Life insurance - Eastern Africa

Eastern Africa

The Life insurance market market in Eastern Africa is expected to witness significant growth in the coming years.
According to projections, the market size (gross written premium) is set to reach US$13.94bn in 2024.
This indicates a positive trend in the region's insurance sector.
Furthermore, the average spending per capita in the Life insurance market market is estimated to be US$30.37 in 2024.
This figure reflects the amount individuals are willing to invest in Life insurance market coverage, highlighting the importance they place on protecting their financial well-being.
Looking ahead, the market is predicted to experience a steady annual growth rate (CAGR 2024-2028) of 2.93%.
This consistent growth trajectory is expected to result in a market volume of US$15.65bn by 2028.
This demonstrates the increasing demand for Life insurance market products and services in Eastern Africa.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium in the global Life insurance market market, reaching a staggering US$1,271.0bn in 2024.
This highlights the significant market presence and dominance of the United States in the industry.
The Life insurance market market in Eastern Africa presents a promising landscape with substantial growth potential.
As individuals recognize the importance of securing their financial future, the demand for Life insurance market is expected to continue rising in the region.
Eastern Africa's life insurance market is experiencing a surge in demand due to increasing awareness about the importance of financial protection and growing middle-class population.

Market

Region

Region comparison

Currency

Analyst Opinion

In Eastern Africa, the Life insurance market is experiencing significant growth and development.

Customer preferences: Customers in Eastern Africa are increasingly recognizing the importance of financial security and long-term planning, leading to a growing demand for life insurance products. With rising disposable incomes and a burgeoning middle class, individuals are more inclined to invest in life insurance to safeguard their families' future financial stability.

Trends in the market: In Kenya, for example, there is a noticeable shift towards digital insurance platforms, making life insurance more accessible to a larger population. This trend is driven by the increasing penetration of mobile phones and the internet in the region. Moreover, innovative product offerings tailored to the specific needs of customers, such as education or health-focused insurance plans, are gaining traction in countries like Tanzania and Uganda.

Local special circumstances: Eastern Africa is characterized by a young and rapidly growing population, presenting a significant opportunity for life insurance companies to tap into a large market of potential customers. Additionally, the region's vulnerability to natural disasters and health epidemics has raised awareness about the importance of insurance protection, further driving the demand for life insurance products.

Underlying macroeconomic factors: The overall economic growth and stability in Eastern Africa are contributing to the positive trajectory of the life insurance market. As the region continues to attract foreign investment and witness infrastructure development, individuals are more confident about investing in long-term financial instruments like life insurance. Additionally, regulatory reforms aimed at strengthening the insurance sector and enhancing consumer protection are fostering trust and credibility 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.