BMI View: Namibia's insurance market is expanding rapidly, with both life and non-life expected to show robust double digit growth in terms of premiums written throughout our forecast period to 2018. While the life sector will continue to dominate, accounting for around 70% of premiums, growth will be higher in the non-life sector, with motor, property and personal accident insurance expanding particularly rapidly.
The insurance market in Namibia saw healthy growth in premiums in 2014, although currency fluctuations meant that in US dollar terms the market looked more subdued. Moving forward, a healthy domestic economic outlook and stronger Namibian dollar mean we expect to see growth in both US dollar terms and local currency terms throughout the forecast period, with high double digit growth expected in many sub-sectors. Increases in private financial consumption and household income are driving growth in the life sector where the appetite for retirement savings products is increasing. At the same time developments in the housing sector are driving growth in property premiums and rising auto sales are leading to positive growth in motor vehicle insurance premiums.
The market is highly concentrated and is largely dominated by subsidiaries of major South African insurers. This has the benefit of ensuring solid and stable management, as well as providing access to more capital. The Namibian insurance market is already amongst the largest in Sub-Saharan Africa, though it remains small by global standards, and there is substantial scope for expansion. This includes opportunities for domestic insurers, such as Hollard Namibia which recently achieved a 20% market share in the insurance industry. Much of the growth will be driven by product innovation and the provision of micro-insurance products catering for Namibia's considerable low income population.
A key factor holding back growth at present is the lack of a well developed distribution network in Namibia,...
The Namibia Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Namibia Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Namibian insurance industry.
- Benchmark BMI's independent insurance industry forecasts for Namibia to test other views - a key input for successful budgeting and strategic business planning in Namibia's insurance market.
- Target business opportunities and risks in Namibia through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
- Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
- Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
- Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
- Motor: Fleet size by type of vehicle % change y-o-y.
- Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.