Life insurance - Sierra Leone | Statista Market Forecast

The Life insurance market market in Sierra Leone is expected to reach a projected market size (gross written premium) of US$453.20m in 2024.
Furthermore, the average spending per capita in the Life insurance market market is estimated to amount to US$50.47 in the same year.
Looking ahead, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 1.77%.
This growth trajectory is expected to result in a market volume of US$494.70m by 2029.
Comparatively, in the global market, the United States is predicted to generate the highest gross written premium, reaching US$1.3tn in 2024.
Sierra Leone's life insurance market is experiencing steady growth due to an 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

Sierra Leone, a country in West Africa, is experiencing notable developments in its Life insurance market.

Customer preferences: Customers in Sierra Leone are increasingly recognizing the importance of securing their financial future and protecting their families through life insurance coverage. As the awareness about the benefits of life insurance grows, more individuals are seeking policies that offer comprehensive coverage and financial security in the event of unforeseen circumstances.

Trends in the market: One of the key trends in the Life insurance market in Sierra Leone is the shift towards innovative and customized insurance products. Insurance companies in the country are introducing tailored life insurance solutions to meet the specific needs of different customer segments. This trend is driven by the demand for more flexible and personalized insurance options that can adapt to the changing lifestyles and financial goals of policyholders.

Local special circumstances: The unique socio-economic landscape of Sierra Leone plays a significant role in shaping the Life insurance market in the country. With a growing middle-class population and increasing disposable income, more individuals are able to afford life insurance policies. Additionally, the government's efforts to promote financial inclusion and regulatory reforms in the insurance sector are creating a conducive environment for the growth of the Life insurance market.

Underlying macroeconomic factors: The macroeconomic factors in Sierra Leone, such as economic stability, GDP growth, and inflation rates, are influencing the development of the Life insurance market. A stable economy and positive growth outlook are instilling confidence in consumers to invest in long-term financial planning, including life insurance. Moreover, the low penetration rate of life insurance in the country indicates significant growth potential for insurance companies to expand their market presence and reach a wider 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.