� Business Monitor International Ltd Page - ongoing currency fluctuations and overall we expect premiums to grow from USD---mn in ---- to USD---mn in ---- (revised up from USD---mn and USD---mn respectively in the previous quarter). One factor which will continue to hamper the growth of the life insurance market is the low average household income levels in Namibia. The expansion of the middle class is expected to be gradual. The bulk of the life insurance market is accounted for by the few households which fall into the highest income brackets (USD--,--- to USD--,--- and USD--,--- plus) while the vast majority of households in lower income brackets remain uncovered. Most households fall into the USD-,--- to USD-,--- bracket and the USD-,--- to USD--,--- bracket where affordability of life cover is restricted. ...This is due to limited wage increases on the back of falling mineral revenues. As a result, growth in premiums will be constrained.
...Namibia s insurance market is already relatively well developed. At about -.- of GDP and USD--- per capita (down from USD--- estimated in the previous quarter), life penetration and density in Namibia are at levels that are high by the standards of Sub-Saharan Africa. ...Namibia s insurance market is already relatively well developed. At about -.- of GDP and USD--- per capita (down from USD--- estimated in the previous quarter), life penetration and density in Namibia are at levels that are high by the standards of Sub-Saharan Africa. However, life insurance penetration will recede slightly over the forecast period, falling to just over -.- in ---- as premiums grow at a slower pace relative to the wider economy. ...The segment is dominated by local subsidiaries of well funded and innovative South African majors. As much as any other country in Sub-Saharan Africa, Namibia is a country where the development of innovative savings/protection products and imaginative distribution strategies should work well.
...Overall the market for life insurance products in Namibia is relatively small as, with a population of just -.-mn, Namibia is the second least densely populated country in the world. Poverty is widespread, particularly in rural areas, and growth in the life market will be dominated by the small middle class for the foreseeable future - many of whom are already members of life insurance programmes. ...
