Insurances

The Insurances market in Kyrgyzstan is expected to reach a projected market size (gross written premium) of US$9.70bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$9.08bn in 2024.
In 2024, the average spending per capita in the Insurances market is estimated to be US$1.42k.
When compared globally, the United States has the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of 3.39%, resulting in a market volume of US$11.45bn by 2029.
The United States is also expected to generate the highest gross written premium in 2024, with an amount of US$3.8tn.
Kyrgyzstan's insurance market is experiencing a surge in demand for health insurance due to the increasing awareness of the importance of healthcare 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 insurance market in Kyrgyzstan has been experiencing significant growth and development in recent years. Customer preferences in Kyrgyzstan indicate a growing awareness and understanding of the importance of insurance coverage, driven by an increasing need for financial security and protection. Customers are showing a preference for insurance products that offer comprehensive coverage at affordable prices, reflecting a shift towards long-term financial planning and risk management. Trends in the market suggest a rising demand for health and life insurance products in Kyrgyzstan, as individuals seek to safeguard their well-being and that of their families. Additionally, there is a noticeable trend towards digitalization in the insurance sector, with more customers opting to purchase policies online for convenience and accessibility. Local special circumstances, such as the country's emerging middle class and expanding economy, are contributing to the growth of the insurance market in Kyrgyzstan. As disposable incomes increase and financial literacy improves, more individuals are seeking insurance solutions to protect their assets and mitigate risks. Underlying macroeconomic factors, including stable economic growth and regulatory reforms aimed at strengthening the insurance industry, are creating a favorable environment for market expansion in Kyrgyzstan. The government's efforts to promote insurance awareness and enhance consumer protection are also playing a crucial role in driving the growth of the sector.

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.