Life insurance - Slovakia

Slovakia

The Life insurance market market in Slovakia is expected to reach a market size (gross written premium) of US$1.07bn in 2024.
The average spending per capita in the Life insurance market market is projected to amount to US$0.19k in 2024.
Furthermore, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 5.97%, resulting in a market volume of US$1.43bn by 2029.
In comparison to other countries worldwide, the United States is projected to generate the highest gross written premium of US$1,288.0bn in 2024.
In Slovakia, there is a growing trend towards personalized life insurance policies that cater to individuals' unique needs and preferences.

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Analyst Opinion

The Life insurance market in Slovakia has been experiencing steady growth over the past few years.

Customer preferences: Customers in Slovakia are increasingly valuing life insurance products as a means of securing their financial future and protecting their loved ones. The shift towards long-term financial planning and risk mitigation has led to a rise in demand for life insurance policies that offer comprehensive coverage and investment opportunities.

Trends in the market: One notable trend in the Slovakian life insurance market is the growing popularity of unit-linked insurance products. These policies combine life insurance coverage with investment options, allowing policyholders to potentially grow their wealth over time. Additionally, there is a noticeable trend towards customization, with insurance companies offering tailored solutions to meet the diverse needs of customers.

Local special circumstances: Slovakia's relatively stable economy and increasing disposable income levels have contributed to the positive growth trajectory of the life insurance market. The country's aging population is also a significant factor driving the demand for life insurance, as individuals seek to ensure financial security in their later years. Moreover, the regulatory environment in Slovakia is conducive to the development of the insurance sector, providing a level of consumer protection and promoting market stability.

Underlying macroeconomic factors: The overall economic stability and steady GDP growth in Slovakia have bolstered consumer confidence and willingness to invest in life insurance products. Low interest rates have incentivized individuals to seek alternative investment opportunities, further fueling the demand for life insurance policies with investment components. Additionally, the increasing awareness of the importance of financial planning and risk management in an uncertain world has prompted more people in Slovakia to consider life insurance as a key component of their financial strategy.

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.