Lagos, Nigeria — Mounting sovereign debt across African nations has taken center stage at the 2025 African Insurance Organisation (AIO) Conference, as industry leaders, economists, and policymakers gather to assess the continent’s financial health and the insurance sector’s response to growing economic risks.
The annual summit, which opened in Lagos on Monday, is themed “Shaping a Resilient Insurance Industry Amid Economic Headwinds,” and features discussions on the implications of rising public debt on insurance portfolios, credit risk, and long-term investment strategies.
Organizers say this year’s event is especially critical, with Africa’s combined debt profile exceeding $1.8 trillion, placing pressure on fiscal stability and dampening investor confidence across several countries.
“The debt crisis is not just a government problem — it’s an insurance issue,” said AIO President Tope Smart in his keynote address. “Our industry must confront the systemic risks posed by fiscal imbalances, currency depreciation, and sovereign default threats.”
Insurance firms, many of which invest heavily in government securities, are increasingly exposed to macroeconomic vulnerabilities tied to debt sustainability. Panelists at the summit highlighted how high debt servicing costs are crowding out public investment and eroding social protections — areas where insurers often step in to fill the gap.
Delegates also discussed innovative approaches to mitigating the risks, including sovereign risk insurance, public-private partnerships, and regional collaboration to enhance regulatory resilience.
The AIO conference, now in its 51st edition, features participation from over 40 African countries and international observers, including representatives from the World Bank, African Development Bank, and major reinsurance companies.
As the continent navigates a challenging post-pandemic recovery, organizers hope the summit will yield actionable policy recommendations and bolster the role of insurance in building economic resilience.
The conference runs through Friday, with closed-door sessions expected to address Nigeria’s fiscal reforms, exchange rate volatility, and the outlook for cross-border insurance regulation.
