Madagascar: insurance consumption in Antananarivo

27/11/2018. Insurance provides a generally financial benefit that is released upon the proven occurrence of a risk. It is for the benefit of the insured who, in return, is obliged to pay a periodic contribution called the premium.

If the notion of insurance and its usefulness are no longer subject to debate in the professional world (although…), we are entitled to ask what is the situation among individuals: what kind of insurance do they take out? What are the obstacles to insurance? But what is its penetration rate among individuals? So many questions that we will be able to answer thanks to our new field survey!

Barely one-fifth of those surveyed are insured

In this new survey, we were able to interview 968 people we met in the streets of Antananarivo.

In this sample, only 18% had insurance. Fortunately, one is tempted to say, 83% of these policyholders find insurance generally useful (10% have no opinion).

When asked afterwards about the insurance companies they know, 90% cited MAMA, 81% Ny Havana and 74% Aro. Allianz is known by 13% of them and in last place is Saham which was mentioned by only 1% of the insured persons.

Unsurprisingly, the type of insurance most owned by the Tananarivians remains motorcycle/car insurance: 69%. This is followed by health insurance (15%), life insurance (9%), pension insurance (7%), and home insurance (especially fire) which comes last (4%).

Criteria for choosing an insurer

What are the criteria used by policyholders to choose their insurance? The majority of them, 31%, admitted that their choice was mainly based on the recommendation of their acquaintances. Another 20% said they chose their insurer on the basis of their seniority and experience, while another 20% said they chose an insurance policy that, in their opinion, is sure to compensate them in the event of a claim.

16% then select their insurers for the cheap premiums they charge and 2% do so on the basis of the (high) amount of compensation in the contract in the event of a claim.

It should be noted that 9% mentioned various other reasons such as not having the luxury to choose (obligation to take a particular insurer) and proximity.

The insurers with whom we underwrite the most

As the leading insurer for individuals, the Mutuelle d’assurance malagasy (MAMA) collects the contracts of 51% of the insured persons we questioned. In second place, we have Aro with whom 27% have taken out policies and, in third place, we have Ny Havana with 17%. 5% then chose Allianz and none of our interviewees are registered with Saham.

It should also be noted that 23% of policyholders have already had a claim covered by their insurance. 63% of these claimants were subsequently compensated, while 12% chose not to notify their insurers.

The collection of tariffs charged by insurance companies

When asked about their opinions on the prices charged by insurance companies, it emerged that 52% of the policyholders questioned consider them affordable and that 18% even find them very affordable. Then, 12% find them rather expensive, 2% find them expensive and 2% also find them very expensive.

MAMA is perceived as the cheapest insurance company: 89% of its policyholders see it as “Very affordable” to “Somewhat affordable”. Next comes Ny Havana with 71% and Aro with 69%, Aro which 23% see as rather expensive.

Why don’t we have insurance today?

We asked the 82% of respondents who had no insurance about the reasons for this “abstinence”. 74% of them responded that they did not have insurance simply because they did not need it.

16% then told us that it was too complicated for them and 5% bluntly admitted that they didn’t even know about insurance until now. 2%, finally, do not take out insurance because they find it too expensive.

Capital Insurance Consumption Survey Concludes

Insurance products are not yet of interest to Tananarivians: not only do only 1 in 5 own one, but most, 69%, only take out vehicle insurance. Fortunately, it also shows that the insured are aware of the importance of insurance, as 83% of them recognized that insurance is generally useful.

Afterwards, when we see that 74% of those who are not insured anywhere say they do not need insurance, we tell ourselves that much remains to be done.

The survey also revealed that the myth of insurance that doesn’t pay is false. 63% of the claimants surveyed were indeed compensated by their insurance companies. So people who think that we are just going to take money from them without getting anything in return have not understood everything: there is a (long) procedure to follow and, if we are in our right, we are compensated in the end!

Let us conclude with the general perception of the cost of underwriting, which is still affordable for 52% of the insured and very affordable for 18% of them. This perception varies according to the company: MAMA is seen as the cheapest of all, followed by Ny Havana and Aro.

Finally, I would say that it is true that Madagascar is a developing country and that the concerns are quite different. However, the fact remains that everyone must become aware of the importance of insurance in our daily lives. Let’s not forget: an accident can never be predicted!

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