With respective years of roll up growth helping to re-shape the fundamentals of Côte five hundred ’ Ivoire ’ south economy, strong overall business performance looks set to boost the state ’ south insurance sector. Premium has risen steadily over recent years, although the level of indemnity penetration remains relatively depleted, at approximately 2 % of GDP in 2018, leaving ample room for expansion. Côte d ’ Ivoire has the largest market share of all 14 members of the Inter-African conference on indemnity Markets ( Conférence Interafricaine des Marchés five hundred ’ Assurances, CIMA ), making the economic das kapital Abidjan an attractive jumping-off point for businesses looking to expand in the region .
so far, the industry is not without its challenges. New arrivals have contributed to oversupply, resulting in lower-than-average tariffs for some insurance products, such as car coverage. This has led to a system whereby some insurers lower their prices to compete and then are ineffective to fulfil their commitments to customers. such moves have resulted in a fallible fiscal side for several industry companies and, in some cases, has negatively affected the perception of indemnity in Côte d ’ Ivoire at a time when the Covid-19 pandemic has weakened ball-shaped fiscal markets .
Despite the current difficulties, there remains electric potential for the insurance market to grow significantly. The nation ’ mho function as a regional economic center has translated into large-scale construction projects, angstrom well as the arrival of new external firms aiming to expand operations across West Africa. Although investor appetite is likely to dampen in the abruptly term ascribable to the banquet of Covid-19 in the first one-half of 2020 and the October presidential election, the country ’ south longer-term emergence prospects remain attractive. A host of raw regional regulations that includes higher minimum capital requirements is likely to strengthen sector fundamentals. furthermore, the move towards newly mandate insurance requirements, particularly in the construction sector, is set to increase tax income.

Sector Structure

due to its size, late economic performance and lower penetration rate, Côte d ’ Ivoire remains one of the most attractive policy markets in West Africa. The country accounted for 27 % of all premium in the CIMA region at end-2017, according to the most recent figures from the Ministry of Economy and Finance ( Ministère de L ’ Economie et des Finances, MEF ). At that time, the insurance sector employed at least 3000 professionals and accounted for CFA6bn ( $ 10.3m ) in tax gross for the politics. At the beginning of 2019 the sector comprised 21 non-life providers, 11 life policy companies, 437 insurance brokers and 11 reinsurance firms .
The local market has witnessed active expansion, owing to the entrance of a act of regional insurance players. In late-2016 Moroccan supplier Wafa Insurance began operating in both the life sentence and non-life segments, offering health policy, cosmopolitan protective covering and savings products. Tunisia-based Compagnie Méditerranéenne five hundred ’ Assurances et de Réassurances began operating its Ivorian subsidiary company at the end of 2017, focusing on non-life products like accident and ecstasy policy. Another moroccan insurance company, Atlanta Assurances, was awarded an manoeuver license in 2016 and began its activities in Côte five hundred ’ Ivoire the comply class, offering life and non-life indemnity products. More recently, in mid-2019 Cameroon-based Activa Assurances received its operational license from the MEF and was scheduled to provide non-life indemnity products such as fire and damage coverage begin in July of that year, although operations had however to commence as of April 2020 .


According to probationary figures from the Association of Insurance Companies of Côte vitamin d ’ Ivoire ( Association des Sociétés d ’ Assurances de Côte vitamin d ’ Ivoire, ASA-CI ), premium increased by 8.4 % in 2019 to CFA389.8bn ( $ 670.1m ). This marks a lengthiness of the market ’ s upward trajectory, which has seen premium raise steadily from CFA247.2bn ( $ 424.9m ) in 2014. like to the musical composition of early insurance markets across the continent, non-life insurance bounty represents the majority of the commercialize. At CFA221.2bn ( $ 380.2m ) in 2019, non-life inflows accounted for 56.7 % of full premium that year and marked a growth pace of 7.7 %. interim, life policy premium grew by 9.3 % to reach CFA168.6bn ( $ 291.5m ) .
Despite the rising book of premium overall, the market remains consolidated at the top. With 25.3 % of sector premium, the largest firm in non-life policy was Saham, a Morocco-based insurance company that was acquired by south african indemnity group Sanlam for $ 1.1bn in late 2018. This was followed by the local auxiliary of german insurance company Allianz, which commanded just under 11 % marketplace share. Out of the 21 companies operating in the non-life segment that are members of ASA-CI, 12 had commercialize shares of 3 % or less, while the bottom-four companies held under 1 % of the grocery store each .

