Performance of the Industry-2007
Total market Report
Growth in Insurance Incomes from 2003-2007
|Total Net Premiums (Le)||Market share By Net PremiumMarket Share (%)|
|2003||2004||2005||2006 2007 2003||
AUREOL and RITCORP control major part of the life sector of the insurance business in Sierra Leone. Aureol continues to lead the life sector of the insurance market, followed by RITCORP that has recorded an increase in market share this year, whilst NIC is still yet to recover from the massive surrenders of privately insured pension schemes with the company following the introduction of the NASSIT. This warrants the management of NIC to be more proactive in their marketing strategies, servicing of their existing clientele, and introduction of new policies/products, in order to reverse the downwards negative trend in their life portfolio if the life portfolio is to survive at all. AUROEL continues to experience huge increase over the years especially in 2007 when compared to 2006 market is to survive at all. AUROEL continues to experience huge increase over the years especially in 2007 when compared to 2006 market share. It is worth noting that there is a marginal decrease in the life portfolio premiums in 2007 of about 14% when compared to 2006
|Market share by Gross Premium|
|Insurance||Total Gross Premiums (Le||Market share (%)|
|Marine & General||132,554,961||178,831,320||192,243,349||234,126,097||391,891,144||1.5%||1.6%||1.3%||1%||2%|
The market share of the non-life sector continues to grow gradually during this year. The three companies – AUREOL, NIC & RITCORP now control 75% of the total market. The 25% market share is controlled by the others IIC-10%, Transworld -7%, and the remaining 8% by MAGIC & Marine & general. From the analysis, it could be seen that AIC and RITCORP made a significant increase in 2007, whilst M&C made a marginal increase, IIC maintained a stable market share, whilst NIC, SLICO & MAGIC recorded a decrease in market a positive change in total gross premium from 2006 to 2007. Aureol still takes the lead in the market. Relatively the growth rate has not been stable over the years, 2003 to 2004 shows a 23% increase, whilst 2004 to 2005 shows a growth shows a growth of 37% 2005 to 2006 shows a 16% downward change and 2006 to 2007 shows and increase of 23% in total gross premium this increase in insurance penetration enjoyed by companies can be clearly attributed to the growth in the economy and the proactive marketing strategic employed by some players in the market and also due to the presence of the Commission, which has brought sanity to the industry this past few years and confidence now reposed in these companies by the insuring public.
The commission is confidence that this growth rate will continue to increase in 2008, as insurance activities will continue to improve due to the setting up of new foreign banks, new companies and the revival of the mining sector. Analysis as per class of insurance business was not computed due to non-availability of data from the various insurance Companies as a direct result of the long awaited proposed insurance regulations that incorporates the financial reporting guide.
|Underwriting Results for general business – 2007|
|Insurance Companies||Management Expenses||Claims Incurred||Outstanding Premium|