Insurances

The Insurances market in Namibia is projected to reach a market size of US$3.07bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$1.66bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$1.16k in 2024.
When comparing globally, it is evident that the United States holds the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is expected to exhibit an annual growth rate (CAGR 2024-2029) of -1.10%, resulting in a market volume of US$2.90bn by 2029.
In terms of gross written premium, the United States is anticipated to generate the highest amount in 2024, reaching US$3.8tn.
Namibia's insurance market is experiencing a surge in demand for crop insurance due to the country's heavy reliance on agriculture.

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 Namibia has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Namibia are shifting towards more personalized and tailored insurance products that cater to individual needs and preferences. Customers are increasingly looking for insurance solutions that offer flexibility, transparency, and value-added services. This trend is in line with global market dynamics where customers are seeking more customized and on-demand insurance products. Trends in the insurance market in Namibia indicate a growing demand for digital insurance services and solutions. Insurers are increasingly leveraging technology to enhance customer experience, streamline processes, and offer innovative products. The rise of Insurtech companies in the market is also contributing to the digital transformation of the insurance sector in Namibia. This trend aligns with the global shift towards digitalization and technological advancements in the insurance industry. Local special circumstances in Namibia, such as the relatively low insurance penetration rate and the growing middle-class population, are driving the development of the insurance market. As the economy continues to grow and the population becomes more financially literate, there is an increasing awareness of the importance of insurance as a risk management tool. This presents opportunities for insurers to expand their customer base and offer a wider range of insurance products to meet the evolving needs of the market. Underlying macroeconomic factors, such as stable economic growth, regulatory reforms, and increasing disposable income, are also influencing the development of the insurance market in Namibia. The government's focus on financial inclusion and consumer protection is creating a conducive environment for the insurance sector to thrive. Additionally, the country's strategic location and political stability make it an attractive destination for insurers looking to expand their presence in the region.

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.