Senegal Insurance Industry Analyzed in New Research Report by Timetric
28 Mar 2013 • by Natalie Aster
Senegal has a small insurance industry, which represented just 1.4% of the country’s GDP in 2011, lower than the African average of 4.8%. The Senegalese insurance industry is the third-largest among the Inter-African Conference on Insurance Markets (ConferenceInterafricaine des Marchesd'Assurances – CIMA) member states in terms of gross written premium. There were only 19 insurance and two reinsurance companies operating in Senegal in 2011: 13 in the non-life segment and six in the life segment. The global financial crisis had an indirect effect on the Senegalese insurance industry as the country’s economy is largely dependent on exports, in particular of cotton and peanuts.
The Senegalese insurance industry comprises both domestic and foreign insurers. According to the report “The Insurance Industry in Senegal, Key Trends and Opportunities to 2017” by Timetric, insurance penetration (gross written premium as a percentage of GDP) in Senegal stood at 1.49% 2012, which is higher than other countries in the region such as Benin, Togo and Burkina Faso, but low compared with developed countries. Growth in the construction industry, government initiatives towards private spending, rising automobile sales, and an increasing tendency towards savings supported the growth of the Senegalese insurance industry during the review period, during which it grew at a CAGR of 8.3%.
The Insurance Industry in Senegal, Key Trends and Opportunities to 2017
Published: March, 2013
Price: US$ 1,950.00
Demand for life insurance savings products
Rising awareness of savings among the Senegalese population encouraged them towards life insurance savings products, which supported the insurance industry’s growth during the review period. Savings products accounted for more than 55% of the life segment in 2012, as they often offered more favorable interest rates than banks, as well as additional facilities such as life cover. With governmental initiative towards private spending, employment is expected to rise, increasing consumer income levels and driving the life segment over the forecast period.
Growing construction industry
The construction industry is expanding in Senegal, which drove the insurance industry during the review period and is expected to support growth over the forecast period. The growth was triggered by real estate developments and the revival of infrastructure projects in the country. Developments such as the new airport in Diass, and the construction of 467 miles of railway to link mines in the south-east of the country to Dakar are expected to support the insurance industry over the forecast period.
Poor public healthcare expected to drive health insurance
Rising healthcare costs and inadequate public healthcare services supported the growth of private health insurance in Senegal during the review period. This trend is expected to continue, and the country’s personal accident and health insurance segment is forecast to record a CAGR of 12.6% over the forecast period. Around 80% of the Senegalese population is not covered by health insurance in the country, and the country is also affected by diseases such as malaria, tuberculosis, cholera, hepatitis A, meningitis, typhoid and yellow fever. Per capita healthcare expenditure in Senegal increased at a CAGR of 6.2% during the review period, supporting the growth of private health insurance in the country.
More information can be found in the report “The Insurance Industry in Senegal, Key Trends and Opportunities to 2017” by Timetric.
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