Non-life insurances - Dominican Republic

The Non-life insurance market in the Dominican Republic is projected to reach a market size (gross written premium) of US$3.94bn in 2024.
In the same year, the average spending per capita in the Non-life insurance market is estimated to be US$344.80.
Looking ahead, the gross written premium is expected to experience an annual growth rate (CAGR 2024-2029) of 2.80%, resulting in a market volume of US$4.53bn by 2029.
When comparing globally, it is worth noting that the United States is projected to generate the highest gross written premium, reaching US$2.5tn in 2024.
In the Dominican Republic, the non-life insurance market is experiencing significant growth due to an increase in infrastructure development and tourism.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

Live insurances
Other non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Non-life insurances market in Dominican Republic has been experiencing notable developments in recent years. Customer preferences in the Dominican Republic are shifting towards more comprehensive insurance coverage to protect against various risks such as natural disasters, accidents, and theft. This trend mirrors the global inclination towards seeking robust insurance solutions that provide a sense of security and stability in an unpredictable world. Trends in the market indicate a growing demand for innovative insurance products tailored to the specific needs of Dominican consumers. Insurers are adapting their offerings to include more flexible policies and value-added services to attract and retain customers in a competitive landscape. This trend is in line with the evolving insurance market dynamics observed in other regions, where customization and customer-centric approaches are becoming increasingly important. Local special circumstances, such as the susceptibility of the Dominican Republic to hurricanes and other natural disasters, play a significant role in shaping the non-life insurance market. Insurers in the region are focusing on developing specialized products that address these unique risks and provide adequate coverage to policyholders. This localized approach sets the Dominican insurance market apart from others and underscores the importance of catering to specific environmental and socio-economic factors. Underlying macroeconomic factors, including the country's economic growth, regulatory environment, and demographic trends, also influence the non-life insurance market in the Dominican Republic. As the economy continues to expand and consumer purchasing power increases, there is a corresponding rise in the demand for insurance products. Moreover, government initiatives to enhance insurance penetration and promote financial inclusion contribute to the overall growth and development of the non-life insurance sector in the country.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.