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2017 Burundi insurance industry


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2017 Burundi insurance industry

  1. 1. Burundi Insurance Industry Trends and Opportunities to 2017Despite the global financial crisis in 2009, the Burundian insurance industry grew in terms of writtenpremium value from BIF5.5 billion (US$4.9 million) in 2008 to BIF6.9 billion (US$4.9 million) in 2012,after recording a CAGR of 6.0% during the review period. The non-life insurance segment accounted forthe largest proportion of the total insurance written premium value in 2012 with a share of 55.5%. Thesegment valued BIF3.8 billion (US$2.7 million) in 2012, after recording a CAGR of 4.9% during the reviewperiod, on account of compulsory insurance provisions. The Burundian insurance industry is projected togrow at a CAGR of 7.2% over the forecast period, increasing from BIF6.9 billion (US$4.9 million) in 2012to BIF9.8 billion (US$6.9 million) in 2017. Economic growth, a rising population, and increasinghealthcare expenditure per capita will support the growth of the insurance industry. In addition,investment in the infrastructure and service sectors will help to improve employment levels and drivedemand for insurance products.Introduction of new Investment CodeA new Investment Code came into force on 1 January 2009. This Code is the result of an overhaul of the2003 business regulatory framework which aimed to improve existing business laws and promoteinvestment. The new code provides more guarantees to foreign investors in particular with respect toexpropriation, the guarantee of transfer of capital and access to international arbitration. The Code alsotakes into account the specific regime for investments in free zones.Get a copy of this report @ Details:Published: April 2013No. of Pages: 83Price: Single User License: US$1950 Corporate User License: US$3900Rising life expectancy and healthcare expenditure to encourage demand for private insuranceThe life expectancy of the population rose from 48.5 years in 2007 to 50.3 years in 2011. The healthcareexpenditure per capita also increased from US$17.6 in 2007 to US$20.70 in 2010. The rising lifeexpectancy and healthcare expenditure is expected to increase the demand for life and health insuranceproducts in the coming years.Continued economic growth to encourage the demand for insurance products
  2. 2. As the performance of the insurance industry is closely correlated with the nation’s economic growth,continued growth will enhance the demand for coverage. Burundi’s GDP increased from BIF1.5 trillion in2008 to BIF3.0 trillion in 2012, after registering a CAGR of 19% during the review period. It is expected togrow further over the forecast period following the country’s anticipated overall economicimprovements. Rising GDP will result in more disposable income and more money being allocated tosaving and investment products.Burundi’s insurance penetration stood below the East African averageThe insurance industry’s penetration levels remained low at 0.19% of GDP in 2012; therefore theBurundian insurance industry is attractive to global insurance providers. Life insurance represented0.04% of the total, non-life penetration levels measured at 0.11% and the personal accident and healthinsurance segment stood at 0.04%. These rates are low compared to the East African average of 3%,suggesting further opportunities for growth.Table of Contents1 Executive Summary2 Introduction3 Burundian Insurance Industry Overview4 Industry Segmentation5 Competitive Landscape6 Macroeconomic Indicators7 AppendixList of TablesContact for more details.