Insurances

The Insurances market in Honduras is projected to reach a gross written premium of US$576.50m in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$344.00m in the same year.
The average spending per capita in the Insurances market is expected to amount to US$53.58 in 2024.
In a global comparison, it is noteworthy that the United States is projected to have the highest nominal value, reaching US$3.8tn in 2024.
Looking ahead, the gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 2.97%, resulting in a market volume of US$667.50m by 2029.
Once again, it is important to highlight that the United States is anticipated to generate the highest gross written premium in the global market, reaching US$3.8tn in 2024.
Honduras is experiencing a growing trend in the insurance market, with an increasing demand for health and property insurance policies.

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 Honduras has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Honduras are shifting towards more comprehensive coverage options that provide a wide range of benefits and protection. Customers are increasingly looking for policies that not only cover traditional risks but also offer additional services such as health and wellness programs. This trend is in line with the global insurance market, where customers are seeking more value and customization in their insurance products. Trends in the market in Honduras are also influenced by the growing awareness of the importance of insurance coverage. As the economy continues to expand and individuals accumulate more wealth, there is a greater recognition of the need to protect assets and mitigate risks. This has led to an increase in demand for various types of insurance, including health, property, and life insurance. Insurers in Honduras are responding to this trend by diversifying their product offerings and enhancing their distribution channels to reach a wider customer base. Local special circumstances in Honduras, such as a relatively low insurance penetration rate compared to other countries in the region, present both challenges and opportunities for insurers. The market is still relatively underdeveloped, with a significant portion of the population remaining uninsured. Insurers in Honduras are focusing on increasing awareness about the benefits of insurance and developing innovative solutions to make insurance more accessible and affordable to a larger segment of the population. Underlying macroeconomic factors, such as stable economic growth and a favorable regulatory environment, are also contributing to the development of the insurance market in Honduras. A growing middle class and increasing disposable incomes are driving demand for insurance products, while regulatory reforms are improving transparency and consumer protection in the market. These factors are attracting both domestic and foreign insurers to invest in Honduras and expand their operations to capitalize on the growing opportunities in the market.

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.