Life insurance - Cuba | Statista Market Forecast

The Life insurance market market in Cuba is expected to reach a projected market size of US$6.78bn in 2024, based on the gross written premium.
In the same year, the average spending per capita in the Life insurance market market is estimated to be US$606.20.
Looking ahead, the market is projected to experience an annual growth rate of 0.30% (CAGR 2024-2029), resulting in a market volume of US$6.88bn by 2029.
In comparison to other countries globally, the United States is expected to generate the highest gross written premium in the Life insurance market market, reaching US$1.3tn in 2024.
Cuba's life insurance market is experiencing a surge in demand as the country undergoes economic reforms and its population seeks to protect their financial future.

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

Over the past few years, the Life insurance market in Cuba has shown interesting developments and trends.

Customer preferences: Customers in Cuba are increasingly seeking life insurance products that offer long-term financial security and stability for their families. They value policies that provide comprehensive coverage and financial protection in case of unexpected events. Additionally, there is a growing interest in investment-linked insurance products that offer potential returns along with insurance coverage.

Trends in the market: One notable trend in the Cuban life insurance market is the gradual shift towards digital channels for purchasing insurance products and managing policies. This trend is in line with global developments in the insurance industry, where digitalization is becoming increasingly important to enhance customer experience and streamline operations. Moreover, there is a rising demand for customized life insurance solutions tailored to the specific needs and preferences of customers in Cuba.

Local special circumstances: Cuba's unique socio-political environment plays a significant role in shaping the life insurance market in the country. The state-controlled economy and limited access to international financial markets have influenced the availability and design of insurance products. As a result, domestic insurance companies in Cuba have focused on developing innovative solutions to cater to the needs of the local population while complying with regulatory requirements.

Underlying macroeconomic factors: The macroeconomic landscape in Cuba, including factors such as economic growth, inflation rates, and government policies, has a direct impact on the life insurance market. As the country undergoes economic reforms and opens up to foreign investment, there are opportunities for insurance companies to expand their offerings and reach a broader customer base. However, challenges such as currency fluctuations and regulatory changes can also affect the overall growth and stability of the market.

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.