Life insurance - Africa

Africa

The Life insurance market market in Africa is projected to reach a market size (gross written premium) of US$95.97bn by 2024.
In the same year, the average spending per capita in the Life insurance market market is expected to amount to US$73.83.
The market is anticipated to show an annual growth rate (CAGR 2024-2028) of 5.12%, resulting in a market volume of US$117.20bn by 2028.
In global comparison, the United States is expected to generate the highest gross written premium of US$1,271.0bn in 2024.
In Africa, the life insurance market is experiencing significant growth due to increasing awareness of the importance of financial protection and a growing middle class.

Market

Region

Region comparison

Currency

Analyst Opinion

The Life insurance market in Africa continues to show promising signs of growth and development.

Customer preferences: Customers in Africa are increasingly recognizing the importance of financial security and protection for themselves and their families. This shift in mindset is driving the demand for life insurance products across the continent, as individuals seek to safeguard their loved ones and assets in the face of economic uncertainties and unforeseen events.

Trends in the market: In countries like Nigeria, South Africa, and Kenya, there is a noticeable trend towards the adoption of digital channels for purchasing insurance policies. This shift towards online platforms and mobile applications is making life insurance more accessible and convenient for a larger segment of the population. Additionally, there is a growing interest in customizable insurance products that cater to the specific needs and preferences of customers, such as coverage for critical illnesses or education expenses.

Local special circumstances: In regions with lower insurance penetration rates, such as Ethiopia and Tanzania, insurance companies are focusing on increasing awareness about the benefits of life insurance through targeted marketing campaigns and educational initiatives. By addressing common misconceptions and barriers to purchasing insurance, these companies are able to expand their customer base and drive market growth in previously untapped areas.

Underlying macroeconomic factors: The overall economic growth and stability in many African countries are contributing to the positive trajectory of the life insurance market. As disposable incomes rise and the middle class expands, more individuals have the financial capacity to invest in insurance products. Furthermore, regulatory reforms and government initiatives aimed at strengthening the insurance sector are creating a more conducive environment for insurance companies to operate and innovate in the market.

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.