Insurances - Africa

Africa

The Insurances market in Africa is projected to reach a market size (gross written premium) of US$168.90bn in 2024.
Among the various segments, Life insurances dominate the market with a projected volume of US$95.97bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$130.00 in 2024.
When compared globally, it is evident that the United States holds the highest nominal value, reaching US$4,642.0bn in 2024.
Looking ahead, the gross written premium is expected to grow at an annual rate of 3.88% (CAGR 2024-2028), resulting in a market volume of US$196.70bn by 2028.
Once again, the United States is expected to generate the highest gross written premium in 2024, amounting to US$4,642.0bn.
In the insurance market in Africa, South Africa stands out with its robust regulatory framework and high adoption of insurance products by its population.

Market

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Region comparison

Currency

Analyst Opinion

The Insurances market in Africa is experiencing significant growth and development in recent years.

Customer preferences: Customers in Africa are increasingly recognizing the importance of insurance coverage to protect their assets and mitigate risks. The rising middle class and urbanization have led to a growing awareness of the need for insurance products such as health, life, and property insurance.

Trends in the market: In Nigeria, the largest insurance market in Africa, there is a surge in demand for microinsurance products tailored to low-income individuals. This trend is driven by the government's efforts to increase financial inclusion and regulatory reforms aimed at expanding insurance penetration in the country.

Local special circumstances: South Africa stands out in the African insurance market with its well-established regulatory framework and diverse range of insurance products. The country's insurance sector is characterized by a high level of sophistication and innovation, attracting both local and international insurers to operate in the market.

Underlying macroeconomic factors: The economic growth and stability in countries like Kenya and Ghana are contributing to the expansion of their insurance markets. As disposable incomes rise and consumer spending increases, there is a growing demand for insurance products to safeguard against unforeseen events and secure financial well-being. Additionally, regulatory reforms and initiatives to promote insurance penetration are further driving the growth of the insurance market in these countries.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.