Luanda - Technological innovation, sustainable practices and strict regulation are among the main challenges for boosting the Angolan insurance market in the medium term, according to a study by international consultancy Ernst & Young Global Limited (EY) and the Angolan Insurance Regulation and Supervision Agency (ARSEG).
According to the study presented on Tuesday in Luanda, this sector offers countless opportunities for growth, expansion and diversity in unexplored areas.
The study, carried out between 2021 and 2022, points out that the insurance sector in Angola is undergoing a process of transformation, driven by the need for commercial expansion, technological innovation and associated with sustainable practices of strict regulation.
The report aims to expand understanding of the strategic role of insurance in emerging economies such as Angola's and to show how the sector is crucial to boosting the economy and managing risks, highlighting that in the recent years the sector in the country has been also facing the challenge of a economic environment always changing and growing global digitalisation.
The document states that another obstacle is the modest commercial size of the sector, accentuated by the fact that there is a vast number of compulsory insurances in the country, which are often not adhered to by market participants.
According to the report's conclusions, insurers' current challenges involve adapting to a constantly evolving environment, as is the case with the recent approval of the Legal Framework for Insurance and Reinsurance Activity, which represents a milestone in the historical evolution of the regulatory framework for the insurance sector in Angola.
At the presentation ceremony of the report, the Chairman of ARSEG, Elmer Serrão emphasized that the institution´s main objective is the protection of policyholders, insured persons and beneficiaries, as well as the prevention and repression of actions contrary to the law or sector regulations.
According to the manager, as a result of the new legal framework, Angola now has a modern insurance mediation system, in line with the best international principles and practices, duly harmonised with the national economic and social reality, strengthening consumers in this domain.
The official considered resilient the insurance sector and Angola's pension fund, which will rely on its capacity not only to face immediate challenges, but also to join innovation and new trends and emerging risks as driving forces towards a more promising future.
In turn, the president of EY -Angola, Carlos Basto, said that as well as contributing to new skills in the sector, the intention is also to increase financial literacy and change perceptions about insurance in Angola.
"The company will continue to support with more literacy for a greater understanding of the role of the insurance sector for a robust and resilient economy", he emphasised.
EY Angola and ARSEG, in this 1st edition of the study called "Insurance Outlook - Angola", reveals an extensive study that looks back over the recent past, characterises the current state of the insurance and pension fund sector, as well as outlining the sector's challenges for the near future.
The event, which was opened by Finance minister Vera Daves De Sousa, was attended by insurance operators in Angola, International Finance Corporation (IFC) technicians and partners from the insurance sector.
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