Tunisian Insurance Sector Sees Moderate Growth in 2023 Amid Challenging Environment
According to the Tunisie Valeurs Annual Review, the insurance sector in Tunisia experienced a slowdown in its recovery in 2023, with a moderate 8.2% increase in issued premiums, reaching 3446 million Tunisian dinars (Mtnd). This development reflects a difficult environment, marked by slow economic growth, increased tariff pressure, and rising claims frequency. Persistent inflation continued to weigh on indemnification costs, impacting the sector's overall profitability. Despite this context, listed insurers managed to slightly improve their aggregate benefit capacity (+3.7% in 2023), demonstrating notable resilience.
Regulatory Developments and Challenges
On the regulatory front, reform projects, including the adoption of risk-based solvency standards and the application of IFRS norms, are set to begin on January 1, 2025. Meanwhile, the sector faces growing challenges related to insurability, exacerbated by the evolution of risks and customer needs. Investing in innovative solutions leveraging new technologies, artificial intelligence, and data analysis could strengthen insurers' ability to anticipate these changes. A detailed risk assessment of listed insurance companies highlights attractive investment opportunities in this complex context.
