Insurances

The Insurances market in Madagascar is projected to reach a market size (gross written premium) of US$931.10m in 2024.
Non-Life Insurances dominates the market with a projected market volume of US$561.70m in 2024.
The average spending per capita in the Insurances market in Madagascar amounts to US$29.98 in 2024.
From a global comparison perspective, it is shown that the highest nominal value is reached the United States (US$3.8tn in 2024).
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 2.80%, resulting in a market volume of US$1.07bn by 2029.
In global comparison, the United States will generate the most gross written premium (US$3.8tn in 2024).
Madagascar's insurance market is experiencing a surge in demand for agricultural insurance due to the country's heavy reliance on agriculture as a source of income.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. 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.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

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, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Madagascar has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Madagascar are shifting towards more comprehensive coverage options, reflecting a growing awareness of the importance of insurance protection. Customers are increasingly seeking policies that cover a wide range of risks, including health, property, and life insurance, to safeguard themselves and their assets. Trends in the market show a notable increase in the demand for microinsurance products tailored to the needs of low-income individuals and small businesses. This trend is driven by efforts to improve financial inclusion and provide a safety net for vulnerable populations in Madagascar. Additionally, there is a growing interest in digital insurance solutions, making insurance products more accessible to a larger segment of the population. Local special circumstances, such as the vulnerability to natural disasters like cyclones and floods, play a significant role in shaping the insurance market in Madagascar. The increased frequency and severity of these events have highlighted the importance of insurance coverage as a means of disaster preparedness and recovery for individuals and businesses. Underlying macroeconomic factors, including stable economic growth and a rising middle class, contribute to the expansion of the insurance market in Madagascar. As disposable incomes increase, more people are able to afford insurance products, driving overall market growth. Additionally, regulatory reforms aimed at strengthening the insurance sector and increasing transparency have helped to build trust among consumers and boost market confidence.

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.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.