Non-life insurances - Zambia

Zambia

The Non-life insurance market in Zambia is expected to witness significant growth in the coming years.
By 2024, the market size, measured by gross written premium, is projected to reach US$397.20m.
This indicates a positive trend in the insurance sector in the country.
In terms of individual spending, the average per capita expenditure on Non-life insurance is estimated to be US$18.79 in 2024.
This suggests that Zambian individuals are increasingly recognizing the importance of insurance coverage for their personal assets and liabilities.
Furthermore, the market is anticipated to continue its growth trajectory, with a projected annual growth rate (CAGR 2024-2028) of -2.48%.
This steady growth is expected to contribute to a market volume of US$359.30m by 2028, reflecting the increasing demand for Non-life insurance products and services in Zambia.
It is worth noting that in a global comparison, the United States is expected to generate the highest gross written premium in 2024, reaching an impressive US$3,371.0bn.
This highlights the dominance of the US market in the Non-life insurance sector on a global scale.
Overall, the Non-life insurance market in Zambia is poised for growth, driven by rising awareness and increasing demand for insurance coverage.
The projected numbers indicate a positive outlook for the industry, both in terms of market size and individual spending.
Zambia's non-life insurance market is experiencing significant growth due to increased awareness of the importance of insurance coverage among its population.

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Analyst Opinion

The Non-life insurances market in Zambia has been experiencing steady growth and development in recent years.

Customer preferences: Customers in Zambia are increasingly seeking non-life insurance products to protect their assets and mitigate risks. With the growing awareness of the importance of insurance coverage, there is a rising demand for policies that cover property, motor vehicles, and other non-life assets.

Trends in the market: One notable trend in the Zambian non-life insurance market is the introduction of innovative products tailored to the specific needs of customers. Insurers are diversifying their offerings to provide more comprehensive coverage options, such as customized property insurance for businesses and specialized vehicle insurance packages.

Local special circumstances: Zambia's non-life insurance market is also influenced by local factors such as regulatory changes and market competition. The regulatory environment plays a crucial role in shaping the market landscape, while increasing competition among insurance providers is driving innovation and product development.

Underlying macroeconomic factors: The growth of the non-life insurance market in Zambia is supported by favorable macroeconomic conditions, including steady economic growth and rising disposable incomes. As the country's economy continues to expand, more individuals and businesses are able to afford insurance coverage, contributing to the overall growth of the market.

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.