Sakaria Nghikembua
Across Africa, insurance adoption remains low. According to research by FT Partners on the fintech industry (Q4 2024), penetration outside South Africa is constrained by “lack of awareness, cost, minimal product innovation, regulatory obstacles, and unsteady incomes.”
The report notes that insurtech innovation is helping to grow the continent’s insurance market by offering more affordable products designed for untapped demographics.
Namibia stands out for having one of the higher penetration rates in Africa, about 7.41%, according to Finance in Africa (2025).
This figure reflects the industry’s size relative to GDP, but it does not necessarily mean that households are adequately covered. The Bank of Namibia’s April 2025 Financial Stability Report indicates that the non-bank financial institutions sector experienced strong growth in 2024, with assets increasing by 14.3% to N$474.1 billion.
This demonstrates the sector’s structural importance as both a source of funds and a distributor of risk in the domestic economy.
Yet this institutional strength masks a persistent reality: many Namibians remain without adequate life or retirement cover.
The Bank of Namibia (2025) also reports that about 22% of adults are financially excluded. Even among those considered financially included, many have access only to basic banking or mobile money, rather than insurance. Financial inclusion does not automatically mean protection, and this is the essence of Namibia’s protection gap.
Namibia’s protection gap
Despite progress in financial inclusion, long-term insurance coverage in Namibia remains uneven. Coverage is concentrated among those in formal employment, leaving informal workers and lower-income households at risk of being excluded from life and retirement products.
The Namibia Financial Inclusion Survey (2017), conducted by FinMark Trust and the Namibia Statistics Agency, remains the most recent survey providing detailed demographic data on financial exclusion. It found that:
•More than a quarter of rural residents were financially excluded (27.1%).
•Nearly a quarter of men lacked access to financial services (23.9%).
•Among young people aged 16–20, more than a third were excluded (36.8%).
The Bank of Namibia’s Financial Stability Report (2025) confirms that overall exclusion still affects about 22% of adults, underscoring that the challenge persists today. Taken together, these findings highlight the scale of the protection gap and the urgent need for strategies that extend long-term insurance cover more broadly across Namibian society.
These gaps mean that families without access to life protection or retirement savings are vulnerable when breadwinners pass away or when they reach old age without adequate resources. Closing this protection gap is vital to building resilience for households and the nation.
Economic pressures deepen the problem. The Namibia Statistics Agency (2024) continues to report high unemployment rates and rising living costs, forcing many families to prioritise day-to-day survival over long-term planning. This makes bridging the gap between financial inclusion and true insurance protection more urgent than ever.
Challenges facing the industry
The long-term insurance sector faces several pressures:
People are living longer, which is a positive development, but it stretches retirement savings further. Family structures are changing, with more single-parent households and wider family responsibilities.
Economic uncertainty makes it difficult for households to maintain regular contributions, leading to lapses in cover. Trust is another significant challenge, particularly among the underserved and previously excluded.
For many, insurance is unfamiliar, and there is a lack of understanding of how it works or whether benefits will be delivered when needed. Building confidence among these groups requires simple, transparent products and consistent delivery on promises, allowing trust to grow over time.
If these challenges remain unaddressed, the protection gap will only widen, leaving more families without the security that life and retirement insurance are meant to provide.
Seizing the opportunities
At the same time, these challenges present opportunities to innovate and better serve Namibians.
Cross-industry partnerships can help extend cover to underserved communities. By working with employers, small businesses, cooperatives and community organisations, insurers can create access points that reach beyond the traditional formal sector.
Flexible and culturally relevant products tailored to Namibian realities, with adaptable contributions, funeral benefits aligned with tradition, and savings options suited to fluctuating incomes, can make long-term insurance more inclusive and trustworthy.
Outcome-based investing focuses on helping individuals achieve real-life goals, such as funding their children’s education or retiring with dignity.
Artificial intelligence (AI) is already helping to make processes more efficient and accurate, laying the groundwork for innovations that could bring cover within reach of more communities.
Financial literacy campaigns, particularly those targeting young people and women, are critical in shifting the mindset from “I will start later” to “the best time to start is now.”
Each of these solutions points towards one goal: narrowing the protection gap and ensuring that no Namibian is left behind in building financial security.
A call to action
The future of long-term insurance in Namibia depends on trust, inclusivity and resilience. Insurers must simplify products, deliver on their promises, and design solutions that work for all Namibians, especially those outside the formal sector. Partnerships with government, regulators, employers and community organisations will be essential in extending cover and building a more financially secure society.
At Momentum Metropolitan, our purpose is to build and protect our clients’ financial dreams. Long-term insurance is not just about preparing for the worst; it is about protecting the future and empowering households to face tomorrow with confidence. By closing the protection gap, we can create a Namibia where every family has the assurance that their financial dreams will not collapse in the face of life’s uncertainties.
The time to act is now. Together we can build financial resilience for generations to come, enabling every Namibian to embark on their journey to success.
*Sakaria Nghikembua is the chief executive officer at Momentum Metropolitan Namibia.
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Sakaria Nghikembua
