INSURANCE SECTOR : Cameroon Records a 6.32 % Growth in 2023

The insurance sector in Cameroon experienced a positive dynamic in 2023, with a 6.32 % increase in its overall turnover. According to the provisional information published by the Association of Insurance Companies of Cameroon (Asac), the insurance market (life and non-life) reached 272.55 billion FCFA as of December 31, 2023, compared to 256.34 billion FCFA in 2022, an increase of 16.2 billion FCFA.

This performance is primarily driven by the non-life branch, which represents 67.42 % of the total turnover. This category experienced a 8.97 % progression compared to the previous year, driven notably by the significant increases recorded in the fields of personal accidents and health (+5.85 billion FCFA), fire and other property damages (+4.67 billion FCFA), motor vehicle risks (+4.58 billion FCFA) and other direct damage risks (+3.36 billion FCFA). However, this positive dynamic was somewhat dampened by declines in other segments, such as motor third-party liability (-1.68 billion FCFA), acceptances (-1.32 billion FCFA) and marine transport (-1.27 billion FCFA).

Within the non-life branch, motor insurance remains the dominant segment with 60.66 billion FCFA in issued premiums, an increase of 5.02 % compared to 2022. It is followed by health insurance, which experienced a notable progression of 12.86 %, increasing from 45.67 billion FCFA in 2022 to 51.53 billion FCFA in 2023. Together, these two categories represent 61.04 % of the non-life branch’s market share.

The life branch, on the other hand, also recorded a positive evolution of 1.23 % in 2023 compared to the previous year, although this increase is the lowest observed over the past ten years, according to Asac. This segment is dominated by group savings, which contribute 30.89 %, while individual savings represent 9 % of the market share. Death insurances constitute 24% of the issued premiums, with 18.9 % in group insurances and 5.13% in individual insurances.

As for individual insurances, they represent 47 % of the shares, with a 11% evolution compared to 2022, while corporate insurances represent 52% of the branch’s emissions, having decreased by 6 % due to savings. Life acceptances are also in a clear regression, by 56 %. Finally, personal insurances (personal accidents, health and life) progressed by 5%, increasing from 133.38 billion in 2022 to 140.31 billion FCFA in 2023, and concentrate 51 % of the market share. As for damage insurances, they evolved by 7 %, increasing from 122.96 billion in 2022 to 132.24 billion FCFA in 2023.

Although insurers’ turnover is on the rise, ASAC does not reveal the insurance penetration rate in 2023. According to the provisional figures for 2022, this rate would have regressed to 0.7 %. The association also does not indicate the amount of claims and other benefits paid to customers in 2023.

In summary, the insurance sector in Cameroon has shown a positive growth dynamic in 2023, with a 6.32 % increase in its overall turnover, driven mainly by the performance of the non-life branch. However, challenges remain in terms of market penetration and transparency on the benefits paid to customers.

S.N