The Insurance Industry in Malawi,
Key Trends and Opportunities to
2017
Market Intelligence Report
Reference code: IS0256MR
Published: March 2013
www.timetric.com
Timetric
John Carpent er House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0)20 7936 6400
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www.timetric.com
EX ECUTIV E SUMMARY
1 Executive Summary
The Insurance Industry in Mala wi, Key Trends and Opportunities to 2017
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TABLE OF CONTENTS
TABLE OF CONTENTS
1
2
Executive Summary ..................................................................................................................... 2
Introduction.................................................................................................................................... 9
2.1 What is this Report About? ............................................................................................................ 9
2.2 Definitions ...................................................................................................................................... 9
2.3 Methodology................................................................................................................................. 11
3
Malawian Insurance Industry Overview ...............................................................................13
3.1 Malawian Insurance Industry ....................................................................................................... 14
3.2 Key Industry Trends and Drivers ................................................................................................. 18
3.3 Challenges ................................................................................................................................... 19
3.4 Regulation .................................................................................................................................... 20
4
Industry Segmentation..............................................................................................................21
4.1 Life Insurance............................................................................................................................... 21
4.2 Non-Life Insurance....................................................................................................................... 34
4.2.1
Property insurance category ................................................................................................... 52
4.2.2
Motor insurance category ....................................................................................................... 54
4.2.3
Liability insurance category ..................................................................................................... 56
4.2.4
Marine, aviation and transit insurance category ........................................................................ 58
4.3 Personal Accident and Health Insurance .................................................................................... 60
4.4 Reinsurance ................................................................................................................................. 74
5
Competitive Landscape ............................................................................................................83
5.1 Overview ...................................................................................................................................... 83
5.2 Leading Companies ..................................................................................................................... 86
6
5.2.1
NICO General Insurance Co – company overview .................................................................... 86
5.2.2
United General Insurance (UGI) – company overview............................................................... 87
5.2.3
Old Mutual – company overview.............................................................................................. 88
5.2.4
Vanguard Life Assurance – company overview ........................................................................ 89
5.2.5
REAL Insurance Company – company overview ...................................................................... 90
5.2.6
General Alliance Insurance (GAI) – company overview ............................................................. 91
Macroeconomic Indicators ......................................................................................................92
6.1 GDP at Constant Prices (US dollar) ............................................................................................ 92
6.2 GDP Per Capita at Constant Prices (US dollar) .......................................................................... 93
6.3 GDP at Current Prices (US dollar)............................................................................................... 94
6.4 Construction Output at Current Prices (US$ Million) .................................................................. 95
6.5 Arable Land .................................................................................................................................. 96
6.6 Exports as a Percentage of GDP ................................................................................................ 97
6.7 Healthcare Expenditure Per Capita ............................................................................................. 98
6.8 Employed Population ................................................................................................................... 99
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TABLE OF CONTENTS
6.9 Inflation Rate .............................................................................................................................. 100
6.10 Total Population ......................................................................................................................... 101
7
Appendix.................................................................................................................................... 102
7.1 Methodology............................................................................................................................... 102
7.2 Contact Us ................................................................................................................................. 102
7.3 About Timetric ............................................................................................................................ 102
