Life insurance - Romania | Statista Market Forecast

The Life insurance market market in Romania is expected to reach a projected market size (gross written premium) of US$2.25bn in 2024.
The average spending per capita in the Life insurance market market is estimated to be US$114.60 in 2024.
It is anticipated that the gross written premium will experience an annual growth rate (CAGR 2024-2029) of -2.10%, resulting in a market volume of US$2.02bn by 2029.
When compared globally, the United States is projected to generate the highest gross written premium, amounting to US$1.3tn in 2024.
Romania's life insurance market is experiencing robust growth, driven by increasing awareness of the importance of financial security and a growing middle class.

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

In recent years, the Life insurance market in Romania has been experiencing significant growth and development.

Customer preferences: Customers in Romania are increasingly seeking life insurance products that offer not only financial protection but also investment opportunities. There is a growing demand for policies that provide a combination of life coverage and savings or investment benefits. This shift in customer preferences reflects a global trend where individuals are looking for comprehensive insurance solutions that cater to their long-term financial goals.

Trends in the market: One prominent trend in the Romanian Life insurance market is the rise of unit-linked insurance products. These products, which offer both life insurance coverage and investment options, have been gaining popularity among consumers looking to diversify their portfolios and potentially earn higher returns. Additionally, there is a noticeable trend towards digitalization in the distribution of life insurance products, with more insurers offering online platforms for purchasing policies and managing claims. This trend aligns with the broader digital transformation seen in the insurance industry worldwide.

Local special circumstances: Romania's Life insurance market is also influenced by local demographic and regulatory factors. The country has a relatively young population compared to other European nations, presenting opportunities for insurers to target a growing market of young professionals and families. Moreover, regulatory changes aimed at increasing transparency and consumer protection have shaped the competitive landscape of the insurance sector in Romania. These local dynamics play a crucial role in shaping the strategies and product offerings of insurance companies operating in the country.

Underlying macroeconomic factors: The development of the Life insurance market in Romania is closely linked to the country's overall economic performance. As the Romanian economy continues to grow, driven by factors such as increasing disposable income and a stable regulatory environment, the demand for life insurance products is expected to rise. Furthermore, the low penetration rate of life insurance in Romania compared to Western European countries indicates significant growth potential for insurers in the market. The combination of favorable macroeconomic conditions and evolving customer preferences is likely to drive further expansion and innovation in the Romanian Life insurance sector.

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.