Driven by increasing bodied activity on the bet on of steady headline growth, Gabon has developed a relatively large insurance sector, despite the state ’ mho small population. much of the sector ’ mho increase has been linked to industrial development and expansion of infrastructure in recent years, largely encouraged by the government ’ s Emerging Gabon Strategic Plan ( Plan Stratégique Gabon É mergent, PSGE ), which aims to revitalise and diversify the economy beyond the hydrocarbons sector .
due to Gabon ’ randomness limited size, local insurers have traditionally lacked the ability to underwrite risk related to large players from the industry and transport sectors. As a way around this, insurers have relied on fronting agreements as a entail to shift bad premiums overseas using foreign reinsurers. This has allowed for adequate risk management, while at the lapp time providing goodly margins for local insurers. This may not be the subject for much longer, however, following the creation of Société Commerciale Gabonaise de Réassurance ( SCG-RE ) in 2012, the country ’ s domestic reinsurer, which has allowed for a larger total of premiums to be kept in the local market .

By Numbers

After Côte d ’ Ivoire and Cameroon, Gabon is the third-largest policy market among the Inter-African conference on policy Markets ( Conférence Interafricaine des Marchés vitamin d ’ Assurances, CIMA ), with a total premium output of about CFA90bn ( €135m ), Andrew Gwodock, the general-manager of SCG-RE, told OBG .
According to figures from the Federation of Insurance Companies of Gabon ( Federation Gabonaise des Sociétés five hundred ’ Assurance, FEGASA ) the sector grew by 3.3 % in 2014, posting CFA118.4bn ( €177.6m ) in mastermind premiums, compared to CFA114.5bn ( €171.7m ) at the end of 2013. The sub-saharan policy market is led by Côte d ’ Ivoire, which accounted for CFA238.bn ( €358.2m ) in premiums in 2013, the largest sum in the region.

Non-life insurance remains the largest section in Gabon, with CFA100bn ( €150m ) in premiums in 2014, compared with CFA18bn ( €27m ) in life policy premiums. The non-life section is driven by a handful of indemnity lines such as automotive and transport, which are compulsory, and fire and health .

Non-Life

however, in malice of their big size, non-life lines have fluctuated in holocene years, in part due to the excitability of the country ’ s extractive sector. In 2010 the segment made up 85 % of the market, decreasing to around 83 % by 2013, and rising again to 84.9 % by 2014, according to figures from FEGASA. A combination of price spikes, delayed bid rounds and decreasing anoint production – account for 45 % of Gabon ’ s GDP – have impacted non-life lines, particularly for transmit coverage .
In the long condition, an uptick in upstream production may lead to however another rise in non-life coverage. however, the contribution of extractive activities to policy premiums is set to grow in the shortstop term. “ The authorities have already published a raw law stating that all oil and mine activities in Gabon must be supported by insurance contracts with local indemnity companies. That will improve the memory of indemnity premiums in nation, ” Renaud Allogho Akoue, secretary-general at Ogar, told OBG .
other non-life products are besides expected to help diversify and add value to the sector, although bounty amounts for insurance contracts are lower than those brought in by the oil sector. elsewhere, automotive, health and multiple-risk indemnity premiums showed firm growth during 2014 .
Although life insurance premiums have expanded in holocene years, such as in 2013, with 22 % growth year–on-year ( y-o-y ), they have since remained stable, with entirely fringy growth recorded in 2014. Life policy is chiefly driven by corporate insurance schemes, but growth likely besides exists in individual and group policy lines. With bancassurance steadily establishing itself through increased bank penetration ( see Banking overview ), a raw avenue for growth is sure to gain grip in the gabonese market, in the process enabling providers to gain access to a new pool of likely customers .
Séverin Anguilé, managing director at Nouvelle Société Interafricaine five hundred ’ Assurances du Gabon ( NSIA Assurances ), told OBG, “ The exploitation of bancassurance has been chiefly driven by those banks that already own an insurance as a subsidiary company. ”
In terms of the overall size, Gabon has fared well in comparison to other indemnity markets in the area. The penetration rate as a percentage of GDP reached 1.1 % in 2012, compared to 1 % of GDP among markets of the CIMA region, which groups together 14 insurance sectors in Central and West African Francophone countries. Likewise, Gabon surpassed the 0.79 % GDP average in the central african area .

rule

Gabon ’ s insurance market is broadly managed under the CIMA Insurance Code, which was introduced in 1995 to guide indemnity expansion confirmed, the move would potentially solidify the sector financially and promote market consolidation .