7.4 Disclaimer................................................................................................................................... 103
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TABLE OF CONTENTS
LIST OF FIGURES
Figure 1: Malaw ian Insurance Overall Written Premium by Segment ( MWK Billion), 2008–2017 .................................................................. 16
Figure 2: Malaw ian Insurance Industry Dynamics by Segment (%), 2008–2017 ........................................................................................... 17
Figure 3: Malaw ian Lif e Insurance – Paid Claims (MWK Billion), 2008–2012 ................................................................................................ 21
Figure 4: Malaw ian Lif e Insurance – Paid Claims (MWK Billion), 2012–2017 ................................................................................................ 22
Figure 5: Malaw ian Lif e Insurance – Incurred Loss (MWK Billion), 2008–2012 ............................................................................................. 23
Figure 6: Malaw ian Lif e Insurance – Incurred Loss (MWK Billion), 2012–2017 ............................................................................................. 24
Figure 7: Malaw ian Lif e Insurance – Loss Ratio (%), 2008–2012 .................................................................................................................. 25
Figure 8: Malaw ian Lif e Insurance – Loss Ratio (%), 2012–2017 .................................................................................................................. 26
Figure 9: Malaw ian Lif e Insurance – Combined Ratio (%), 2008–2012.......................................................................................................... 27
Figure 10: Malaw ian Lif e Insurance – Combined Ratio (%), 2012–2017........................................................................................................ 28
Figure 11: Malaw ian Lif e Insurance – Total Assets (MWK Billion), 2008–2012 ............................................................................................. 29
Figure 12: Malaw ian Lif e Insurance – Total Assets (MWK Billion), 2012–2017 ............................................................................................. 30
Figure 13: Malaw ian Lif e Insurance – Retentions (MWK Billion), 2008–2012 ................................................................................................ 31
Figure 14: Malaw ian Lif e Insurance – Retentions (MWK Billion), 2012–2017 ................................................................................................ 32
Figure 15: Malaw ian Lif e Insurance – Premium Per Capita (MWK), 2008–2012 ........................................................................................... 33
Figure 16: Malaw ian Non-Lif e Insurance Written Premium by Category (MWK Billion), 2008–2017.............................................................. 36
Figure 17: Malaw ian Non-Lif e Insurance Written Premium by Category (%), 2012 and 2017........................................................................ 36
Figure 18: Malaw ian Non-Lif e Insurance Segment Dynamics by Category (%), 2008–2017 ......................................................................... 37
Figure 19: Malaw ian Non-Lif e Insurance – Paid Claims (MWK Billion), 2008–2012 ...................................................................................... 38
Figure 20: Malaw ian Non-Lif e Insurance – Paid Claims (MWK Billion), 2012–2017 ...................................................................................... 39
Figure 21: Malaw ian Non-Lif e Insurance – Incurred Loss (MWK Billion), 2008–2012.................................................................................... 40
Figure 22: Malaw ian Non-Lif e Insurance – Incurred Loss (MWK Billion), 2012–2017.................................................................................... 41
Figure 23: Malaw ian Non-Lif e Insurance – Loss Ratio (%), 2008–2012......................................................................................................... 42
Figure 24: Malaw ian Non-Lif e Insurance – Loss Ratio (%), 2012–2017......................................................................................................... 43
Figure 25: Malaw ian Non-Lif e Insurance – Combined Ratio (%), 2008–2012................................................................................................ 44
Figure 26: Malaw ian Non-Lif e Insurance – Combined Ratio (%), 2012–2017................................................................................................ 45
Figure 27: Malaw ian Non-Lif e Insurance – Total Assets (MWK Billion), 2008–2012...................................................................................... 46
Figure 28: Malaw ian Non-Lif e Insurance – Total Assets (MWK Billion), 2012–2017...................................................................................... 47
Figure 29: Malaw ian Non-Lif e Insurance – Retentions (MWK Billion), 2008–2012 ........................................................................................ 48
Figure 30: Malaw ian Non-Lif e Insurance – Retentions (MWK Million), 2012–2017........................................................................................ 49
Figure 31: Malaw ian Non-Lif e Insurance Penetration (% of GDP), 2008–2012 ............................................................................................. 50
Figure 32: Malaw ian Non-Lif e Insurance – Premium Per Capita ( MWK), 2008–2012.................................................................................... 51
Figure 33: Malaw ian Property Insurance Category – Written Premium (MWK Billion), 2008–2012 ............................................................... 52
Figure 34: Malaw ian Property Insurance Category – Written Premium (MWK Billion), 2012–2017 ............................................................... 53
Figure 35: Malaw ian Motor Insurance Category – Written Premium (MWK Billion), 2008–2012.................................................................... 54
Figure 36: Malaw ian Motor Insurance Category – Written Premium (MWK Billion), 2012–2017.................................................................... 55
Figure 37: Malaw ian Liability Insurance Category – Written Premium (MWK Billion), 2008–2012 ................................................................. 56
