Non-life insurances - Burundi

Burundi

The Non-life insurance market in Burundi is projected to reach a market size (gross written premium) of US$141.80m in 2024.
By that time, the average spending per capita in the Non-life insurance market is expected to amount to US$10.43.
It is anticipated that the gross written premium will show an annual growth rate (CAGR 2024-2029) of -0.14%, resulting in a market volume of US$140.80m by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium of US$2,500.0bn in 2024.
Despite being a low-income country, Burundi has witnessed a growing demand for non-life insurances due to increased awareness and regulatory reforms.

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Analyst Opinion

The Non-life insurance market in Burundi is experiencing notable growth and development.

Customer preferences: Customers in Burundi are increasingly valuing non-life insurance products that provide comprehensive coverage for a variety of risks such as property damage, liability, and medical expenses. This shift in preferences is driven by a growing awareness of the importance of financial protection against unexpected events.

Trends in the market: One of the key trends in the Burundian non-life insurance market is the introduction of innovative products tailored to the specific needs of local businesses and individuals. Insurers are offering customizable policies that address unique risks faced by different sectors, thus enhancing the overall value proposition for customers.

Local special circumstances: Burundi's non-life insurance market is also influenced by local regulatory requirements and market dynamics. Insurers in the country must navigate a challenging regulatory environment while also catering to the diverse needs of a relatively small but growing customer base. This necessitates a nuanced approach to product development and distribution strategies.

Underlying macroeconomic factors: The growth of the non-life insurance market in Burundi is closely tied to the overall economic stability and growth of the country. As the economy expands and businesses thrive, there is an increased demand for insurance products to protect against various risks. Additionally, factors such as political stability and infrastructure development play a crucial role in shaping the trajectory of the insurance industry in the country.

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.