1. A TOUR OF THE EAST AFRICAN INSURANCE MARKET Presented by: Pauline Gathuri Mbugua Association of Kenya Insurers AFRICAN INSURANCE ORGANISATION (AIO) CONFERENCE 2015 - LOME TOGO

2. EXECUTIVE SUMMARY  Introduction  East African Region  Premiums per Country  Challenges / Opportunities  Conclusion

3. THE TRUE SIZE OF AFRICA

4. AFRICA - POTENTIAL

5. The East African Community COUNTRYTOTAL POPULATION AGE STRUCTUREPremium Density in US$ Est. as July 2015 0 – 14 YEARS (Distant Future Target Market) 15-24 YEARS (Immediate Future Target Market) 25–54 YEARS (Current Target Market) 55 and above TANZANIA51,045,88244.3%19.5%29.6%6.4%6 KENYA45,925,30141.5%18.6%33.2%6.6%30 UGANDA37,101,74548.5%21.2%25.9%4.5%5 RWANDA12,661,73341.8%18.8%32.7%6.5%4 BURUNDI10,742,27645.6%19.2%28.6%6.4%2 TOTAL157,476,93744.3%19.5%30.0%6.1%Average Appr. 10 Source: CIA World Fact book The EAC dates back to 1967 it collapsed in 1977 and was officially revived in 2007.

6. TOTAL PREMIUM – REGION COUNTRYLIFE INSURANCE PREMIUM US Dollars – Billion GENERAL INSURANCE PREMIUM US Dollars – Billion TOTAL PREMIUM US Dollars – Billion INSURANCE PENETRATI ON SHARE OF REGIONS GROSS WRITTEN PREMIUM EXCHANGE RATE TO: US$ KENYA0.5691.0021.5722.93%74%100 TANZANIA (2013 data) 0.0270.1990.2260.90%11%2100 UGANDA0.0280.1650.1930.85%9%2612 RWANDA0.0100.1000.1100.60%5%745 BURUNDI (2013 data) 0.0040.0120.0160.50%1%1555 TOTAL0.6381.4782.116100%

7. KENYA –STATISTICS AS AT 31 ST DEC 2014 DESCRIPTIONTOTAL Total Insurance Companies 49 Non-Life Insurance Companies 25 Life Insurance Companies 13 Composite Companies (both Life & Non-Life) 11 Reinsurance Companies 6 Licensed Insurance Brokers 198 Licensed Insurance Agents Source: AKI –Insurance Industry Report 5155

8. GROSS WRITTEN PREMIUM 20132014% GROWTHINSURANCE PENETRATION NON-LIFE INSURANCE Ksh.86.64 Bn (US $ -0.866 Bn) 100.24 (US $ -1.002 Bn) 15.6%1.87% LIFE INSURANCE Ksh.44.01 Bn (US $ -0.440 Bn) 56.97 (US $ -0.569 Bn) 29.4%1.06% TOTAL PREMIUM Ksh.130.65 Bn (US $ -1.306 Bn) Ksh.157.21 (US $ -1.572 Bn) 20.3%2.93%

9. 2014 GROSS WRITTEN PREMIUM

10. UGANDA – STATISTICS AS AT 31 ST DEC 2014 DESCRIPTIONTOTAL Total Insurance Companies 22 Non-Life Insurance Companies 20 Life Insurance Companies 8 Composite Companies (both Life & Non-Life) 6 Reinsurance Companies 1 Licensed Insurance Brokers 27

11. GROSS WRITTEN PREMIUM 20132014% GROWTH INSURANCE PENETRATION NON-LIFE INSURANCE Ushs.351.4 Bn. (US$. 0.134) Bn. Ushs.384.0 Bn. (US$. 0.147) Bn. 9.3%- (HMOs)Ushs.56.0 Bn. (US$. 0.021) Bn. Ushs.46.8 Bn. (US$. 0.018) Bn. (16.4)%- LIFE INSURANCE Ushs.55.4 Bn. (US$. 0.021) Bn. Ushs.74.0 Bn. (US$. 0.028) Bn. 33.4%- TOTAL PREMIUM Ushs.463.0 Bn. (US$. 0.177) Bn Ushs.504.8 Bn. (US$. 0.193) Bn 9%2014 -0.86% 2013 –0.85%

12. LIFE INSURANCE GROWTH

13. GROSS WRITTEN PREMIUMS - 2014

14. TANZANIA – STATISTICS AS AT 31 ST DEC 2013 DESCRIPTIONTOTAL Total Insurance Companies 29 Non-Life Insurance Companies 23 Life Insurance Companies 3 Composite Companies (both Life & Non-Life) 3 Reinsurance Companies 1 Licensed Insurance Brokers 90 Licensed Insurance Agents 301

15. GROSS WRITTEN PREMIUM 20122013% GROWTHINSURANCE PENETRATION NON-LIFE INSURANCE TZS 362.9 Bn. (US$. 0.173 Bn) TZS 417.7 Bn. (US$. 0.199 Bn) 15.1% LIFE INSURANCE TZS 43.7 Bn. US$. 0.021 Bn) TZS 56.4 Bn. US$. 0.027 Bn) 29.2% TOTAL PREMIUM TZS 406.6 (US$. 0.194 Bn) TZS 474.1 Bn. (US$. 0.226 Bn.) 17.1%2013 – 0.9%

16. GROSS WRITTEN PREMIUMS - 2013

17. RWANDA – STATISTICS The insurance industry in Rwanda compromises of eight players; 7 Private Insurance Companies; 5 and 3 Public Insurance Companies. The Industry Regulator and Supervisor has licenses more than 70 agents. The insurance sector recorded a Gross Premium Income of Rwf 82 Billion (US$ 0.110 Bn.) by the end of 2014 from Rwf 76 Billion (US$ 0.102 Bn.) as at December 2013.

18. RWANDA - LIFE BUSINESS Life Insurance accounted for 21.1% of the gross premium at Rwf 8 Billion (US$ 0.010 Bn.). The outlook of growth in this market is very positive. Insurance Penetration – 0.6%

19. BURUNDI There are 6 Insurance Companies, 5 of which are Composite Companies(Both Life and Non Life) and one General Insurance Company. The market recorded a Gross Written Premium of BIF 25.9 Billion (US$ 0.0167 Bn). Life Insurance accounted for 26.04% of Gross written Premiums Non Life Insurance accounted for 73.96% of Gross Written Premiums. Insurance Penetration - 0.5%.

20. CHALLENGES / OPPORTUNITIES 1. Distribution Channels

21. ……..LOW PERSISTENCY

22. 2. LOW PERSISTENCY

23. 3. Unreached informal sector

24. GROUP LIFE BUSINESS 4. Un-healthy competition leading to under- cutting.  Competing in Known Market Space  Broker Driven Market  SME Market  Current Group Life Schemes vs. Current No. of Employers

25. Red Ocean vs. Blue Ocean