Legal Insurance - Romania | Statista Market Forecast

The Legal Insurance market market in Romania is projected to reach a market size (gross written premium) of US$15.54m in 2024.
The average spending per capita in the Legal Insurance market market is expected to amount to US$0.79 in 2024.
Furthermore, the gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of -3.87%, resulting in a market volume of US$12.75m by 2029.
When compared globally, the United States is expected to generate the highest gross written premium of US$31.0bn in 2024.
Despite the relatively low penetration of legal insurance in Romania, there is a growing demand for these services due to increased awareness of legal rights among consumers.

Definition:

Legal insurance is a type of coverage that provides individuals and organizations with financial support for legal expenses. When you have legal insurance, you pay regular premiums, and in return, the insurer helps cover the costs of legal services, such as attorney fees and court-related expenses. This insurance is designed to make legal assistance more accessible and affordable, ensuring that policyholders have the necessary support when they encounter legal issues or require legal advice.

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.

Before-the-event legal protection insurance
After-the-event legal protection insurance

All other insurance types, such as life insurance and health insurance
Reinsurance

The Legal Insurance market in Romania has shown significant growth and development in recent years.

Customer preferences: Customers in Romania are increasingly seeking legal insurance coverage to protect themselves from unexpected legal expenses. With the rising awareness of legal rights and the complex nature of legal procedures, individuals and businesses are looking for insurance products that can provide them with financial support in case of legal disputes. This trend is in line with the global increase in demand for legal insurance as people aim to mitigate the risks associated with legal issues.

Trends in the market: One of the key trends in the Romanian Legal Insurance market is the introduction of specialized legal insurance products tailored to different customer segments. Insurers are offering policies that cater to the specific needs of individuals, small businesses, and large corporations. This trend reflects the growing diversification of the market and the efforts of insurance companies to meet the evolving demands of customers. Additionally, there is a noticeable trend towards digitalization in the distribution and management of legal insurance products, making it more convenient for customers to access and utilize their policies.

Local special circumstances: Romania's Legal Insurance market is also influenced by local regulations and cultural factors. The legal system in Romania is undergoing reforms to enhance transparency and efficiency, which is driving the demand for legal insurance among individuals and businesses. Moreover, the increasing number of cross-border transactions and investments in Romania is creating a need for specialized legal insurance products that can address the complexities of international legal issues. These unique circumstances are shaping the landscape of the Legal Insurance market in Romania and prompting insurers to innovate their product offerings.

Underlying macroeconomic factors: The growth of the Legal Insurance market in Romania is further supported by favorable macroeconomic conditions. The country's stable economic growth, improving disposable incomes, and expanding middle class are contributing to the overall increase in demand for insurance products, including legal insurance. Moreover, the competitive landscape of the insurance sector in Romania is driving insurers to differentiate their offerings and provide value-added services to attract and retain customers. These macroeconomic factors are creating a conducive environment for the development of the Legal Insurance market in Romania.

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.