Figure 38: Malaw ian Liability Insurance Category – Written Premium (MWK Billion), 2012–2017 ................................................................. 57
Figure 39: Malaw ian Marine, Aviation and Transit Insurance Category – Written Premium ( MWK Billion), 2008–2012................................. 58
Figure 40: Malaw ian Marine, Aviation and Transit Insurance Category – Written Premium ( MWK Billion), 2012–2017................................. 59
Figure 41: Malaw ian Personal Accident and Health Insurance – Paid Claims (MWK Billion), 2008–2012 ..................................................... 60
Figure 42: Malaw ian Personal Accident and Health Insurance – Paid Claims (MWK Billion), 2012–2017 ..................................................... 61
Figure 43: Malaw ian Personal Accident and Health Insurance – Incurred Loss (MWK Billion), 2008–2012 .................................................. 62
Figure 44: Malaw ian Personal Accident and Health Insurance – Incurred Loss (MWK Billion), 2012–2017 .................................................. 63
Figure 45: Malaw ian Personal Accident and Health Insurance – Loss Ratio (%), 2008–2012....................................................................... 64
Figure 46: Malaw ian Personal Accident and Health Insurance – Loss Ratio (%), 2012–2017....................................................................... 65
Figure 47: Malaw ian Personal Accident and Health Insurance – Combined Ratio (%), 2008–2012 .............................................................. 66
Figure 48: Malaw ian Personal Accident and Health Insurance – Combined Ratio (%), 2012–2017 .............................................................. 67
Figure 49: Malaw ian Personal Accident and Health Insurance – Total Assets (MWK Billion), 2008–2012 .................................................... 68
Figure 50: Malaw ian Personal Accident and Health Insurance – Total Assets (MWK Billion), 2012–2017 .................................................... 69
Figure 51: Malaw ian Personal Accident and Health Insurance – Retentions (MWK Billion), 2008–2012....................................................... 70
Figure 52: Malaw ian Personal Accident and Health Insurance – Retentions (MWK Million), 2012–2017 ...................................................... 71
Figure 53: Malaw ian Personal Accident and Health Insurance Penetration (% of GDP), 2008–2012 ............................................................ 72
Figure 54: Malaw ian Personal Accident and Health Insurance – Premium Per Capita (MWK), 2008–2012 .................................................. 73
Figure 55: Malaw ian Reinsurance Ceded by Insurance Segment (MWK Billion), 2008–2017 ....................................................................... 76
Figure 56: Malaw ian Reinsurance Industry Dynamics by Insurance Segment (%), 2008–2017..................................................................... 76
Figure 57: Malaw ian Lif e Insurance – Percentage of Reinsurance Ceded (%), 2008–2012 .......................................................................... 77
Figure 58: Malaw ian Lif e Insurance – Percentage of Reinsurance Ceded (%), 2012–2017 .......................................................................... 78
Figure 59: Malaw ian Non-Lif e Insurance – Percentage of Reinsurance Ceded (%), 2008–2012................................................................... 79
Figure 60: Malaw ian Non-Lif e Insurance – Percentage of Reinsurance Ceded (%), 2012–2017................................................................... 80
Figure 61: Malaw ian Personal Accident and Health Insurance – Percentage of Reinsurance Ceded (%), 2008–2012 ................................. 81
Figure 62: Malaw ian Personal Accident and Health Insurance – Percentage of Reinsurance Ceded (%), 2012–2017 ................................. 82
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TABLE OF CONTENTS
Figure 63: Malaw ian Lif e Insurance Market Share (%), 2011......................................................................................................................... 84
Figure 64: Malaw ian Non-Lif e Insurance Market Share (%), 2011................................................................................................................. 85
Figure 65: Malaw ian GDP at Constant Prices (US$ Million), 2007–2011....................................................................................................... 92
Figure 66: Malaw ian GDP Per Capita at Constant Prices (US$), 2007–2011................................................................................................ 93
Figure 67: Malaw ian GDP at Current Prices (US$ Million), 2007–2011 ......................................................................................................... 94
Figure 68: Malaw ian Construction Net Output at Current Prices (US$ Million), 2007–2011........................................................................... 95
Figure 69: Malaw ian Arable Land (Hectares per Person), 2007–2011........................................................................................................... 96
Figure 70: Malaw ian Exports as a Percentage of GDP (%), 2007–2011........................................................................................................ 97
Figure 71: Malaw ian Healthcare Expenditure Per Capita (US$), 2007–2011................................................................................................. 98
Figure 72: Malaw ian Employed Population (Million), 2007–2011................................................................................................................... 99
Figure 73: Malaw ian Inflation Rate (%), 2007–2011 .................................................................................................................................... 100
Figure 74: Malaw ian Total Population ( Million), 2007–2011......................................................................................................................... 101
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TABLE OF CONTENTS
LIST OF TABLES
Table 1: Insurance Industry Definitions ............................................................................................................................................................ 9
Table 2: Malaw ian Insurance Overall Written Premium by Segment (MWK Billion), 2008–2012 ................................................................... 14
