Life insurance - Timor-Leste

Timor-Leste

The Life insurance market market in Timor-Leste is projected to reach a market size (gross written premium) of US$156.60m in 2024.
The average spending per capita in the Life insurance market market is expected to amount to US$113.50 in 2024.
Furthermore, the gross written premium is projected to exhibit an annual growth rate (CAGR 2024-2029) of 4.16%, resulting in a market volume of US$192.00m by 2029.
It is worth noting that, in comparison to other countries worldwide, the United States is expected to generate the highest gross written premium, with an estimated value of US$1,288.0bn in 2024.
Timor-Leste's life insurance market is experiencing significant growth due to increasing awareness and demand for financial protection among the country's population.

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Analyst Opinion

The Life insurance market in Timor-Leste has been experiencing notable growth and development in recent years. Customer preferences in Timor-Leste indicate a growing awareness and interest in life insurance products, driven by an increasing desire for financial security and protection among individuals and families. Customers are increasingly looking for comprehensive life insurance coverage that can provide them with peace of mind and stability in an uncertain future. Trends in the market show a shift towards more innovative life insurance products tailored to the specific needs and preferences of the Timorese population. Insurers are introducing new and customized policies that offer a range of benefits such as savings, investment opportunities, and additional coverage options to attract a wider customer base. Local special circumstances, such as a relatively small population and emerging economy, play a significant role in shaping the life insurance market in Timor-Leste. The market is characterized by a limited number of insurance providers, leading to increased competition among companies to offer unique and competitive life insurance products to attract customers. Underlying macroeconomic factors, including steady economic growth, rising disposable incomes, and increasing financial literacy, are contributing to the expansion of the life insurance market in Timor-Leste. As the country continues to develop and modernize, more individuals are recognizing the importance of life insurance as a crucial component of their overall financial planning and security.

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.