Life insurance - Peru

Peru

The Life insurance market market in Peru is expected to reach a market size (gross written premium) of US$2.78bn in 2024.
The average spending per capita in the Life insurance market market is projected to amount to US$80.27 in the same year.
Furthermore, the gross written premium is anticipated to display an annual growth rate (CAGR 2024-2029) of 5.31%, resulting in a market volume of US$3.60bn by 2029.
It is worth noting that, in comparison to other countries globally, the United States is predicted to generate the highest gross written premium, amounting to US$1,288.0bn in 2024.
Peru's life insurance market is experiencing steady growth due to rising middle-class incomes and increasing awareness of the importance of financial planning.

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Analyst Opinion

Peru's Life insurance market has been experiencing significant growth in recent years, reflecting a broader trend seen in emerging markets.

Customer preferences: Customers in Peru are increasingly recognizing the importance of life insurance as a means of financial protection and long-term security for their families. This shift in mindset is driven by a growing middle class with higher disposable income and a desire to safeguard their loved ones' future.

Trends in the market: One notable trend in the Peruvian life insurance market is the increasing popularity of investment-linked insurance products. These policies offer both life insurance coverage and investment opportunities, appealing to customers looking to grow their wealth while ensuring financial protection.

Local special circumstances: In Peru, the regulatory environment has been favorable for the life insurance industry, encouraging innovation and product development. Additionally, the rise of digital channels has made insurance products more accessible to a wider population, further driving market growth.

Underlying macroeconomic factors: The stable economic growth and low inflation rates in Peru have boosted consumer confidence and willingness to invest in long-term financial products like life insurance. Moreover, the country's young population demographic presents a significant opportunity for insurers to tap into a market with long-term growth potential.

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.