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Motor Vehicle Insurance - Burundi

Burundi

The Motor Vehicle Insurance market market in Burundi is expected to reach a projected market size (gross written premium) of US$72.18m in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$5.31 in 2024.
It is anticipated that the gross written premium will experience an annual growth rate (CAGR 2024-2029) of -2.20%, resulting in a market volume of US$64.58m by 2029.
In global comparison, the United States is projected to generate the highest gross written premium of US$341.6bn in 2024.
Despite the increasing demand for motor vehicle insurance in Burundi, limited competition and high premiums hinder market growth.

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Analyst Opinion

The Motor Vehicle Insurance market in Burundi has been experiencing significant growth and evolution in recent years. Customer preferences in the Motor Vehicle Insurance market in Burundi are shifting towards more comprehensive coverage options as vehicle ownership increases and awareness about the benefits of insurance grows among consumers. Trends in the market indicate a rise in demand for usage-based insurance policies, where premiums are based on individual driving behavior. This trend is driven by the need for more personalized insurance solutions and the adoption of telematics technology in vehicles. Local special circumstances, such as the high prevalence of road accidents and car thefts in Burundi, are contributing to the growth of the Motor Vehicle Insurance market. As the number of vehicles on the road increases, there is a greater need for insurance coverage to protect against potential risks. Underlying macroeconomic factors, including the overall economic growth of Burundi and the stability of the insurance sector, are also influencing the development of the Motor Vehicle Insurance market. As the economy expands and disposable incomes rise, more individuals are able to afford insurance coverage for their vehicles, driving market growth. Additionally, regulatory reforms and initiatives to improve road safety are shaping the landscape of the insurance market in Burundi.

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.