Non-life insurances - Mongolia

Mongolia

The Non-life insurance market in Mongolia is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is estimated to reach US$1,145.00m by 2024.
This indicates a positive trend in the country's insurance sector.
Furthermore, the average spending per capita in the Non-life insurance market is anticipated to be US$327.70 in 2024.
This signifies the level of individual contributions towards insurance coverage withMongolia.
Looking ahead, the market is expected to demonstrate a steady annual growth rate of 4.50% from 2024 to 2029.
This growth trajectory is projected to result in a market volume of US$1,427.00m by 2029.
These figures indicate the potential for further expansion and development within the Non-life insurance segment in Mongolia.
In a global context, it is worth noting that the United States is expected to generate the highest gross written premium in 2024, amounting to a staggering US$2,500.0bn.
This highlights the significant scale and dominance of the US market in the Non-life insurance sector.
Overall, these numbers demonstrate the growth potential and importance of the Non-life insurance market in Mongolia, as well as the notable position of the United States on a global scale.
Mongolia's non-life insurance market is witnessing a surge in demand due to the country's rapid economic growth and increasing awareness about risk management.

Market

Region

Region comparison

Currency

Analyst Opinion

The Non-life insurances market in Mongolia has been experiencing notable developments in recent years.

Customer preferences: Customers in Mongolia are increasingly seeking non-life insurance products to protect their assets and mitigate risks. This growing demand can be attributed to a rising awareness of the importance of insurance coverage in safeguarding against unexpected events such as natural disasters and accidents.

Trends in the market: One prominent trend in the Mongolian non-life insurance market is the expansion of product offerings to cater to diverse customer needs. Insurers are introducing innovative policies tailored to specific risks, such as property insurance for urban dwellings and livestock insurance for rural farmers. This trend reflects a strategic response to the evolving risk landscape in Mongolia.

Local special circumstances: Mongolia's unique geographical and climatic conditions present distinct challenges and opportunities for the non-life insurance market. The country's exposure to natural disasters, such as severe winters (dzud) and earthquakes, underscores the critical role of insurance in disaster preparedness and recovery. Insurers in Mongolia are adapting their products and services to address these specific risks and enhance resilience in the face of environmental uncertainties.

Underlying macroeconomic factors: The growth of the non-life insurance market in Mongolia is also influenced by broader macroeconomic factors. As the country continues to undergo economic diversification and urbanization, there is a corresponding increase in the value of assets requiring insurance protection. Moreover, regulatory reforms aimed at strengthening the insurance sector and enhancing consumer confidence have contributed to the market's growth trajectory. These factors collectively shape the evolving landscape of non-life insurance in Mongolia.

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.