Life insurance - Lebanon

Lebanon

The Life insurance market market in Lebanon is expected to witness significant growth in the coming years.
According to projections, the market size, measured by the gross written premium, is estimated to reach US$1.59bn in 2024.
This indicates a positive trend in the demand for Life insurance market products and services in the country.
Furthermore, the average spending per capita in the Life insurance market market is anticipated to amount to US$305.30 in 2024.
This metric highlights the individual financial commitment towards Life insurance market coverage and underscores the growing awareness of its importance among the population.
Looking ahead, the market is projected to experience a steady annual growth rate of -2.11% between 2024 and 2028, as indicated by the compound annual growth rate (CAGR).
By 2028, the gross written premium is expected to reach US$1.46bn, reflecting the sustained expansion of the Life insurance market market in Lebanon.
In a global context, it is worth noting that the United States is set to generate the highest gross written premium in 2024, amounting to US$1,271.0bn.
This demonstrates the dominance of the US market and highlights the significant scale of its Life insurance market industry.
Overall, these figures emphasize the potential and growth prospects of the Life insurance market market in Lebanon.
The projected market size, average spending per capita, and global comparison showcase the increasing importance and relevance of Life insurance market coverage in the country's financial landscape.
Lebanon's life insurance market has seen a surge in demand due to growing awareness of the importance of financial security and planning for the future.

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Region

Region comparison

Currency

Analyst Opinion

The Life insurance market in Lebanon has been experiencing significant growth and development in recent years.

Customer preferences: Lebanese customers are increasingly seeking life insurance products that offer not only financial protection but also investment opportunities. They are looking for policies that provide long-term savings and potential returns, aligning with a global trend where individuals are more conscious about securing their financial future.

Trends in the market: One noticeable trend in the Lebanese life insurance market is the rise of unit-linked insurance products. These products combine life insurance coverage with investment options, allowing policyholders to potentially grow their wealth over time. This trend mirrors the shift towards investment-linked products seen in other markets, as customers seek to maximize the benefits of their insurance policies.

Local special circumstances: Lebanon's unique economic and political environment has also influenced the life insurance market. With a history of economic volatility and uncertainty, Lebanese consumers are increasingly turning to life insurance as a way to safeguard their assets and ensure financial stability for their families. This local circumstance has contributed to the growing demand for life insurance products in the country.

Underlying macroeconomic factors: The macroeconomic landscape in Lebanon, including low interest rates and a relatively underdeveloped financial sector, has created opportunities for life insurance companies to expand their offerings and attract more customers. As the market becomes more competitive and innovative, insurers are introducing new products and services to cater to the evolving needs of Lebanese consumers. This dynamic environment is driving growth and shaping the future of the life insurance industry in Lebanon.

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.