Burundian Insurance Industry Amounted to USD 4.9 Million in 2012, Reports Timetric
05 Jun 2013 • by Natalie Aster
Despite the global financial crisis in 2009, the Burundian insurance industry grew in terms of written premium value from BIF5.5 billion (US$4.9 million) in 2008 to BIF6.9 billion (US$4.9 million) in 2012, after recording a CAGR of 6.0% during the review period. The non-life insurance segment accounted for the largest proportion of the total insurance written premium value in 2012 with a share of 55.5%.
The segment valued BIF3.8 billion (US$2.7 million) in 2012, after recording a CAGR of 4.9% during the review period, on account of compulsory insurance provisions. The Burundian insurance industry is projected to grow at a CAGR of 7.2% over the forecast period, increasing from BIF6.9 billion (US$4.9 million) in 2012 to BIF9.8 billion (US$6.9 million) in 2017. Economic growth, a rising population, and increasing healthcare expenditure per capita will support the growth of the insurance industry. In addition, investment in the infrastructure and service sectors will help to improve employment levels and drive demand for insurance products.
A new Investment Code came into force on 1 January 2009. This Code is the result of an overhaul of the 2003 business regulatory framework which aimed to improve existing business laws and promote investment. The new code provides more guarantees to foreign investors in particular with respect to expropriation, the guarantee of transfer of capital and access to international arbitration. The Code also takes into account the specific regime for investments in free zones.
New report "The Insurance Industry in Burundi, Key Trends and Opportunities to 2017" by Timetric states that the life expectancy of the population rose from 48.5 years in 2007 to 50.3 years in 2011. The healthcare expenditure per capita also increased from US$17.6 in 2007 to US$20.70 in 2010. The rising life expectancy and healthcare expenditure is expected to increase the demand for life and health insurance products in the coming years.
The Insurance Industry in Burundi, Key Trends and Opportunities to 2017
Published: April, 2013
Price: US$ 1,950.00
As the performance of the insurance industry is closely correlated with the nation’s economic growth, continued growth will enhance the demand for coverage. Burundi’s GDP increased from BIF1.5 trillion in 2008 to BIF3.0 trillion in 2012, after registering a CAGR of 19% during the review period. It is expected to grow further over the forecast period following the country’s anticipated overall economic improvements. Rising GDP will result in more disposable income and more money being allocated to saving and investment products.
The insurance industry’s penetration levels remained low at 0.19% of GDP in 2012; therefore the Burundian insurance industry is attractive to global insurance providers. Life insurance represented 0.04% of the total, non-life penetration levels measured at 0.11% and the personal accident and health insurance segment stood at 0.04%. These rates are low compared to the East African average of 3%, suggesting further opportunities for growth.
More information can be found in the report “The Insurance Industry in Burundi, Key Trends and Opportunities to 2017” by Timetric.
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