Insurances - Montenegro

Montenegro

The Insurances market in Montenegro is projected to reach a gross written premium of US$655.60m in 2024.
Dominating the market, Non-Life Insurances are expected to have a market volume of US$628.50m in the same year.
The average spending per capita in the Insurances market is estimated to be US$1,047.00 in 2024.
When comparing globally, it is evident that the United States will have the highest nominal value, reaching US$3,788.0bn in 2024.
The gross written premium is anticipated to grow at an annual rate of 2.60% (CAGR 2024-2029), resulting in a market volume of US$745.50m by 2029.
In the global market, the United States will continue to generate the highest gross written premium of US$3,788.0bn in 2024.
Montenegro's insurance market is experiencing a surge in demand for property and casualty insurance due to the country's growing tourism industry.

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Analyst Opinion

Over the past few years, the Insurances market in Montenegro has been experiencing significant growth and development.

Customer preferences: Customers in Montenegro are increasingly seeking insurance products that offer comprehensive coverage at competitive prices. They are also showing a growing interest in digital insurance services, such as online policy management and claims processing, reflecting a global trend towards digitalization in the insurance industry.

Trends in the market: One notable trend in the Montenegrin insurance market is the increasing demand for property and casualty insurance, driven by factors such as urbanization and infrastructure development. Additionally, there is a growing awareness among consumers about the importance of life and health insurance, leading to an uptick in sales of these types of policies.

Local special circumstances: Montenegro's geographical location and tourist attractions have a significant impact on its insurance market. The country's coastal areas, known for their beautiful beaches and historic sites, attract a large number of tourists each year. This influx of visitors creates opportunities for insurance companies to offer specialized travel and health insurance products tailored to the needs of tourists.

Underlying macroeconomic factors: The overall economic stability and growth in Montenegro play a crucial role in the development of the insurance market. As the economy expands, individuals and businesses have more disposable income to spend on insurance products, driving market growth. Additionally, regulatory reforms and efforts to enhance transparency in the insurance sector have helped boost consumer confidence and increase market competitiveness.

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.