Luanda: The Angolan government plans to increase the current figure of 0.6 percent to 3% of the insurance sector's contribution rate in Gross Domestic Product (GDP) by 2029, the Secretary of State for Finance and Treasury, Ottoniel dos Santos, said on Thursday in Luanda.
According to Angola Press News Agency, in the last four years, insurance premiums have grown by more than 100 percent, and in 2020 they stood at 223.8 billion kwanzas, rising to 473.7 in 2024. Speaking at the regional seminar of the Associations of Insurance Regulatory Institutions of Sub-Saharan Africa 'IAIS', which is taking place in Luanda until Friday, dos Santos reaffirmed that the penetration rate remains at 0.6 percent of GDP is low, but that it has enormous potential to explore.
Otoniel dos Santos noted that the Life Branch, although a minority, grows promisingly, while the payment of compensation increased by 74 percent, reinforcing confidence in the sector. He explained that the new legal framework contributed significantly, specifically Law No. 18/22, which brought risk-based supervision, the reinforcement of prudential requirements, professional enhancement and mediation, as well as the creation of a space for digital innovation.
'Angola has a more robust, credible regulatory system that is prepared for emerging challenges,' he stressed. According to the Secretary of State, to achieve this goal (3 percent of GDP), the Ministry of Finance took on the challenge of expanding agricultural and micro insurance, parametric insurance, especially in rural areas, fostering a digital innovation ecosystem and implementing the national strategy for financial inclusion.
In this context, Otoniel dos Santos highlighted the implementation of the risk-based insolvency regime, the adoption of IRF 17 for transparency and comparability, the strengthening of market conduct and consumer strengthening, among ARSEG's strategic axes. The president of the board of directors (PCA) of ARSEG, Filomena Manjata, said that the 52 delegates from 14 countries participating in the seminar discussed the challenges of the sector and shared experiences to strengthen institutional cooperation ties.
For the ARSEG manager, the future of the insurance market in Sub-Saharan Africa depends on the ability of the continent's countries to work together, with a view to achieving greater robustness and sustainability. About the seminar, which began on April 28, he considered it a driver to align political strategies for future challenges, based on the exchange of experience in a sign that sub-Saharan Africa is aligned in the purpose of evolving and consolidating supervisory systems.
'We need a stronger, more transparent supervision that is prepared for the challenges of the future,' he stressed.
