Insurances - Kenya

Kenya

The Insurances market in Kenya is expected to see a significant growth in the coming years.
By 2024, the market size, measured by the gross written premium, is projected to reach US$8.03bn.
Life insurances are expected to dominate the market, with a projected market volume of US$4.56bn in 2024.
In terms of individual spending, the average per capita expenditure in the Insurances market is estimated to be US$142.90 in 2024.
This indicates the level of importance Kenyan consumers place on insurance products.
When compared to other countries globally, the United States is expected to have the highest nominal value in the Insurances market, reaching US$4,642.0bn in 2024.
This showcases the robust nature of the insurance industry the United States.
Looking ahead, the gross written premium is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 3.52%.
This growth trajectory is expected to result in a market volume of US$9.22bn by 2028.
Once again, the United States is projected to generate the most significant gross written premium in the global comparison, reaching US$4,642.0bn in 2024.
Overall, the Insurances market in Kenya is poised for growth, and with the right strategies and market developments, it has the potential to become a significant player in the global insurance industry.
In Kenya's insurance market, there is a growing trend towards microinsurance products to cater to the needs of low-income individuals.

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Analyst Opinion

The Insurances market in Kenya has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Kenya have been shifting towards more personalized and digital solutions. Customers are increasingly looking for insurance products that are tailored to their specific needs and offer convenience in terms of purchase and claims processing. Trends in the market indicate a rise in microinsurance products targeted at low-income individuals and small businesses in Kenya. This trend is driven by the increasing awareness of the importance of insurance coverage among the population, as well as efforts by insurance companies to expand their customer base. Local special circumstances in Kenya, such as the high rate of mobile phone penetration and the success of mobile money platforms, have played a significant role in the development of the insurance market. Insurers have leveraged mobile technology to reach a wider customer base and offer innovative insurance products through mobile channels. Underlying macroeconomic factors, such as the overall economic growth and stability in Kenya, have also contributed to the positive trajectory of the insurance market. As the economy continues to grow, more individuals and businesses are looking to protect their assets and mitigate risks through insurance coverage. This increased demand for insurance products has further fueled the growth of the market in Kenya.

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.