Insurances

The Insurances market in Chile is projected to reach a market size (gross written premium) of US$10.70bn in 2024.
Among the different segments, Life insurances dominates the market with a projected market volume of US$6.59bn in 2024.
The average spending per capita in the Insurances market in Chile is expected to amount to US$544.20 in 2024.
When compared globally, it is evident that the United States holds the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium in Chile is expected to show an annual growth rate (CAGR 2024-2029) of 2.13%, resulting in a market volume of US$11.89bn by 2029.
In terms of gross written premium, the United States will continue to generate the highest amount globally, with US$3.8tn in 2024.
In Chile, the insurance market is experiencing a rise in demand for earthquake insurance due to the country's high seismic activity.

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

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.

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.