Non-life insurances - Bhutan

Bhutan

The Non-life insurance market in Bhutan is expected to witness significant growth in the coming years.
By 2024, the market size, measured by the gross written premium, is projected to reach US$631.90m.
This indicates a strong potential for expansion and development in the insurance sector within the country.
Furthermore, the average spending per capita in the Non-life insurance market is estimated to amount to US$797.50 in 2024.
This demonstrates a growing awareness and willingness among Bhutanese individuals to invest in insurance products to protect their assets and mitigate potential risks.
Looking ahead, the market is anticipated to exhibit a steady annual growth rate of 1.22% between 2024 and 2028.
This growth trajectory is expected to contribute to a market volume of US$663.20m by 2028.
These figures highlight the positive outlook for the Non-life insurance market in Bhutan, indicating increasing demand and opportunities for insurers operating within the country.
When comparing Bhutan's Non-life insurance market to the global landscape, it is worth noting that the United States dominates in terms of gross written premium.
In 2024, the United States is projected to generate a substantial gross written premium amounting to US$3,371.0bn.
This showcases the significant size and influence of the US insurance market on a global scale.
Overall, the Non-life insurance market in Bhutan is poised for growth and development, driven by factors such as rising awareness, increasing per capita spending, and a favorable market environment.
As the country continues to progress economically, the insurance industry is expected to play a crucial role in safeguarding assets and providing financial protection to individuals and businesses alike.
In Bhutan, the non-life insurance market is experiencing steady growth due to the increasing awareness and demand for coverage against natural disasters and accidents.

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Analyst Opinion

Over the past few years, the Non-life insurances market in Bhutan has shown significant growth and development.

Customer preferences: Customers in Bhutan are increasingly seeking comprehensive insurance coverage to protect their assets and mitigate risks. With rising awareness about the importance of insurance, there is a growing demand for non-life insurance products that cater to various needs such as property, health, and motor insurance.

Trends in the market: One notable trend in the Bhutanese non-life insurance market is the introduction of innovative products tailored to the local market. Insurers are offering customized solutions that resonate with the unique needs and preferences of Bhutanese customers. Additionally, the market is witnessing a shift towards digitalization, with more insurers adopting online platforms to enhance customer experience and accessibility.

Local special circumstances: Bhutan's insurance market is characterized by a relatively small population and limited competition among insurers. This presents both challenges and opportunities for insurance companies operating in the country. Insurers need to navigate regulatory requirements and cultural nuances to effectively penetrate the market and build trust with customers.

Underlying macroeconomic factors: The growth of the non-life insurance market in Bhutan is closely tied to the overall economic development of the country. As Bhutan continues to experience steady economic growth and rising disposable incomes, the demand for insurance products is expected to increase. Moreover, the government's initiatives to promote financial inclusion and risk management further support the expansion of the insurance sector in the country.

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.