Life insurance - Denmark | Statista Market Forecast

The Life insurance market market in Denmark is projected to reach a market size (gross written premium) of US$34.21bn in 2024.
In the same year, the average spending per capita in the Life insurance market market is expected to amount to US$5.76k.
Furthermore, the gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of 2.37%, resulting in a market volume of US$38.46bn by 2029.
In comparison to other countries worldwide, the United States is expected to generate the highest gross written premium in the Life insurance market market, reaching US$1.3tn in 2024.
Denmark's life insurance market is experiencing a shift towards sustainable and socially responsible policies, reflecting the country's commitment to environmental and social issues.

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

In Denmark, the Life insurance market is experiencing a shift in customer preferences towards more comprehensive and customizable insurance products tailored to individual needs.

Customer preferences: Danish consumers are increasingly seeking life insurance policies that offer not only financial protection but also investment opportunities and savings options. This shift in preferences can be attributed to a growing awareness among customers about the importance of long-term financial planning and retirement security. As a result, insurance providers in Denmark are focusing on developing innovative products that combine traditional life insurance coverage with investment components to meet the evolving needs of customers.

Trends in the market: One of the prominent trends in the Life insurance market in Denmark is the rise of digitalization and online distribution channels. With the increasing use of digital platforms for financial transactions and communication, insurance companies are leveraging technology to offer seamless and convenient services to customers. This trend is not unique to Denmark but reflects a global shift towards digitalization in the insurance industry. Additionally, there is a growing emphasis on sustainability and ethical investing in the Danish market, with more customers looking for life insurance products that align with their values and contribute to environmental and social causes.

Local special circumstances: Denmark's strong welfare system and high level of social security play a significant role in shaping the Life insurance market. While the government provides a comprehensive safety net for its citizens, there is still a demand for private insurance products to supplement the existing coverage and provide additional benefits. The competitive landscape in Denmark is characterized by a mix of domestic and international insurance providers, each offering a range of products tailored to the local market.

Underlying macroeconomic factors: The macroeconomic environment in Denmark, including factors such as low interest rates and economic stability, influences the development of the Life insurance market. Low interest rates pose challenges for insurance companies in generating investment returns, leading to a focus on alternative investment strategies. Economic stability and a strong regulatory framework contribute to the overall growth and stability of the insurance sector in Denmark, creating a favorable environment for both providers and customers alike.

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.