Insurances

The Insurances market in Africa is projected to reach a market size (gross written premium) of US$148.60bn in 2024.
Among the various segments, Life insurances dominate the market with a projected volume of US$74.63bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$114.30 in 2024.
When compared globally, it is evident that the United States holds the highest nominal value, reaching US$3.8tn in 2024.
Looking ahead, the gross written premium is expected to grow at an annual rate of 1.69% (CAGR 2024-2029), resulting in a market volume of US$161.60bn by 2029.
Once again, the United States is expected to generate the highest gross written premium in 2024, amounting to US$3.8tn.
In the insurance market in Africa, South Africa stands out with its robust regulatory framework and high adoption of insurance products by its population.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

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.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.