Insurances

The Insurances market in the Caribbean is projected to reach a market size (gross written premium) of US$32.27bn in 2024.
Life insurances dominate the market with a projected market volume of US$17.77bn in 2024.
The average spending per capita in the Insurances market is expected to amount to US$795.40 in 2024.
When compared globally, it is evident that the United States holds the highest nominal value, with projected gross written premium of US$3.8tn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 2.17%, resulting in a market volume of US$35.93bn by 2029.
In global comparison, the United States is projected to generate the highest gross written premium of US$3.8tn in 2024.
The insurance market in the Caribbean is experiencing a surge in demand for hurricane and natural disaster 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 Caribbean has been experiencing significant growth and development in recent years. Customer preferences in the Caribbean insurance market have been shifting towards more comprehensive coverage options, including health, property, and life insurance. Customers are increasingly looking for tailored insurance solutions that meet their specific needs and provide greater financial security. Trends in the market indicate a rise in digital insurance services, with more insurance companies offering online platforms for purchasing policies and managing claims. This shift towards digitalization has made insurance more accessible to customers across the Caribbean region, leading to increased market penetration. Local special circumstances, such as the vulnerability of Caribbean nations to natural disasters, have contributed to the growth of the insurance market. The need for insurance coverage against hurricanes, floods, and other natural catastrophes has driven demand for property and casualty insurance in the region. Underlying macroeconomic factors, such as economic growth and rising disposable incomes, have also played a role in the development of the insurance market in the Caribbean. As the economy continues to expand, more individuals and businesses are seeking insurance products to protect their assets and investments. Overall, the Insurances market in Caribbean is evolving to meet the changing needs and preferences of customers, driven by digitalization, local circumstances, and macroeconomic trends.

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.