Non-life insurances - Iceland

Iceland

The Non-life insurance market in Iceland is expected to witness significant growth in the coming years.
By 2024, the market size, measured by the gross written premium, is projected to reach US$448.50m.
This indicates a strong potential for the insurance industry in the country.
Furthermore, the average spending per capita in the Non-life insurance market is estimated to be US$1,187.00 in 2024.
This figure reflects the willingness of individuals in Iceland to invest in insurance coverage to protect their assets and mitigate potential risks.
Looking ahead, the gross written premium is anticipated to exhibit an annual growth rate of -3.48% from 2024 to 2029, resulting in a market volume of US$375.80m by 2029.
This growth trajectory indicates a positive outlook for the Non-life insurance sector in Iceland.
In a global context, it is worth noting that the United States is projected to generate the highest gross written premium in the Non-life insurance market, amounting to US$2,500.0bn in 2024.
This reflects the size and maturity of the insurance industry the United States, making it a dominant player on the global stage.
Overall, the Non-life insurance market in Iceland is poised for growth, with promising market size projections and a strong per capita spending trend.
This underscores the importance of insurance coverage in protecting individuals and businesses in the country.
The non-life insurance market in Iceland is experiencing a surge in demand due to the country's high risk of natural disasters, such as volcanic eruptions and earthquakes.

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Analyst Opinion

The Non-life insurances market in Iceland has been experiencing notable developments in recent years.

Customer preferences: Customers in Iceland have shown a growing interest in non-life insurance products that offer comprehensive coverage and additional benefits. They are increasingly looking for customizable insurance plans that cater to their specific needs and provide a sense of security in various aspects of their lives.

Trends in the market: One noticeable trend in the Icelandic non-life insurance market is the increasing demand for digital insurance solutions. Customers are leaning towards online platforms for purchasing insurance policies, managing their accounts, and filing claims. This shift towards digitalization has prompted insurance providers to enhance their online presence and offer user-friendly interfaces to attract tech-savvy customers.

Local special circumstances: Iceland's unique geographical location and natural phenomena like volcanic eruptions and geothermal activities have influenced the non-life insurance market in the country. Insurance providers have tailored their offerings to include coverage for natural disasters, ensuring that customers are protected against unforeseen events specific to Iceland's environment.

Underlying macroeconomic factors: The stability of Iceland's economy and its steady growth have contributed to the development of the non-life insurance market. As the country's GDP continues to rise, individuals and businesses are more inclined to invest in insurance policies to safeguard their assets and mitigate risks. Additionally, favorable government regulations and a competitive insurance landscape have fostered innovation and product diversification in the market.

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.