Guinea : a meager result of the insurance sector

A street of Conakry on February 15th, 2016. Photo: AFP

NEWSROOM (ADV) – Insurance market turnover relative to nominal gross domestic product (GDP) still remains low compared to the African average, according to an information note from the governor of the Central Bank of the Republic of Guinea (BCRG) published on Friday.

The turnover of the insurance sector represents 0.36% of GDP in 2017, while the average premium per capita (turnover / population) is 31,668 Guinean francs (less than 4 dollars) in 2017, against 762 $ 5 in South Africa and $ 6.2 in Nigeria.

In terms of investment, the Central Bank specified that the insurance sector contributed 0.48% to national investment and 0.54% to investment in the sector as an institutional investor. private.

Like other countries in the West African sub-region, the insurance sector in Guinea is facing some difficulties related to the weakness of the insurance culture in Guinea, the non-respect of compulsory insurance and the phenomenon offshoring of major risks, particularly in the mining and transportation sectors.

In addition, the low retention of premiums at the market level leading to a flight of capital due to the absence of a reinsurance company, the low performance of the sector as well as the low support of agricultural producers are all major difficulties the insurance sector is facing the Guinean market.

In addition, due to increased investment in the mining sector in recent years, the share of insurance in private sector investment has declined since 2015.

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