Non-life insurances - Eastern Africa

Eastern Africa

The Gross Written Premium (market size) of the Non-life insurance market in Eastern Africa is projected to reach US$13.59bn in 2024.
The average spending per capita in this market is estimated to be US$29.62 in 2024.
The Gross Written Premium is expected to grow at an annual rate of 2.09% (CAGR 2024-2028), resulting in a market volume of US$14.76bn by 2028.
In comparison to other countries, the United States is expected to generate the highest Gross Written Premium in the Non-life insurance market, amounting to US$3,371.0bn in 2024.
The Non-life insurance market in Eastern Africa is experiencing a surge in demand due to increasing awareness of the importance of insurance coverage in the face of natural disasters and other risks.

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Analyst Opinion

The Non-life insurance market in Eastern Africa is experiencing significant growth and development in recent years. Customer preferences in the region are shifting towards non-life insurance products due to increasing awareness about the importance of mitigating risks and protecting assets. Customers are becoming more conscious about safeguarding their properties, vehicles, and businesses, which is driving the demand for non-life insurance policies. Trends in the market show a rise in the adoption of innovative insurance products tailored to the specific needs of customers in Eastern Africa. Insurers are introducing new non-life insurance solutions that offer comprehensive coverage at competitive prices, attracting a larger customer base. Additionally, there is a growing trend of digitalization in the insurance sector, making it easier for customers to purchase and manage their insurance policies online. Local special circumstances, such as the prevalence of natural disasters and political instability in some Eastern African countries, are influencing the non-life insurance market. Customers are increasingly seeking insurance coverage against unpredictable events like floods, droughts, and civil unrest, driving the growth of non-life insurance products in the region. Underlying macroeconomic factors, including economic growth, urbanization, and regulatory reforms, are also playing a crucial role in shaping the non-life insurance market in Eastern Africa. As the region continues to develop and attract foreign investments, there is a growing need for risk management solutions, boosting the demand for non-life insurance products. Additionally, regulatory changes aimed at enhancing consumer protection and improving market transparency are creating a more favorable environment for insurance companies to operate in Eastern Africa.

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.