Life insurance - Western Africa

Western Africa

The Life insurance market market in Western Africa is expected to witness significant growth in the coming years.
According to projections, the market size, measured by the gross written premium, is set to reach US$11.32bn by 2024.
This indicates a promising outlook for the industry in the region.
In terms of average spending per capita, individuals are estimated to allocate US$27.38 towards Life insurance market in 2024.
This figure showcases the importance and value placed on protecting oneself and loved ones against unforeseen circumstances.
Furthermore, the market is anticipated to experience a steady annual growth rate of 0.53%, as measured by the compound annual growth rate (CAGR) between 2024 and 2028.
This growth trajectory is expected to drive the market volume to approximately US$11.56bn by the end of 2028.
In a global context, it is worth noting that the United States is projected to generate the highest gross written premium in the Life insurance market market, amounting to a staggering US$1,271.0bn in 2024.
This demonstrates the dominant position of the United States in the global Life insurance market industry.
Overall, the Life insurance market market in Western Africa shows promising growth potential, with rising market size, per capita spending, and a positive outlook for the future.
In Western Africa, the life insurance market is experiencing a surge in demand due to the growing middle class and increasing awareness of the importance of financial protection.

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Analyst Opinion

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

Customer preferences: Customers in Western Africa are increasingly recognizing the importance of financial security and protection for themselves and their families. As a result, there is a growing demand for life insurance products that offer coverage for various risks such as health emergencies, accidents, and death.

Trends in the market: One noticeable trend in the Life insurance market in Western Africa is the surge in microinsurance products tailored to meet the needs of low-income individuals and families. These products are designed to be affordable and easily accessible, making insurance coverage more inclusive across different socioeconomic groups in the region.

Local special circumstances: Western Africa is a region with diverse economic landscapes, ranging from rapidly growing economies to those facing challenges such as political instability and infrastructure gaps. This diversity influences the demand for life insurance products, with countries like Nigeria and Ghana leading the market due to their relatively stable economies and growing middle-class population.

Underlying macroeconomic factors: The economic growth and increasing urbanization in Western Africa are key drivers of the expansion in the Life insurance market. As more people move to urban centers and experience rising incomes, the awareness and uptake of life insurance products are expected to continue growing. Additionally, regulatory reforms aimed at strengthening the insurance industry and improving consumer protection are enhancing trust 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.