East Africa must rethink insurance as economic uncertainties surge

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For many people, insurance is something considered only after a crisis unfolds. [Courtesy]

Across East Africa, insurance remains one of the most misunderstood financial tools despite its growing importance in everyday life and business. Insurance penetration across the region remains low - roughly 2.4 per cent of the gross domestic product (GDP) in Kenya, about 2.1 per cent in Tanzania, and under one per cent in Uganda - underscoring both the scale of under-protection and the opportunity for growth.

For many people, insurance is something considered only after a crisis unfolds, after a hospital admission, a vehicle accident, a fire, or an unexpected business disruption.

That reactive mindset is understandable, but it reflects a broader challenge facing our region: insurance is still widely viewed as complicated, costly, or inaccessible.