Ivorian Insurance Sector Reports Strong Growth in the First Half of 2023

In the first half of 2023, the Ivorian insurance sector posted double-digit growth driven by the country’s economic dynamism. The two life and non-life branches totaled a turnover of 340 billion FCFA, up 18%.
Non-life insurance remains predominant with a turnover of 223 billion, up 21% compared to 2022. According to the Association of Insurance Companies of Côte d’Ivoire (ASA-CI), “this growth is attributable to the combined effect of strong premium growth in several sectors, including motor insurance, health insurance, construction insurance and insurance for risks related to new oil and gas fields”. It should be noted that the digitization of automobile certificates launched during the 2023 renewals has boosted the turnover of RC Automobile insurance.

For its part, Life insurance recorded a turnover of 117 billion FCFA, up 12% compared to 2022. This increase is mainly driven by periodic savings contracts, provident contracts, indemnity contracts end of career (IFC) and unit-linked contracts due to the emergence of the middle classes.

Over the period, benefits paid amounted overall to 153 billion FCFA, an increase of 29%. In the Non-Life branch, the increase was 35%, which testifies to the benefits of the rigorous monitoring of the periodic order for the settlement of inter-company appeals favoring the clearance of the stock of pending claims. However, professionals note a deterioration in the claims ratio in the context of property and casualty insurance due to high inflation in the cost of spare parts.
concerning the life branch, the increase in benefits is 23% driven singularly by the transfer of funds in escheat prescribed with the Caisse des Dépôts et Consignations de Côte d’Ivoire (CDC-CI), the payment of capital due in particular departures early retirement and redemptions on savings contracts. New investments made over the period are driven by government and similar bonds (+31 billion FCFA) and bank deposits (+8%) due to the attractiveness of remuneration rates. However, we note a divestment in listed shares (-26 billion FCFA) linked to the sale of securities.

On the other hand, insurance companies (essentially Life) made investments to the tune of 1,206 billion FCFA, up 3%.

Economic dynamism

With a GDP growth rate established at more than 6% on average for more than 10 years and projected at 7.2%1 for the year 2023, Côte d’Ivoire is strengthening its supremacy in the CIMA zone, Conference Inter-African Association of Insurance Markets, bringing together 14 countries (Benin, Burkina, Cameroon, Central African Republic, Congo, Ivory Coast, Gabon, Mali, Niger, Senegal, Chad, Togo, Madagascar and France).

The financial environment in the first half of 2023 was globally marked by the consequences of the increase in the key rates of the Central Bank of West African States (BCEAO) intended to curb inflation. This measure led to a rise in interest rates on bank deposits, thus favoring the investment of life insurance companies in bank liquidities.