Life insurance - Iran | Statista Market Forecast

The Life insurance market market in Iran is projected to reach a market size of US$2.53bn in 2024.
The average spending per capita in the Life insurance market market is expected to amount to US$28.18 in 2024.
The gross written premium is projected to show an annual growth rate (CAGR 2024-2029) of 7.80%, resulting in a market volume of US$3.69bn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium of US$1.3tn in 2024.
Despite economic challenges, the life insurance market in Iran is experiencing steady growth driven by increasing demand for financial security and protection.

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

Iran's life insurance market is experiencing significant growth and evolution driven by various factors.

Customer preferences: Iranian customers are increasingly recognizing the importance of financial security and protection for their families, leading to a growing demand for life insurance products. They are seeking comprehensive coverage that not only provides financial support in case of unexpected events but also offers investment opportunities for the future.

Trends in the market: One noticeable trend in the Iranian life insurance market is the introduction of innovative products tailored to the specific needs of customers. Insurers are developing customized solutions that cater to different life stages and financial goals, such as education planning, retirement savings, and health coverage. Additionally, there is a rising interest in digital insurance services, making it more convenient for customers to purchase and manage their policies online.

Local special circumstances: Iran's unique regulatory environment and cultural norms play a significant role in shaping the life insurance market. The government's support for the insurance sector, along with favorable tax policies, is encouraging more individuals to consider life insurance as part of their financial planning. Moreover, the concept of Takaful insurance, which aligns with Islamic principles of mutual assistance and shared responsibility, is gaining popularity among the predominantly Muslim population in Iran.

Underlying macroeconomic factors: The overall economic stability and steady growth in Iran are contributing to the positive momentum in the life insurance market. As disposable incomes rise and the middle class expands, more people are willing to allocate a portion of their earnings towards insurance premiums. Furthermore, the increasing awareness about the benefits of life insurance, coupled with a growing young population entering the workforce, is driving the demand for protection and long-term savings products.

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.