Life insurance - Bhutan

Bhutan

The Life insurance market market in Bhutan is expected to reach a projected market size (gross written premium) of US$0.51bn in 2024.
In that year, the average spending per capita in the Life insurance market market is estimated to amount to US$0.65k.
Furthermore, the gross written premium is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.15%, resulting in a market volume of US$0.54bn by 2029.
When compared globally, the United States is projected to generate the highest gross written premium, amounting to US$1,288.0bn in 2024.
Bhutan's life insurance market is experiencing a surge in demand, driven by the country's growing middle class and increasing awareness about financial protection.

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Analyst Opinion

Over the past few years, the Life insurance market in Bhutan has been experiencing significant growth and development.

Customer preferences: Customers in Bhutan are increasingly recognizing the importance of securing their financial future and protecting their loved ones through life insurance coverage. The shift towards a more risk-averse mindset and the growing awareness about the benefits of life insurance have been driving the demand in the market.

Trends in the market: One of the key trends in the Bhutanese Life insurance market is the introduction of innovative products and services tailored to the specific needs of the local population. Insurers are focusing on developing products that offer comprehensive coverage at affordable premiums, making life insurance more accessible to a wider range of customers.

Local special circumstances: Bhutan's unique socio-economic and cultural landscape plays a significant role in shaping the Life insurance market in the country. The emphasis on holistic well-being and the concept of collective responsibility within Bhutanese society have contributed to the increasing acceptance of life insurance as a means of financial protection and security.

Underlying macroeconomic factors: The stable economic growth and rising disposable incomes in Bhutan have also played a crucial role in driving the expansion of the Life insurance market. As individuals and families strive for financial stability and long-term security, the demand for life insurance products is expected to continue growing 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.