Other observations in the report include African insurance Sector accounting for barely 1.5 per cent of the World Insurance market in 2015, out of a world GDP of 3.2 per cent Over 60% of written premiums on the African continent comes mainly from South Africa.
The average insurance penetration rate stands at 2.8 per cent against a world average of above 6 per cent (1 per cent excluding South Africa) A significant improvement observed with regard to the accessibility, regulatory and financial solidity conditions for local actors.
The sharp growth of African economies over the past decade, in relation to the growth figures of other continents, comprises one of the factors driving the development of African Insurance.
Sustained developments in the regulatory framework attesting to the awareness of African countries on the need to provide clear and encouraging solutions with respect to investments in African Insurance.
A marked dominance of written premiums on the South African market 92 per cent of written premiums on the African Continent derive mainly from 10 African countries (South Africa, Morocco, Egypt, Nigeria, Kenya, Algeria, Angola, Namibia, Tunisia and Mauritius);
The contribution of Insurance to GDP falls slightly below the world average (6.2%); considering that the penetration rate is still below 1% in more than half of the African continent.
The development items produced by this same Barometer are: · The setting up of efficient oversight and compliance mechanisms for rules and regulations; · The setting up obligatory insurance cover leads to improvements in the insurance penetration rate in Africa; · The creation of oversight mechanisms with regard to the celerity in the management and settlement of claims; · The drafting of prudential and good governance regulations in the sector.
