Insurances

The Insurances market in Malawi is projected to reach a gross written premium of US$1.70bn in 2024.
Non-Life Insurances dominates the market with a projected market volume of US$909.60m in 2024.
The average spending per capita in the Insurances market in Malawi amounts to US$79.09 in 2024.
Comparing globally, the highest nominal value is reached the United States, which is expected to reach US$3.8tn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 1.85%, resulting in a market volume of US$1.86bn by 2029.
In global comparison, the United States will generate the highest gross written premium, reaching US$3.8tn in 2024.
Despite the challenges faced by Malawi's insurance market, there is a growing trend towards innovative products and increased customer awareness.

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 Malawi has been experiencing significant growth and development in recent years. Customer preferences in the Malawian insurance market have been shifting towards more comprehensive coverage options, reflecting a growing awareness of the importance of insurance protection. Customers are increasingly seeking policies that not only cover traditional areas such as health and property, but also offer innovative solutions tailored to their specific needs. Trends in the market indicate a rise in the uptake of microinsurance products, particularly among low-income segments of the population. This trend is driven by a combination of factors such as increasing financial inclusion initiatives, rising disposable incomes, and a growing recognition of the benefits of insurance among previously underserved communities. Local special circumstances in Malawi, such as the country's vulnerability to natural disasters like floods and droughts, have also played a role in shaping the insurance market. Insurers are responding to these unique challenges by developing products that provide coverage against climate-related risks, thus addressing a critical need in the local market. Underlying macroeconomic factors, including stable economic growth and a favorable regulatory environment, have further supported the expansion of the insurance market in Malawi. As the economy continues to develop, insurance companies are presented with new opportunities to diversify their product offerings and reach a wider customer base. In conclusion, the insurance market in Malawi is evolving in response to changing customer preferences, local circumstances, and macroeconomic trends. By adapting to these dynamics, insurers in Malawi are well-positioned to capitalize on the growing demand for insurance products and services in the country.

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.