For almost two decades, growth in the insurance markets of Sub-Saharan Africa has been buoyed by the continent’s economic boom.
With average growth in gross domestic product (GDP) across the region far outpacing much of the developed world, the African continent has presented an extremely attractive environment for domestic, regional and international investors seeking to enhance returns.
However, the fallout from low commodity prices, the slowdown of China’s economic activity and the impact of monetary tightening by the U.S. Federal Reserve are just a number of global issues that threaten to stall growth and stability, and in turn, likely will compromise the development and financial strength of insurance markets across the continent.
In its new Best’s Special Report, “Africa’s Insurance Market Prospects Threatened by Low Commodity Prices and Political Uncertainty,” A.M. Best believes that the balance sheets of (re)insurers are exposed to material volatility arising from the uncertain landscape.