GAIF: density and penetration rates
By the end of 2022, the average insurance density for all GAIF member countries stood at 104 USD, well below the world average of 853 USD, except for the United Arab Emirates whose 1 362 USD density exceeded this average.
This density varies greatly from one country to another within the Federation. It is 1362 USD for the United Arab Emirates, 649 USD for Qatar, while at the other end of the scale it is only 3 USD for Syria and 25 USD for Algeria.
As regards density, differences in insurance penetration rates are also significant. This indicator, which stands at 6.7% worldwide, averages 1.31% for the General Arab Insurance Federation [4] region. The best penetration rate in 2022 is to be found in Lebanon, with an estimated rate of 7.51%, followed by Morocco with 3.93%, while for the same year it is only 0.33% for Libya and 0.57% for Algeria.
It is worth noting that the 2022 penetration rate of the zone's major oil-producing countries is well below the world average, with 1.28% for Saudi Arabia, 1.06% for Kuwait and 0.74% for Qatar.
Read also | GAIF: evolution of insurance premiums [5]
GAIF: key indicators in 2022
| Country | Population | GDP (in billions USD) | Written premiums (in thousands USD) | Insurance penetration rate | Insurance density (in USD) |
|---|---|---|---|---|---|
| Saudi Arabia | 36 408 820 | 1 110 | 14 208 756 | 1.28% | 390 |
| United Arab Emirates | 9 441 129 | 507.06 | 12 862 372 | 2.54% | 1 362 |
| Morocco | 37 457 971 | 130.91 | 5 139 250 | 3.93% | 137 |
| Egypt | 110 990 103 | 476.75 | 2 977 873 | 0.62% | 27 |
| Kuwait | 4 268 873 | 175.36 | 1 866 668 | 1.06% | 437 |
| Qatar | 2 695 122 | 236.26 | 1 748 344 | 0.74% | 649 |
| Lebanon | 5 489 739 | 21.6 | 1 621 248 | 7.51% | 295 |
| Oman | 4 576 298 | 114.67 | 1 401 785 | 1.22% | 306 |
| Algeria | 44 903 225 | 195 | 1 116 329 | 0.57% | 25 |
| Tunisia | 12 356 117 | 46.3 | 1 014 313 | 2.19% | 82 |
| Jordan | 11 285 869 | 48.65 | 995 068 | 2.05% | 88 |
| Bahrain | 1 472 233 | 44.38 | 736 467 | 1.66% | 500 |
| Palestine | 5 043 612 | 19.11 | 396 000 | 2.07% | 79 |
| Libya | 6 812 341 | 45.75 | 148 960 | 0.33% | 22 |
| Syria (1) | 22 125 249 | 8.97 | 71 180 | 0.79% | 3 |
| Sudan | 46 874 204 | 51.66 | NA | - | - |
| Yemen (2) | 33 696 614 | 21.61 | NA | - | - |
| Iraq | 44 496 122 | 264.18 | NA | - | - |
| Mauritania | 4 736 139 | 9.78 | NA | - | - |
| Countries total | 445 129 780 | 3 529.53 | 46 304 613 | 1.31% | 104 |
| World | 7 950 000 000 | 101 330 | 6 782 235 000 | 6.69% | 853 |
(1) GDP 2021
(2) GDP 2018
NA: Not available
Sources: World Bank and Atlas Magazine
GAIF: insurance premiums
All GAIF member countries combined have reported gross premiums of 46 305 million USD(1) in 2022, up by 9% on 2021. Over a ten-year period, 2013-2022, the increase in overall written premiums is 59%. Over the same period, the Gulf countries reported high growth rates, led by Saudi Arabia (113%), Kuwait (97%), Qatar (84%) and the United Arab Emirates (60%).
In another remarkable development, premiums in the Egyptian market have risen by 70% over the last ten years, followed by Morocco with 64.65%.
Due to the very sharp devaluation of their national currencies and/or the economic and political context, other markets have seen a decline in premium income, such as Algeria and Syria.
Despite their overall positive performance, GAIF member countries have contributed only by 0.68% of global premiums in 2022.
Read also | GAIF: insurance premiums by class of business [6]
GAIF : insurance growth rate 2013-2022
| Country | Currency | In local currency | In USD |
|---|---|---|---|
| Saudi Arabia | SAR | 113.23% | 113% |
| United Arab Emirates | AED | 60.14% | 60% |
| Morocco | MAD | 103.90% | 55% |
| Egypt | EGP | 358.81% | 70% |
| Kuwait | KWD | 113.34% | 97% |
| Qatar | QAR | 85.73% | 84% |
| Lebanon | LBP | 16.42% | 14% |
| Oman | OMR | 33.32% | 50% |
| Algeria | DZD | 34.89% | -24% |
| Tunisia | TND | 125.46% | 18% |
| Jordan | JOD | 122.54% | 43% |
| Bahrain | BHD | 8.14% | 7% |
| Libya | LYD | 114.70% | -45% |