Life insurance - Iceland | Statista Market Forecast

The Life insurance market market in Iceland is projected to reach a market size (gross written premium) of US$58.39m in 2024.
The average spending per capita in the Life insurance market market is estimated to be US$154.60 in 2024.
It is expected that the gross written premium will experience an annual growth rate (CAGR 2024-2029) of -1.02%, resulting in a market volume of US$55.48m by 2029.
In global comparison, the United States is expected to generate the highest gross written premium of US$1.3tn in 2024.
Iceland's life insurance market is experiencing a surge in demand due to the country's high standard of living and emphasis on financial security.

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

Iceland, known for its stunning landscapes and geothermal hot springs, also has a dynamic Life insurance market that is experiencing interesting developments.

Customer preferences: In Iceland, customers are increasingly looking for Life insurance products that offer not only financial security for their loved ones but also additional benefits such as investment opportunities or wellness incentives. This shift towards more comprehensive coverage reflects a global trend where policyholders seek greater value from their insurance policies.

Trends in the market: One noticeable trend in the Icelandic Life insurance market is the growing popularity of customizable insurance plans tailored to individual needs. Customers are showing a preference for flexible coverage options that can be adjusted over time to align with their changing circumstances. This trend mirrors the demand for personalized insurance solutions seen in other markets around the world.

Local special circumstances: Iceland's unique demographic profile, characterized by a relatively small population spread across a vast geographic area, presents both challenges and opportunities for Life insurance providers. Insurers in Iceland must navigate the complexities of serving a dispersed customer base while also capitalizing on the close-knit communities that foster trust and word-of-mouth referrals. These local dynamics influence product distribution strategies and customer engagement initiatives in the Icelandic market.

Underlying macroeconomic factors: The stability of Iceland's economy and its robust financial sector play a significant role in shaping the Life insurance market. Favorable economic conditions, such as low unemployment rates and steady GDP growth, contribute to a sense of financial security among consumers, driving interest in long-term insurance solutions. Additionally, regulatory frameworks that promote transparency and consumer protection enhance confidence in the insurance industry, supporting market growth and innovation.

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.