Insurance regulators across Africa are saying that the effects of the Middle East war are already feeding into insurance market fundamentals.
They warn of a potential economic slowdown as surging global petroleum prices ripple through key sectors, driving up operating costs, inflation and financial risks because of the US-Israel war against Iran, which began on 28 February.
In Kenya, Mr Godfrey Kiptum, CEO of the Insurance Regulatory Authority, said the spike in energy prices is likely to trigger broad-based economic strain similar to previous global shocks, according to a report in the newspaper The Independent.
Mr Kiptum said the knock-on effects could include rising inflation and higher interest rates, with direct implications for insurers through elevated claims costs, reduced investment returns and tighter liquidity conditions, factors that could ultimately slow economic growth across the continent.
In Zimbabwe, Ms Grace Muradzikwa, Commissioner of Insurance, Pensions and Provident Funds, highlighted the country’s heavy reliance on the US dollar as a key vulnerability.
In Ghana, Ms Abiba Zakariah, Commissioner of the National Insurance Commission, said, “From a reinsurance perspective, war risk is not covered mostly in Ghana. So, for now, the insurance products that we have have not experienced the effect yet. But as this happens, we expect it to spill over to other lines of business, and we suspect that reinsurance will increase their insurance rates, and probably withdraw certain cover.”
In Rwanda, Ms Faith Batamuriza, Head of Retirement Benefits Supervision at the National Bank of Rwanda, said inflationary pressures are building but remain manageable, with the country’s economic growth projected at 7.2% in 2026, down from 9.4% in 2025.
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