Insurance sector: hope for economic recovery?

Insurance is a service that provides a benefit upon the occurrence of an uncertain and random event often referred to as “risk”. The benefit, generally financial, can be intended for an individual, an association or a company, in exchange for the collection of a contribution or premium. By extension, insurance is the economic sector that brings together the design, production and marketing activities of this type of service.

The latest report from the General Insurance Committee (CGA) shows that during the year 2021, the insurance penetration rate in Tunisian economic activity was around 2.5%. A low rate compared to what is recorded in several emerging countries, but also compared to the world average. It fell from 7.4% in 2020 to 7% in 2021. Regarding the share of life insurance in Tunisia, it amounts to 25.5%, or about 60 dinars, against a world average of about 1,096 dinars. Non-life insurance represents 74.5%, or the equivalent of 175.8 dinars, against a world average of around 1,378 dinars.

Faced with the global health crisis and following the difficult political, economic and social situation that our country has been going through for several years, we see that the insurance sector in Tunisia has not been spared. Nevertheless, and thanks to the financial solidity of the companies which were able to gradually recover, a recovery in the sector was observed compared to the previous year, with an average positive growth rate comparable to those achieved in the last years preceding the epidemic.

This improvement certainly remains dependent on the evolution of the pandemic and the economic and financial context both nationally and globally, but there is also hope for the Tunisian insurance market which has enormous potential. to achieve increased growth and a greater qualitative leap over the next few years.

In this sense, the insurance sector being a component of the Tunisian financial fabric, it is appropriate to question the impact of the economic consequences of the current crisis on insurance companies in Tunisia. Insurance density, penetration rate, turnover, and so many other indicators that raise many questions about the state of play and the prospects for growth and development of the insurance sector in Tunisia.

To what extent do Tunisian insurance companies weather the vagaries of the national economy and how can the survival of this sector be guaranteed in the face of international competition? What about the insurance products most affected by the crisis? How to consolidate this sector so that it is a powerful lever in Tunisia’s economic recovery? What legal reforms need to be undertaken to bring the sector up to international standards?

All of these questions and more will be discussed throughout the special day of November 17, 2022 on Express FM. From 7:00 a.m. to 7:00 p.m., we will welcome representatives of the sector and companies, state representatives, experts, etc. We will seek to explain, provide testimonials, constructive criticism and areas for improvement with the aim of to identify the future challenges of the insurance sector.

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