market Players

competition has seen an range of companies vying for a piece of a growing, if modestly sized, market. The sector is made up of eight insurance companies, one reinsurance provider and 19 policy brokers acting as intermediaries. The non-life insurance segment remains the most competitive, with five players, namely, Ogar, NSIA Assurances, Axa Gabon, Saham Assurance and Assurances Industrielles et Comerciales ( Assinco ). elsewhere, NSIA Vie Assurances, Ogar Vie and UAG Vie have focused their activities on the life segment. Foreign operators, meanwhile, make up a significant fortune of the market, including NSIA Assurances, which is owned by Ivoirian operator Groupe NSIA, Morocco-based Saham Assurance, adenine well as Axa Gabon, a subsidiary company of french giant star Axa. In 2014 Morocco ’ s leading indemnity musician Wafa Assurance said it would be establishing a auxiliary in Gabon, through its parent bank Attijariwafa. The entirely homegrown insurers are Assinco and Ogar, respectively .

Home Grown

Within the gabonese commercialize, the top insurers, in terms of premium volumes, have seen their traditional grocery store dominance impacted by the large number of competitors, many of which specialize in certain lines. According to 2014 figures from FEGASA, Ogar remains the largest insurance company by premiums, with a 32.6 % marketplace share and entire premiums of CFA38.6bn ( €57.9m ). Non-life accounted for a big proportion of the group ’ mho operations, at around CFA30bn ( €45m ), with transmit representing more than CFA14bn ( €21m ) in premiums in 2014 .
In second position is NSIA Assurances, which brought its commercialize share up from 16.8 % in 2013 to 18.9 % in 2014, with total premium volumes of CFA22.4bn ( €33.6m ). The non-life segment, at CFA20.4bn ( €30.6m ), makes up most of the insurance company ’ sulfur clientele. indeed, NSIA Assurances has gained a beachhead in the automotive section, where it held the largest part of premiums at CFA8.3bn ( €12.45m ) in 2014 .
Following the learning of its parent company Colina by Morocco ’ s Groupe Saham in 2014, Colina – nowadays known as Saham Assurance – is the third-biggest operator in the marketplace. With a 15.39 % grocery store share, the insurance company has expanded by servicing the property and casualty market, reaching a total premium volume of CFA18.2bn ( €27.3m ) in 2014, according to figures from FEGASA. The operator is followed by Assinco, which made up 13.8 % of the market in 2014, with CFA16.4bn ( €24.6m ) of premiums.

Life Insurance

ascribable to the express buying world power and miss of awareness about policy products, two dynamics which tend to define most central african policy markets, life policy schemes have had a slow start in the gabonese market. Although stable in terms of y-o-y transfer in 2014, life sentence policy premiums grew from CFA12.72bn ( €19.1m ) to CFA17.8bn ( €26.7m ) between 2009 and 2014, according to FEGASA numbers. There has been a slowdown in the segment since mid-2014 however, with direct bounty amounts remaining static between 2013 and 2014. With life insurance premiums stabilising, a handful of particular life indemnity segments continue to grow quickly. Mixed health policy premiums, for exercise, rose 54.7 % to reach CFA1.9bn ( €2.85m ) in 2014 .

distribution Channels

Despite this, biography insurance remains under-penetrated and is being helped by new delivery methods. The expansion of bancassurance, for case, is an increasingly prefer channel, and has attracted a rising act of bodied and individual clients. Bancassurance is helping to move the segment aside from being driven by collective contracts to a greater put up of individual life indemnity. Partnerships have proven to be a utilitarian way to enhance bancassurance distribution. In July 2014, for example, Groupe NSIA signed an agreement with Poste Gabon, which is creditworthy for the state ’ s postal service, as partially of an first step to distribute policy through Gabon ’ s 75 military post offices. meanwhile, other insurers have been expanding their distribution capacity through partnerships with banks, although this scheme is still developing .

Automobile & Transport

As the alone two compulsory products in the market, automotive and conveyance are all-important components in providing Gabon with premiums. According to figures from FEGASA, automotive premiums were the largest individual segment in the non-life market, representing 25.8 % of the integral indemnity market in 2014, at CFA30.6bn ( €45.9m ) in premiums. Although car insurance is mandatary in Gabon, the marketplace has much room for growth, as it is estimated that up to 40 % of drivers remain uninsured. To help reduce the risks from uninsured drivers, the authorities announced plans in 2009 to create a national fund to cover damages, which would be financed through a percentage of auto-insurance premiums. At the time of write, however, this arrangement had even to be established .
Transport insurance, which accounts for both imported and exported goods, made up 17.6 % of the market. construction materials, consumer goods, food products and vehicles make up a meaning symmetry of gabonese imports, which has contributed to the transportation section ’ s potent display, at CFA20.9bn ( €31.4m ) in total premiums in 2014 .
however, competition has been highly mean for transmit insurance schemes in recent years, which led to a fall in the volume of premiums over two straight years, decreasing by 2.35 % in 2013 and 0.65 % in 2014. According to government plans, investment in local anesthetic industries over the medium term should raise imports, and hence, that aspect of transport indemnity. The expectation is that this will be balanced out by an uptick in exports as Gabon increases local process of its natural resources .

