Life insurance - Estonia | Statista Market Forecast

The Life insurance market market in Estonia is expected to reach a projected market size (gross written premium) of US$368.10m in 2024.
The average spending per capita in the Life insurance market market is estimated to be US$279.00 in the same year.
With an annual growth rate (CAGR 2024-2029) of 3.58%, the gross written premium is anticipated to increase, resulting in a market volume of US$438.70m by 2029.
In comparison to other countries worldwide, the United States is predicted to generate the highest gross written premium, amounting to US$1.3tn in 2024.
Despite the small population of Estonia, the life insurance market is growing steadily due to increased awareness and a focus on long-term financial planning.

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 Estonia has been steadily growing and evolving, reflecting the changing needs and preferences of consumers in the country.

Customer preferences: Estonian consumers are increasingly seeking life insurance products that offer not only financial security but also investment opportunities. They are looking for policies that provide a combination of protection and potential for wealth accumulation, aligning with a global trend towards more holistic and flexible insurance solutions.

Trends in the market: One notable trend in the Estonian Life insurance market is the rising popularity of unit-linked insurance products. These policies allow policyholders to invest in a range of assets such as stocks and bonds, providing the potential for higher returns compared to traditional life insurance products. This trend mirrors the growing demand for investment-linked products seen in other European markets.

Local special circumstances: Estonia's relatively small population and competitive insurance market have driven insurers to innovate and tailor their products to meet the specific needs of local consumers. Insurers in Estonia are focusing on providing personalized and digitally accessible insurance solutions to cater to the tech-savvy population. Additionally, the country's strong digital infrastructure has facilitated the growth of online insurance sales, making it easier for insurers to reach a wider audience.

Underlying macroeconomic factors: The steady economic growth and increasing disposable income levels in Estonia have contributed to the positive development of the Life insurance market. As consumers become more financially literate and aware of the importance of long-term financial planning, the demand for life insurance products is expected to continue to rise. Moreover, the low-interest-rate environment in Europe has prompted consumers to seek alternative investment options, further driving the demand for unit-linked insurance products in Estonia.

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.