Insurances

The Insurances market in Bolivia is projected to reach a market size (gross written premium) of US$583.90m in 2024.
In Bolivia, Life insurances dominates the market with a projected market volume of US$368.20m in 2024.
The average spending per capita in the Insurances market in Bolivia amounts to US$46.46 in 2024.
From a global comparison perspective, it is shown that the highest nominal value is reached the United States, with a projected market size of US$3.8tn in 2024.
The gross written premium in the Insurances market is expected to show an annual growth rate (CAGR 2024-2029) of 4.00% in Bolivia, resulting in a market volume of US$710.30m by 2029.
In global comparison, the United States is expected to generate the most gross written premium in the Insurances market, with a projected market size of US$3.8tn in 2024.
The insurance market in Bolivia is experiencing a surge in demand for health insurance due to increasing awareness of the importance of healthcare coverage.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Bolivia has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Bolivia are shifting towards more comprehensive coverage options, driven by increasing awareness of the importance of insurance protection. Customers are seeking policies that offer a wide range of benefits and coverage, including health, life, and property insurance. This trend mirrors a global shift towards more holistic insurance solutions that provide peace of mind and financial security. Trends in the market show a rise in digital insurance services and online distribution channels in Bolivia. Insurers are leveraging technology to reach a wider customer base and streamline the insurance purchasing process. This digital transformation is making insurance products more accessible and convenient for customers, leading to increased market penetration and customer engagement. Local special circumstances, such as regulatory changes and government initiatives to promote insurance coverage, are playing a key role in shaping the insurance market in Bolivia. The government's efforts to increase insurance penetration and improve financial literacy among the population are creating a favorable environment for insurance companies to expand their offerings and reach underserved market segments. Underlying macroeconomic factors, including economic stability and a growing middle class, are driving the growth of the insurance market in Bolivia. As the economy continues to grow and incomes rise, more individuals and businesses are recognizing the need for insurance protection against unforeseen events. This economic backdrop is fueling demand for insurance products and creating opportunities for insurers to innovate and diversify their portfolios. Overall, the insurance market in Bolivia is evolving to meet the changing needs and preferences of customers, with a focus on comprehensive coverage, digital innovation, and government support driving growth and development in the sector.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.