Non-life insurances - Cyprus

Cyprus

The Non-life insurance market in Cyprus is expected to reach a market size (gross written premium) of US$1,628.00m by 2024.
The average spending per capita in the Non-life insurance market is projected to be US$1,284.00 in 2024.
With an annual growth rate (CAGR 2024-2028) of 3.39%, the gross written premium is estimated to increase, resulting in a market volume of US$1,860.00m by 2028.
When compared globally, the United States is anticipated to generate the highest gross written premium in the Non-life insurance market, reaching US$3,371.0bn in 2024.
Cyprus has seen a significant increase in demand for non-life insurance products, driven by the growing awareness of the importance of insurance coverage and the need for protection against potential risks.

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Analyst Opinion

The Non-life insurances market in Cyprus has been experiencing notable growth and development in recent years.

Customer preferences: Customers in Cyprus are increasingly seeking comprehensive non-life insurance coverage to protect their assets and mitigate risks. This trend is in line with global preferences for robust insurance policies that provide financial security in the face of unforeseen events.

Trends in the market: One of the key trends in the non-life insurance market in Cyprus is the rising demand for property insurance, driven by the country's growing real estate market and the need to safeguard properties against various risks such as natural disasters and theft. Additionally, there is a noticeable increase in the uptake of motor insurance policies, reflecting the expanding number of vehicles on the road and the importance of having adequate coverage.

Local special circumstances: Cyprus's geographical location in the Eastern Mediterranean makes it susceptible to natural disasters such as earthquakes and storms, leading to a higher demand for insurance products that offer protection against these specific risks. Moreover, the country's status as an international business hub has resulted in a greater need for liability insurance among businesses operating in various sectors.

Underlying macroeconomic factors: The overall economic stability and steady growth in Cyprus have contributed to the increasing purchasing power of consumers, enabling them to invest in non-life insurance products to secure their assets and possessions. Additionally, regulatory reforms and initiatives aimed at strengthening the insurance sector have bolstered consumer confidence and encouraged more individuals and businesses to opt for comprehensive insurance coverage.

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.