Life insurance - Austria | Statista Market Forecast

The Life insurance market market in Austria is projected to reach a market size (gross written premium) of US$7.83bn in 2024.
On average, each person in Austria is expected to spend US$872.40 on Life insurance market in 2024.
The gross written premium is anticipated to grow at an annual rate of 0.61% (CAGR 2024-2029), resulting in a market volume of US$8.07bn by 2029.
In comparison to other countries worldwide, the United States is expected to generate the highest gross written premium of US$1.3tn in 2024.
Austria's life insurance market is experiencing a surge in demand as the population becomes increasingly aware of the need for financial security and long-term planning.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. 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.

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, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

The Life insurance market in Austria has been experiencing significant growth and development in recent years.

Customer preferences: Austrian customers have shown a growing interest in life insurance products due to increasing awareness about financial security and long-term planning. They value products that offer not only life coverage but also investment opportunities and savings benefits. This shift in preferences is in line with the global trend of seeking comprehensive financial protection through insurance products.

Trends in the market: One notable trend in the Austrian life insurance market is the rising popularity of unit-linked insurance policies, which offer customers the opportunity to invest in different funds while also providing life coverage. This trend reflects a growing appetite for investment-linked products among Austrians looking to diversify their portfolios and potentially earn higher returns. Additionally, there has been a noticeable increase in demand for customized life insurance solutions tailored to individual needs and risk profiles.

Local special circumstances: Austria's stable economy and high standard of living have contributed to the growth of the life insurance market. The country's aging population has also played a role in driving demand for retirement planning and pension products, further boosting the life insurance sector. Additionally, the strong regulatory framework in Austria ensures consumer protection and fosters trust in insurance companies, encouraging more individuals to invest in life insurance.

Underlying macroeconomic factors: The low interest rate environment in Austria has influenced the life insurance market, leading insurers to adapt their product offerings and investment strategies to generate returns in a challenging financial landscape. Economic stability and steady GDP growth have provided a favorable backdrop for the insurance industry to expand and innovate. Moreover, the increasing digitization of insurance services has made it easier for customers to access and purchase life insurance products, contributing to market growth.

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.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.