Life insurance - Nordics

Nordics

The Life insurance market market in the Nordics is expected to witness significant growth in the coming years.
By 2024, the market size, measured by the gross written premium, is projected to reach US$116.20bn.
This indicates a positive trend in the industry, which is driven by various factors such as increasing awareness about the importance of Life insurance market and the growing need for financial security.
In 2024, the average spending per capita in the Life insurance market market is estimated to be US$4.14k.
This metric signifies the amount of money spent by each individual in the Nordics on Life insurance market coverage.
It demonstrates the significance placed on protecting oneself and loved ones against unforeseen circumstances.
Furthermore, the gross written premium is expected to exhibit a compound annual growth rate (CAGR) of 3.89% from 2024 to 2029.
This growth rate indicates a steady expansion of the market, resulting in a market volume of US$140.60bn by 2029.
This demonstrates the increasing demand for Life insurance market products and services in the Nordics.
In a global comparison, the United States is projected to generate the highest gross written premium in 2024, amounting to US$1,288.0bn.
This highlights the dominance of the US market and its significant contribution to the global Life insurance market industry.
The Life insurance market market in the Nordics presents promising opportunities for insurers and investors alike.
With the projected growth and favorable market conditions, companies operating in this segment can capitalize on the increasing demand for Life insurance market products and services.
In the Nordics, the life insurance market is experiencing a shift towards digitalization, with an increasing number of consumers opting for online platforms to purchase policies.

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Analyst Opinion

The Life insurance market in Nordics has been witnessing significant growth and development in recent years. Customer preferences in the Nordics have been shifting towards more comprehensive life insurance coverage, driven by a growing awareness of the importance of financial security and protection. Customers are increasingly seeking customizable and flexible life insurance products that can be tailored to their individual needs and lifestyles. Trends in the market indicate a rise in demand for digital and online insurance services, with customers in the Nordics showing a preference for convenient and efficient ways to purchase and manage their life insurance policies. Insurers in the region are focusing on enhancing their digital capabilities to meet the evolving needs of tech-savvy customers. Local special circumstances in the Nordics, such as the high level of social welfare and strong emphasis on financial planning, have contributed to the growth of the life insurance market. The region's stable economy and high standard of living have created a conducive environment for insurance companies to expand their offerings and attract a larger customer base. Underlying macroeconomic factors, including low interest rates and demographic changes, have also played a role in shaping the life insurance market in the Nordics. Insurers are adapting their products and investment strategies to navigate the challenges posed by the current economic environment and meet the long-term financial goals of their customers.

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.