Insurance in the frontier markets Žu †Žaharan ‘frica ŽŽ‘ is a diverse reion of 4 states ŽŽ‘ is a diverse reion consistin of 4 indeendent states‡ ‘ markets… with the which… with the excetion of Žouth excetion of Žouth ‘frica… can e considered frontier markets‡ Žouth ‘frica has ‘frica… are a frontier markets‡ one of the most advanced ife markets in the word‡ It is at the forefront of industry innovation… and has the third hihest enetration rate o ay‡ ˆhis chater ooks at the ŽŽ‘ frontier markets ony… with a focus on the insurance sectors in ‘noa… Œôte d’Ivoire… Ethioia… €hana… ±enya… ˜oŠam išue and Nieria‡ Figure Ževen frontier markets in ŽŽ‘ Ethiopia Cote d’Ivoire Kenya Ghana Nigeria Angola Mozambique Žource: Žwiss ‹e‡ conomic deeloment Economic rowth in the ŽŽ‘ frontier ‹ea €‚ƒ in the ŽŽ‘ frontier markets rew y an annua averae of 6‡4 etween markets has remained stron… at 6‡4 2000 and 2014… ony sihty sower than eer markets in ‘sia‡ ˆhe ŽŽ‘ countries er annum since 2000‡ differ widey in terms of economic structure… socio†oitica and cutura ackround… and aso insurance market ractices‡ Nieria is y far the arest economy with €‚ƒ of a out ¥Ž‚ ™20 iion in 2014 42 of the ŽŽ‘ frontier market tota„… foowed y ‘noa ¥Ž‚ 1¡0 iion„‡ ˆhe other economies are sinificanty smaer‡ ‘ key rowth driver over the ast decade has een hih commodity and aricutura rices… athouh these have een much weaker recenty‡ ”ther sectors such as financia services… teecoms… rea estate and ersona services… have aso seen stron rowth‡ ”i imorters and countries with more Economic rowth in the markets has sowed more recenty… with Nieria and ‘noa diverse exorts and infrastructure articuary hard hit y oi rice weakness since eary 201™‡ In oth nations… the investment ans wi continue to see ma“ority of exorts and overnment revenues are deendent on oi and as saes… soid economic rowth‡ and oth countries need to diversify their economies and uid infrastructure to suort usiness activity in other areas‡ €hana is aso a net exorter of oi… aonside od and cocoa‡ It had to seek I˜— assistance after the overnment deficit siraed 10 out of contro in 2014‡ —or the other markets covered in this chater – ±enya… Ethioia… Œôte d’Ivoire and ˜oŠam išue – ow oi rices are a ositive factor as they reduce the imort i and the cost of fue su sidies‡ ±enya in articuar is exected to see sustained soid rowth iven are investments to urade its infrastructure e… the construction of Žtandard €aue ‹aiway transort system„‡ 10 In ‘ri 201™… the I˜— offered ¥Ž‚ ’1 miion to €hana to suort medium†term economic reform initiatives… in a three†year arranement under the Extended Œredit —aciity‡ 6 Swiss Re sigma No 2/2016
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