Benin Insurance Industry – Key Trends and Opportunities to 2024

The total direct written premium of insurance market in Benin was valued at $102.8 million in 2019. The market is projected to grow at a CAGR of more than 2% during the period 2020-2024. The economic prospects were hindered due to COVID-19 outbreak in 2020. To mitigate the impact of the pandemic, the government introduced a recovery plan estimated at $126.3 million. This plan has been aimed towards the most vulnerable households, and the companies operating in the most affected sectors such as tourism, transportation, and hospitality.

General insurance was the largest segment in 2019 followed by life insurance. The general insurance segment is expected to grow at faster pace during the forecast period. Insurance companies in the CIMA zone which included Benin are expected to see a significant increase in costs in the health insurance as a result of COVID-19 pandemic.

Overview of insurance market in Benin

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What are the market dynamics in Insurance market in Benin?

Benin’s economy was significantly less affected by the pandemic as compared to the rest of West Africa despite heavy reliance on informal re-exports and transit trade with neighboring countries. The slowdown was attributable to the contraction in the agriculture, commerce, transport and hospitality sectors, due to the pandemic-induced restrictions. 

Cyber insurance

Cyberinsurance is in a nascent stage in Sub-Saharan Africa and is slowly gaining prominence. In Sub-Saharan Africa, cyber claims relating to extortion and ransomware is gaining traction. Furthermore, remote work induced due to the pandemic accelerated the demand for cyber insurance. Insurers are shifting cyber insurance to catastrophe type coverage.

Agri insurance

With 70% of the population employed in agricultural sector, agriculture insurance is an emerging area of focus in Benin. Insurers are increasingly partnering with agritech enterprises to develop products for efficiency in underwriting. In Benin, Mutual Agricultural Insurance of Benin (AMAB) offers agriculture insurance products such as multi-risk market gardening insurance, multi-risk plantation insurance, crop index insurance and insurance for stored products and agricultural warehouses.

Micro insurance

Microinsurance is in a nascent stage in the Sub-Saharan Africa region. As of 2019, an estimated 38% of the workforce is employed in the agricultural sector in Benin. Microinsurance products are gaining prominence to offer products to low-income individuals. Microinsurance agriculture are popular products in countries such as Benin.

Mobile insurance

According to the Global System for Mobile Communications, Sub-Saharan Africa has the world’s fastest growing mobile economy. Between January 2020 to January 2021, Benin registered a 3.8% increase in mobile connections while there was an 18.2% rise in internet users over the same period. The heavy lifting of mobile network operators such as MTN is giving micro insurers the foundation and channels with which to reach not only mobile phone users, but also their wider communities.

What are the segment classifications in Benin’s insurance market?

In 2020, general insurance accounted for the highest share in Benin’s insurance market.

General insurance market in Benin

In general insurance segment, various lines of business include motor insurance, property insurance, liability insurance, MAT insurance and PA&H insurance. Motor insurance and PA&H were the largest sub-segments in 2019 with a collective share of more than 70% in terms of the segment’s DWP. With the advent of climate change, the risks in agricultural activities are becoming frequent and severe, driving the demand for agricultural insurance and related developments in the country.

Life insurance market in Benin

In terms of annual growth, the life insurance segment registered significantly higher growth rate as compared to emerging and developed countries. The life insurance investment portfolio includes corporate bonds, investment funds, and other investments.

Insurance market in Benin, by segment

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Who are the major market players in life insurance market in Benin?

In 2019, Sunu Assurances Vie Benin was the leading market player in the life insurance market in Benin followed by Saham Assurance vie, Nouvelle Societe Interafricaine d’Assurances Vie Benin, L’Africaine Vie Benin, Atlantique Assurance Benin vie and others.

In 2019, L’Africaine des Assurances was the leading market player in the general insurance market in Benin followed by Nouvelle Societe Interafricaine d’Assurances Benin, Atlantique Assurance Benin IARDT, Saham Assurance, La Generale des Assurances and others.

Life insurance market in Benin, by key players

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Market report scope

This report provides a comprehensive analysis of the life insurance segment in Benin.

• Provides historical values for Benin’s insurance segment for the report’s 2016-2020 review period, and projected figures for the 2020-2024 forecast period.
• Offers a detailed analysis of the key categories in Benin’s insurance segment, and market forecasts to 2024.
• Profiles the top life insurance companies in Benin and outlines the key regulations affecting them.

Reasons to Buy

• Make strategic business decisions using in-depth historic and forecast market data related to Benin’s insurance segment, and each category within it.
• Understand the demand-side dynamics, key market trends and growth opportunities in Benin’s insurance segment.
• Assess the competitive dynamics in the insurance segment.
• Identify growth opportunities and market dynamics in the insurance segment.