Life insurance - Africa | Statista Market Forecast

The Life insurance market market in Africa is projected to reach a market size (gross written premium) of US$74.63bn by 2024.
In the same year, the average spending per capita in the Life insurance market market is expected to amount to US$57.41.
The market is anticipated to show an annual growth rate (CAGR 2024-2029) of 0.86%, resulting in a market volume of US$77.89bn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium of US$1.3tn 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.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. 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.

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, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

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.

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.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.