Life insurance - South America | Statista Market Forecast

The Life insurance market market in South America is expected to reach a market size (gross written premium) of US$51.42bn in 2024.
The average spending per capita in the Life insurance market market is projected to be US$124.40 in the same year.
It is anticipated that the gross written premium will showcase an annual growth rate (CAGR 2024-2029) of 0.22%, resulting in a market volume of US$51.98bn by 2029.
In comparison to other countries worldwide, the United States is estimated to generate the highest gross written premium of US$1.3tn in 2024.
In South America, the life insurance market is experiencing a surge in demand driven by a growing middle class and increasing awareness about financial security.

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

The Life insurance market in South America has been experiencing significant growth and development in recent years. Customer preferences in the South American life insurance market are shifting towards more comprehensive coverage options that offer not only financial protection but also investment opportunities. Customers are increasingly looking for policies that provide long-term benefits and flexibility to adapt to their changing needs and lifestyles. Trends in the market show a rise in demand for unit-linked and whole life insurance products in countries like Brazil and Chile. Unit-linked policies are attractive to customers seeking investment opportunities, while whole life insurance offers a combination of protection and savings benefits. Additionally, there is a growing interest in digital insurance services, with more customers opting to purchase policies online or through mobile apps. Local special circumstances, such as regulatory changes and increasing competition among insurance providers, are shaping the life insurance market in South America. Regulatory reforms aimed at enhancing consumer protection and improving transparency have influenced the product offerings and sales practices of insurance companies. Moreover, the presence of both domestic and international insurance providers has created a dynamic market environment with a wide range of options for customers to choose from. Underlying macroeconomic factors, including economic growth, demographic trends, and inflation rates, play a crucial role in driving the development of the life insurance market in South America. As the region's economies continue to expand and the middle-class population grows, there is a greater awareness of the need for financial security and protection against unforeseen events. Additionally, low-interest rates and inflation levels have prompted individuals to seek life insurance policies as a means of safeguarding their assets and securing their financial future.

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.