Botswana Insurance Report Q2 2016
BMI View: We have a broadly positive outlook for Botswana's burgeoning insurance sector. A number ofwell capitalised firms are present in the market, several of which benefit from the backing of leadingregional and multinational insurers. These providers are utilising broader distribution channels andwidening the scale of the products on offer in order to improve affordability and accessibility. Combinedwith steady increases in household incomes rates and wider economic growth, the insurance sector is wellplaced to record healthy levels of premium growth over the forecast period. We do note, however, that themarket remains small by regional and global standards and widespread poverty, as well as low lifeexpectancy rates, will continue to dampen growth potential.
Key Updates And Developments
Life insurance is forecast to record healthy annual growth in premiums of just over 8% between 2016 and2020 (in local currency terms), supported by a gradual improvement in household income rates as well aswider economic growth. As such, premiums are forecast to grow from BWP3.5bn (USD344mn) in 2016to BWP4.8bn (USD446mn) in 2020.
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