Insurances

The Insurances market in Eastern Europe is projected to reach a market size (gross written premium) of US$47.04bn in 2024.
Non-Life Insurances dominate this market segment, with a projected market volume of US$27.75bn in 2024.
The average spending per capita in the Insurances market in Eastern Europe is estimated to be US$197.80 in 2024.
When compared globally, it is evident that the United States holds the highest nominal value, with a projected market size of US$3.8tn in 2024.
The gross written premium in Eastern Europe is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.31%, resulting in a market volume of US$52.74bn by 2029.
In terms of gross written premium, the United States will continue to generate the highest amount globally, reaching US$3.8tn in 2024.
In Eastern Europe, the insurance market is experiencing a surge in demand for digital insurance solutions, particularly in countries like Poland and Romania.

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 Eastern Europe is experiencing significant growth and development.

Customer preferences: Customers in Eastern Europe are increasingly seeking insurance products that provide comprehensive coverage at affordable prices. With rising disposable incomes and awareness about the importance of insurance, there is a growing demand for a variety of insurance products such as health, life, property, and car insurance.

Trends in the market: In countries like Poland and Romania, there is a noticeable trend towards digitalization in the insurance sector. Insurers are investing in online platforms and mobile apps to provide convenient access to their services. Additionally, there is a shift towards more personalized insurance solutions, with the use of data analytics and AI to tailor products according to individual customer needs.

Local special circumstances: Countries in Eastern Europe have unique regulatory environments that impact the insurance market. For example, in Russia, there are specific requirements for insurers to have a certain amount of capital to operate in the market. This can affect the entry of new players and the overall competitiveness within the sector.

Underlying macroeconomic factors: The improving economic conditions in Eastern Europe, coupled with regulatory reforms aimed at strengthening the insurance sector, are driving the growth of the market. As the middle class expands and purchasing power increases, more individuals and businesses are looking to protect their assets and mitigate risks through insurance products. Additionally, the low insurance penetration rates in many Eastern European countries present significant opportunities for insurers to expand their customer base.

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.