Life insurance plays a crucial role in financial security, protecting individuals and families from unexpected hardships. However, in many African markets, including Kenya, life insurance penetration remains low. At just 1.3% of GDP, Kenya lags significantly behind markets like South Africa, where penetration stands at an estimated 9.4% of GDP. Given Kenya’s youthful population and growing economy, one might expect higher adoption, yet several structural and cultural factors have contributed to this gap.

Social security systems are the backbone of a nation's welfare, providing essential financial security through retirement pensions, unemployment benefits, and disability support. Ensuring their long-term sustainability is a complex challenge —one that requires balancing financial viability with social protection. Actuaries play a critical role in supporting these schemes, helping to design policies that are both equitable and financially sustainable.

The establishment of the IFoA Middle East Member Committee (MEMC) ,with myself as Chair, marks a significant step for the IFoA’s expanding international membership. As one of two global pilot initiatives in 2024—the other being the Greater China Member Committee—our goal is to create a formal, localised platform that ensures the needs and opportunities of regional members are both heard and acted upon.

The year 2024 was a stark reminder of the escalating climate crisis, with records broken across the board. We experienced the hottest year in recorded history , the highest concentrations of greenhouse gases, and the highest ocean heat content. Furthermore, there was record-low extent of Antarctic sea ice and unprecedented levels of glacier retreat. These weren't just abstract statistics; they translated into significant real-world impacts, including major storms, severe flooding, heatwaves, wildfires and droughts. These events are having cascading effects, negatively impacting food security, forcing population displacement, causing infrastructure damage, and resulting in substantial insurance losses.

Throughout 2024 the region has experienced several challenges and opportunities across an increasingly broad range of interrelated subjects. From an Appointed Actuary’s perspective, capital adequacy has emerged as the most frequently discussed topic.

Amid challenging underwriting conditions and ongoing market consolidation, the GCC insurance sector continued to adapt and evolve in the third quarter of 2024. While profit growth slowed due to weaker underwriting performance, rising investment income and higher insurance revenue offered a measure of stability to listed insurers across the region. In this blog, we explore the key developments shaping the GCC insurance landscape in Q3 2024. Drawing insights from the latest GCC Performance Periodical by Insurance Monitor and Lux Actuaries & Consultants, we delve into regional highlights, industry challenges, and the strategic initiatives reshaping the sector’s trajectory.