Non-life insurances - Burkina Faso

Burkina Faso

The Non-life insurance market in Burkina Faso is projected to reach a market size of US$721.20m in 2024 in terms of gross written premium.
The average spending per capita in the Non-life insurance market in Burkina Faso is estimated to be US$30.25 in 2024.
Over the period of 2024 to 2029, the gross written premium is expected to grow at an annual rate of 2.63%, resulting in a market volume of US$821.20m by 2029.
When compared globally, the United States is expected to generate the highest gross written premium of US$2,500.0bn in 2024.
The demand for non-life insurances in Burkina Faso is steadily increasing due to the country's growing economy and rising awareness of risk management.

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Analyst Opinion

The Non-life insurances market in Burkina Faso is experiencing steady growth and development. Customer preferences in Burkina Faso indicate a growing awareness and demand for non-life insurance products, driven by an increasing focus on risk management and financial security. Customers are looking for comprehensive coverage options that can protect their assets and provide peace of mind in the face of unforeseen events. Trends in the market show a shift towards digitalization and technology integration to improve operational efficiency and enhance customer experience. Insurers in Burkina Faso are leveraging digital platforms to reach a wider customer base, streamline claims processing, and offer personalized insurance solutions tailored to individual needs. Local special circumstances in Burkina Faso, such as a relatively low insurance penetration rate and a developing regulatory framework, present both opportunities and challenges for non-life insurers. The market is characterized by intense competition among domestic and international insurance companies, leading to innovative product offerings and pricing strategies to attract customers. Underlying macroeconomic factors, including stable economic growth, increasing disposable income levels, and a growing middle class population, are contributing to the expansion of the non-life insurance market in Burkina Faso. As the economy continues to develop, more individuals and businesses are recognizing the importance of insurance as a risk mitigation tool, driving further growth in the market.

Methodology

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.