Insurances

The Insurances market in Cyprus is set to experience significant growth, with the projected market size (gross written premium) reaching US$3.04bn in 2024.
Non-Life Insurances dominates this market segment, with a projected market volume of US$1.62bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$2.39k in 2024.
When comparing these figures globally, it is evident that the United States holds the highest nominal value, with a projected market size of US$3.8tn in 2024.
Looking ahead, the gross written premium is expected to exhibit an annual growth rate (CAGR 2024-2029) of 3.14%, resulting in a market volume of US$3.54bn by 2029.
Once again, the United States is anticipated to generate the highest gross written premium in the global comparison, reaching US$3.8tn in 2024.
Cyprus's insurance market is experiencing a surge in demand for health insurance coverage due to the aging population.

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 Cyprus has been experiencing notable growth and development. Customer preferences in the insurance market in Cyprus are shifting towards more personalized and digital services, reflecting a global trend in the industry. Customers are increasingly looking for tailored insurance products that meet their specific needs and offer flexibility in coverage. Moreover, there is a growing demand for online insurance services, with customers preferring the convenience of purchasing and managing their policies digitally. Trends in the market indicate a rise in the adoption of innovative insurance solutions such as usage-based insurance and peer-to-peer insurance. These trends are driven by advancements in technology and data analytics, allowing insurance companies in Cyprus to offer more customized products and pricing models. Additionally, there is a noticeable shift towards sustainable and environmentally friendly insurance products, aligning with growing awareness of climate change and sustainability issues. Local special circumstances in Cyprus, such as its geographical location and economic ties to Europe, play a significant role in shaping the insurance market. The country's strategic position as a business hub and tourist destination influences the types of insurance products in demand, with a focus on travel insurance, commercial insurance for businesses, and property insurance. Furthermore, Cyprus's regulatory environment and legal framework impact the insurance market, shaping product offerings and market competition. Underlying macroeconomic factors, including economic growth, inflation rates, and regulatory changes, also influence the insurance market in Cyprus. As the economy continues to recover and expand, there is a growing middle class with increased purchasing power, driving demand for various insurance products such as life insurance and health insurance. Moreover, regulatory reforms aimed at enhancing consumer protection and market transparency are reshaping the insurance landscape in Cyprus, fostering competition and innovation in the 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.