Despite the negative consequences of the global health crisis, the insurance sector has managed to overcome them with the least damage thanks to the financial soundness of the companies, which have recorded an average positive growth rate comparable to those achieved in the last years prior to the epidemic , says Hafedh Gharbi, chairman of the General Insurance Committee (CGA) in the sector’s 2021 annual report.
The insurance density in Tunisia – the value of premiums per per capita – however, has continued to grow in recent years and stood at 235.8 dinars in 2021, but this level is still very low compared to the world average. which is about 2447 dinars in 2021 (equivalent to 874 USD).
Main activity indicators
Total premiums entered in 2021, according to the CGAa significant growth of 10.2% and exceeded 2,833 million dinars (MD) against a remarkable increase in compensation of 21.3% to 1,636 MD.
Settlement paid for car damage amounted to 714.9 MD.
In addition, the insurance and reinsurance companies’ technical provisions to meet their obligations to their policyholders had a growth of 9.9% to 6562 MD at the end of the past year.
The management of the insurance company thus produced an insurance technical result of 198.3 MD and a net result of 228.3 MD.
Regarding the outlook for the insurance sector worldwide in 2022, the CGA report points out that the economic slowdown and high inflation are sure to weigh on the insurance market.
Slower growth generally results in lower demand for insurance products. The main effect of inflation will show itself in higher claims costs, more so in non-life insurance products than in life insurance products where the insurance benefits are originally defined. To counter the negative impact of rising claims costs on profits, insurers need to understand the drivers of inflation and take balance sheet and reserve management measures accordingly.
The strong nominal growth in total premiums in 2022 is estimated at 6.1%, which in real terms translates to almost stable growth (+0.4%). Additionally, global premium volume in nominal terms is expected to exceed $7 trillion by the end of 2022 for the first time ever. This is based on the expectation of interest rate tightening in the non-life insurance sector to counteract high inflation and strong premium growth in emerging markets. At this level, volumes will be 17% higher than at the start
COVID-19, reflecting the resilience of insurance markets during the pandemic.
According to declared data, at the end of 2021, the Tunisian insurance market has 24 resident companies, taking into account the two (02) new companies approved in 2020 and specialized in life and capital insurance: “LLOYD VIE” (which started its activity ) and “UIB Insurance” (whose activity did not start in 2021 and obtained agreement from the CGA and the Ministry of Finance to extend the statutory deadline for starting activities in the 4th quarter of 2022).
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