Insurance premiums to grow 5.6% per annum over next five years: Report
Insurance24
HARARE, BMI Research in its latest country risk report says despite Zimbabwe’s insurance markets remaining hostage to the country ‘ s widespread economic issues, the insurance sector will achieve growth over the next five years.
“The outlook for Zimbabwe’s life insurance market is moderate. We predict growth of 5.6% per annum in
premiums over the next five years in dollar terms, taking total premiums written to $456mn in 2021,
reflecting a partial recovery from the economic collapse in the first decade of this century,” read part of the summary report.
The report said however, the constraints on Zimbabwe’s life insurance market remain numerous, stemming in large part from nearly two decades of economic mismanagement, which has undermined GDP growth, household incomes and faith in official economic channels, with much formal activity being replaced
by black market channels.
The non-life segment continues to be dominated by basic lines. The report says Motor vehicle insurance and property covers account for around 63% of non-life premiums, but this is set to fall over the next five years, with property losing market share, mostly to the benefit of personal accident insurance, which will see its share of the non-life market rise from 10.0% to 13.3%.
“A gradual emergence from recession should boost non-life lines across the board, in a highly pro-cyclical sector.”
BMI said that assuming that the current recovery gains moderate traction – the core scenario predicted by the value of USD premiums across the major insurance markets should rise over the next
five years, in the mid-single digits in percentage terms , with the life market slightly out – performing the non-life sector.
