African Insurance

The Global Insurance market estimated at US$5.5 trillion with an annual 6% growth rate in 20221.  Within the continent of Africa the insurance market is estimated at a value of US$ 70 Billion in 2020. The African insurance market2 is expected to grow at a compound annual growth rate  (“CAGR”) of around 7% during 2021-2026. 

The Global Insurance market estimated at US$5.5 trillion with an annual 6% growth rate in 20223.  Within the continent of Africa the insurance market is estimated at a value of US$ 70 Billion in 2020. The African insurance market4 is expected to grow at a compound annual growth rate  (“CAGR”) of around 7% during 2021-2026. 

International experts define “insurance penetration rate” in a particular  economy as the ratio of premiums written to the gross domestic product GDP of that particular country. The penetration rate indicates how much the insurance sector contributes to the national economy.  In 2018 for instance, insurance penetration in the UK was  10.61% and in France 8.89%.  PwC considers South Africa and Nigeria the two key insurance markets in Africa 5 – insurance penetration in South Africa is 16.99% for example. However, in terms of growth the DRC is lagging far behind smaller African countries.