A booming sector set for robust growth despite regulatory changes

The insurance sector in Mauritius demonstrated varied performance in 2023, with some companies excelling while others faced challenges. According to the Financial Services Commission (FSC), the gross written premium (GWP) for the market was MUR26.9 billion ($610.8 million) in 2022, with projections indicating a compound annual growth rate (CAGR) of over 8% through 2027. This growth is driven by increasing demand for both life and non-life insurance products, reflecting rising income levels and a growing population.

Despite some companies not submitting figures due to IFRS changes, the sector overall showcases resilience and growth potential. A World Bank policy research paper on the insurance industry in Mauritius had previously emphasized the importance of regulatory frameworks and the need for continuous adaptation to global standards.

The International Association of Insurance Supervisors (IAIS) highlights that global trends, such as interest rate fluctuations and liquidity challenges, are influencing the local market as well. As the IAIS aptly states, “Maintaining solvency, profitability, and liquidity amidst a challenging macroeconomic environment is crucial for the insurance sector’s stability and growth.”

Key players in the sector were instrumental in shaping the market with their innovative products and services. The Swan Group emerged as the top performer, recording a turnover of Rs 10,139.74 million and a profit before tax (PBT) of Rs 916.11 million. MUA also showcased strong results with a turnover of Rs 7,565.00 million and a PBT of Rs 441.00 million.

SICOM Group reported a substantial PBT of Rs 1,928.00 million, despite a lower turnover of Rs 5,568.40 million. Notable performers include Jubilee Allianz General Insurance, achieving a PBT of Rs 134.28 million on a turnover of Rs 618.95 million.

These mixed performances highlight the need for continued strategic financial management and adaptation to regulatory changes. In conclusion, the insurance sector in Mauritius is expected to experience robust growth, supported by favourable economic conditions and strategic regulatory measures. The focus on enhancing product offerings and maintaining financial stability will be crucial for sustaining this positive trajectory.