Health

Rising awareness of health policy schemes has made them an essential tax income stream for insurers. Collective health plans by private businesses has solidified the segment, which posted a 2.21 % jump in 2014 to reach CFA22.1bn ( €33.2m ) in premiums, up on CFA13.2bn ( €19.8m ) in 2011 .
amazingly, the health policy segment has been able to maintain momentum, despite the initiation of a new universal joint public health wish outline in 2013 under the auspices of the National Health Care Insurance and Social Welfare Fund ( Caisse Nationale vitamin d ’ Assurance Maladie et de Garantie Sociale, CNAMGS ). The fresh arrangement has an ambitious reach, and represents a first for the central african area. Its set about, which is based on setting up separate funds for low-income earners, populace employees and individual sector workers, is reflected in the retentive planning time to put the system in place .
The registration of beneficiaries was started in 2009, by focusing on low-income populations. Public and private sector workers were added in 2011 and 2013, respectively. The system is free for those earning less than CFA80,000 ( €120 ) per month, and the low-income bracket of the scheme is largely financed by specific taxes, such as a 1.5 % tax on transfers of money abroad. however, not all low-income earners are presently included, and the politics has announced that a new registration plan for this section of beneficiaries will take space in 2015 .
CNMAGS will cover 80 % of basic medical treatment costs angstrom well as generic medications ( 90 % in case of chronic disease ), but coverage increases to 100 % of health costs for low-income earners and pregnant women. Although the program is placid working to cover all of the population, CNAMGS is poised to become a strategic tool as part of the politics ’ s health agenda. Its impact on private health insurance provision, however, is as even ill-defined .
In order to improve health care provision, CNAMGS and individual health caution providers will need to collaborate to integrate the two systems. Despite the fine details, CNAMGS and some of Gabon ’ mho main insurance brokerage firms entered into a conventionality in May 2014. The goal at this point, according to authorities, is to establish a system that allows for the state-financed scheme to cover an align of basic services, while allowing private insurance providers to market complemental schemes to cover the cost of specialize health planning. The system is mirrored on the mutuelles, or insurance funds, operating in France. “ There has been a good conduct of cooperative cultivate between the insurance sector and CNAMGS to add the complementary insurance, but promote discussion will get into the technical aspects, specially how the insurers can establish tariffs for complemental indemnity, ” Allogho Akoue told OBG .

reinsurance

The sector will besides add more value as a growing part of reinsurance cessions will remain in the local grocery store. Fronting high-value indemnity claims via external partners was the alone way to secure large-scale coverage up until the creation of SCG-RE in early 2012. Since the first local reinsurer entered the market, operators have been required to cede 10 % of life and 15 % of non-life premiums.

Establishing a national reinsurer has added maturity to the gabonese market, and was separate of the PSGE. There are presently two state institutions as majority shareholders in SCG-RE, with the Gabonese Strategic Investment Fund owning 61 % and the Deposit and Consignments Fund account for 8 %. The remaining 31 % of the reinsurer segment is held by gabonese indemnity companies. According to SCG-RE figures, the sum volume of premiums that stayed in the gabonese marketplace rose from CFA6.5bn ( €9.75m ) in 2012 to CFA12bn ( €18m ) in 2014 .
SCG-RE received authorization from the government in 2013 to expand its activities to enter the aviation section, ampere well as onshore and offshore oil exploration. The group has besides established partnerships to join indemnity pools covering the energy sector. In addition, SCG-RE is aiming to become a regional reinsurer, and has established partnerships with reinsurers in Morocco, Côte d ’ Ivoire and Nigeria .

lookout

Gabon remains one of the most active indemnity markets in the region, with growth in sum premiums representing an opportunity for both domestic and extraneous policy providers. Improved regulation at a regional level, under CIMA guidelines, angstrom well as at the domestic charge has helped to improve assurance in the sector on both sides of the market. regulative steps can add foster value, ampere well as positively affect national growth. external measures will besides help the sector. Improving road safety, legislation for workplace safety standards and fire services would all help to reduce insurers ’ exposure to hefty claims in the damages segment. Although Gabon will face challenges from lower petroleum prices, growth and wide-scale changes in the sector have enhanced resilience to likely shocks .

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