• 82 percent of insurance CEOs confident in growth prospects
• AI investment accelerating with up to 20 percent of budgets allocated
• Cybercrime remains top barrier to organizational growth
• Workforce readiness and AI skills gaps pose strategic risks
• Banks see AI as strategic imperative for long term differentiation
• ESG compliance and M&A activity rising across African markets

Insights from KPMG’s 2025 Global CEO Outlook reveal strong confidence across financial services in Africa, with artificial intelligence and cyber resilience emerging as dominant strategic priorities.

Leaders increasingly view digital transformation not simply as a defensive necessity, but as a catalyst for growth, operational efficiency, and customer trust.

AI adoption is accelerating across underwriting, onboarding, claims processing, and cyber defense. Sixty-seven percent of insurance CEOs now expect returns from AI investments within one to three years, compared with just 21 percent last year.

Two-thirds plan to allocate between 10 and 20 percent of their budgets to AI initiatives.

Yet the transformation is not without risk. Workforce capability is emerging as a constraint. Seventy-seven percent of global insurance CEOs cite AI workforce readiness and upskilling as a top growth challenge.

Eighty-three percent say AI is reshaping training and development, while 79 percent believe it is altering the skills required for entry-level roles.

Cyber risk remains a dominant concern. Eighty-three percent of insurance CEOs identify cybercrime as the biggest barrier to organizational growth, with digital resilience ranking as the leading area for risk mitigation investment.

Mark Danckwerts, Head of Insurance at KPMG One Africa, said insurers are navigating a complex environment with increasing confidence but must balance innovation carefully.

“Insurance leaders across Africa are navigating a complex operating environment, but they are doing so from a position of growing confidence,” he said.

“AI presents enormous opportunity to improve efficiency, risk assessment and customer engagement.

“However, sustainable success will depend on responsible adoption, workforce readiness, and strong cyber resilience. Insurers that balance innovation with trust will be best placed to outperform.”

Sustainability and ESG compliance remain high on executive agendas as regulatory standards tighten globally.

More than half of insurance CEOs identify ESG reporting and compliance as their primary ESG priority, a trend likely to influence African markets that often follow European regulatory developments.

The appetite for inorganic growth is also strong. The insurance sector is experiencing high levels of mergers and acquisitions activity globally, a trend mirrored across several African markets as firms seek scale and new capabilities.

In banking, AI is reshaping strategy even more dramatically. Seventy percent of banking CEOs expect to spend between 10 and 20 percent of their budgets on AI over the next year.

Sixty-nine percent anticipate returns within one to three years, up sharply from 13 percent last year.

Pierre Fourie, KPMG One Africa Head of Financial Services, said banks face both opportunity and pressure.

“Technology, in particular AI, presents a huge opportunity, but also a challenge in terms of where to prioritize, how to achieve a measurable return on investment, and how to ensure responsible and safe adoption to maintain trust,” he said.

Banks must simultaneously modernize legacy systems, confront rising financial crime risk amplified by AI-driven scams, respond to fintech competition, and comply with evolving regulations.

AI enhances customer engagement and fraud detection but also increases cyber exposure.

Among the top trends negatively affecting banking prosperity, executives cite cybercrime, AI workforce readiness, successful AI integration, competition for AI talent, and the cost of technology infrastructure.

“For African banks, AI is not a theoretical discussion — it is a strategic imperative,” Fourie added. “The ability to integrate AI into core processes, manage cyber risk and build the right talent base will determine competitive advantage.”

Notably, 25 percent of banking CEOs identify strategic differentiation as the primary driver of AI adoption, underscoring that technology investment is increasingly linked to long-term positioning rather than short-term cost savings.

Across Africa’s financial sector, the overarching narrative is one of disciplined transformation. Institutions are investing aggressively in AI, prioritizing cybersecurity, strengthening ESG compliance, and pursuing acquisitions to expand capabilities.

The challenge now is execution. Growth must be matched by governance, and innovation must reinforce trust. In an environment defined by rapid change, resilience may prove as valuable as reinvention