Life insurance - Southern Africa

Southern Africa

The Life insurance market market in Southern Africa is projected to reach a market size (gross written premium) of US$34.66bn in 2024.
In the same year, the average spending per capita in the Life insurance market market is estimated to amount to US$0.49k.
The gross written premium is expected to exhibit an annual growth rate (CAGR 2024-2029) of -0.82%, resulting in a market volume of US$33.27bn by 2029.
When compared globally, the United States is anticipated to generate the highest gross written premium of US$1,288.0bn in 2024.
In Southern Africa, the life insurance market is experiencing a surge in demand as individuals prioritize financial security amidst uncertain economic times.

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Analyst Opinion

The life insurance market in Southern Africa is experiencing significant growth and development. Customer preferences in the region are shifting towards more comprehensive life insurance coverage, driven by increasing awareness of the importance of financial protection and long-term planning. Customers are seeking policies that offer not only death benefits but also savings and investment components to secure their financial future. Trends in the market indicate a rise in demand for customized life insurance products tailored to the specific needs of individuals and families in Southern Africa. Insurers are adapting their offerings to include options such as critical illness coverage, disability benefits, and retirement planning solutions to cater to the evolving needs of customers in the region. Local special circumstances, such as a growing middle class and rising disposable incomes, are contributing to the expansion of the life insurance market in Southern Africa. As more people enter the middle-income bracket, there is a greater willingness and ability to invest in life insurance products as a means of safeguarding their wealth and ensuring financial stability for their loved ones. Underlying macroeconomic factors, including stable economic growth, low inflation rates, and favorable regulatory environments, are creating a conducive environment for the growth of the life insurance market in Southern Africa. These factors provide insurers with opportunities to expand their operations, introduce innovative products, and reach a broader customer base in the region.

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.