Insurances - Lesotho

Lesotho

The Insurances market in Lesotho is projected to reach a gross written premium of US$0.76bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$0.44bn in 2024.
The average spending per capita in the Insurances market amounts to US$322.30 in 2024.
When compared globally, the United States leads with the highest nominal value, reaching US$4,642.0bn in 2024.
The gross written premium is expected to grow annually at a rate of 1.61% (CAGR 2024-2028), resulting in a market volume of US$0.81bn by 2028.
The United States will continue to generate the highest gross written premium in 2024, reaching US$4,642.0bn.
Lesotho's insurance market is experiencing a growing demand for agricultural insurance due to the country's reliance on farming as a primary source of income.

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Analyst Opinion

The Insurances market in Lesotho has been experiencing a notable growth trajectory in recent years.

Customer preferences: Customers in Lesotho are increasingly valuing insurance products as a means of financial security and protection against unforeseen events. This shift in mindset is driving demand for a variety of insurance products, including life, health, and property insurance.

Trends in the market: One of the key trends shaping the insurance market in Lesotho is the growing awareness and understanding of insurance products among the population. As more people recognize the importance of being insured, there has been a corresponding increase in the uptake of insurance policies. Additionally, advancements in technology and the availability of online insurance services are making it easier for customers to access and purchase insurance products.

Local special circumstances: Lesotho's unique demographic and economic landscape play a significant role in shaping the insurance market. With a young and growing population, there is a rising need for insurance products that cater to the specific requirements of different age groups. Moreover, the country's increasing urbanization and development are creating new opportunities for insurers to expand their offerings and reach a wider customer base.

Underlying macroeconomic factors: The overall economic stability and growth in Lesotho are contributing to the positive momentum in the insurance market. As the economy continues to develop, more individuals and businesses are looking to safeguard their assets and investments through insurance coverage. Additionally, regulatory reforms and efforts to enhance consumer protection are further bolstering trust and confidence in the insurance sector.

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.