1. Africa Reinsurance Pulse 2016 Andreas Bollmann 21st African Reinsurance Forum Dakar, Senegal 3 October 2016

2. 1st Africa Reinsurance Pulse
1st Africa Reinsurance Pulse – An authoritative study on the state and prospects of the US$ 8.3 billion African reinsurance markets
Africa Re as lead sponsor
Provides additional data and information on one of the most attractive growth regions in the industry
Based on in-depth market analysis and interviews with 22 senior executives of the key reinsurance and brokers operating in Africa
Survey focuses on the markets’ SWOT, rates and profitability, lines and markets, developments to deepen penetration and strengthen regulation
African Insurance
Organisation

3. Strong business sentiment due to growth potential of African re/insurance sector
Overall strong business sentiment based on underlying fundamentals
Dampened mood due to decline of commodity prices and slower growth
Outlook improved as oil price recovers and fundamentals remain intact
Business sentiment – ranking on a scale from -5 to +5
Source: Africa Reinsurance Pulse 2016, Dr. Schanz, Alms & Company

4. Insurance penetration is far below the world’s average*
Non-life insurance penetration (premiums in % of GDP) and GDP per Capita (US$), 2014
*World: NL penetration, 2015: 2.77%
Source: Insurance penetration: Swiss Re sigma explorer, GDP / capita: IMF World Economic Outlook

5. Increasing penetration driven by new technologies and cost-efficient distribution channels
New technologies to drive increasing penetration levels
Microinsurance raising awareness among the poor
Bancassurance a fast-growing distribution channel
Drivers of an increasing insurance penetration (number of mentions)

6. Africa – A US$ 4.9 billion non-life reinsurance market
Estimated non-life reinsurance market size of selected
African markets 20131/2014 (US$ million)2
8 markets ceding more than US$ 100 million each
Africa generates approx. 1% of global non-life insurance premiums but 3% of non-life reinsurance premiums

7. Cession rates well above the global average
Estimated non-life reinsurance cession rates of selected
African markets 20131/2014 (US$ million)2
8.4%, ⍉
global
Africa’s large commercial risks in need for global non-life reinsurance capacity
Higher cession rates because of often weaker capitalisation of primary insurers and relatively higher share of proportional reinsurance
24%, ⍉
Africa

8. SWOT: Strong fundamentals and business development potential, but still vulnerable to external forces
Strengths (number of mentions)
Weaknesses (number of mentions)
Opportunities (number of mentions)
Threats (number of mentions)

9. Fastest growing reinsurance markets and lines of business
The fastest growing reinsurance markets
(number of mentions)
The fastest growing reinsurance lines of business
(number of mentions)

10. Moderately negative outlook on profitability, but improving
Current overall reinsurance profitability
(compared to the average of the past 12 months)
Outlook on reinsurance profitability

11. Deteriorating reinsurance prices impacting growth prospects
Outlook on reinsurance exposure growth
Outlook on reinsurance premium growth

12. Dynamic regulatory developments influencing the nature of the game
Regionalism / protectionism discussed controversially
RBC introduction expected to improve underwriting discipline
‘No premium, no cover’ expected to improve liquidity and balance sheets of primary insurers
Most relevant regulatory trends (number of mentions)

13. About Dr. Schanz, Alms & Company AG
Research, strategy and communications consultancy, founded in 2007, based in Zurich
Partners with long-standing experience in senior functions of leading reinsurers
Providing authoritative research on global reinsurance markets
MENA Re/ Insurance
Barometer: Since 2011
Asia Reinsurance Pulse:
Since 2013
Africa Insurance Barometer:
2016
Africa Insurance
Directory:
2015