Table 3: Malaw ian Insurance Overall Written Premium by Segment (US$ Million), 2008–2012 .................................................................... 14
Table 4: Malaw ian Insurance Overall Written Premium by Segment (MWK Billion), 2012–2017 ................................................................... 15
Table 5: Malaw ian Insurance Overall Written Premium by Segment (US$ Million), 2012–2017 .................................................................... 15
Table 6: Malaw ian Insurance Segmentation (% Share), 2008–2017 ............................................................................................................. 17
Table 7: Malaw ian Life Insurance – Paid Claims (MWK Billion), 2008–2012 ................................................................................................. 21
Table 8: Malaw ian Life Insurance – Paid Claims (MWK Billion), 2012–2017 ................................................................................................. 22
Table 9: Malaw ian Life Insurance – Incurred Loss (MWK Billion), 2008–2012............................................................................................... 23
Table 10: Malaw ian Life Insurance – Incurred Loss (MWK Billion), 2012–2017............................................................................................. 24
Table 11: Malaw ian Life Insurance – Loss Ratio (%), 2008–2012 ................................................................................................................. 25
Table 12: Malaw ian Life Insurance – Loss Ratio (%), 2012–2017 ................................................................................................................. 26
Table 13: Malaw ian Life Insurance – Combined Ratio (%), 2008–2012......................................................................................................... 27
Table 14: Malaw ian Life Insurance – Combined Ratio (%), 2012–2017......................................................................................................... 28
Table 15: Malaw ian Life Insurance – Total Assets (MWK Billion), 2008–2012............................................................................................... 29
Table 16: Malaw ian Life Insurance – Total Assets (MWK Billion), 2012–2017............................................................................................... 30
Table 17: Malaw ian Life Insurance – Retentions (MWK Billion), 2008–2012 ................................................................................................. 31
Table 18: Malaw ian Life Insurance – Retentions (MWK Billion), 2012–2017 ................................................................................................. 32
Table 19: Malaw ian Non-Life Insurance Written Premium by Category (MWK Billion), 2008–2012............................................................... 34
Table 20: Malaw ian Non-Life Insurance Written Premium by Category (US$ Million), 2008–2012 ................................................................ 34
Table 21: Malaw ian Non-Life Insurance Written Premium by Category (MWK Billion), 2012–2017............................................................... 35
Table 22: Malaw ian Non-Life Insurance Written Premium by Category (US$ Million), 2012–2017 ................................................................ 35
Table 23: Malaw ian Non-Life Insurance – Paid Claims (MWK Billion), 2008–2012........................................................................................ 38
Table 24: Malaw ian Non-Life Insurance – Paid Claims (MWK Billion), 2012–2017........................................................................................ 39
Table 25: Malaw ian Non-Life Insurance – Incurred Loss (MWK Billion), 2008–2012 ..................................................................................... 40
Table 26: Malaw ian Non-Life Insurance – Incurred Loss (MWK Billion), 2012–2017 ..................................................................................... 41
Table 27: Malaw ian Non-Life Insurance – Loss Ratio (%), 2008–2012.......................................................................................................... 42
Table 28: Malaw ian Non-Life Insurance – Loss Ratio (%), 2012–2017.......................................................................................................... 43
Table 29: Malaw ian Non-Life Insurance – Combined Ratio (%), 2008–2012................................................................................................. 44
Table 30: Malaw ian Non-Life Insurance – Combined Ratio (%), 2012–2017................................................................................................. 45
Table 31: Malaw ian Non-Life Insurance – Total Assets (MWK Billion), 2008–2012 ....................................................................................... 46
Table 32: Malaw ian Non-Life Insurance – Total Assets (MWK Billion), 2012–2017 ....................................................................................... 47
Table 33: Malaw ian Non-Life Insurance – Retentions (MWK Billion), 2008–2012.......................................................................................... 48
Table 34: Malaw ian Non-Life Insurance – Retentions (MWK Billion), 2012–2017.......................................................................................... 49
Table 35: Malaw ian Property Insurance Category – Written Premium ( MWK Billion), 2008–2012................................................................. 52
Table 36: Malaw ian Property Insurance Category – Written Premium ( MWK Billion), 2012–2017................................................................. 53
Table 37: Malaw ian Motor Insurance Category – Written Premium ( MWK Billion), 2008–2012 ..................................................................... 54
Table 38: Malaw ian Motor Insurance Category – Written Premium ( MWK Billion), 2012–2017 ..................................................................... 55
Table 39: Malaw ian Liability Insurance Category – Written Premium (MWK Billion), 2008–2012 .................................................................. 56
Table 40: Malaw ian Liability Insurance Category – Written Premium (MWK Billion), 2012–2017 .................................................................. 57
Table 41: Malaw ian Marine, Aviation and Transit Insurance Category – Written Premium (MWK Billion), 2008–2012.................................. 58
