The Sudanese insurance industry has registered SDG4 billion (US$599.1 million) in terms of premiums last year, according to Mr Mohammed Musa Idris, Director of the Insurance Supervisory Authority of Sudan.
He said the annual rate of growth of the Sudanese insurance market ranges between 17% and 25%, reports Al Mal.
General takaful accounts for at least 90% of the total market share in Sudan, while the volume of family takaful business continues to remain low.
The contribution of the insurance sector to Sudan’s GDP still does not exceed 0.5%, he said, noting that it is a small and emerging market, with potential for growth.
Providing an update on the sector, he said that the insurance regulator is in the process of drafting regulations for establishing a policyholders’ fund and the licensing of foreign insurers. Foreign insurers have been suspended from the country since 1992.
He said that Sudanese insurers are mandated to cede 40% of their business to National Reinsurance Company (Sudan). This represents a decrease from 50% previously. The reduction was made to allow insurers to deal more with other reinsurers inside and outside Sudan, such as Lagos-headquartered Africa Re and Swiss Re.
He acknowledged there had been a negative impact on the insurance industry as a result of the secession of South Sudan in 2011.
But he said that the insurance culture in the south is weak. The largest proportion of property is in northern Sudan, where there is a thriving insurance sector. The law mandates insurance be bought for strategic and industrial areas, ports and grain storehouses.
Mr Mohammed Musa attributed the low insurance penetration in Sudan to the lack of awareness and poor coordination among authorities enforcing insurance requirements on relevant establishments.
Speaking of other initiatives, he said that the Authority is considering linking insurance policies to the licensing of vehicles.
The regulator is also mulling the formation of a media committee to engage in public education about insurance, including introducing insurance into the basic education curriculum in schools.
The Sudanese insurance sector consists of 13 takaful operators, including one government-owned insurer – Shiekan Insurance & Reinsurance.
The Insurance Supervisory Authority is a part of the Ministry of Finance and Economic Planning, and has been regulating the insurance sector since its inception in 1960. M