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Burundi Insurance Industry Trends and Opportunities to 2017

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					Burundi Insurance Industry Trends and Opportunities to 2017
Despite the global financial crisis in 2009, the Burundian insurance industry grew in terms of written
premium 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 for
the largest proportion of the total insurance written premium value in 2012 with a share of 55.5%. The
segment valued BIF3.8 billion (US$2.7 million) in 2012, after recording a CAGR of 4.9% during the review
period, on account of compulsory insurance provisions. The Burundian insurance industry is projected to
grow at a CAGR of 7.2% over the forecast period, increasing from BIF6.9 billion (US$4.9 million) in 2012
to BIF9.8 billion (US$6.9 million) in 2017. Economic growth, a rising population, and increasing
healthcare 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 drive
demand for insurance products.
Introduction of new Investment Code
A new Investment Code came into force on 1 January 2009. This Code is the result of an overhaul of the
2003 business regulatory framework which aimed to improve existing business laws and promote
investment. The new code provides more guarantees to foreign investors in particular with respect to
expropriation, the guarantee of transfer of capital and access to international arbitration. The Code also
takes into account the specific regime for investments in free zones.

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insurance-industry-in-burundi-key-trends-and-opportunities-to-2017.html

Report Details:
Published: April 2013
No. of Pages: 83
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Rising life expectancy and healthcare expenditure to encourage demand for private insurance
The life expectancy of the population rose from 48.5 years in 2007 to 50.3 years in 2011. The healthcare
expenditure per capita also increased from US$17.6 in 2007 to US$20.70 in 2010. The rising life
expectancy and healthcare expenditure is expected to increase the demand for life and health insurance
products in the coming years.

Continued economic growth to encourage the demand for insurance products
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 in
2008 to BIF3.0 trillion in 2012, after registering a CAGR of 19% during the review period. It is expected to
grow further over the forecast period following the country’s anticipated overall economic
improvements. Rising GDP will result in more disposable income and more money being allocated to
saving and investment products.

Burundi’s insurance penetration stood below the East African average
The insurance industry’s penetration levels remained low at 0.19% of GDP in 2012; therefore the
Burundian insurance industry is attractive to global insurance providers. Life insurance represented
0.04% of the total, non-life penetration levels measured at 0.11% and the personal accident and health
insurance segment stood at 0.04%. These rates are low compared to the East African average of 3%,
suggesting further opportunities for growth.

Table of Contents


1 Executive Summary
2 Introduction
3 Burundian Insurance Industry Overview
4 Industry Segmentation
5 Competitive Landscape
6 Macroeconomic Indicators
7 Appendix

List of Tables


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