Life insurance - Armenia

Armenia

The Life insurance market market in Armenia is expected to reach a projected market size (gross written premium) of US$153.20m in 2024.
The average spending per capita in the Life insurance market market is estimated to amount to US$55.14 in 2024.
It is projected that the gross written premium will experience an annual growth rate (CAGR 2024-2029) of 4.94%, leading to a market volume of US$195.00m by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium of US$1,288.0bn in 2024.
Armenia's life insurance market is experiencing rapid growth due to increasing awareness and demand for financial security.

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Analyst Opinion

Armenia's life insurance market is experiencing significant growth and transformation in recent years.

Customer preferences: Customers in Armenia are increasingly prioritizing financial security and long-term planning, leading to a growing demand for life insurance products. This shift in preferences can be attributed to a greater awareness of the importance of protection against unforeseen events and the desire for stability in an uncertain economic environment.

Trends in the market: One notable trend in the Armenian life insurance market is the introduction of innovative products tailored to meet the evolving needs of customers. Insurers are offering a diverse range of options, including investment-linked policies and customizable coverage, to attract a wider customer base. Additionally, there is a growing emphasis on digitalization and online distribution channels to enhance accessibility and convenience for policyholders.

Local special circumstances: Armenia's unique geopolitical position and historical background play a role in shaping the local life insurance market. The country's transition to a market economy has led to increased awareness of financial planning and risk management among the population. Furthermore, the presence of a well-established banking sector has facilitated the distribution of life insurance products and services to a broader audience.

Underlying macroeconomic factors: The macroeconomic landscape in Armenia, characterized by steady economic growth and rising disposable incomes, has created a favorable environment for the development of the life insurance sector. As the country continues to strengthen its regulatory framework and promote financial literacy, the life insurance market is expected to further expand 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.