Life insurance - Malawi | Statista Market Forecast

The Life insurance market market in Malawi is projected to reach a market size (gross written premium) of US$788.80m in 2024.
In the same year, the average spending per capita in the Life insurance market market is expected to amount to US$36.73.
Looking ahead, the gross written premium is forecasted to show an annual growth rate (CAGR 2024-2029) of 1.89%.
This growth will result in a market volume of US$866.10m by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium in the Life insurance market market, reaching US$1.3tn in 2024.
In Malawi, the life insurance market is experiencing a growing demand due to the increasing awareness of the importance of financial protection against unexpected events.

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

Over the past few years, the Life insurance market in Malawi has shown significant growth and development. Customer preferences in the Life insurance market in Malawi are shifting towards products that offer not only financial protection but also investment opportunities. Customers are increasingly looking for policies that provide long-term benefits such as retirement planning and education savings for their children. Trends in the market indicate a rise in the demand for innovative life insurance products that cater to the specific needs of the Malawian population. Insurers are introducing new products that are tailored to the local market, such as micro-insurance policies that are affordable and accessible to a wider range of customers. Local special circumstances, such as the growing middle class and increasing awareness about the importance of insurance, are driving the expansion of the Life insurance market in Malawi. As more people seek to secure their financial future, the demand for life insurance products is expected to continue to grow in the coming years. Underlying macroeconomic factors, including stable economic growth and a favorable regulatory environment, are also contributing to the positive development of the Life insurance market in Malawi. As the economy continues to strengthen and the regulatory framework becomes more robust, insurance companies are finding new opportunities for growth and expansion 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.