Life insurance - Eastern Europe

Eastern Europe

The Life insurance market market in Eastern Europe 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$19.29bn in 2024.
Additionally, the average spending per capita in this market is anticipated to amount to US$81.10 in the same year.
Furthermore, the Life insurance market market is expected to maintain a steady growth rate, with a compound annual growth rate (CAGR 2024-2029) of -0.20%.
This growth trajectory is projected to result in a market volume of US$19.10bn by 2029.
In a global context, it is worth noting that the United States is expected to generate the highest gross written premium in the Life insurance market market, reaching an impressive US$1,288.0bn in 2024.
This underscores the significant market presence and size of the United States in comparison to other countries.
In Eastern Europe, life insurance market in Poland is experiencing steady growth due to increasing consumer awareness and a growing middle class.

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Analyst Opinion

In recent years, the Life insurance market in Eastern Europe has shown significant growth and development.

Customer preferences: Customers in Eastern Europe are increasingly valuing financial security and long-term planning, driving the demand for life insurance products. The shift towards a more risk-averse mindset among consumers has led to a higher adoption of life insurance policies as a way to safeguard their future and that of their families.

Trends in the market: One noticeable trend in the Eastern European life insurance market is the rising popularity of unit-linked insurance products. These products offer both insurance coverage and investment opportunities, appealing to customers looking for potential returns on their premiums. Additionally, there is a growing interest in digital insurance solutions, with more insurers offering online platforms for purchasing policies and managing claims.

Local special circumstances: Eastern Europe is a diverse region with varying levels of economic development and regulatory environments, impacting the life insurance market. Countries such as Poland and Hungary have seen robust growth in life insurance penetration, driven by favorable economic conditions and increasing awareness about the importance of insurance. On the other hand, countries like Ukraine and Moldova are still in the early stages of developing their life insurance industries, facing challenges related to low income levels and limited insurance culture.

Underlying macroeconomic factors: The overall economic growth in Eastern Europe, combined with demographic changes such as an aging population, has contributed to the expansion of the life insurance market. As disposable incomes rise and the middle class expands, more individuals have the financial capacity to purchase life insurance products. Moreover, regulatory reforms aimed at improving transparency and consumer protection have helped build trust in the insurance sector, encouraging more people to invest in life insurance policies.

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.