Table 42: Malaw ian Marine, Aviation and Transit Insurance Category – Written Premium (MWK Billion), 2012–2017.................................. 59
Table 43: Malaw ian Personal Accident and Health Insurance – Paid Claims (MWK Billion), 2008–2012 ...................................................... 60
Table 44: Malaw ian Personal Accident and Health Insurance – Paid Claims (MWK Billion), 2012–2017 ...................................................... 61
Table 45: Malaw ian Personal Accident and Health Insurance – Incurred Loss (MWK Billion), 2008–2012.................................................... 62
Table 46: Malaw ian Personal Accident and Health Insurance – Incurred Loss (MWK Billion), 2012–2017.................................................... 63
Table 47: Malaw ian Personal Accident and Health Insurance – Loss Ratio (%), 2008–2012 ........................................................................ 64
Table 48: Malaw ian Personal Accident and Health Insurance – Loss Ratio (%), 2012–2017 ........................................................................ 65
Table 49: Malaw ian Personal Accident and Health Insurance – Combined Ratio (%), 2008–2012................................................................ 66
Table 50: Malaw ian Personal Accident and Health Insurance – Combined Ratio (%), 2012–2017................................................................ 67
Table 51: Malaw ian Personal Accident and Health Insurance – Total Assets (MWK Billion), 2008–2012...................................................... 68
Table 52: Malaw ian Personal Accident and Health Insurance – Total Assets (MWK Billion), 2012–2017...................................................... 69
Table 53: Malaw ian Personal Accident and Health Insurance – Retentions (MWK Billion), 2008–2012 ........................................................ 70
Table 54: Malaw ian Personal Accident and Health Insurance – Retentions (MWK Billion), 2012–2017 ........................................................ 71
Table 55: Malaw ian Reinsurance Ceded by Insurance Segment (MWK Billion), 2008–2012 ........................................................................ 74
Table 56: Malaw ian Reinsurance Ceded by Insurance Segment (US$ Million), 2008–2012.......................................................................... 74
Table 57: Malaw ian Reinsurance Ceded by Insurance Segment (MWK Billion), 2012–2017 ........................................................................ 75
Table 58: Malaw ian Reinsurance Ceded by Insurance Segment (US$ Million), 2012–2017.......................................................................... 75
Table 59: Malaw ian Life Insurance – Percentage of Reinsurance Ceded (%), 2008–2012............................................................................ 77
Table 60: Malaw ian Life Insurance – Percentage of Reinsurance Ceded (%), 2012–2017............................................................................ 78
Table 61: Malaw ian Non-Life Insurance – Percentage of Reinsurance Ceded (%), 2008–2012.................................................................... 79
Table 62: Malaw ian Non-Life Insurance – Percentage of Reinsurance Ceded (%), 2012–2017.................................................................... 80
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TABLE OF CONTENTS
Table 63: Malaw ian Personal Accident and Health Insurance – Percentage of Reinsurance Ceded (%), 2008–2012................................... 81
Table 64: Malaw ian Personal Accident and Health Insurance – Percentage of Reinsurance Ceded (%), 2012–2017................................... 82
Table 65: Malaw ian Insurance Operators, 2011............................................................................................................................................. 83
Table 66: Malaw ian Life Insurance Market Share (%), 2011.......................................................................................................................... 84
Table 67: Malaw ian Non-Life Insurance Market Share (%), 2011.................................................................................................................. 85
Table 68: NICO General Insurance, Main Products ....................................................................................................................................... 86
Table 69: NICO General Insurance, Key Employees ..................................................................................................................................... 86
Table 70: UGI, Main Products........................................................................................................................................................................ 87
Table 71: UGI, Key Employees...................................................................................................................................................................... 87
Table 72: Old Mutual, Main Products ............................................................................................................................................................. 88
Table 73: Old Mutual, Key Employees ........................................................................................................................................................... 88
Table 74: Vanguard, Main Products............................................................................................................................................................... 89
Table 75: Vanguard, Key Employees............................................................................................................................................................. 89
Table 76: REAL, Main Products ..................................................................................................................................................................... 90
Table 77: REAL, Key Employees ................................................................................................................................................................... 90
Table 78: GAI, Main Products ........................................................................................................................................................................ 91
Table 79: GAI, Key Employees ...................................................................................................................................................................... 91
