Insurances - Laos

Laos

The Insurances market in Laos is projected to reach a market size (gross written premium) of US$1.95bn in 2024.
Life insurances dominates the market with a projected market volume of US$1.01bn in 2024.
The average spending per capita in the Insurances market amounts to US$251.60 in 2024.
When comparing globally, the United States leads with the highest nominal value expected to reach US$4,642.0bn in 2024.
The gross written premium is also expected to show an annual growth rate (CAGR 2024-2028) of -0.65%, resulting in a market volume of US$1.90bn by 2028.
Once again, in global comparison, the United States is expected to generate the most gross written premium, reaching US$4,642.0bn in 2024.
Laos' insurance market is experiencing a surge in demand driven by the growing awareness of the importance of financial protection in the face of unforeseen events.

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Analyst Opinion

The Insurances market in Laos has been experiencing significant growth and development in recent years. Customer preferences in Laos are shifting towards a greater awareness of the importance of insurance coverage, driven by increasing disposable income and a growing middle class. Customers are seeking more comprehensive insurance products to protect their assets and mitigate risks in an uncertain economic environment. Trends in the market indicate a rise in demand for health and motor insurance, reflecting a growing concern for personal well-being and the increasing number of vehicles on the road. Additionally, there is a noticeable trend towards digitalization in the insurance sector, with more companies offering online services to cater to tech-savvy customers. Local special circumstances in Laos, such as a relatively small and emerging insurance market, present both opportunities and challenges for insurers. The market is characterized by intense competition among domestic and international players, leading to innovation in product offerings and pricing strategies to attract customers. Underlying macroeconomic factors, including stable economic growth and government initiatives to promote the insurance sector, are contributing to the positive trajectory of the market in Laos. As the economy continues to expand and regulatory frameworks improve, the insurance market is expected to further mature and diversify in the coming years.

Methodology

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.