Guinea Insurance Industry was Largely Unaffected by Global Financial Crisis, Claims Timetric13 May 2013 • by Natalie Aster
The insurance industry in Guinea is one of the most underdeveloped in Africa, with penetration of just 0.0183% of GDP in 2012. Despite this, the Guinean insurance industry posted significant growth during the review period, at a CAGR of 16.6% in terms of written premium value. The significant growth is attributed to the development of intermediation which facilitated the distribution of conventional insurance products. In 2010, two new insurers entered the industry which increased competition and contributed to the overall growth. The total number of insurance providers increased from five in 2010 to seven at the end of 2010. The stable economic development in the country also supported the growth during the review period. These factors are expected to remain buoyant and maintain the growth of the Guinean insurance industry over the forecast period, during which it is projected to record a CAGR of 15.5%.
According to the report “The Insurance Industry in Guinea, Key Trends and Opportunities to 2017” by Timetric, the Guinean insurance industry was largely unaffected by the global financial crisis. The annual increases in gross written premiums stood at 19.0% in 2010 and 42.7% in 2011. The life segment recorded significant growths of 49.8% in 2010 and 73.2% in 2011 respectively, while the non-life segment grew by 18.2% and 41.3%. The significant growth in the life segment was due to the entry of specialized life insurers.
The Insurance Industry in Guinea, Key Trends and Opportunities to 2017
Published: March, 2013
Price: US$ 1,950.00
The Guinean insurance industry is in early stage of development and registered significant growth during the review period. However, the industry consisted of only seven businesses, 23 insurance brokers and 32 general agents at the end of 2010. The significance and intensity of competition increased during the review period due to the entry of two new businesses in 2010. It is therefore expected that the competition in the industry will rise significantly over the forecast period.
The penetration of Guinea’s life insurance segment increased from 0.0007% in 2008 to 0.0009% in 2012. The penetration of the non-life segment fell from 0.022% in 2008 to 0.015% in 2012, while the personal accident and health insurance segment’s penetration fell from 0.0030% in 2008 0.0023% in 2012. The overall insurance industry’s penetration as a percentage of GDP was 0.0183% in 2012, which remains very low compared to the African average of approximately 1%, suggesting further opportunities for penetration.
The life segment registered a combined ratio of over 100% during the review period, with its value reaching as high as 278.8% in 2008. A combined ratio of more than 100% reflects an underwriting loss and companies need to address this challenge by improving their risk underwriting capabilities.
More information can be found in the report “The Insurance Industry in Guinea, Key Trends and Opportunities to 2017” by Timetric.
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