Non-life insurances - Ethiopia | Statista Market Forecast

The Non-life insurances market market in Ethiopia is projected to reach a market size of US$2.03bn in 2024.
The average spending per capita in the Non-life insurances market market is expected to amount to US$15.68 in 2024.
With an annual growth rate (CAGR 2024-2029) of 3.99%, the gross written premium is projected to result in a market volume of US$2.47bn by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium of US$2.5tn in 2024.
The non-life insurance market in Ethiopia is experiencing a surge in demand due to the country's growing economy and 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 insurance market in Ethiopia has been experiencing significant growth and development in recent years.

Customer preferences: Ethiopian customers are increasingly recognizing the importance of protecting their assets and properties through non-life insurance products. As the economy grows and urbanization rates increase, there is a rising demand for insurance coverage against risks such as fire, theft, and natural disasters.

Trends in the market: One of the key trends in the Ethiopian non-life insurance market is the introduction of innovative and tailored insurance products to meet the specific needs of customers. Insurance companies are offering a variety of policies that cater to different sectors such as agriculture, manufacturing, and construction. Additionally, there has been a noticeable shift towards digitalization in the industry, making it more convenient for customers to purchase and manage their insurance policies.

Local special circumstances: Ethiopia's non-life insurance market is also influenced by local special circumstances such as regulatory changes and government initiatives. The government has been implementing reforms to strengthen the insurance sector and increase insurance penetration in the country. This has created a more favorable environment for insurance companies to operate and expand their services.

Underlying macroeconomic factors: The growth of the non-life insurance market in Ethiopia is supported by favorable macroeconomic factors such as steady economic growth, increasing disposable income levels, and a growing middle class. As more Ethiopians have the means to protect their assets and investments, the demand for non-life insurance products is expected to continue on an upward trajectory. Additionally, the government's focus on infrastructure development and risk management further drives the need for insurance coverage in the country.

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.