Life insurance - Peru | Statista Market Forecast

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 5.27%, 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$1.3tn 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.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

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.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.