Life insurance - Cyprus | Statista Market Forecast

The Life insurance market market in Cyprus is expected to reach a market size (gross written premium) of US$1.42bn in 2024.
In the same year, the average spending per capita in the Life insurance market market is projected to amount to US$1.12k.
Furthermore, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 3.03%.
This growth is expected to result in a market volume of US$1.65bn by 2029.
When compared globally, the United States is projected to generate the highest gross written premium in the Life insurance market market, amounting to US$1.3tn in 2024.
The life insurance market in Cyprus is experiencing a shift towards digitalization, with more insurers offering online policies and services.

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 Cyprus has been experiencing significant growth and development. Customer preferences in the Life insurance market in Cyprus have been shifting towards more comprehensive and customized insurance products. Customers are increasingly seeking policies that offer a wide range of coverage options and benefits tailored to their specific needs. This trend is in line with global market preferences, where individuals are placing greater importance on financial security and long-term planning. Trends in the market indicate a growing demand for digitalization and online services within the Life insurance sector in Cyprus. Insurers are investing in technology to enhance customer experience, streamline processes, and offer innovative digital solutions. This trend is driven by the increasing use of digital channels and the convenience it provides to customers in managing their insurance policies. Local special circumstances, such as the geographical location of Cyprus and its status as an international business hub, have contributed to the development of the Life insurance market. The country's strategic position has attracted a diverse population with varying insurance needs, leading to a demand for a wide range of life insurance products and services. Additionally, Cyprus's regulatory framework and tax incentives have made it an attractive destination for insurance companies looking to establish a presence in the European market. Underlying macroeconomic factors, including economic stability and income levels, have also played a role in the growth of the Life insurance market in Cyprus. As the economy continues to expand and incomes rise, individuals have more disposable income to allocate towards insurance premiums. This, coupled with a growing awareness of the importance of life insurance, has contributed to the overall development of the market. In conclusion, the Life insurance market in Cyprus is evolving to meet the changing needs and preferences of customers, driven by technological advancements, special circumstances, and underlying macroeconomic factors.

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.