A report from Deloitte says that the insurance sector in East Africa is a prime target for mergers and acquisitions as investment from private equity firms increases the capacity of the industry. AFK Africa reports that competition has increased in the region and as more foreign insurers look to buy into the market the large players will lose their pricing advantage. There is then predicted to be a surge in M&A activity as insurers seek economies of scale.  Insurance penetration is still low in many East African countries including Kenya, Tanzania and Uganda.