Nozipho Dlamini, Chief Insurance Officer at Finsure Assurance Company, has called for a transformative approach to insurance in Eswatini, emphasizing the urgent need for inclusive insurance models to tackle the region’s persistent protection gap.
In an exclusive interview with Executive Leadership Magazine, Dlamini highlighted that despite Eswatini’s progress, insurance penetration remains alarmingly low at just 2.23% in 2024 — a stark contrast to South Africa’s 11.54%.
Similar low figures are seen in neighbouring Botswana (2.28%) and Zambia (1.3%), underscoring a regional challenge.
“The protection gap — the difference between the coverage people need and what they actually have — is especially wide in Eswatini,” Dlamini explained.
She attributed this shortfall to multiple barriers, including unaffordable premiums, limited financial literacy, and insufficient access to insurance providers.
The consequences are severe, she warned, particularly during health emergencies, loss of income, climate disasters, and in settings with weak social safety nets.
Inclusive insurance, which extends coverage to groups traditionally excluded from mainstream policies, offers a potential solution.
“It can prevent health crises from turning fatal, protect breadwinners’ incomes, and shield small-scale farmers from climate-related losses,” Dlamini said.
While acknowledging insurers’ need to maintain profitability, she pointed to microinsurance schemes leveraging mobile technology and community-based distribution as sustainable ways to lower costs and expand reach.
Moreover, Dlamini stressed that inclusive insurance drives financial inclusion, reduces poverty risks, and strengthens economic resilience.
Yet challenges remain — particularly overcoming deep-seated distrust of insurance, slow adoption of digital tools, and poorly adapted products.
“We need to immerse ourselves in these communities to understand their needs and create offerings that truly work for them,” she urged, calling for intensified grassroots education, innovative distribution channels, and product designs tailored to low-income realities.
As Eswatini grapples with bridging its protection gap, Dlamini’s call may pave the way for a more equitable and resilient insurance sector across Southern Africa.
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