1. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity Insurance Market Survey of Selected African Countries Bertus Thomas AIO Life Seminar Khartoum - Sudan

2. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity SECTION 1SURVEY OBJECTIVE AND BACKGROUND SECTION 2AFRICA: CURRENT SIZE AND PROJECTED GROWTH SECTION 3COMPARISONS BETWEEN COUNTRIES Agenda 2

3. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity Section 1Survey objective and background Section 2Africa: current size and projected growth Section 3Comparisons between countries Agenda

4. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity Survey objective and background Conducted by the Africa Committee (AC) of the Actuarial Society of South Africa Report on the market data on Life and Pensions Business Initially a few countries will be selected The scope will be broadened over time Benefits to the AIO: 1) A basis of measuring and determining the growth and development of Life Assurance in Africa 2) A source of reliable information on Life Assurance in Africa 3) A basis of comparing growth in various companies, countries and regions to identify challenges and recognize strengths to encourage sharing of experiences 4) To enrich the presentation on “Tour of Africa” at the AIO Annual Life Seminar

5. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity Project objective and background Countries included in study: ZimbabweMauritiusZambia NamibiaMozambiqueBotswana GhanaKenyaNigeria Information collected for each country - Economic environment: GDP, interest and inflation rates - Demographic composition: Population, life expectancy, average age - Insurance industry: Number of schemes, annual insurance premium, players, solvency margins - Products and channels Main sources used: Axco, CIA World Fact Book, regulators, Wikipedia, McKinsey & Company research

6. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity Section 1Survey objective and background Section 2Africa: current size and projected growth Section 3Comparisons between countries Agenda

7. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity Africa – Today and tomorrow

8. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity ACCELERATED GROWTH

9. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity AFRICAN GOVERNMENTS HAVE SIGNIFICANTLY IMPROVED MACROECONOMIC STABILITY

10. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity RAPID URBANISATION

11. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity POPULATION GROWTH

12. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity INCREASED FOREIGN DIRECT INVESTMENT

13. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity ACCELERATED GROWTH

14. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity BROAD-BASED GROWTH

15. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity INCREASED DISCRETIONARY INCOME

16. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity INSURANCE OPPORTUNITY

17. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity SA WOULD APPEAR TO BE AN OUTLIER ?

18. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity Section 1Survey objective and background Section 2Africa: current size and projected growth Section 3Comparisons between countries Agenda

19. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity SIZE OF NIGERIAN AND SOUTH AFRICAN ECONOMIES STAND OUT

20. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity MAURITIUS, NAMIBIA AND BOTSWANA GDP HIGH RELATIVE TO POPULATION SIZE

21. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity HIGH RELATIVE LIFE EXPECTANCY IN MAURITIUS, GHANA AND KENYA

22. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity MAURITIUS, NAMIBIA AND BOTSWANA GDP HIGH RELATIVE TO POPULATION SIZE

23. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity NO DIRECT LINK BETWEEN LIFE INSURANCE PENETRATION AND NUMBER OF PLAYERS

24. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity PRODUCTS AND DISTRIBUTION Main product lines are Group Life, Funeral and endowments Limited underwriting at application stage Main channel is still face-to-face sales, i.e. tied agents and brokers Direct sales have started to become more prominant Bancassurance remains an important channel for life products

25. ACTUARIAL SOCIETY – Quantifying risk, enabling opportunity THANK YOU