Life insurance - GCC | Statista Market Forecast

The Life insurance market market in the GCC is expected to witness significant growth in the coming years.
By 2024, the market size, measured by gross written premium, is projected to reach US$19.51bn.
This indicates a substantial opportunity for insurers operating in the region.
Furthermore, the average spending per capita in the GCC Life insurance market market is estimated to be US$323.30 in 2024.
This figure reflects the level of individual investment in Life insurance market coverage within the region.
Looking ahead, the market is anticipated to experience an annual growth rate of 1.88% between 2024 and 2029.
This steady growth trajectory is forecasted to result in a market volume of US$21.42bn by 2029.
This indicates the increasing importance of Life insurance market within the GCC market.
It is worth noting that, in a global comparison, the United States is expected to generate the highest gross written premium in the Life insurance market market, reaching a staggering US$1.3tn in 2024.
This highlights the dominant position of the United States in the global insurance industry.
Overall, the Life insurance market market in the GCC presents a promising landscape for insurers, with substantial growth potential and a significant focus on individual spending and investment in Life insurance market coverage.
The life insurance market in the GCC region is experiencing significant growth due to increasing awareness about the importance of financial protection and retirement 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

The Life insurance market in GCC has been experiencing significant growth and development in recent years. Customer preferences in the GCC region indicate a growing awareness and understanding of the importance of life insurance as a financial planning tool. Customers are increasingly seeking comprehensive life insurance products that offer not only protection but also investment opportunities. This shift in preferences is driving insurance companies in the region to innovate and offer more tailored solutions to meet the evolving needs of customers. Trends in the market show a rise in the adoption of digital technologies for selling and servicing life insurance products in the GCC countries. Insurers are leveraging digital platforms to reach a wider customer base, streamline processes, and enhance the overall customer experience. Additionally, there is a growing trend towards customization, with insurers developing personalized products to cater to specific customer segments such as expatriates and high-net-worth individuals. Local special circumstances in the GCC, such as the high expatriate population and the cultural emphasis on family protection, are influencing the growth of the life insurance market in the region. Expatriates often seek life insurance coverage to secure the financial future of their families back home, while local residents prioritize life insurance as a means of providing financial stability and protection for their loved ones. Underlying macroeconomic factors, including stable economic growth, increasing disposable incomes, and regulatory reforms supporting the insurance industry, are contributing to the positive trajectory of the life insurance market in the GCC. As the region continues to diversify its economy and promote financial literacy, the demand for life insurance products is expected to further increase, driving the market's growth and development.

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.