Life insurance - Southern Europe

Southern Europe

The Life insurance market market in Southern Europe is expected to reach a market size (gross written premium) of US$149.70bn in 2024.
The average spending per capita in the Life insurance market market is projected to be US$0.63k in 2024.
Furthermore, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of -0.59%, resulting in a market volume of US$145.30bn by 2029.
In comparison to other countries globally, the United States is predicted to generate the highest gross written premium of US$1,288.0bn in 2024.
In Southern Europe, Italy's life insurance market is experiencing a shift towards digital platforms to cater to the tech-savvy customer base.

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Analyst Opinion

The Life insurance market in Southern Europe is experiencing a shift in customer preferences, market trends, and local special circumstances that are shaping its development.

Customer preferences: Customers in Southern Europe are increasingly seeking life insurance products that offer not only financial security but also investment opportunities. There is a growing interest in policies that provide both protection and potential returns, reflecting a desire for comprehensive coverage.

Trends in the market: In countries like Spain and Italy, there is a noticeable trend towards unit-linked life insurance products, where policyholders can allocate their premiums to investment funds. This shift indicates a preference for more dynamic and flexible insurance options that have the potential for higher returns based on market performance.

Local special circumstances: Southern Europe's life insurance market is also influenced by unique local circumstances, such as demographic changes and cultural attitudes towards financial planning. With an aging population and increasing awareness of the importance of long-term financial security, there is a growing demand for retirement-focused life insurance products in the region.

Underlying macroeconomic factors: The development of the life insurance market in Southern Europe is further influenced by macroeconomic factors such as interest rates and regulatory changes. Low interest rates in the region have pushed insurers to innovate and offer more diverse products to attract customers seeking alternative investment opportunities. Additionally, regulatory developments aimed at enhancing consumer protection and transparency are shaping the competitive landscape of the market.

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.