Non-life insurances - Cuba

Cuba

The Non-life insurance market in Cuba is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is anticipated to reach US$5,410.00m in 2024.
This reflects the total value of insurance policies written during that period.
Furthermore, the average spending per capita on Non-life insurance is forecasted to be US$484.20 in 2024.
This figure represents the average amount spent by each individual on insurance policies within the Non-life insurance market.
Looking ahead, the market is expected to experience a steady annual growth rate of 4.38% between 2024 and 2029.
This compound annual growth rate (CAGR) suggests that the market volume will expand to US$6,703.00m by 2029.
In terms of global comparison, it is noteworthy that the United States is anticipated to generate the highest gross written premium in 2024.
The projected figure for the United States is an impressive US$2,500.0bn, which highlights the substantial market size and potential of the country.
Overall, the Non-life insurance market in Cuba is expected to witness robust growth in the coming years, with projections indicating a significant increase in market size and spending per capita.
Cuba's non-life insurance market is experiencing slow growth due to limited foreign investment and government control.

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Analyst Opinion

The Non-life insurance market in Cuba is experiencing notable growth and development.

Customer preferences: Customers in Cuba are increasingly seeking non-life insurance coverage to protect their assets and investments. With a growing awareness of the importance of risk management, individuals and businesses are looking for insurance products that can provide financial security in case of unexpected events such as natural disasters or accidents.

Trends in the market: One of the key trends in the non-life insurance market in Cuba is the introduction of new and innovative insurance products tailored to the specific needs of the local population. Insurers are diversifying their offerings to include policies that cover a wide range of risks, from property damage to liability protection. Additionally, there is a growing trend towards digitalization in the insurance sector, with more customers opting to purchase policies online for convenience and efficiency.

Local special circumstances: Cuba's unique geopolitical situation and historical context play a significant role in shaping the non-life insurance market. The country's socialist system has traditionally provided a safety net for its citizens, but with ongoing economic reforms and increasing privatization, there is a growing demand for private insurance solutions. The government's efforts to attract foreign investment and promote entrepreneurship are also driving the need for comprehensive insurance coverage in the country.

Underlying macroeconomic factors: The improving economic conditions in Cuba, coupled with rising disposable incomes, are fueling the growth of the non-life insurance market. As individuals and businesses accumulate wealth, they are more inclined to protect their assets through insurance policies. Additionally, regulatory reforms aimed at strengthening the insurance sector and increasing competition are creating a more dynamic market environment, leading to greater innovation and product offerings.

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.