Penetration Levels

Compounding the challenges for smaller insurers is the implicit in difficulty of promoting policy adoption in Côte vitamin d ’ Ivoire. Although the economy has averaged annual growth of 8 % since 2012, 46 % of Ivorians lived below the national poverty pipeline in 2015, according to the World Bank. “ Most people in Côte vitamin d ’ Ivoire are focused on their primary needs, ” Kamal Harati, director-general of KH Assureurs Conseils, told OBG. “ This does not mean there is not a grocery store for insurance, it merely means there is not a mass commercialize of insurance users yet. ”
At 2 % of GDP in 2018, the policy penetration pace remains low. The most evolve indemnity grocery store on the continent belongs to South Africa, which posted a penetration rate of 17 % that year, according to PwC. Regionally, Namibia ( 6.7 % ), Kenya ( 2.8 % ) and Swaziland ( 2.4 % ) besides outperformed Côte five hundred ’ Ivoire. however, the lapp 2018 datum highlights that Côte d ’ Ivoire ’ s insurance penetration is faring better than many of its immediate neighbours : Senegal reached 1.5 % indemnity penetration, followed by Ghana ( 1.1 % ), Cameroon ( 1.05 % ) and Nigeria ( 0.3 % ) .


Sector payouts increased by 12.3 % in 2019 to CFA214.8bn ( $ 369.2m ), according to ASA-CI. Of this full, 50.5 % were related to biography insurance and 21.6 % resulted from health policy claims. Auto insurance, the third-largest source of payouts that year, accounted for 13.1 %, or CFA28.1bn ( $ 48.3m ). overall, payouts to life insurance policyholders rose by 9.4 % to CFA108.4bn ( $ 186.3m ) in 2019, while non-life payouts grew by 15.5 % to CFA106.4bn ( $ 182.9m ) .
technical results – which denotes the remainder between gross ( including agio ) and expenses ( including payouts ) – fell by 7.6 % to CFA39.57bn ( $ 68m ) in 2018. technical results have seen significant variation in holocene years, expanding from CFA10bn ( $ 17.2m ) in 2014 to CFA48.9bn ( $ 84.1m ) in 2016, before slipping to CFA42.8bn ( $ 73.6m ) in 2017 .

Market Players

A regular inflow of players has seen the market become increasingly competitive. In addition to the 11 life sentence and 21 non-life providers, there are eight firms operating in both segments : Allianz, Atlantique Assurances, La Loyale, NSIA Vie Assurances, Saar Insurance, Saham, Sunu Group and Wafa Insurance. In October 2019 Stane Assurance announced that its manoeuver license had been revoked by the Regional Commission for Insurance Control. The nonlife policy firm, which had been operating since July 2017, did not provide a reason for this withdrawal .
In the non-life segment, the five-largest insurers – Saham, Allianz, Sunu Group, AXA Insurance and NSIA – accounted for 65.5 % of bounty in 2019, according to ASC-CI. The top market position was occupied by Saham, which registered bounty of over CFA56.8bn ( $ 97.6m ), or 25.7 % of the non-life market that year. In second invest, Allianz had a market partake of 11.4 %, with CFA25.3bn ( $ 43.5m ) in agio. This was followed by Sunu Group, which accounted for CFA23bn ( $ 39.5m ) and 10.4 % of the market ; France ’ second AXA, with CFA20.3bn ( $ 34.9m, 9.2 % ) ; and local firm NSIA, supplying just over CFA19.5bn ( $ 33.5m, 8.1 % ) .
In life insurance, the top-five providers accounted for around 75 % of the market. Sunu Vie led the section in 2019 with 29.7 % of total animation agio, or CFA50.1bn ( $ 86.1m ). This was followed by NSIA Vie Assurances, which registered CFA27.3bn ( $ 46.9m, 16.2 % ) ; Allianz Vie, with CFA26.5bn ( $ 45.5m, 15.7 % ) ; Saham Vie, with CFA25.5bn ( $ 43.8m, 15.1 % ) ; and Prudential Belife Insurance, with around CFA9.2bn ( $ 15.8m, 5.4 % ) .

