Life insurance - Senegal | Statista Market Forecast

The Life insurance market market in Senegal is expected to reach a market size (gross written premium) of US$157.00m in 2024.
The average spending per capita in the Life insurance market market is projected to be US$8.62 in 2024.
Looking ahead, the gross written premium is anticipated to experience an annual growth rate (CAGR 2024-2029) of 3.68%, resulting in a market volume of US$188.10m by 2029.
In comparison to other countries, the United States is predicted to generate the highest gross written premium of US$1.3tn in 2024.
Senegal's life insurance market is experiencing a surge in demand due to increasing awareness about financial protection and the need for long-term savings.

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 Senegal has shown significant growth and development.

Customer preferences: Senegalese customers are increasingly recognizing the importance of financial security and long-term planning, leading to a growing demand for life insurance products. As individuals become more financially literate and aware of the benefits of life insurance, they are actively seeking policies that offer protection and investment opportunities for themselves and their families.

Trends in the market: One noticeable trend in the Senegalese life insurance market is the introduction of innovative and tailored products to cater to the specific needs of the local population. Insurers are designing policies that align with the cultural and social norms of Senegal, making them more appealing and accessible to a wider customer base. Additionally, there is a shift towards digitalization in the industry, with more insurers offering online services and mobile applications to enhance customer experience and reach a tech-savvy audience.

Local special circumstances: Senegal's life insurance market is influenced by its demographic composition, with a young and growing population driving the demand for insurance products. The country's stable political environment and improving regulatory framework have also played a crucial role in attracting both domestic and foreign insurers to expand their operations in Senegal. Moreover, the government's efforts to promote financial inclusion and literacy have contributed to the overall development of the insurance sector.

Underlying macroeconomic factors: The economic growth and stability in Senegal have provided a favorable environment for the life insurance market to thrive. As the country continues to experience positive GDP growth and increasing disposable incomes, more individuals are willing to invest in life insurance as a means of securing their financial future. Additionally, the rising middle class and urbanization trends in Senegal are driving the demand for insurance products, creating opportunities for insurers to tap into new market segments and expand their customer base.

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.