Life insurance - Cameroon

Cameroon

The Life insurance market market in Cameroon is projected to reach a market size (gross written premium) of US$0.94bn in 2024.
In the same year, the average spending per capita in the Life insurance market market is expected to amount to US$32.03.
Looking ahead, the market is anticipated to grow at an annual growth rate (CAGR 2024-2029) of 2.24%, resulting in a market volume of US$1.05bn by 2029.
When compared globally, the United States is expected to generate the highest gross written premium of US$1,288.0bn in 2024.
Cameroon's life insurance market is experiencing a surge in demand as more individuals seek financial security for their families' futures.

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Analyst Opinion

The Life insurance market in Cameroon is showing promising signs of growth and development.

Customer preferences: Cameroonian customers are increasingly recognizing the importance of financial security and long-term planning, leading to a growing interest in life insurance products. The shift towards safeguarding the future of loved ones and ensuring financial stability in the face of uncertainties is driving the demand for life insurance in the country.

Trends in the market: One notable trend in the Cameroonian life insurance market is the introduction of innovative and customized insurance products tailored to the specific needs of the local population. Insurers are focusing on providing solutions that resonate with the unique requirements and preferences of Cameroonian customers, thereby expanding the market reach and penetration.

Local special circumstances: The regulatory environment in Cameroon plays a significant role in shaping the life insurance market. With the government's efforts to strengthen the regulatory framework and promote financial inclusion, insurance companies are facing new opportunities and challenges. Adapting to the evolving regulatory landscape while addressing the specific needs of the Cameroonian market is crucial for sustained growth in the sector.

Underlying macroeconomic factors: Cameroon's economic growth and stability are contributing to the positive trajectory of the life insurance market. As the country experiences economic development and rising income levels, there is a growing awareness about the importance of insurance as a risk management tool. The expanding middle class and increasing urbanization further fuel the demand for life insurance products, creating a favorable environment for market expansion.

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.