Insurances - Costa Rica

Costa Rica

Costa Rica's Insurances market is expected to reach a projected market size (gross written premium) of US$1.11bn in 2024.
Non-Life Insurances dominate this market, with a projected market volume of US$0.80bn in the same year.
The average spending per capita in the Insurances market is estimated to be US$211.80 in 2024.
When compared globally, the United States stands out with the highest nominal value, reaching US$3,788.0bn in 2024.
Looking ahead, the gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of 3.68%, resulting in a market volume of US$1.33bn by 2029.
Once again, the United States is expected to generate the most gross written premium in the global comparison, reaching US$3,788.0bn in 2024.
Costa Rica's insurance market is witnessing a growing demand for eco-friendly and sustainable insurance products.

Market

Region

Region comparison

Currency

Analyst Opinion

The Insurances market in Costa Rica has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Costa Rica are shifting towards more comprehensive coverage options, reflecting a growing awareness of the importance of insurance protection. Customers are increasingly seeking policies that provide a wide range of benefits and coverage, including health, life, and property insurance. Trends in the insurance market in Costa Rica indicate a rising demand for digital insurance solutions, with more customers opting to purchase policies online. This shift towards digital platforms is driven by convenience, accessibility, and the ability to compare different insurance products easily. Relying on digital channels also allows insurance companies to reach a wider customer base and streamline their operations. Local special circumstances in Costa Rica, such as regulatory changes and government initiatives to promote insurance coverage, are playing a significant role in shaping the insurance market. The government's efforts to increase insurance penetration and improve financial literacy among the population are contributing to the overall growth of the insurance sector in the country. Underlying macroeconomic factors, including stable economic growth, a growing middle class, and increasing disposable income, are creating a favorable environment for the insurance market in Costa Rica. As the economy continues to expand, more individuals and businesses are recognizing the need for insurance protection, driving the demand for insurance products across different sectors.

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.