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INTRODUCTION
2 Introduction
2.1 What is this Report About?
This report is the result of extensive research into the Malawian insuranc e industry, covering the market
dynamics and competitive landscape. It provides insights on the market size of, and forecast for, the life,
non-life, pers onal accident and health and reinsurance segments. This report also provides an overview
of the leading companies in the insurance industry.
2.2 Definitions
All data is collected in local currency. Conversions int o US dollars (US $) of current and fo recast data are
made at the 2012 average annual conversion rate. Most values are displayed to one decimal place. As
such, growth rates may appear inconsistent with absolute values due to rounding. For the purposes of
this report, the review period is 2008–2012 and the forecast period is 2012–2017.
The key insurance industry terms covered in the report are defined below:
Table 1: Insurance Industry Definitions
Term
Definition
Ceding company
A primary insurer which transfers some of its insurance risk by ceding a proportion of its total written
premium through a reinsurance contract.
Incurred loss
The sum of claims paid by an insurance company and the change in the provis ion for outstanding
claims irrespective of whether or not they have been reported.
Claim ratio
Claims payable as a percentage of premium income.
Commission and
expenses
The sum of acquisition cost and administrative cost. The acquisition cost is the percentage of a
premium produced that is retained as compensation by insurance agents and brokers.
Comprehensive loss
ratio
The ratio of claims incurred to net premium earned.
Earned premium
The amount of money considered to have been earned on a policy by an insurer. It is calculated by
multiplying the original premium by the percentage of the policy’s term which has expired w ithout a
claim being made.
Endow ment policy
A scheme in which the term of the policy is defined for a specified period, such as 15, 25 or 30 years.
The insurer pays the claim to the family of the assured in an event of his or her death within the policy's
term or in an event of the assured surviv ing the policy's term.
Facultative
reinsurance
An arrangement for separate reinsurance for each risk that the primary insurer underwrites. The
reinsurer can accept or reject any risk presented by the primary insurer seeking reinsurance.
Gross claim
The amount payable by an insurance company before allowances is made for credits that may be due
in the form of reinsurance, subrogation or salvage.
Gross written premium
The total amount of premiums (before deduction of reinsurance costs) customers are required to pay
for insurance policies written during the year.
Group annuity
A life insurance scheme providing annuities at retir ement to a group of people under a single contract.
It is usually bought by an employer for the benefit of its employees.
Insurance density and
penetration
The percentage of total written premium to the country’s GDP.
Insurance fraud
Any act committed w ith the intent to obtain payment from an insurer through fraudulent means.
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INTRODUCTION
Table 1: Insurance Industry Definitions
Term
Definition
Lapsed policy
A policy which is terminated due to the non-payment of the premium.
Loss ratio
The ratio of total losses paid out in the form of claims plus adjustment expenses divided by the total
earned premium.
Liability insurance
A type of insurance that covers legal claims by third parties against the insured.
Loss reserve
The estimated amount of claims incurred but not yet settled.
Maturity claim
The payment made to a policyholder at the end of the stipulated term of a term life insurance policy.
