Life insurance - Azerbaijan | Statista Market Forecast

The Life insurance market market in Azerbaijan is projected to reach a market size (gross written premium) of US$1.48bn in 2024.
In the same year, the average spending per capita in the Life insurance market market is estimated to be US$141.90.
Furthermore, the market is expected to experience an annual growth rate of 3.72% (CAGR 2024-2029), resulting in a market volume of US$1.78bn by 2029.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium, amounting to US$1.3tn in 2024.
The life insurance market in Azerbaijan is experiencing a surge in demand due to the growing awareness about financial protection and the need for long-term savings.

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 Azerbaijan has been experiencing steady growth in recent years.

Customer preferences: Customers in Azerbaijan are increasingly recognizing the importance of life insurance as a means of securing their financial future and protecting their loved ones. With rising disposable incomes and a growing awareness of the benefits of life insurance, more individuals are opting for comprehensive coverage plans to safeguard against unforeseen circumstances.

Trends in the market: One notable trend in the Azerbaijani life insurance market is the shift towards digitalization. Insurance companies are leveraging technology to streamline processes, enhance customer experience, and offer innovative products tailored to the needs of the tech-savvy population. Additionally, there is a growing focus on customization, with insurers developing personalized insurance solutions to cater to diverse customer requirements.

Local special circumstances: A unique aspect of the life insurance market in Azerbaijan is the strong influence of cultural norms and traditions on insurance purchasing behavior. Family values play a significant role in driving demand for life insurance, as individuals seek to provide financial protection for their families in line with societal expectations. This emphasis on familial security contributes to the overall growth of the life insurance sector in the country.

Underlying macroeconomic factors: The growth of the life insurance market in Azerbaijan is also supported by favorable macroeconomic conditions. A stable economic environment, coupled with regulatory reforms aimed at strengthening the insurance industry, has created a conducive landscape for insurers to expand their operations and attract more customers. Additionally, the government's efforts to promote financial literacy and inclusion have contributed to the increasing uptake of life insurance products among the population.

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.