Regulatory Review

While the sector ’ s largest competitors are likely to remain key participants in come years, regulative enforcement – combined with the impact of the Covid-19 pandemic – is probable to change the dynamics for the smallest players. On a local anesthetic grade, the MEF is tasked with oversee and regulating the indemnity marketplace. however, as a CIMA penis, the ministry is obliged to follow the rules set out in CIMA ’ s policy code. In addition to Côte five hundred ’ Ivoire, CIMA oversees the regulation and enforcement of insurance laws in Benin, Burkina Faso, Cameroon, the central African Republic, Chad, Congo, Equatorial Guinea, Gabon, Guinea, Mali, Niger, Senegal and Togo .
In recent years CIMA has focused on improving insurance provision and increasing policyholder protections. however, limited resources have made it challenging to systematically audit major players. “ There needs to be closer control condition of the count of indemnity claims to see if companies are operating correctly and account is done as it should be, ” Rosalie Logon, director-general of Atlantique Assurances, told OBG .
respective regulative measures are in place to strengthen insurers ’ fiscal positions and ensure the sector can meet its commitments to customers. In 2011 CIMA banned the allotment of indemnity on credit. evenly important, the watchdog raised minimum capital requirements in 2016. As such, indemnity companies operating in the regional market are required to have minimum capital of CFA3bn ( $ 5.2m ) as of 2019, to be increased to CFA5bn ( $ 8.6m ) by 2021. The move was expected to accelerate sector consolidation by leading to either mergers or the disqualification of smaller players. “ Raising the minimum capital prerequisite for indemnity companies should have helped to reduce the count of operators in the marketplace and make them stronger, ” Logon told OBG. “ unfortunately, this has not been the lawsuit so far. ”

The deadline for meeting the 2019 minimum capital requirement was in May of that class, but as of October no decisions had been made regarding the handful of policy companies that had failed to meet the doorway. “ Over the coming two years, I think there will be a disturbance in the commercialize. once that happens, we will be able to restart business on a more solid foot, ” Harati told OBG. At the same time, strengthened industry safeguards and higher minimum capital requirements should help local insurance companies mitigate negative impacts of short-run fluidity challenges caused by the Covid-19 pandemic .

Life Coverage

solid economic performance, rising standards of living and a growing in-between classify are raising the profile of life policy policies. As a consequence, the value of animation premium has increased steadily over the years, from CFA110.5bn ( $ 189.9m ) in 2014 to CFA168.9bn ( $ 290.3m ) in 2019, according to probationary figures from ASA-CI. Life insurance accounted for 43.3 % of sum sector premium in 2019, and around half of sector payouts, or CFA99.1bn ( $ 170.4m ) .


The commercialize ’ s second-largest individual segment is car indemnity, which accounted for 18.5 % of sector premium in 2019. Auto policy remains the entirely mandatary insurance type under current legislation, and is regularly enforced through patrol checks. however, the government is besides working to make insurance coverage for construction and construction sites compulsory ( see analysis ) .
In 2019 car premium grew by 4 % to CFA72.3bn ( $ 124.3m ) and payouts rose by 18 % to CFA23.8bn ( $ 48.3m ). due to the rising number of vehicles on the country ’ south roads, the customer base for car insurance has been increasingly expanding. Since car policy is traditionally considered a gateway indemnity product, price competition in the segment has escalated substantially. The government established a minimum price for car indemnity in 2003 ; however, some companies continued to sell products below the doorway angstrom deep as May 2018, according to regional media. In an feat to counteract the problem, that same calendar month members of ASA-CI signed an agreement with the authorities to implement the mandate minimum prices, which ensure adequate funds to pay claims .

Health & Accident

The third-largest indemnity segment in 2019 was health care and accident coverage, which brought in 18.1 % of overall bounty. Increasing by 27 % in 2018, that class marked the second straight class that health and accident coverage was named the fastest-growing segment at CFA67bn ( $ 115.2m ) in agio, late reaching CFA70.8bn ( $ 121.7m ) in 2019 .
however, the segment continues to be faced with profitableness challenges. The authorities launched incentives in 2006 to encourage the more far-flung borrowing of health policy, but the segment remains primarily pendent on employers who purchase group policies in bulk to cover employees. Health indemnity policies are besides linked to high instances of fraud. In 2019 health and accident providers accounted for 18.2 %, or CFA47.1bn ( $ 81m ), of sum sector payouts – the highest percentage of all non-life segments. This payout volume was up 13.2 % over 2018 .

Fire & Damage

While fire and damage indemnity was the only segment to experience a veto year in 2018 – with bounty falling by 4 %, from CFA33.8bn ( $ 58.1m ) to CFA32.5bn ( $ 55.9m ) – it bounced back in 2019, with bounty growing by 14.2 % to CFA37.1bn ( 67.8m ), according to ASA-CI data. At the same time, fire and damage payouts expanded by 14.4 %, growing from CFA20.2bn ( $ 34.7m ) to CFA23.1bn ( $ 39.7m ). There was a exorbitant, 141 % addition in 2018 caused by a largescale factory displace that took seat in Abidjan in 2017 .


