Life insurance - Jamaica

Jamaica

The projected market size (gross written premium) of the Life insurance market market in Jamaica is estimated to reach J US$1.19bn in 2024.
The average spending per capita in the Life insurance market market is expected to amount to J US$0.42k in 2024.
Furthermore, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of 0.42%, resulting in a market volume of J US$1.21bn by 2028.
When compared globally, the United States is forecasted to generate the highest gross written premium of US$1,271.0bn in 2024.
Jamaica's life insurance market is experiencing a surge in demand due to a growing awareness of the importance of financial protection and long-term planning.

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Analyst Opinion

Over the past few years, the life insurance market in Jamaica has shown significant growth and development.

Customer preferences: Customers in Jamaica are increasingly seeking life insurance policies that offer not only financial protection but also investment opportunities. This shift in preferences can be attributed to a growing awareness of the importance of long-term financial planning and the desire for a more secure future.

Trends in the market: One noticeable trend in the Jamaican life insurance market is the introduction of innovative products that cater to the specific needs of the local population. Insurers are offering policies tailored to different life stages, such as education planning, retirement savings, and health coverage. This customization has resonated well with customers, leading to an increase in policy adoption rates.

Local special circumstances: The unique demographic makeup of Jamaica, with a relatively young population and a rising middle class, has created a favorable environment for the growth of the life insurance market. As more Jamaicans enter the workforce and start families, there is a greater awareness of the need for life insurance as a means of financial protection.

Underlying macroeconomic factors: The stability and growth of the Jamaican economy play a crucial role in the development of the life insurance market. A stable economy with low inflation and steady GDP growth instills confidence in consumers to invest in long-term financial products like life insurance. Additionally, favorable government policies and regulatory frameworks have helped to boost the overall insurance sector in Jamaica.

Methodology

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.