Insurances

The Insurances market in the Dominican Republic is projected to reach a market size (gross written premium) of US$9.58bn in 2024.
Life insurances dominate the market with a projected market volume of US$5.64bn in 2024.
The average spending per capita in the Insurances market amounts to US$837.70 in 2024.
When compared globally, the United States leads with the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 2.79%, resulting in a market volume of US$10.99bn by 2029.
In global comparison, the United States will generate the most gross written premium, reaching US$3.8tn in 2024.
In the Dominican Republic, the insurance market is experiencing a surge in demand for health insurance coverage due to the increasing awareness of the importance of healthcare.

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 Dominican Republic has been experiencing significant growth and development in recent years. Customer preferences in the Dominican Republic are shifting towards a greater emphasis on insurance products that offer comprehensive coverage and financial security. This trend is driven by increasing awareness among consumers about the importance of insurance in safeguarding their assets and mitigating risks. Additionally, there is a growing demand for innovative insurance solutions that cater to the specific needs of different demographic segments in the country. Trends in the market indicate a rise in the adoption of digital technologies and online platforms for insurance purchases and claims processing. Insurers in the Dominican Republic are leveraging technology to enhance customer experience, streamline operations, and offer more personalized products and services. Furthermore, there is a noticeable trend towards greater collaboration between insurance companies and other industries, such as healthcare and automotive, to create bundled insurance packages and cross-selling opportunities. Local special circumstances, such as the regulatory environment and competitive landscape, play a significant role in shaping the insurance market in the Dominican Republic. Government initiatives to promote insurance penetration and improve regulatory frameworks have contributed to market growth and stability. Additionally, the presence of both local and international insurance providers has intensified competition, leading to product innovation and competitive pricing strategies. Underlying macroeconomic factors, including economic growth, demographic trends, and stability in the financial sector, are also driving the development of the insurance market in the Dominican Republic. As the economy continues to expand and the middle class grows, there is a greater disposable income available for insurance purchases. Moreover, the young population in the country presents a significant opportunity for insurers to tap into new market segments and develop tailored insurance products to meet their needs.

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.