Non-life insurances - Botswana | Statista Market Forecast

The Non-life insurance market in Botswana is expected to witness a significant growth in the coming years.
By 2024, the market size, measured by gross written premium, is projected to reach US$1.26bn.
This indicates a promising opportunity for the insurance industry in the country.
Furthermore, the average spending per capita in the Non-life insurance market is estimated to be US$462.00 in 2024.
This indicates that individuals in Botswana are increasingly recognizing the importance of insurance coverage for their personal and financial security.
Looking ahead, the market is anticipated to experience a steady growth rate.
With a compound annual growth rate (CAGR) of 2.43% from 2024 to 2029, the gross written premium is expected to reach US$1.42bn by the end of the forecast period.
This signifies a positive trend for the Non-life insurance sector in Botswana.
In a global comparison, it is noteworthy that the United States is expected to generate the highest gross written premium in 2024, amounting to a staggering US$2.5tn.
This highlights the dominance of the US market and the significant contribution it makes to the global insurance industry.
Overall, the Non-life insurance market in Botswana is poised for growth and presents opportunities for both insurers and consumers in the country.
Botswana's non-life insurance market is experiencing rapid growth due to increasing awareness of the importance of insurance coverage.

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

The Non-life insurances market in Botswana is experiencing steady growth and development.

Customer preferences: Customers in Botswana are increasingly seeking comprehensive non-life insurance coverage to protect their assets and mitigate risks. With a growing awareness of the importance of insurance, individuals and businesses are opting for policies that offer a wide range of coverage options, including property, motor, and liability insurance.

Trends in the market: One notable trend in the Botswana non-life insurance market is the increasing demand for custom-tailored insurance products. Insurers are responding to this trend by offering flexible policies that can be personalized to meet the specific needs of customers. Additionally, there is a rising interest in digital insurance solutions, with more insurers leveraging technology to enhance customer experience and streamline policy management processes.

Local special circumstances: In Botswana, the non-life insurance market is influenced by the country's stable political environment and growing economy. The government's efforts to promote financial inclusion and regulatory reforms have also contributed to the market's growth. Moreover, the presence of international insurers in the market has brought in expertise and innovation, driving competition and product diversification.

Underlying macroeconomic factors: The growth of the non-life insurance market in Botswana is closely tied to the overall economic performance of the country. As the economy continues to expand, driven by sectors such as mining, tourism, and financial services, there is a corresponding increase in insurable assets and risks. This economic growth, coupled with a rising middle class and urbanization, is creating a favorable environment for the development of the non-life insurance sector.

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.