Per capita premium
The ratio of the total written premium to the country’s total population.
Premium ceded
The share of premiums transferred to a reinsurance company by a primary insurer.
Single-premium life
insurance policy
A life insurance scheme in w hich a lump sum is paid into the policy in return for an assured sum of
money in the event of the policyholder’s death.
Term insurance
A life insurance scheme that provides protection for a specif ied period, usually between fiv e and 20
years. The policy expires without value if the insured survives the s tated period.
Treaty reinsurance
A reinsurance agreement applying to the reinsurance of a class or some classes of business, instead
of an individual ris k.
Direct marketing
Direct Marketing channels for insurance policies include insurance companies’ sales forces,
telemarketing, postal mail, e-mail, call centers and mobile phones.
E-commerce
The distribution of insurance policies online through a company or third-party website.
Agencies
Individuals and corporate agencies whic h are licensed to sell insurance for one or more specific
insurance companies.
Insurance brokers
Individuals or businesses which sell insurance policies, and advise and represent the policyholder.
They differ from insurance agents, whic h act on the behalf of an insurance company.
Bancassurance
The partnership between a bank and an insurance company in which the insurance company uses the
bank’s sales channel to sell insurance.
Other distribution
channels
Other distribution channels include post offic es, convenience stores, multi-level marketing, any channel
other than agencies, direct marketing, bancassurance and the above-mentioned channels.
Source: Timetric analysis
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INTRODUCTION
2.3 Methodology
All Timetric insurance reports are created by following a c omprehensive, four-stage methodology. This
includes market study, research, analysis and quality control.
1) Market Study
A.
Standardization
Definitions are specified using recognized industry classifications. The s ame definition is
used for every country.
Annual average currency exchange rates are used for the latest complet ed year. These are
then applied across both the historical and forecas t data to remove exchange rate
fluctuations.
B.
Internal audit
Review of in-house databases to gather existing data:
- Historic market dat abas es and reports
- Company database
C.
Trend monitoring
Review of the latest insurance companies and industry trends
2) Research
A.
Source s
Collection of the latest market-specific data from a wide variety of industry sources:
- Government statistics
- Industry associations
- Company filings
- International organizations
- Insuranc e regulatory agencies
B.
Expert opinion
Collation of opinion taken from leading insurance industry experts
Analysis of third-party opinion and forecasts:
- Broker reports
- Media
- Official government sources
C.
Data consolidation and verification
Cons olidation of data and opinion to create historical datasets
Creation of models to benchmark data across sectors and regions
3) Analysi s
A.
Market forecasts
Feeding forecast data into market models:
- Macroec onomic indicators
- Industry-specific drivers
Analysis of insurance industry database to identify trends:
- Latest insurance trends
- Key drivers of the insurance industry
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INTRODUCTION
B.
Report writing
Analysis of market data
Discussion of company and industry trends and issues
Review of financial deals and insurance trends
4) Quality Control
A.
Templates
Detailed process manuals
Standardized report templates and accompanying style guides
Complex forecasting tool used to ensure forec ast methodologies are consistently applied
Quality-cont rol checklists
B.
Quality control proce ss
Peer review
Senior-level QC
Random spot checks on data integrity
Benchmark checks across databases
Market data cross-checked for consistency with accumulated data from:
- Company filings
- Government sources
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MALAWIAN INS URANCE INDUSTRY OV ERVIEW
3 Malawian Insurance Industry Overview
There are 11 insurance companies operating in the Malawian insurance industry, seven of which operate
in non-life insurance and the remaining four operate in life insurance. The five leading insurers in Malawi
are: NICO Insurance, Old Mutual Life, United General Insurance, United General Insurance, and General
Alliance Insurance. NICO Insuranc e Company is the largest insurance company in the country with a
market share of 36.3% in the non-life segment and 55.8% in t he life segment. Factors such as the threat
to the economy due to the non-performance of the mining industry, foreign exchange shortages, high
combined ratio in the non-life insurance segment, and decreasing profitability of non-life insurers are the
major challenges for the industry.
