General Liability Insurance - Africa

The General Liability Insurance market market in Africa is expected to reach a projected market size (gross written premium) of US$5.49bn in 2024.
The average spending per capita in the General Liability Insurance market market for Africa is estimated to be US$4.22 in 2024.
This market segment is projected to experience an annual growth rate (CAGR 2024-2029) of 3.90%, resulting in a market volume of US$6.64bn by 2029.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium of US$178.4bn in 2024.
In Africa, the General Liability Insurance market is experiencing steady growth due to an increase in foreign investment and a growing emphasis on risk management.

Definition:

General liability insurance is a type of coverage that offers protection to businesses and individuals against financial losses resulting from third-party claims of bodily injury, property damage, or personal injury. When you have general liability insurance, you pay regular premiums to an insurer, and in return, the insurer helps cover legal costs, settlements, and damages if you or your business are found liable for causing harm to others. This insurance is vital for shielding individuals and businesses from the financial repercussions of legal claims and liabilities arising from accidents or incidents that occur on their premises or as a result of their actions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Liability insurance booked for individuals and businesses

Motor vehicles liability
Aircraft liability
Liability for ships
Reinsurance

The General Liability Insurance market in Africa is experiencing significant growth and development.

Customer preferences: Customers in the African General Liability Insurance market are increasingly seeking comprehensive coverage options to protect their businesses from potential risks and liabilities. There is a growing demand for customized insurance solutions that cater to specific industry needs, such as construction, manufacturing, and hospitality sectors.

Trends in the market: In countries like Nigeria and South Africa, the General Liability Insurance market is witnessing a surge in demand due to the rapid expansion of industries and increased awareness about risk management. Insurers are introducing innovative products and services to meet the evolving needs of businesses, such as product liability insurance and professional indemnity coverage.

Local special circumstances: In regions like East Africa, where there is a high concentration of small and medium enterprises, there is a growing emphasis on educating business owners about the importance of General Liability Insurance. Insurers are collaborating with local governments and industry associations to increase awareness and penetration of insurance products in the market.

Underlying macroeconomic factors: The overall economic growth and stability in Africa are driving the expansion of the General Liability Insurance market. As businesses strive to protect their assets and mitigate risks in a competitive environment, the demand for insurance coverage is on the rise. Additionally, regulatory reforms and advancements in technology are making it easier for insurers to reach a wider customer base and offer more tailored solutions.

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.