Life insurance - Croatia

Croatia

The Life insurance market market in Croatia is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is set to reach US$2.98bn in 2024.
This represents a substantial opportunity for insurers operating in the country.
Furthermore, the average spending per capita in the Life insurance market market is expected to amount to US$0.75k in 2024.
This indicates that individuals in Croatia are increasingly recognizing the importance of Life insurance market and are willing to invest in such policies to secure their future.
Looking ahead, the gross written premium is projected to experience an annual growth rate of -0.17% between 2024 and 2028.
This steady growth trajectory is anticipated to result in a market volume of US$2.96bn by 2028.
This indicates a positive outlook for the Life insurance market market in Croatia, with ample opportunities for insurers to expand their operations and cater to the growing demand.
In terms of global comparison, it is noteworthy that the United States is expected to generate the highest gross written premium in 2024, reaching a staggering US$1,271.0bn.
This highlights the dominant position of the United States in the global Life insurance market market and underscores the potential for growth in Croatia to further tap into this lucrative market segment.
In conclusion, the Life insurance market market in Croatia is poised for growth, with increasing market size, per capita spending, and a positive growth rate.
Insurers operating in the country have the opportunity to leverage these favorable conditions and expand their presence in this promising market segment.
Croatia's life insurance market is experiencing a surge in demand due to the country's aging population and increasing awareness about financial planning.

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Analyst Opinion

Over the past few years, the Life insurance market in Croatia has been experiencing steady growth and development. Customer preferences in the Life insurance market in Croatia are shifting towards more comprehensive coverage options that provide not only financial security but also investment opportunities. Customers are increasingly looking for policies that offer a combination of protection and wealth accumulation, reflecting a growing awareness of the importance of long-term financial planning. Trends in the market indicate a rise in demand for unit-linked insurance products, which allow policyholders to invest in different funds based on their risk appetite and financial goals. This trend is driven by a desire for higher returns compared to traditional savings accounts, as well as a growing interest in investment opportunities within the insurance sector. Local special circumstances, such as a stable regulatory environment and a competitive landscape among insurance providers, have contributed to the positive growth trajectory of the Life insurance market in Croatia. The presence of both domestic and international insurance companies has led to product innovation and competitive pricing, benefiting customers with a wide range of options to choose from. Underlying macroeconomic factors, including steady economic growth and low interest rates, have also played a role in shaping the Life insurance market in Croatia. With a stable economic outlook, consumers are more inclined to invest in long-term financial products like life insurance, further driving the growth of the market. Overall, the Life insurance market in Croatia is poised for continued expansion, fueled by evolving customer preferences, innovative product offerings, a competitive market landscape, and favorable macroeconomic conditions.

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.