General Liability Insurance - Puerto Rico

The General Liability Insurance market market in Puerto Rico is projected to reach a market size (gross written premium) of US$286.00m in 2024.
The average spending per capita in the General Liability Insurance market market is expected to amount to US$87.48 in 2024.
It is projected that the gross written premium will show an annual growth rate (CAGR 2024-2029) of 4.26%, resulting in a market volume of US$352.30m by 2029.
In global comparison, the United States is expected to generate the highest gross written premium of US$178.4bn in 2024.
The general liability insurance market in Puerto Rico is experiencing a surge in demand due to increased awareness of potential risks and the need for comprehensive coverage.

Definition:

General liability insurance is a type of coverage that offers protection to businesses and individuals against financial losses resulting from third-party claims of bodily injury, property damage, or personal injury. When you have general liability insurance, you pay regular premiums to an insurer, and in return, the insurer helps cover legal costs, settlements, and damages if you or your business are found liable for causing harm to others. This insurance is vital for shielding individuals and businesses from the financial repercussions of legal claims and liabilities arising from accidents or incidents that occur on their premises or as a result of their actions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Liability insurance booked for individuals and businesses

Motor vehicles liability
Aircraft liability
Liability for ships
Reinsurance

The General Liability Insurance market in Puerto Rico is experiencing notable shifts and developments.

Customer preferences: Customers in Puerto Rico are increasingly seeking comprehensive General Liability Insurance coverage that not only protects their businesses from potential risks and lawsuits but also provides added value through additional services and benefits. This shift in preference towards more inclusive insurance packages is driving insurers to offer tailored solutions to meet the evolving needs of businesses in the region.

Trends in the market: One notable trend in the General Liability Insurance market in Puerto Rico is the growing demand for specialized coverage options, such as product liability and professional liability insurance. As businesses become more aware of the specific risks they face in their respective industries, there is a rising need for insurance products that address these unique challenges. Insurers are responding by developing niche insurance products to cater to these specialized needs.

Local special circumstances: Puerto Rico's geographical location and susceptibility to natural disasters such as hurricanes and earthquakes play a significant role in shaping the General Liability Insurance market in the region. The heightened risk of natural disasters has led businesses to prioritize comprehensive liability insurance coverage to protect themselves from potential damages and liabilities arising from unforeseen events. This unique local circumstance has created a market environment where insurers must offer robust coverage options that address the specific risks associated with operating in Puerto Rico.

Underlying macroeconomic factors: The economic landscape of Puerto Rico, characterized by periods of economic instability and recovery, influences the General Liability Insurance market in the region. As businesses navigate through economic uncertainties, there is a growing awareness of the importance of having adequate liability insurance coverage to safeguard their operations and assets. This awareness is driving the uptake of General Liability Insurance among businesses of all sizes, contributing to the overall growth of the market in Puerto Rico.

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.