Insurances - Chile

Chile

The Insurances market in Chile is projected to reach a market size (gross written premium) of US$14.73bn in 2024.
Among the different segments, Life insurances dominates the market with a projected market volume of US$8.86bn in 2024.
The average spending per capita in the Insurances market in Chile is expected to amount to US$0.75k in 2024.
When compared globally, it is evident that the United States holds the highest nominal value, reaching US$4,642.0bn in 2024.
The gross written premium in Chile is expected to show an annual growth rate (CAGR 2024-2028) of 1.54%, resulting in a market volume of US$15.66bn by 2028.
In terms of gross written premium, the United States will continue to generate the highest amount globally, with US$4,642.0bn in 2024.
In Chile, the insurance market is experiencing a rise in demand for earthquake insurance due to the country's high seismic activity.

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Analyst Opinion

Over the past few years, the Insurances market in Chile has been experiencing significant growth and development. Customer preferences in the Chilean insurance market are shifting towards more comprehensive coverage options, such as health and life insurance, reflecting a growing awareness of the importance of financial protection. Customers are also showing a preference for personalized insurance packages tailored to their specific needs and lifestyles. Trends in the market indicate a rise in digitalization and the adoption of Insurtech solutions to enhance customer experience and streamline processes. This trend is driven by the increasing use of smartphones and internet penetration in Chile, making digital channels the preferred choice for insurance purchases and policy management. Local special circumstances, such as regulatory reforms and government initiatives to promote insurance penetration, are playing a crucial role in shaping the insurance market in Chile. The introduction of new regulations aimed at enhancing consumer protection and improving transparency is fostering trust and confidence among customers. Underlying macroeconomic factors, including stable economic growth, low inflation rates, and a growing middle class with higher disposable income, are creating a favorable environment for the expansion of the insurance market in Chile. The country's strong financial sector and sound regulatory framework further support the growth and stability of the insurance industry.

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.