Wednesday, November 30, 2022
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The insurance sector: hope for economic recovery?

Insurance is a benefit 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 against the collection of a contribution or premium. By extension, insurance is the economic sector that brings together the design, production and marketing 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 the 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 decreased from 7.4% in 2020 to 7% in 2021. Regarding the share of life insurance in Tunisia, it is 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 about 1,378 dinars.

Faced with the global health crisis and after the difficult political, economic and social situation that our country has been 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 that were gradually able to recover, an upswing in the sector was observed compared to the previous year, with an average positive growth rate comparable to those that has been achieved in the last years prior to the epidemic.

This improvement certainly remains dependent on the development 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 in over the next few years. years.

In this sense, since the insurance sector is part of the Tunisian financial structure, it is appropriate to question the impact of the economic consequences of the current crisis for insurance companies in Tunisia. Insurance density, penetration rate, turnover and so many other indicators that raise many questions about the status and prospects for growth and development of the insurance sector in Tunisia.

To what extent do Tunisian insurance companies cope with 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 that are hardest hit by the crisis? How to consolidate this sector so that it is a strong lever in Tunisia’s economic recovery? What legal reforms need to be implemented to bring the sector up to international standards?

All these questions and more will be discussed during the special day on 17 November 2022 on Express FM. From future challenges in the insurance sector.

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