Non-life insurances - Brunei Darussalam

Brunei Darussalam

The Non-life insurance market in Brunei Darussalam is expected to witness significant growth in the coming years.
According to projections, the market size, measured by the gross written premium, is set to reach US$769.90m in 2024.
This indicates a promising potential for insurance providers in the country.
Furthermore, the average spending per capita in the Non-life insurance market is estimated to be US$1,689.00 in 2024.
This suggests that individuals in Brunei Darussalam are increasingly recognizing the importance of insurance coverage and are willing to invest in their protection.
The market is anticipated to experience a steady growth rate in the coming years, with a projected annual growth rate (CAGR 2024-2029) of 3.40%.
This positive trend is expected to result in a market volume of US$910.10m by 2029.
This indicates a lucrative opportunity for insurance companies operating in the Non-life insurance segment in Brunei Darussalam.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium, amounting to US$2,500.0bn in 2024.
This highlights the significant size of the US market and its dominance in the global insurance industry.
Brunei Darussalam's non-life insurance market is experiencing a surge in demand driven by the country's robust economic growth and increasing awareness about risk management.

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Analyst Opinion

Over the past few years, the Non-life insurances market in Brunei Darussalam has shown steady growth and development.

Customer preferences: Customers in Brunei Darussalam are increasingly seeking comprehensive non-life insurance coverage to protect their assets and mitigate risks. There is a growing awareness among consumers about the importance of insurance in safeguarding their belongings against unforeseen events. As a result, there is a rising demand for various types of non-life insurance products such as property, motor, and travel insurance.

Trends in the market: One of the key trends in the non-life insurance market in Brunei Darussalam is the increasing adoption of digital channels for insurance purchases. Customers are now more inclined to buy insurance online due to its convenience and accessibility. This shift towards digitalization has prompted insurance companies to enhance their online presence and offer seamless digital experiences to cater to evolving customer preferences.

Local special circumstances: Brunei Darussalam's stable economy and high standard of living have contributed to the growth of the non-life insurance market. With a relatively affluent population, there is a greater capacity for individuals to invest in insurance products to protect their assets. Moreover, the government's initiatives to promote insurance awareness and literacy have also played a significant role in driving the expansion of the non-life insurance sector in the country.

Underlying macroeconomic factors: The overall economic stability and steady GDP growth in Brunei Darussalam have provided a favorable environment for the non-life insurance market to thrive. As the economy continues to diversify and expand, there is an increasing need for insurance coverage to safeguard against potential risks and uncertainties. Additionally, the government's focus on promoting financial security and resilience has further bolstered the demand for non-life insurance products among individuals and businesses 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.