Life insurance - Puerto Rico | Statista Market Forecast

The Life insurance market market in Puerto Rico is projected to reach a market size (gross written premium) of US$2.89bn in 2024.
The average spending per capita in the Life insurance market market is estimated to be US$884.50 in 2024.
It is expected that the gross written premium will demonstrate an annual growth rate (CAGR 2024-2029) of 0.86%, leading to a market volume of US$3.02bn by 2029.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium of US$1.3tn in 2024.
Puerto Rico's life insurance market is experiencing a surge in demand due to an aging population and increasing awareness about financial protection.

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

Over the past few years, the Life insurance market in Puerto Rico has shown steady growth and development. Customer preferences in the Life insurance market in Puerto Rico are influenced by a variety of factors. Customers in the region tend to prioritize policies that offer comprehensive coverage and financial security for their families. Additionally, there is a growing interest in investment-linked insurance products that provide both protection and potential returns on investment. Trends in the Life insurance market in Puerto Rico indicate a shift towards digitalization and online distribution channels. Insurers are increasingly leveraging technology to reach a wider customer base and streamline the policy application and claims process. Moreover, there is a noticeable trend towards customization, with insurers offering tailored solutions to meet the specific needs of different customer segments. Local special circumstances, such as the geographical location of Puerto Rico and its susceptibility to natural disasters, play a significant role in shaping the Life insurance market. Insurers in the region often design products that provide coverage for hurricane-related damages and other unforeseen events, catering to the unique needs of Puerto Rican customers. Underlying macroeconomic factors, including the overall economic stability and disposable income levels in Puerto Rico, also impact the Life insurance market. As the economy continues to recover from past challenges, there is a growing awareness among residents about the importance of financial planning and protection, driving the demand for life insurance products. In conclusion, the Life insurance market in Puerto Rico is evolving in response to changing customer preferences, technological advancements, local special circumstances, and underlying macroeconomic factors. Insurers in the region are adapting their offerings to meet the diverse needs of customers and capitalize on the growing demand for comprehensive insurance solutions.

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.