Insurances

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$1.05k in 2024.
When comparing globally, it is evident that the United States will have the highest nominal value, reaching US$3.8tn 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$3.8tn 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.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. 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.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

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, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

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.

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.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.