Insurances

The Insurances market in Zimbabwe is projected to reach a market size (gross written premium) of US$2.50bn in 2024.
Within the market, Non-Life Insurances dominates with a projected market volume of US$1.44bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$146.60 in 2024.
When comparing globally, the United States leads with the highest nominal value of US$3.8tn in 2024.
It is expected that the gross written premium will grow at an annual rate of 0.70% (CAGR 2024-2029), resulting in a market volume of US$2.58bn by 2029.
In the global comparison, the United States will continue to generate the highest gross written premium of US$3.8tn in 2024.
Zimbabwe's insurance market is experiencing a surge in demand for agricultural insurance due to the country's heavy reliance on agriculture as a key economic sector.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. 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, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

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

The Insurances market in Zimbabwe has been experiencing notable developments and trends in recent years. Customer preferences in the insurance market in Zimbabwe have been shifting towards more comprehensive coverage options, reflecting a growing awareness of the importance of insurance protection. Customers are increasingly seeking policies that offer a wider range of benefits and coverage, indicating a maturing market where individuals and businesses are looking to safeguard their assets and mitigate risks. Trends in the market show a significant increase in the uptake of digital insurance solutions and online distribution channels. This trend is driven by the growing penetration of internet services and mobile technology in Zimbabwe, making it easier for insurance companies to reach a larger customer base and streamline their operations. Additionally, there is a rise in demand for innovative insurance products tailored to specific needs, such as micro-insurance for low-income households and specialized coverage for emerging industries. Local special circumstances, such as the economic challenges and currency fluctuations in Zimbabwe, have had a direct impact on the insurance market. In response to these uncertainties, insurance companies have been adjusting their product offerings and pricing strategies to remain competitive and sustainable in the market. Moreover, regulatory changes and compliance requirements have also influenced the way insurance products are structured and marketed in Zimbabwe. Underlying macroeconomic factors, including inflation rates, GDP growth, and foreign exchange dynamics, play a crucial role in shaping the insurance market in Zimbabwe. Economic stability and growth prospects are key determinants of consumer confidence and purchasing power, which ultimately affect the demand for insurance products. As the economy continues to evolve, insurance companies in Zimbabwe will need to adapt to changing market conditions and customer preferences to maintain their competitiveness and drive growth in 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.