’s diversity, comprising 54 countries with distinct regulatory regimes and varying local requirements, compliance becomes an arduous undertaking.

That is where pooling proves invaluable. Pooling addresses the complexities faced by insurers in Africa by centralizing risk management and streamlining compliance across varied jurisdictions.

By bringing their coverage under one insurance program, multinational companies can manage their coverage more effectively. It becomes easier to track policies, reduce overall costs, and ensure better terms, including higher coverage limits and fewer exclusions, while still adapting to the specific needs of each local market.

Pooling also facilitates consolidated reporting, granting them a comprehensive view of their insurance exposure and budget across the continent, which is critical for managing multinational risks efficiently. Consider a tech company operating in Kenya, Malawi, Zambia, and Zimbabwe; without pooling, it would have to manage separate policies, each with different brokers, terms, renewal dates, and reporting formats. On the other hand, with pooling, this company would benefit from centralized oversight, harmonized coverage terms, and significant cost efficiencies, freeing up resources to focus on scaling its core business.

At Old Mutual, we are uniquely positioned to lead this charge. With a pan-African presence spanning 13 markets, a strong network of partnerships, and a firm commitment to innovation, we are already supporting multinationals headquartered in Kenya and beyond with pooled insurance programmes that deliver real business value.

We have harnessed our systems to centralize risk and insurance management, enabling our clients to make better, data-driven decisions. Our digital platforms support real-time claims tracking, automated reporting, and advanced analytics. These capabilities make insurance pooling not only viable but highly effective by enhancing visibility, responsiveness, and proactive risk management.

Pooling also empowers us to provide the various corporate leaders with clearer insights, consistent data, and greater control to make informed choices that align with their broader business objectives, rather than being constrained by fragmented, country-level policies.

As more multinationals invest in Africa’s growth story, we must support them with solutions that reflect their scale and complexity. Ideally, we must move away from siloed and piecemeal proposition models to more integrated strategies that drive efficiency whilst unlocking value and reflect the scale and sophistication of today’s global enterprise.

Pooling also gives insurers greater flexibility in structuring reinsurance and leveraging collective scale to negotiate better terms with underwriters. These benefits are then passed on to clients, resulting in a more compelling and competitive offering, especially at a time when many organisations are prioritising cost management.

As Africa’s economic integration deepens with initiatives like the African Continental Free Trade Area (AfCFTA), the need for seamless insurance solutions will only grow. Pooling is not just a response to complexity, but a strategic enabler for sustainable growth on the continent.

Read Also: Understanding Insurance Is What The Corporate Kenya Needs

Dianah Gochohi is Head of Corporates, Old Mutual Life Assurance Kenya