Namibia Insurance Report Q2 2016
BMI View: Namibia's insurance market is one of the more developed in Sub-Sahara Africa, though itremains considerably smaller than the regional leader, South Africa. A number of large regional insurersare active in the Namibian market, boosting the reach of insurers' distribution channels and broadening therange of products on offer. These firms are well placed to take advantage of the expected growth inpremiums, with both life and non-life insurance expected to grow steadily throughout our forecast periodbetween 2016 and 2020. This growth is predicated upon wider economic growth in the country, which willboost average household income rates and expand the potential first-time user market.
Latest Updates and Developments:
Regulatory oversight is improving in the Namibian market. Media reports from February 2016 show theNamibia Financial Institutions Supervisory Authority (Namfisa) is investigating retailers which areproviding products regulated by the Long-Term Insurance Act without the necessary licensing.
One of the leading regional insurers, MMI Holdings, is reportedly considering exiting some smallerAfrican markets. MMI Holdings has not specified which markets are under review but it has a smallpresence in Namibia, Botswana, Ghana, Kenya and Swaziland.
Namibia's life insurance market is the more developed of the two sectors, accounting for just under 70%of premiums written in the market. We expect life insurance premiums to grow steadily over the forecastperiod, increasing by an average of 6.8% annually between 2016 and 2020, in local currency terms.
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