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MALAWIAN INS URANCE INDUSTRY OV ERVIEW
3.1 Malawian Insurance Industry
Table 2: Malawian Insurance Overall Written Premium by Segment (MWK Billion), 2008–2012
Segment
2008
2009
2010
2011
2012
CAGR
2008– 2012
Life
Non-life
Personal accident and health
Overall
Source: Timetric analysis
© Timetric
Table 3: Malawian Insurance Overall Written Premium by Segment (US$ Million), 2008–2012
Segment
2008
2009
2010
2011
2012
CAGR
2008– 2012
Life
Non-life
Personal accident and health
Overall
Source: Timetric analysis
The Insurance Industry in Mala wi, Key Trends and Opportunities to 2017
© Timetric. This product is licensed and is not to be photocopied
© Timetric
Page 14
Published: March 2013
MALAWIAN INS URANCE INDUSTRY OV ERVIEW
Table 4: Malawian Insurance Overall Written Premium by Segment (MWK Billion), 2012–2017
Segment
2012
2013
2014
2015
2016
2017
CAGR
2012–2017
Life
Non-life
Personal accident and health
Overall
Source: Timetric analysis
© Timetric
Table 5: Malawian Insurance Overall Written Premium by Segment (US$ Million), 2012–2017
Segment
2012
2013
2014
2015
2016
2017
CAGR
2012–2017
Life
Non-life
Personal accident and health
Overall
Source: Timetric analysis
The Insurance Industry in Mala wi, Key Trends and Opportunities to 2017
© Timetric. This product is licensed and is not to be photocopied
© Timetric
Page 15
Published: March 2013
MALAWIAN INS URANCE INDUSTRY OV ERVIEW
Figure 1: Malawian Insurance Overall Written Premium by Segment (MWK Billion), 2008–2017
Source: Timetric analysis
The Insurance Industry in Mala wi, Key Trends and Opportunities to 2017
© Timetric. This product is licensed and is not to be photocopied
© Timetric
Page 16
Published: March 2013
MALAWIAN INS URANCE INDUSTRY OV ERVIEW
Table 6: Malawian Insurance Segmentation (% Share), 2008–2017
Segment
2008
2012
2017
Life
Non-life
Personal accident and health
Overall
Source: Timetric analysis
© Timetric
Figure 2: Malawian Insurance Industry Dynamics by Segment (%), 2008–2017
Source: Timetric analysis
© Timetric
Note: Bubble size represents 2012 Market Value (MWK Billion)
The Insurance Industry in Mala wi, Key Trends and Opportunities to 2017
© Timetric. This product is licensed and is not to be photocopied
Page 17
Published: March 2013
INDUSTRY S EGMENTATION
4 Industry Segmentation
4.1 Life Insurance
Table 7: Malawian Life Insurance – Paid Claims (MWK Billion), 2008–2012
Year
Paid Claims (MWK Billion)
2008
1.1
2009
1.0
2010
1.5
2011
1.6
2012
Source: Timetric analysis
1.8
© Timetric
Figure 3: Malawian Life Insurance – Paid Claims (MWK Billion), 2008–2012
Source: Timetric analysis
The Insurance Industry in Mala wi, Key Trends and Opportunities to 2017
© Timetric. This product is licensed and is not to be photocopied
© Timetric
Page 18
Published: March 2013
INDUSTRY S EGMENTATION
Table 8: Malawian Life Insurance – Paid Claims (MWK Billion), 2012–2017
Year
Paid Claims (MWK Billion)
2012
2013
2014
2015
2016
2017
Source: Timetric analysis
© Timetric
Figure 4: Malawian Life Insurance – Paid Claims (MWK Billion), 2012–2017
Source: Timetric analysis
The Insurance Industry in Mala wi, Key Trends and Opportunities to 2017
© Timetric. This product is licensed and is not to be photocopied
© Timetric
Page 19
Published: March 2013
INDUSTRY S EGMENTATION
Table 9: Malawian Life Insurance – Incurred Loss (MWK Billion), 2008–2012
Year
Incurred Loss (MWK Billion)
2008
2009
2010
2011
2012
Source: Timetric analysis
© Timetric
Figure 5: Malawian Life Insurance – Incurred Loss (MWK Billion), 2008–2012
Source: Timetric analysis
The Insurance Industry in Mala wi, Key Trends and Opportunities to 2017
© Timetric. This product is licensed and is not to be photocopied
© Timetric
Page 20
Published: March 2013