Life insurance - Kuwait

Kuwait

The projected market size (gross written premium) of the Life insurance market market in Kuwait is estimated to reach US$2.12bn by 2024.
In the same year, the average spending per capita in the Life insurance market market is expected to amount to US$0.49k.
Furthermore, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 1.20%, resulting in a market volume of US$2.25bn by 2029.
When compared globally, the United States is projected to generate the highest gross written premium in the Life insurance market market, amounting to US$1,288.0bn in 2024.
Kuwait's life insurance market is witnessing a surge in demand as citizens prioritize financial security amidst economic uncertainty.

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Analyst Opinion

Over the past decade, the Life insurance market in Kuwait has experienced significant growth and development.

Customer preferences: Customers in Kuwait are increasingly seeking life insurance products that offer not only financial protection but also investment opportunities. This shift in preferences can be attributed to the growing awareness among consumers about the importance of long-term financial planning and wealth accumulation.

Trends in the market: One of the prominent trends in the Kuwaiti Life insurance market is the rising demand for unit-linked insurance products. These products provide policyholders with the flexibility to invest in a variety of funds while also enjoying life insurance coverage. Additionally, there is a noticeable trend towards customization, with insurance companies offering tailored solutions to meet the specific needs of customers.

Local special circumstances: The regulatory environment in Kuwait plays a significant role in shaping the Life insurance market. The stringent regulations set by the regulatory authorities ensure consumer protection and promote transparency within the industry. Moreover, the presence of a young and affluent population in Kuwait has created a conducive environment for the growth of the life insurance sector.

Underlying macroeconomic factors: The economic stability and steady GDP growth in Kuwait have contributed to the overall development of the Life insurance market. As disposable incomes rise and the standard of living improves, more individuals are inclined to invest in life insurance products as a means of securing their financial future. Additionally, the government's focus on diversifying the economy and reducing reliance on oil revenues has led to a broader range of investment opportunities, further driving the demand for life insurance.

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.