Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: We are not changing our forecasts for this quarter. We retain a broadly positive outlook for
Botswana's small insurance sector. A number of well-capitalised firms are present in the market, several of
which benefit from the backing of leading regional and multinational insurers. These providers
are distributing attractive products through multiple channels. Price competition remains a challenge in
much of the non-life segment. Both major segments are exposed to slowing in the economy (or worse).
Key Updates & Developments
? In Q416, we are not altering our forecasts. Life insurance is forecast to record healthy annual growth in
premiums of just over 8% between 2016 and 2020 (in local currency terms). This will in part be the result
of the likely rise in household incomes. Of greater importance, though, will be the sale of additional
products to existing clients.
? We are currently forecasting slower growth in the less-developed non-life segment than in the life
segment. This is mainly because of pricing competition in the motor vehicle insurance sub-sector.
Nevertheless, we accept that rising numbers of cars and trucks on Botswana's roads should underpin
growth in volumes.