Insurances

The Insurances market in Botswana is projected to reach a market size (gross written premium) of US$2.46bn in 2024.
Non-Life Insurances dominate this market with a projected market volume of US$1.26bn in the same year.
The average spending per capita in the Insurances market in Botswana is estimated to be US$903.80 in 2024.
When compared globally, the United States is expected to have the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of 2.63%, resulting in a market volume of US$2.80bn by 2029.
In terms of gross written premium, the United States is projected to generate the highest amount globally, with US$3.8tn in 2024.
Botswana's insurance market is experiencing a surge in demand for agricultural insurance due to the country's heavy reliance on the agricultural sector.

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 Botswana has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Botswana are increasingly seeking insurance products that offer comprehensive coverage and tailored solutions to meet their specific needs. There is a growing demand for innovative insurance products that provide protection against a wide range of risks, including health, property, and life insurance. Additionally, customers are placing a higher value on transparency, efficiency, and digital accessibility when interacting with insurance providers.

Trends in the market: One notable trend in the Botswana insurance market is the increasing adoption of technology and digital platforms by insurance companies. Insurers are leveraging digital tools to streamline processes, enhance customer experience, and offer more personalized services. Another trend is the rising popularity of microinsurance products, which are designed to provide affordable coverage to low-income individuals and underserved communities. This trend is driven by the growing awareness of the importance of insurance protection among a broader segment of the population.

Local special circumstances: In Botswana, the insurance market is influenced by the country's stable political environment, sound regulatory framework, and growing economy. The government's initiatives to promote financial inclusion and consumer protection have also contributed to the positive growth of the insurance sector. Additionally, the presence of a young and expanding middle-class population in Botswana is creating new opportunities for insurance companies to expand their customer base and introduce innovative products and services.

Underlying macroeconomic factors: The growth of the insurance market in Botswana is closely tied to the overall economic performance of the country. As the economy continues to diversify and grow, there is an increasing need for insurance products to mitigate risks and support sustainable development. Factors such as GDP growth, employment rates, and disposable income levels play a crucial role in shaping the demand for insurance services in Botswana. Moreover, the country's efforts to strengthen its regulatory framework and improve market competitiveness are enhancing consumer trust and confidence in the insurance industry.

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.