Insurances

The Insurances market in the EAEU is projected to reach a market size (gross written premium) of US$48.54bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$31.69bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$265.40 in 2024.
When compared globally, it is evident that the highest nominal value is expected to be reached the United States, with a projected value of US$3.8tn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 2.61%, resulting in a market volume of US$55.22bn by 2029.
In terms of gross written premium, the United States is anticipated to generate the highest value in 2024, with US$3.8tn.
In the EAEU, the insurance market is experiencing a surge in demand for health insurance due to the increasing awareness of the importance of personal well-being.

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 EAEU is experiencing significant growth and development.

Customer preferences: Customers in the EAEU region are increasingly seeking insurance products that offer comprehensive coverage and financial security. With rising disposable incomes and awareness about the importance of insurance, there is a growing demand for a wide range of insurance products including health, life, property, and auto insurance.

Trends in the market: In Kazakhstan, there is a noticeable trend towards digitalization in the insurance sector, with more customers opting to purchase insurance online. This shift is driven by the convenience and accessibility of online platforms. On the other hand, in Armenia, there is a growing interest in microinsurance products tailored to meet the needs of low-income individuals and small businesses. This trend is fueled by efforts to increase insurance penetration in the country.

Local special circumstances: In Belarus, the government plays a significant role in the insurance market, with a focus on promoting stability and growth in the sector. This has led to a more regulated market compared to other EAEU countries. In Kyrgyzstan, the insurance market is characterized by a high level of competition among insurance companies, leading to innovative product offerings and competitive pricing to attract customers.

Underlying macroeconomic factors: The economic stability and growth in the EAEU region have contributed to the positive development of the insurance market. As the middle class expands and disposable incomes rise, more individuals and businesses are looking to protect their assets and mitigate risks through insurance coverage. Additionally, regulatory reforms and initiatives aimed at increasing insurance penetration have created a conducive environment for the growth of the insurance sector in the EAEU.

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.