The Mauritian insurance industry is set for a slowdown in 2017 due to the impact of higherinflation coupled with higher-than-expected interest rates on disposable household incomes and saving.
However, the slowdown will be temporary with the sector set for sustained strong growth over the mediumterm.
Non-life will grow faster than life due to robust growth in health premiums. By 2021, gross non-lifepremiums written will reach MUR11.5bn (USD348mn), up 89.2% on average y-o-y over 2017 levels inUSD terms, with life insurance set to decline as a proportion of gross premiums written from around 57%to 55% over the period.
Key Updates And Forecasts
The key driver of growth in written life insurance premiums will likely be demographic shifts. Averagelife expectancy is forecast to increase from 74.6 years in 2016 to 75.5 years in 2021. The percentage ofthe population that is aged 65 or over will also grow to over 11.0% over the next few years. As lifeexpectancy increases and the population ages, we expect to see greater demand for retirement and laterin-life savings products, which will also be supported by a healthier population able to work longer andcontribute more. At the same time, we also expect to see steady gains in average household income rates,with the majority of households falling into the key USD10,000 to USD25,000 income bracket by the endof the forecast period.