Non-life insurances - Laos

Laos

The Non-life insurance market in Laos is expected to see significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is set to reach US$931.60m by 2024.
This indicates a positive trajectory for the industry in the country.
Furthermore, the average spending per capita in the Non-life insurance market is estimated to be US$120.40 in 2024.
This metric provides insight into the individual contribution to the overall market size, showcasing the potential for growth at an individual level.
Looking ahead, the market is anticipated to continue expanding, with an annual growth rate (CAGR 2024-2028) of -2.51%.
This growth is expected to result in a market volume of US$841.50m by 2028.
These numbers highlight the steady progress and increasing demand for Non-life insurance products in Laos.
In a global context, it is worth noting that the United States is currently the leader in terms of gross written premium.
In 2024, the United States is projected to generate a staggering US$3,371.0bn in gross written premium in the Non-life insurance market.
This showcases the substantial market size and dominance of the United States in the global landscape.
Overall, the Non-life insurance market in Laos is poised for growth in the coming years, with promising projections and a positive outlook.
Laos has witnessed a significant rise in the demand for non-life insurances, driven by increasing awareness of risk management among businesses and individuals.

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Analyst Opinion

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

Customer preferences: Customers in Laos are increasingly seeking non-life insurance products to protect their assets and properties against various risks. With the growing awareness of the importance of insurance coverage, there is a rising demand for motor insurance, property insurance, and health insurance among individuals and businesses in the country.

Trends in the market: One noticeable trend in the non-life insurance market in Laos is the emergence of innovative insurance products tailored to meet the specific needs of customers. Insurance companies are introducing new and customized insurance solutions to cater to different segments of the market, thereby driving growth and expanding the overall market size. Additionally, the digitalization of insurance services is gaining momentum, making it more convenient for customers to purchase and manage their insurance policies online.

Local special circumstances: Laos, being a developing country, is undergoing rapid urbanization and infrastructure development. This growth presents opportunities for the non-life insurance market, particularly in the construction and property insurance sectors. As more infrastructure projects are being undertaken, there is a growing need for insurance coverage to mitigate risks associated with these projects. Moreover, the increasing number of vehicles on the roads is boosting the demand for motor insurance in the country.

Underlying macroeconomic factors: The stable economic growth in Laos is contributing to the expansion of the non-life insurance market. As the economy continues to develop, individuals and businesses are becoming more willing to invest in insurance products to safeguard their assets and mitigate potential financial losses. Furthermore, the regulatory environment in Laos is becoming more conducive to the insurance industry, fostering competition and innovation among insurance providers.

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.