Non-life insurances - Lebanon

Lebanon

The Non-life insurance market in Lebanon 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$2,407.00m.
This indicates a positive trend in the country's insurance sector.
In terms of individual spending, the average per capita expenditure in the Non-life insurance market is estimated to be US$461.20 in 2024.
This figure highlights the level of importance that individuals in Lebanon place on protecting their assets and mitigating risks through insurance coverage.
Furthermore, the market is anticipated to continue its growth trajectory, with an annual growth rate of 1.44% between 2024 and 2028.
This steady increase in the gross written premium is expected to result in a market volume of US$2,549.00m by 2028.
These numbers signify the potential for sustained expansion in the Non-life insurance sector in Lebanon over the next few years.
It is worth noting that in a global context, the United States leads the way in terms of generating gross written premium.
In 2024, the United States is projected to have a substantial market size of US$3,371.0bn.
This showcases the dominance of the US market and its significance on a global scale.
Overall, the Non-life insurance market in Lebanon is poised for growth, with favorable projections for the coming years.
The country's insurance sector is expected to play a vital role in safeguarding assets and providing financial security to individuals and businesses alike.
Lebanon's non-life insurance market is experiencing a surge in demand due to the increasing awareness of risk management among businesses and individuals.

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Analyst Opinion

The Non-life insurances market in Lebanon has been experiencing notable developments in recent years. Customer preferences in the Lebanese market are shifting towards more comprehensive and tailored insurance products, reflecting a growing awareness of the importance of risk management and financial protection. Customers are increasingly seeking policies that provide coverage for a wide range of risks, including property damage, motor vehicle accidents, and personal liability. Trends in the market indicate a growing demand for innovative insurance solutions that leverage technology to enhance customer experience and streamline processes. Insurtech companies are gaining traction in Lebanon, offering digital platforms for purchasing policies, managing claims, and accessing insurance-related information. This trend is driving traditional insurance providers to adapt their offerings and invest in digital capabilities to remain competitive. Local special circumstances in Lebanon, such as a relatively small market size and regulatory challenges, are influencing the dynamics of the Non-life insurances market. The industry is characterized by a high level of competition among insurance companies, leading to price wars and a focus on enhancing service quality to attract and retain customers. Additionally, the country's political and economic instability poses risks to the insurance sector, impacting consumer confidence and investment decisions. Underlying macroeconomic factors, including fluctuating exchange rates, inflation, and unemployment rates, are also shaping the Non-life insurances market in Lebanon. Economic uncertainties can affect consumer purchasing power and willingness to invest in insurance products, leading to fluctuations in demand and market growth. Insurance companies in Lebanon must navigate these macroeconomic challenges and adapt their strategies to mitigate risks and capitalize on opportunities for expansion.

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.