Non-life insurances - Sierra Leone

Sierra Leone is projected to experience a significant growth in the Non-life insurances market market.
By 2024, the market size (gross written premium) is projected to reach US$571.30m.
Additionally, the average spending per capita in this market is estimated to be US$63.64 in the same year.
Furthermore, the gross written premium is expected to grow at an annual rate of 1.27% (CAGR 2024-2029), resulting in a market volume of US$608.50m by 2029.
In a global comparison, it is worth noting that the United States is anticipated to generate the highest gross written premium, amounting to US$2.5tn in 2024.
Despite being a developing country, Sierra Leone has witnessed a growing demand for non-life insurance products due to an increasing awareness of the need for financial protection against unforeseen risks.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

Live insurances
Other non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Non-life insurances market in Sierra Leone is witnessing a gradual but steady growth in recent years.

Customer preferences: Customers in Sierra Leone are increasingly recognizing the importance of protecting their assets and properties through non-life insurance products. With a growing awareness of the risks associated with natural disasters and other unforeseen events, there is a rising demand for insurance coverage to safeguard against potential financial losses.

Trends in the market: One notable trend in the non-life insurance market in Sierra Leone is the introduction of innovative and tailored insurance products to cater to the specific needs of the local population. Insurers are adapting their offerings to provide comprehensive coverage for risks such as fire, theft, and natural disasters, which are prevalent in the region. Additionally, there is a shift towards digitalization in the industry, making it more convenient for customers to purchase and manage their insurance policies.

Local special circumstances: Sierra Leone's non-life insurance market is influenced by the country's susceptibility to natural disasters, such as floods and landslides. As a result, there is a heightened awareness among the population about the importance of having adequate insurance coverage to mitigate the financial impact of such events. Insurers in the country are working towards developing products that specifically address these risks and provide comprehensive protection to policyholders.

Underlying macroeconomic factors: The growth of the non-life insurance market in Sierra Leone is also supported by favorable macroeconomic conditions, including stable economic growth and increasing disposable income levels. As the economy continues to develop, more individuals and businesses are able to afford insurance coverage, driving the expansion of the market. Additionally, regulatory reforms and efforts to improve transparency in the insurance sector are contributing to the overall growth and stability of the industry.

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.