The economic challenges faced by a bombastic section of the population are increasingly underlining the role that micro-insurance can play in expanding access to previously underserved areas. Already, some micro-insurance products targeting low-income earners have been made available through democratic mobile money platforms .
In 2014 life insurance company NSIA Vie Assurances teamed up with south african ’ sulfur MTN to release the NAF Mobile overhaul, which provides up to CFA250,000 ( $ 430 ) for funeral expenses in the event of the policyholder ’ s death. Sunu Vie collaborated with France ’ south Orange in 2016 to offer life policy products up to CFA500,000 ( $ 860 ). similarly, Allianz Vie allows its clients to pay their premiums monthly through MTN for policies valued up to CFA1m ( $ 1719 ). Atlantique Assurance Vie, for its part, has partnered with South Africa ’ s Moov to provide Moov-Prévoyance, which covers costs associated with death or injury in the event of a traffic accident for a monthly bounty of CFA400 ( $ 0.69 ). Another insurance company to have joined forces with Moov is NSIA. This partnership offers customers Moov Soutien Funérailles to cover funeral expenses though a monthly premium of CFA1000 ( $ 1.72 ) .
Within Côte d ’ Ivoire, as region of a across-the-board swerve across the region, mobile money systems are proving an effective method acting to customise policy offerings and widen insurers ’ reach beyond their physical distribution networks. This is probably to accelerate alongside growing smartphone penetration. “ Adoption of new engineering helps companies to come up with bespoke products and innovative solutions for their target clients, ” Issiaka Savané, conductor at local fiscal institution Unacoopec, told OBG. “ This is particularly authoritative when catering to the rural economy, as smallholder farmers have singular needs. ”


CIMA ’ s reinsurance market has enjoyed growth spurred by a regulative overhaul in 2016 that sought to retain a greater plowshare of reinsurance agio within the area. A modification to Article 308 of the CIMA code imposed more rigorous limitations on the volume of reinsurance that can be sourced from outside the region. In 2015 a much as 66 % of the CIMA zone ’ randomness reinsurance policies – deserving CFA281bn ( $ 483m ) – had been taken out with reinsurers beyond the regional market, according to a 2017 report by Africa-based consultancy Finactu .
previously, only 25 % of small risks, such as automotive and life insurance, had to be reinsured within the CIMA region ; however, now 100 % of such risks must be reinsured within the zone. similarly, the necessitate symmetry of specialized risks – such as for oil and flatulence infrastructure or aviation – that must be issued by regional reinsurers has increased from 25 % to 50 % .
Since the reform, respective international reinsurers have opened offices in CIMA countries, with many of these selecting Côte five hundred ’ Ivoire as their operate base. This includes german reinsurer Hannover Re, which opened a representative function in Abidjan in November 2017 and commenced CIMA operations the following class. Two Kenya-based reinsurers, Kenya Re and ZEP-RE, and Morocco ’ s Société Centrale de Ré assurance were granted CIMA licences for their Abidjan offices between November 2017 and January 2018. More recently, swiss Re received regulative blessing for its Côte five hundred ’ Ivoire branch in August 2019. other reinsurers that operate from within the nation include Ivorian firm NCA Re, Senegal-based Sen-Re and Nigeria ’ s Continental Reinsurance.


Côte five hundred ’ Ivoire ’ s policy sector seems to have reached a turn point, partially stemming from the rapid increase in the number of operators competing for marketplace share. With the insurance penetration rate still relatively abject, a number of commercialize players have resorted to aggressive price strategies that have undermined not only the fiscal conditions of insurers, but besides their ability to pay claims .
In the first half of 2020 local anesthetic indemnity firms are probable preparing themselves for the clear-cut challenges posed by the Covid-19 pandemic and global recess that many analysts say will follow. insurance companies that offer products most impacted by the virus, such as contingency, individual health care and security services, will face heightened challenges. This is particularly genuine for Côte d ’ Ivoire ’ s health section, which may feel the gemini impacts of reduce employment-based premium and increased payouts. conversely, indemnity companies with well-diversified risk portfolios will be least affect. additionally, the inadequate performance of ball-shaped stock markets, arsenic well as lower interest rates, could put atmospheric pressure on balance sheets and involve equity-based policies, such as some life indemnity plans .
In the medium term, consolidation would ensure the exploitation of a stronger sector with more promise perspectives. The foundation to achieve this was established by raising minimum capital requirements. however, in order for rule to achieve its intend objectives, attachment must be enforced. Closer monitor of the sector would ensure that insurers more tightly manage their operations. This would likely enhance the honoring of minimum tariffs for specific policies and the accurate report of policy claims and payouts in fiscal statements .

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