Non-life insurances - Luxembourg

Luxembourg

The Non-life insurance market in Luxembourg is expected to reach a projected market size (gross written premium) of US$2,355.00m in 2024.
In the same year, the average spending per capita in the Non-life insurance market is estimated to amount to US$3.56k.
The gross written premium is projected to exhibit an annual growth rate (CAGR 2024-2028) of 7.17%, resulting in a market volume of US$3,107.00m by 2028.
When compared globally, the United States is projected to generate the highest gross written premium, with US$3,371.0bn in 2024.
Luxembourg's non-life insurance market is thriving, driven by its robust economy and high demand for coverage in industries such as finance and technology.

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Analyst Opinion

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

Customer preferences: Customers in Luxembourg are increasingly seeking comprehensive non-life insurance coverage to protect their assets and mitigate risks. They are showing a preference for tailored insurance products that offer flexibility and customization to suit their individual needs and lifestyles.

Trends in the market: One notable trend in the Luxembourg non-life insurance market is the rising demand for cyber insurance as businesses and individuals become more aware of the risks associated with cyber threats. Another trend is the growing popularity of environmental liability insurance, driven by increasing environmental awareness and regulatory requirements in the country.

Local special circumstances: Luxembourg's status as a financial hub in Europe plays a significant role in shaping the non-life insurance market. The presence of numerous multinational corporations and high-net-worth individuals in the country creates a unique demand for specialized insurance products, such as directors and officers liability insurance and high-value property insurance.

Underlying macroeconomic factors: The stable economic environment in Luxembourg, coupled with a high standard of living, has contributed to the growth of the non-life insurance market. Additionally, the country's strong regulatory framework and reputation for financial stability have instilled confidence in both insurers and policyholders, driving further market 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.