Non-life insurances - Africa | Statista Market Forecast

The Non-life insurance market in Africa is expected to witness significant growth in the coming years.
According to projections, the market size, in terms of gross written premium, is anticipated to reach US$73.96bn by 2024.
Additionally, the average spending per capita in the Non-life insurance sector is predicted to be US$56.89 in 2024.
Furthermore, the gross written premium is estimated to exhibit a compound annual growth rate (CAGR) of 2.50% during the period of 2024-2029.
This growth trajectory is expected to result in a market volume of US$83.69bn by 2029.
In terms of global comparison, the United States is projected to generate the highest gross written premium in the Non-life insurance sector, reaching US$2.5tn in 2024.
This highlights the dominance of the United States in the global insurance market.
In South Africa, the non-life insurance market is experiencing significant growth due to increasing demand for property and casualty coverage in urban areas.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

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, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

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

Over the past few years, the Non-life insurances market in Africa has shown significant growth and development.

Customer preferences: Customers in Africa are increasingly valuing the security and protection that non-life insurance products provide, especially in the face of economic uncertainties and natural disasters. There is a growing awareness among individuals and businesses about the importance of mitigating risks through insurance coverage, driving the demand for non-life insurance policies.

Trends in the market: In South Africa, there has been a notable trend towards the adoption of technology in the non-life insurance sector. Insurers are leveraging digital platforms to reach a wider customer base and streamline their operations. This trend is not only enhancing customer experience but also improving efficiency in claims processing and policy management.

Local special circumstances: In Nigeria, the non-life insurance market is influenced by unique factors such as regulatory changes and increasing competition. The implementation of new regulations is reshaping the market landscape and pushing insurance companies to innovate their products and services to stay competitive. Additionally, the large population and expanding middle class in Nigeria present significant opportunities for non-life insurers to tap into a growing market.

Underlying macroeconomic factors: The overall economic growth and stability in countries like Kenya are contributing to the expansion of the non-life insurance market. As disposable incomes rise and urbanization continues, more individuals and businesses are seeking insurance coverage for their assets and properties. This economic growth is creating a favorable environment for insurers to introduce new products and expand their market presence. In conclusion, the Non-life insurances market in Africa is evolving in response to changing customer preferences, market trends, local circumstances, and underlying macroeconomic factors. Insurers in the region are adapting to these dynamics by innovating their offerings and expanding their reach to capitalize on the growing demand for non-life insurance products.

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.