Life insurance - Jordan | Statista Market Forecast

The Life insurance market market in Jordan is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is forecasted to reach US$1.29bn in 2024.
This indicates a positive trend in the demand for Life insurance market products among the population.
In terms of per capita spending, the average amount allocated to Life insurance market in 2024 is estimated to be US$113.50.
This figure reflects the individual financial commitment towards securing life coverage and highlights the importance of insurance protection in Jordan.
Furthermore, the market is anticipated to demonstrate a steady growth rate over the years.
The annual compound growth rate (CAGR 2024-2029) is projected to be 1.95%.
This positive trajectory is expected to contribute to a market volume of US$1.42bn by 2029, signifying the increasing relevance of Life insurance market in the country.
When comparing in Jordan to other countries globally, it is important to note that the United States is expected to generate the highest gross written premium in 2024, reaching a staggering US$1.3tn.
This highlights the immense scale of the Life insurance market the United States, while also providing context for Jordan's own market size.
Overall, these figures indicate the growth potential and significance of the Life insurance market market in Jordan.
The projected market size, per capita spending, and growth rate all point towards a promising future for the industry in the country.
Despite the challenging economic conditions in Jordan, the life insurance market is experiencing steady growth due to the increasing awareness of the importance of financial 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

Over the past few years, the Life insurance market in Jordan has been experiencing steady growth and development. Customer preferences in the Jordanian Life insurance market are shifting towards more comprehensive coverage options that offer not only financial protection but also investment opportunities for policyholders. Customers are increasingly seeking policies that provide long-term benefits and value, reflecting a growing awareness of the importance of financial planning and security. Trends in the market indicate a rise in demand for customized Life insurance products that cater to the specific needs and preferences of Jordanian consumers. Insurers are adapting their offerings to include innovative features such as flexible premium payments, bonus options, and additional riders to attract a wider customer base. Moreover, the market is witnessing a surge in digitalization, with more insurance companies leveraging technology to enhance customer experience and streamline their operations. Local special circumstances, such as a young and growing population with increasing disposable income, are contributing to the expansion of the Life insurance market in Jordan. As the economy continues to stabilize and the middle class expands, more individuals and families are recognizing the importance of securing their financial future through Life insurance coverage. Additionally, the regulatory environment in Jordan is becoming more conducive to insurance business growth, encouraging both domestic and foreign insurers to invest in the market. Underlying macroeconomic factors, including favorable GDP growth, low inflation rates, and a stable political climate, are providing a conducive environment for the development of the Life insurance sector in Jordan. The country's efforts to promote financial literacy and inclusion are also playing a significant role in driving awareness and uptake of insurance products among the population. Overall, the future looks promising for the Life insurance market in Jordan as it continues to evolve and meet the changing needs of customers in the country.

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.