Insurances - Bhutan

Bhutan

The Insurances market in Bhutan is projected to reach a gross written premium of US$1.14bn in 2024.
Non-Life Insurances dominate this market, with a projected market volume of US$0.63bn in the same year.
The average spending per capita in the Insurances market is estimated to be US$1.44k in 2024.
When comparing globally, the United States leads with the highest nominal value, expected to reach US$3,788.0bn in 2024.
The gross written premium is expected to grow annually at a rate of 1.03% (CAGR 2024-2029), resulting in a market volume of US$1.20bn by 2029.
In the global comparison, the United States will continue to generate the highest gross written premium in 2024, reaching US$3,788.0bn.
The insurance market in Bhutan has experienced a significant growth in recent years, driven by the increasing demand for life and health insurance products among the country's population.

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Analyst Opinion

The insurance market in Bhutan has been experiencing notable growth and development in recent years. Customer preferences in the insurance market in Bhutan are shifting towards more comprehensive coverage options, reflecting a growing awareness of the importance of insurance protection. Customers are increasingly seeking policies that offer a wider range of benefits and security, indicating a maturing market. Trends in the insurance market in Bhutan are characterized by increasing competition among insurance providers, leading to innovation in product offerings and pricing strategies. The market is also witnessing a rise in digitalization, with more insurance services being made available online to cater to the tech-savvy population. Local special circumstances in Bhutan, such as the country's unique regulatory environment and cultural emphasis on risk mitigation, play a significant role in shaping the insurance market. The government's focus on promoting financial inclusion and resilience further drives the demand for insurance products among the population. Underlying macroeconomic factors, including steady economic growth and rising disposable incomes, contribute to the expansion of the insurance market in Bhutan. As the economy continues to develop, more individuals and businesses are recognizing the need for insurance as a safeguard against unforeseen risks, fueling market growth.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.