Non-life insurances - Croatia

Croatia

The Non-life insurance market in Croatia is expected to witness significant growth in the coming years.
By 2024, the market size, measured by gross written premium, is projected to reach US$2,383.00m.
This demonstrates the country's potential for expansion in this sector.
Furthermore, the average spending per capita in the Non-life insurance market is estimated to amount to US$597.70 in 2024.
This indicates the level of individual expenditure on insurance coverage in Croatia.
Looking ahead, the gross written premium is expected to exhibit an annual growth rate, known as the Compound Annual Growth Rate (CAGR), of -0.66% between 2024 and 2028.
This steady growth is anticipated to result in a market volume of US$2,321.00m by 2028.
It is worth noting that, in global comparison, the United States is expected to generate the highest gross written premium in the Non-life insurance market.
With a projected amount of US$3,371.0bn in 2024, the United States holds a dominant position in this industry.
Overall, the Non-life insurance market in Croatia shows promising opportunities for growth and development.
With the projected increase in market size and per capita spending, the country is poised to make significant strides in this sector.
In Croatia, the non-life insurance market is experiencing a surge in demand due to increased awareness about the importance of insurance coverage for property and motor vehicles.

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Analyst Opinion

The Non-life insurance market in Croatia is experiencing steady growth and development, driven by various factors influencing consumer behavior and market dynamics.

Customer preferences: Customers in Croatia are increasingly valuing non-life insurance products that offer comprehensive coverage and competitive pricing. There is a growing demand for motor vehicle insurance, property insurance, and health insurance among individuals and businesses. Additionally, customers are showing interest in customizable insurance plans that cater to their specific needs and provide added benefits.

Trends in the market: One notable trend in the Croatian non-life insurance market is the rising adoption of digital channels for purchasing insurance policies and managing claims. Insurers are leveraging technology to enhance customer experience, streamline processes, and offer innovative products. Moreover, there is a shift towards sustainable and environmentally friendly insurance solutions, reflecting the global trend towards corporate social responsibility and sustainability.

Local special circumstances: Croatia's unique geographical location and tourism industry play a significant role in shaping the non-life insurance market. The country's exposure to natural disasters such as earthquakes and floods drives the demand for property insurance coverage. Additionally, the tourism sector necessitates specialized insurance products to cater to the needs of hotels, restaurants, and other hospitality businesses.

Underlying macroeconomic factors: The economic stability and growth in Croatia contribute to the positive outlook for the non-life insurance market. As disposable incomes rise and the standard of living improves, individuals and businesses are more inclined to invest in insurance products for financial protection and risk management. Furthermore, regulatory reforms and initiatives aimed at enhancing the insurance sector's efficiency and transparency are creating a conducive environment for market expansion.

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.