Mali Health Expenditure per Capita Reached USD 34.8 in 2012, Claims Timetric01 Apr 2013 • by Natalie Aster
The insurance industry in Mali is not very developed and accounts for less than 1% of the country’s total GDP. The Malian economy depends heavily on foreign aid and is vulnerable to fluctuations in world prices of cotton and gold. Around 70% of the population lives in rural areas, the majority of which live below the poverty line. The combination of a significantly large rural population, high levels of poverty, a low literacy rate and the highly uneven distribution of income is hindering the growth of the insurance industry in the country. The Malian insurance industry is consolidated in nature, with the top-five insurers accounting for more than 80% of the market share in 2010. The key segment driving the overall Malian insurance industry is the non-life insurance segment, which accounts for more than 70% of the industry’s total gross premiums. The Malian insurance industry is under the regulation of the ConferenceInternationale des Marche d’Assurances (CIMA).
Good prospects for marine and transit insurance
Growth in the Malian export industry is impacting the insurance industry positively by driving growth in the marine and transit insurance category. The production of cotton in the country is recording consistent growth, leading to escalated export activities. Despite the poor rainfall and bad weather conditions recorded over the review period, the production of cotton in Mali is expected to rise over the forecast period which will in turn drive further growth in the marine and transit insurance category. According to the report “The Insurance Industry in Mali, Key Trends and Opportunities to 2017” by Timetric, the gross premium written of this category recorded a significant CAGR of 13.6% during the review period.
The Insurance Industry in Mali, Key Trends and Opportunities to 2017
Published: March, 2013
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Major factors restricting the growth of the Malian insurance industry
The high unemployment rate in Mali has become a major concern for insurers in the country. It reduces consumer buying power, which discourages people from investing in insurance products. There are several reasons behind the high unemployment rate in Mali, including rapid population growth, a large young population, a lack of suitable job training, rural migration, and the low absorption capacity of the formal sector. If the unemployment ratio keeps increasing at the current pace, it will hamper the growth of insurance industry over the forecast period.
Rainfall in Mali has fallen by 25% over the last five decades, and inadequate rainfall is hindering agricultural production in the country. Because the country’s economic growth is so closely tied to the success of the agricultural sector, growing uncertainty regarding the country’s economic outlook is increasing insurers’ concern about their future strategies and business plans.
Rising life expectancy and healthcare expenditure
Life expectancy in Mali increased from 50 years in 2008 to 52 in 2012. Moreover, health expenditure in the country also witnessed an upsurge during the review period. Health expenditure per capita in Mali stood at US$33.2 in 2011 and increased by 5% to reach US$34.8 in 2012. The social sector has become the priority spending sector for the Malian government, and it is increasingly focusing on providing healthcare for the vulnerable population. Total spending on social sectors accounted for 32.4% of the spending budget in 2011 and 33.5% in 2012. Increasing expenditure is expected to positively influence growth in the health insurance category.
More information can be found in the report “The Insurance Industry in Mali, Key Trends and Opportunities to 2017” by Timetric.
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