More than 15 percent of South Africa’s gross domestic product was accounted for by insurance premiums in 2013, making it the country with the second-highest insurance penetration in the world, according to PwC.
With a very mature insurance market, products remain concentrated among a much smaller proportion of the population than in other countries.
Notwithstanding, South Africa’s insurance market accounted for nearly 75 percent of the total premium written across Africa in 2013.
South Africa’s GDP was $351 billion in 2013.
With a population of 171 million and a GDP in 2013 of $509 billion, Nigeria generated just $1.9 billion in insurance premiums – 0.6 percent of its GDP.
Kenya’s insurance market generated $1.5 billion of insurance premiums in 2013, contributing 3.4 percent to its $53-billion GDP.
At $72.4 billion, insurance premiums across Africa accounted for a little more than 3 percent of the world market, which in 2013 recorded premium income of more than $2 trillion.
Although insurance premium growth on the continent was flat from 2012 to 2013, PwC’s Victor Muguto said there’s hope that newfound wealth in fast-growing African economies will increase the demand for insurance on the continent.
Coupled with rapid urbanization, the number of insurable assets and lives is predicted to grow considerably on the continent, said Muguto, leader for PwC South Africa long-term insurance.
Read more at MoneyWeb.