General Liability Insurance - Ethiopia

The General Liability Insurance market market in Ethiopia is expected to reach a market size (gross written premium) of US$216.10m in 2024.
The average spending per capita in the General Liability Insurance market market is projected to be US$1.67 in 2024.
According to the annual growth rate (CAGR 2024-2029) of 4.17%, the gross written premium is anticipated to increase, resulting in a market volume of US$265.10m by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium of US$178.4bn in 2024.
The General Liability Insurance market in Ethiopia is experiencing steady growth due to the increasing number of businesses and the government's focus 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 Ethiopia is experiencing significant growth and development.

Customer preferences: Customers in Ethiopia are increasingly recognizing the importance of protecting themselves against potential liabilities, driving the demand for General Liability Insurance. As businesses expand and become more aware of the risks they face, there is a growing need for comprehensive insurance coverage to mitigate potential financial losses.

Trends in the market: One key trend in the General Liability Insurance market in Ethiopia is the emergence of innovative insurance products tailored to the specific needs of local businesses. Insurers are adapting their offerings to provide more customized solutions that address the unique risks faced by Ethiopian companies. This trend is not only attracting new customers but also fostering a culture of risk management and insurance awareness in the country.

Local special circumstances: Ethiopia's rapidly growing economy and increasing foreign investment are contributing to the expansion of the General Liability Insurance market. As more multinational corporations establish a presence in the country, the demand for insurance coverage to protect against liability claims is on the rise. Additionally, the Ethiopian government's efforts to promote a favorable business environment are boosting confidence among investors, further driving the need for comprehensive liability insurance.

Underlying macroeconomic factors: The overall economic growth in Ethiopia, coupled with the government's focus on infrastructure development and industrialization, is creating a conducive environment for the General Liability Insurance market to thrive. As businesses across various sectors expand their operations and engage in more complex commercial activities, the awareness of liability risks is increasing. This, in turn, is fueling the demand for insurance products that can safeguard businesses against unforeseen events and potential legal claims.

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.