Life insurance - Eastern Europe | Statista Market Forecast

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 -0.19%.
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$1.3tn 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.

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 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.

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.