Life insurance - Western Asia

Western Asia

In 2024, the market size (gross written premium) of the Life insurance market market in Western Asia is projected to reach US$41.12bn.
The average spending per capita in this market is expected to amount to US$184.70.
Looking ahead, the gross written premium is projected to experience an annual growth rate of 2.91% (CAGR 2024-2029), resulting in a market volume of US$47.46bn by 2029.
When comparing globally, it is worth noting that the United States is anticipated to generate the highest gross written premium, reaching US$1,288.0bn in 2024.
Western Asian countries have seen a significant increase in demand for life insurance, driven by growing awareness of the importance of financial protection and the rising middle class.

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Region

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Currency

Analyst Opinion

The Life insurance market in Western Asia is experiencing a notable shift in consumer behavior and market dynamics.

Customer preferences: Customers in Western Asia are increasingly valuing financial security and long-term planning, which has led to a growing demand for life insurance products. The desire to protect family members and secure assets in the face of economic uncertainties is a key driver for individuals seeking life insurance coverage.

Trends in the market: In countries like the United Arab Emirates and Saudi Arabia, there is a noticeable trend towards the adoption of unit-linked and investment-linked life insurance products. These products offer not only protection but also investment opportunities, appealing to customers looking for dual benefits. Additionally, the rise of digital platforms and InsurTech solutions is making life insurance more accessible and convenient for tech-savvy consumers in the region.

Local special circumstances: Western Asia is known for its young and rapidly growing population, presenting a unique opportunity for life insurance providers to tap into a large market of potential customers. Moreover, the cultural emphasis on family and tradition in countries like Qatar and Kuwait contributes to the importance placed on securing the financial future of loved ones through life insurance policies.

Underlying macroeconomic factors: The economic diversification efforts in countries such as Bahrain and Oman are driving overall economic growth and increasing disposable incomes. As a result, more individuals in Western Asia are able to afford life insurance coverage, fueling the expansion of the market. Additionally, regulatory reforms aimed at enhancing transparency and consumer protection are boosting confidence in the life insurance sector across the region.

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.