Life insurance - Switzerland | Statista Market Forecast

The Life insurance market market in Switzerland is expected to reach a market size (gross written premium) of US$22.98bn in 2024.
On average, each person in Switzerland is projected to spend US$2.60k on Life insurance market in the same year.
The market is expected to grow at an annual rate of 1.46% between 2024 and 2029, resulting in a market volume of US$24.71bn by 2029.
In comparison to other countries, the United States is forecasted to generate the highest gross written premium of US$1.3tn in 2024.
Switzerland's life insurance market is experiencing a surge in demand as consumers prioritize long-term financial security and protection amidst economic uncertainty.

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

Switzerland, known for its stability and strong financial sector, has a well-established life insurance market that continues to evolve.

Customer preferences: Customers in Switzerland tend to prioritize financial security and long-term planning, making life insurance a popular choice. The preference for comprehensive coverage and investment-linked policies aligns with the country's culture of risk aversion and wealth preservation.

Trends in the market: One notable trend in the Swiss life insurance market is the growing demand for sustainable and socially responsible investment options. As environmental, social, and governance (ESG) considerations gain prominence globally, Swiss insurers are adapting their product offerings to cater to this shift in customer preferences. Additionally, the rise of digital distribution channels is reshaping how life insurance products are marketed and sold in Switzerland, with insurers leveraging technology to enhance customer experience and streamline processes.

Local special circumstances: Switzerland's position as a global financial hub influences its life insurance market dynamics. The presence of multinational insurance companies and a highly competitive landscape drive innovation and product diversification. Moreover, the country's aging population and low interest rates present challenges for insurers in terms of managing risk and ensuring profitability. Swiss insurers must navigate regulatory requirements and market conditions to sustain growth in this competitive environment.

Underlying macroeconomic factors: The Swiss life insurance market is also influenced by broader macroeconomic factors such as economic growth, inflation rates, and monetary policy. As the Swiss economy continues to recover from the impact of the COVID-19 pandemic, insurers face opportunities and challenges in terms of investment returns and premium growth. The low interest rate environment in Switzerland poses challenges for insurers' investment portfolios, requiring them to adopt alternative strategies to generate returns while managing risk effectively. Additionally, regulatory developments and changing consumer behaviors shape the future trajectory of the life insurance market in Switzerland.

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.