Non-life insurances - El Salvador

El Salvador

The projected market size (gross written premium) of the Non-life insurances market market in El Salvador is expected to reach US$431.60m in 2024.
In the same year, the average spending per capita in the Non-life insurances market market is estimated to amount to US$67.48.
Looking ahead, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of 2.99%, resulting in a market volume of US$485.60m by 2028.
In comparison to other countries, the United States is predicted to generate the highest gross written premium of US$3,371.0bn in 2024.
The non-life insurance market in El Salvador is experiencing a surge in demand due to increased awareness and adoption of insurance products among the population.

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Analyst Opinion

The Non-life insurance market in El Salvador is experiencing significant growth and development.

Customer preferences: Customers in El Salvador are increasingly valuing non-life insurance products due to the rising awareness of the importance of financial protection against unforeseen events such as natural disasters, accidents, and theft. The demand for property and vehicle insurance is particularly high as individuals seek to safeguard their assets and investments.

Trends in the market: One noticeable trend in the non-life insurance market in El Salvador is the expansion of product offerings by insurance companies to cater to the specific needs of customers. Insurers are introducing innovative policies and packages that provide comprehensive coverage at competitive prices. Additionally, there is a growing trend towards digitalization in the industry, with more insurers offering online platforms for purchasing policies and managing claims efficiently.

Local special circumstances: In El Salvador, the non-life insurance market is influenced by the country's exposure to natural disasters such as hurricanes and earthquakes. This unique environmental factor drives the demand for insurance coverage against property damage and loss caused by these events. Moreover, the regulatory environment in El Salvador plays a crucial role in shaping the non-life insurance market, ensuring consumer protection and market stability.

Underlying macroeconomic factors: The overall economic stability and growth in El Salvador contribute to the increasing affordability of non-life insurance products for the population. As the economy expands and disposable incomes rise, more individuals and businesses are able to invest in insurance to mitigate risks and secure their financial well-being. Additionally, the government's efforts to promote financial literacy and insurance awareness further drive the growth of the non-life insurance market 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.