Life insurance - Northern Europe

Northern Europe

The Life insurance market market in Northern Europe is projected to reach a market size (gross written premium) of US$117.30bn in 2024.
In the same year, the average spending per capita in this market is estimated to amount to US$3.46k.
It is expected that the gross written premium will exhibit an annual growth rate (CAGR 2024-2029) of 3.88%, resulting in a market volume of US$141.90bn by 2029.
In global comparison, the United States is anticipated to generate the highest gross written premium, amounting to US$1,288.0bn in 2024.
In Northern Europe, the life insurance market is experiencing a shift towards sustainable and socially responsible investment options.

Market

Region

Region comparison

Currency

Analyst Opinion

The Life insurance market in Northern Europe has been experiencing steady growth and development in recent years.

Customer preferences: Customers in Northern Europe are increasingly looking for life insurance products that offer not only financial protection but also investment opportunities. They are seeking policies that provide long-term value and flexibility to adapt to their changing needs over time.

Trends in the market: In countries like Sweden and Norway, there is a growing trend towards sustainable and socially responsible life insurance products. Customers are showing a preference for insurers that prioritize environmental, social, and governance (ESG) factors in their investment strategies. This trend is in line with the overall shift towards more sustainable practices in the region.

Local special circumstances: One of the unique aspects of the life insurance market in Northern Europe is the high level of digitalization and innovation. Insurers in countries like Denmark and Finland are leveraging technology to offer personalized products and services to their customers. This focus on digital solutions is not only improving the customer experience but also increasing efficiency within the industry.

Underlying macroeconomic factors: The stable economic environment in Northern Europe is contributing to the growth of the life insurance market. Low interest rates and a strong regulatory framework are encouraging people to invest in life insurance as a way to secure their financial future. Additionally, the region's aging population is driving up the demand for retirement planning and long-term care insurance products.

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.