The Malagasy insurance market accounts for only 1% of GDP. Insurers explain this low penetration rate by the fact that only motor insurance is compulsory. Other factors, such as poor purchasing power of households and the lack of advertising campaigns by insurers confirm this finding.
The new insurance code is, therefore, highly anticipated by market players as the State has indeed pledged to increase the number of mandatory guarantees and to allow insurance companies to invest across borders. To date, foreign insurers are allowed to invest in Madagascar, while the reverse is not possible yet.
Five insurers are present on the Big Island with the three dominant Malagasy companies: ARO holds 55% of market share, followed by Ny Havana with 21% and the Mutuelle MAMA with 11%. Allianz and Saham rank last.