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Motor Vehicle Insurance - Eastern Africa

Eastern Africa

The Motor Vehicle Insurance market market in Eastern Africa is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is set to reach US$6.71bn in 2024.
This indicates a strong potential for the industry in the region.
Furthermore, the average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$14.62 in 2024.
This figure reflects the amount individuals are willing to invest in insurance coverage for their vehicles, emphasizing the importance of this market segment.
Looking ahead, the market is expected to experience a steady growth rate.
With a compound annual growth rate (CAGR) of 1.56% between 2024 and 2028, the gross written premium is projected to reach US$7.14bn by 2028.
This demonstrates the continuous expansion of the Motor Vehicle Insurance market market in Eastern Africa.
In a global comparison, it is worth noting that the United States leads the way in terms of gross written premium.
In 2024, the United States is expected to generate a staggering US$1,338.0bn in this market segment.
This showcases the dominance of the United States in the global Motor Vehicle Insurance market industry.
Overall, the Motor Vehicle Insurance market market in Eastern Africa is poised for growth, with promising projections for the coming years.
This presents both opportunities and challenges for insurers operating in this region.
The motor vehicle insurance market in Eastern Africa is experiencing a surge in demand due to the rising number of car ownership and road accidents.

Market

Region

Region comparison

Currency

Analyst Opinion

The Motor Vehicle Insurance market in Eastern Africa is experiencing significant growth and development.

Customer preferences: Customers in Eastern Africa are increasingly seeking comprehensive motor vehicle insurance coverage to protect themselves from financial losses in case of accidents or theft. They are also showing a preference for insurance policies that offer additional benefits such as roadside assistance and quick claims processing.

Trends in the market: In Kenya, there is a growing trend of insurance companies leveraging technology to offer usage-based insurance, where premiums are based on the actual usage of the vehicle. This innovative approach is gaining popularity among customers who prefer a more personalized insurance experience. In Tanzania, the market is witnessing a trend towards more affordable insurance products tailored to the needs of low-income earners, making insurance more accessible to a wider population.

Local special circumstances: In Ethiopia, the motor vehicle insurance market is influenced by government regulations that require all vehicles to be insured. This mandatory insurance scheme has significantly increased the penetration of motor vehicle insurance in the country. In Uganda, the market is characterized by intense competition among insurance providers, leading to competitive pricing and a wide range of insurance products to choose from.

Underlying macroeconomic factors: The economic growth and increasing disposable income in Eastern Africa are driving the demand for motor vehicle insurance. As more individuals and businesses acquire vehicles, the need for insurance coverage also grows. Additionally, the regulatory environment in the region is becoming more stringent, prompting more people to comply with insurance requirements for their vehicles. These factors are contributing to the overall growth and development of the motor vehicle insurance market in Eastern Africa.

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.