Insurances

The Insurances market in Ecuador is expected to reach a gross written premium of US$1.36bn by 2024.
Among the market segments, Non-Life Insurances dominates with a projected market volume of US$988.80m in 2024.
The average spending per capita in the Insurances market is estimated to be US$74.27 in 2024.
When comparing globally, the United States leads with the highest nominal value, projected to reach US$3.8tn by 2024.
The gross written premium is forecasted to experience an annual growth rate (CAGR 2024-2029) of 0.01%, resulting in a market volume of US$1.37bn by 2029.
In terms of gross written premium, the United States will continue to generate the most, reaching US$3.8tn in 2024.
Ecuador's insurance market is experiencing a surge in demand for earthquake and natural disaster coverage.

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 Ecuador has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Ecuador are shifting towards more comprehensive coverage options, including health, life, and property insurance. Customers are increasingly seeking policies that offer greater protection and security for themselves and their families, driving the demand for a wider range of insurance products. Trends in the market indicate a growing awareness among Ecuadorian consumers about the importance of insurance in mitigating financial risks. This increased awareness is fueling the expansion of the insurance market in the country, with more insurance companies entering the market to meet the rising demand for coverage. Local special circumstances, such as the implementation of regulatory reforms to strengthen the insurance sector and improve consumer protection, are also contributing to the development of the insurance market in Ecuador. These reforms are aimed at increasing transparency, enhancing competition, and ensuring the financial stability of insurance companies operating in the country. Underlying macroeconomic factors, including steady economic growth and rising disposable incomes, are further driving the growth of the insurance market in Ecuador. As the country's economy continues to expand, more individuals and businesses are able to afford insurance coverage, leading to a larger customer base for insurance companies to tap into.

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.