Building concrete markets: the role of insurance in property markets in Africa

In principle, insurers as institutional investors should also play a role in investment into the property market, either directly or by mobilising and catalysing capital markets.

Outside of direct property investments, however, there is a lack of feasible investment-ready opportunities in the sub-Saharan Africa property market.

From the findings, it is clear that the development community can promote the role of the insurance market in the property market (or other relevant economic sectors) by entrenching a holistic value chain lens in dialogues between the insurance sector, regulators and stakeholders from the real economy. This requires an understanding of the multifaceted ecosystem of the particular industry, including the actors in its value chain, and the incentives, risks and barriers faced by these actors at each segment of the value chain. There is also a need to (further) promote the development of investment vehicles that would allow efficient and aggregated investments into property markets at scale, and to rethink insurance products that meet the needs and limitations of property owners.