Life insurance - Caribbean

Caribbean

The Life insurance market market in the Caribbean is projected to reach a market size (gross written premium) of US$17.67bn in 2024.
In the same year, the average spending per capita in the Life insurance market market is estimated to be US$0.44k.
Looking ahead, the market is expected to grow at an annual growth rate (CAGR 2024-2028) of 1.20%, resulting in a market volume of US$18.53bn by 2028.
When compared globally, the United States is anticipated to generate the highest gross written premium of US$1,271.0bn in 2024.
In the Caribbean, the life insurance market is experiencing steady growth driven by increasing awareness of the importance of financial protection and long-term planning.

Market

Region

Region comparison

Currency

Analyst Opinion

The Life insurance market in Caribbean has been experiencing significant growth and development in recent years. Customer preferences in the Caribbean region show a clear inclination towards life insurance products that offer not only financial protection but also investment opportunities. Customers are increasingly looking for policies that provide long-term benefits and flexibility in terms of coverage and premiums. Trends in the Caribbean life insurance market indicate a shift towards digitalization and online distribution channels. Insurers are leveraging technology to reach a wider customer base and streamline the policy application and claims process. Additionally, there is a growing trend of customization, with insurers offering tailored products to meet the diverse needs of customers in the region. Local special circumstances in the Caribbean, such as a high prevalence of natural disasters, have contributed to the growing demand for life insurance. Customers are recognizing the importance of having adequate coverage in place to protect their families and assets in the event of unforeseen events. This has led to an increase in the uptake of life insurance policies across the region. Underlying macroeconomic factors, such as economic stability and rising disposable incomes, have also played a role in the development of the life insurance market in the Caribbean. As the economy continues to grow, more individuals and families are seeking to secure their financial future through life insurance, driving the overall market expansion.

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.