Life insurance - Laos

Laos

The Life insurance market market in Laos is projected to reach a market size (gross written premium) of US$1.01bn in 2024.
The average spending per capita in the Life insurance market market is expected to amount to US$131.10 in 2024.
With an annual growth rate (CAGR 2024-2028) of 1.22%, the gross written premium is expected to result in a market volume of US$1.06bn by 2028.
In global comparison, the United States is anticipated to generate the highest gross written premium of US$1,271.0bn in 2024.
Laos has seen a growing demand for life insurance, driven by increased awareness of the importance of financial protection and a desire for long-term financial security.

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Analyst Opinion

The Life insurance market in Laos has been experiencing notable growth and development in recent years. Customer preferences in Laos are shifting towards seeking financial security and protection for their families, which has been driving the demand for life insurance products. Customers are increasingly looking for comprehensive coverage that can provide stability and support in times of need. Trends in the market indicate a rise in the awareness of the importance of life insurance among the population in Laos. Insurers are introducing innovative products and services to cater to the evolving needs of customers, such as customizable plans and online policy management options. This trend is in line with the global shift towards digitalization and personalized insurance solutions. Local special circumstances in Laos, such as a growing middle-class population and increasing disposable income, have contributed to the expansion of the life insurance market. As more individuals and families seek to secure their financial future, the demand for life insurance products is expected to continue to rise. Underlying macroeconomic factors, including stable economic growth and a favorable regulatory environment, have also played a significant role in the development of the life insurance market in Laos. The government's initiatives to promote financial inclusion and consumer protection have further boosted confidence in the insurance sector. Overall, the Life insurance market in Laos is poised for further growth as insurers continue to innovate, customers prioritize financial security, and supportive macroeconomic conditions prevail.

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.