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Zambia Insurance Report Q2 2016

Zambia Insurance Report Q2 2016

BMI View: Although there is some evidence that Zambia's insurers have been able to increase premiums inorder to recognise the recent surge in inflation, neither the life nor the non-life segment has been growingin real terms. The main constraint on the growth of both major segments, which are embryonic levels ofdevelopment, are the low levels of household incomes. Zambians cannot afford insurance even if they dounderstand it. The growth of property and motor vehicle insurance premiums is being hampered bydownwards pressure on prices - even though volumes may be growing.

Key Updates And Forecasts

The Zambian insurance sector remains under-developed by almost all metrics. The depreciation of theZMW versus the USD means that non-life premiums will likely fall in USD terms over the course of theforecast period. We are also looking for life premiums to be lower in USD terms in 2020 than they hadbeen in 2015.

The main problems facing both segments are the inability of households to afford insurance. Thisproblem is exacerbated by inflation, driven by higher food prices. In real terms, it appears that thepremiums are not rising.

Several of the more important sub-sectors of the non-life segment are exposed to downwards pressure onprices thanks to overcapacity in global (e.g. property insurance) or local (e.g. motor vehicle) insurancemarkets.

BMI Industry View
Table: Headline Insurance Forecasts (Zambia 2013-2020)
Key Updates And Forecasts
Industry Forecast
Life Premiums Forecast
Latest Updates
Structural Trends
Table: Life Premiums (Zambia 2013-2020)
Table: Life Insurance Claims (Zambia 2007-2014)
Non-Life Premiums Forecast
Latest Updates
Structural Trends
Table: Non-Life Premiums (Zambia 2013-2020)
Table: Non-Life Insurance Claims (Zambia 2008-2014)
Non-Life Sub-Sector Forecast
Latest Updates
Structural Trends
Table: Non-Life Insurance Premiums by Product Line (Zambia 2013-2020)
Insurance Risk/Reward Index
Sub-Saharan Africa Risk/Reward Index
Table: Sub-Saharan Africa Insurance Risk/Reward Index - Q216
Market Overview
Life Market Overview
The Product Offering
The Competitive Landscape
Table: Life Market Share (USDmn), 2010-2013
Non-Life Market Overview
The Product Offering
The Competitive Landscape
Table: Non-Life Market Shares (USDmn), 2010-2013
Company Profile
African Life
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Indicators
Table: Weighting of Indicators

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