Africa - 2013


Insurance Risk/Reward Ratings

Table: Nigeria's Insurance Risk/Reward Ratings
Data Score out of 10 Ratings score out of 100
Rewards 29.12
Industry rewards 20.00
- Non-life 30.0
Non-life premiums, 2011, US$mn2,145.93.0
Non-life premium increase, 2011-2016, US$mn1,895.15.0
Non-life penetration, 2011, %0.72.0
Measure of openness2.02.0
- Life 10.0
Life premiums, 2011, US$mn374.71.0
Life premium increase, 2011-2016, US$mn40.0-
Life penetration, 2011, %0.11.0
Measure of openness2.02.0
Country rewards 42.8
GDP per capita, 2011, US$1,740.33.0
Active population, 2011, % of total53.77.0
Tax regime39.33.9
GDP volatility6.11.0
Financial Infrastructure64.86.5
Risks 39.8
Regulatory framework 25.0
Regulatory framework and development3.03.0
Regulatory framework and competitive landscape2.02.0
Country risks 49.6
Long-term financial risk38.33.8
Long-term external risk96.79.7
Long-term policy continuity60.06.0
Legal framework27.92.8
Bureaucracy25.12.5
Insurance risk/Reward Rating 32.3
na = not available/applicable. Source: BMI

Since 2008, we have been taking a much more systematic approach to assessing the current and potential conditions of the insurance sectors in each of the countries surveyed by BMI. We have calculated the Insurance Risk/Reward Ratings, which take into account objective measures of the current state and long-term potential of both the non-life and the life segments. It also takes into account an assessment of the openness of each segment to new entrants, and economic conditions. Collectively, these measures enable an objective assessment of the limits to potential returns across all countries and over a period of time. The ratings also incorporate objective assessment of the risks to the realisation of returns, based on BMI's Country Risk ratings. It embodies a subjective assessment of the impact of the regulatory regime on the development and the competitive landscape of the insurance sector.

Table: Middle East and Africa Insurance Risk/Reward Ratings

Industry Rewards

Industry Rewards - Non-Life

Industry Rewards - Life

Country Rewards

Rewards

Regulatory Framework

Country Risks

Risks

Insurance Risk/ Reward Rating:

Rank

South Africa

70.00

65.00

75.00

73.59

71.43

65.00

69.90

67.94

70.39

1

Israel

57.50

55.00

60.00

73.54

63.91

80.00

74.32

76.59

67.72

2

UAE

38.75

47.50

30.00

69.60

51.09

70.00

59.79

63.87

54.92

3

Saudi Arabia

28.75

45.00

12.50

77.36

48.19

60.00

62.29

61.37

52.15

4

Bahrain

28.75

35.00

22.50

66.58

43.88

85.00

61.43

70.86

51.97

5

Oman

23.75

30.00

17.50

73.64

43.70

65.00

63.33

64.00

49.79

6

Morocco

32.50

37.50

27.50

59.01

43.10

70.00

49.56

57.74

47.49

7

Jordan

23.75

32.50

15.00

68.00

41.45

70.00

48.23

56.94

46.10

8

Kuwait

15.00

20.00

10.00

72.73

38.09

50.00

68.51

61.11

45.00

9

Qatar

18.13

31.25

5.00

70.21

38.96

55.00

60.66

58.40

44.79

10

Egypt

31.25

32.50

30.00

58.25

42.05

60.00

43.33

50.00

44.43

11

Tunisia

21.25

30.00

12.50

52.77

33.86

55.00

38.63

45.18

37.25

12

Kenya

28.75

35.00

22.50

45.90

35.61

45.00

38.25

40.95

37.21

13

Algeria

17.50

27.50

7.50

44.54

28.31

50.00

43.78

46.27

33.70

14

Iran

27.50

40.00

15.00

45.71

34.78

20.00

37.10

30.26

33.43

15

Nigeria

20.00

30.00

10.00

42.81

29.12

25.00

49.59

39.75

32.31

16

Libya

3.75

5.00

2.50

44.00

19.85

30.00

31.00

30.60

23.08

17

Source: BMI

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