Market Insights Financial Insurances Non-life insurances

Legal Insurance - Western Africa

Western Africa

The Legal Insurance market market in Western Africa is projected to reach a market size (gross written premium) of US$65.43m in 2024.
The average spending per capita in the Legal Insurance market market is expected to amount to US$0.16 in 2024.
With an annual growth rate (CAGR 2024-2028) of -3.61%, the gross written premium is projected to result in a market volume of US$56.49m by 2028.
In global comparison, the United States is expected to generate the highest gross written premium with US$31,120.0m in 2024.
In Western Africa, the legal insurance market is experiencing rapid growth due to the increasing demand for affordable legal services in the region.

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Analyst Opinion

The Legal Insurance market in Western Africa is experiencing significant growth and development.

Customer preferences: Customers in Western Africa are increasingly recognizing the importance of legal insurance to protect themselves from potential legal expenses and liabilities. The rising awareness about legal rights and the need for legal protection is driving more individuals and businesses to invest in legal insurance policies.

Trends in the market: In countries like Nigeria and Ghana, there is a growing trend of individuals and businesses seeking legal insurance coverage to safeguard their interests in an environment where legal disputes are not uncommon. This trend is further fueled by the increasing complexity of legal systems and the rising costs of legal representation. As a result, insurance providers are expanding their legal insurance offerings to cater to this growing demand.

Local special circumstances: Western Africa is a region known for its diverse legal landscape, with each country having its own unique legal system and regulations. This diversity poses challenges for insurance providers operating in the region, as they need to tailor their legal insurance products to meet the specific needs of each market. Additionally, factors such as political stability, corruption levels, and the efficiency of the judicial system can also impact the demand for legal insurance in different countries within the region.

Underlying macroeconomic factors: The economic growth and increasing disposable income in Western Africa are also contributing to the development of the legal insurance market. As individuals and businesses accumulate wealth, they are more inclined to protect their assets through legal insurance coverage. Furthermore, regulatory reforms aimed at improving transparency and governance in the region are creating a more conducive environment for the legal insurance industry to thrive.

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.