Insurances - Zambia

Zambia

The Insurances market in Zambia is projected to reach a gross written premium of US$0.66bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$0.41bn in 2024.
The average spending per capita in the Insurances market in Zambia is expected to amount to US$31.37 in 2024.
When compared globally, it is evident that the highest nominal value is reached the United States, with a projected gross written premium of US$3,788.0bn in 2024.
The Insurances market in Zambia is expected to show an annual growth rate of -0.30% (CAGR 2024-2029), resulting in a market volume of US$0.65bn by 2029.
In global comparison, the United States is projected to generate the highest gross written premium in 2024, reaching US$3,788.0bn.
Zambia's insurance market is experiencing a surge in demand for agricultural insurance due to the country's heavy reliance on the agricultural sector.

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Analyst Opinion

The Insurances market in Zambia has been experiencing significant growth and development in recent years. Customer preferences in the Zambian insurance market are shifting towards more comprehensive coverage options, such as health and life insurance, reflecting a growing awareness of the importance of financial security and risk mitigation among the population. Trends in the market indicate a rise in the uptake of microinsurance products tailored to the needs of low-income individuals and small businesses in Zambia. This trend is driven by efforts to increase financial inclusion and provide affordable insurance solutions to underserved communities. Local special circumstances, such as the implementation of regulatory reforms to enhance transparency and consumer protection, are shaping the insurance landscape in Zambia. These measures aim to improve trust in the industry and encourage more people to invest in insurance products. Underlying macroeconomic factors, including stable economic growth and a growing middle class, are creating a favorable environment for the expansion of the insurance sector in Zambia. As disposable incomes rise and awareness about the benefits of insurance increases, more individuals and businesses are seeking out insurance coverage to safeguard their assets and future financial well-being.

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.