Legal Insurance - South America | Statista Market Forecast

The Legal Insurance market market in South America is expected to reach a market size (gross written premium) of US$654.20m by 2024.
In the same year, the average spending per capita in the Legal Insurance market market is projected to be US$1.58.
With an annual growth rate (CAGR 2024-2029) of 0.93%, the gross written premium is anticipated to increase, resulting in a market volume of US$31.0bn by 2029.
When comparing the global market, the United States is expected to generate the highest gross written premium of US$31.0bn in 2024.
In South America, the legal insurance market is experiencing significant growth due to increasing demand for legal protection and the complexity of legal systems in the region.

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 South America is experiencing significant growth and development.

Customer preferences: Customers in South America are increasingly recognizing the importance of legal insurance to protect themselves and their businesses from unexpected legal expenses. With the rising awareness of legal rights and the complex legal landscape in the region, individuals and businesses are seeking comprehensive legal insurance coverage to mitigate financial risks associated with legal issues.

Trends in the market: In Brazil, the largest legal insurance market in South America, there is a growing trend of companies offering legal insurance as part of their employee benefits package. This shift is driven by the need to attract and retain top talent in a competitive market while providing employees with added security and peace of mind. Additionally, there is an increasing demand for specialized legal insurance products tailored to specific industries such as healthcare, construction, and technology.

Local special circumstances: In Argentina, the legal insurance market is influenced by the country's economic fluctuations and regulatory environment. As businesses navigate through legal challenges in a volatile economy, there is a growing demand for legal insurance to safeguard their interests. Moreover, the legal system in Argentina is known for its complexity, leading individuals and businesses to seek legal insurance coverage to ensure access to quality legal representation.

Underlying macroeconomic factors: The growth of the legal insurance market in South America is also supported by favorable macroeconomic factors such as increasing disposable income, urbanization, and regulatory reforms. As the middle class expands and urban populations grow, there is a greater need for legal protection and assistance in navigating legal matters. Furthermore, government initiatives to streamline legal processes and improve access to justice are driving the demand for legal insurance products across the region.

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.

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