The Insurers Federation of Egypt (IFE) says that rapid developments in cross-border trade and transport on the African continent increases the need for insurance solutions that keep pace with the movement of trade and investments.
This requires strengthening cooperation between insurance markets, in line with the goals of continental economic integration, says the IFE in its latest weekly bulletin.
The bulletin adds that existing regional insurance systems, such as the Yellow Card, Brown Card and Pink Card, can represent an important basis for developing broader cooperation between African markets. Each system has its own legal framework and operational mechanisms that reflect the nature of the economic grouping to which it belongs, which makes gradual cooperation and exchange of experiences more realistic than striving for a unified model.
Pathways
Dialogue and future study could focus on a number of paths, based on the conviction that cooperation between African markets can be strengthened gradually, while respecting the specificities of each system and its regulatory framework, including:
• Enhancing the exchange of experiences and data between regional insurance systems
• Developing shared digital solutions for verifying insurance documents and exchanging claims data
• Promoting dialogue between regulatory bodies, federations and insurance companies with the aim of developing solutions that are appropriate to the different legal and economic frameworks in African countries
• Studying opportunities for cooperation in the field of reinsurance for cross-border risks
• Exploring the possibility of establishing regional mechanisms for managing catastrophic risks, including studying models for emergency funds or joint financial arrangements.
• Exploring insurance cooperation opportunities on continental trade routes, most notably the Cairo-Cape Town corridor.
Gradual approach
The IFE emphasises that the pathways can be developed gradually according to the needs of the markets and their regulatory and financial capabilities.
It stresses that strengthening the interconnection between African insurance markets will not necessarily be achieved through the creation of a single entity, but may begin with practical and gradual steps based on the exchange of knowledge, linking data and studying common mechanisms for managing major risks.
Egypt, as the chair of the African Insurance Organisation for the 2026–2027 term, aims to increase the exchange of knowledge and expertise among African insurance markets. To support this, the IFE is publishing articles on the insurance market in Africa, highlighting key features and developments.