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Motor Vehicle Insurance - Panama

Panama

The Motor Vehicle Insurance market market in Panama is expected to reach a projected market size (gross written premium) of US$262.20m in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$57.91 in the same year.
Furthermore, the gross written premium is anticipated to display an annual growth rate (CAGR 2024-2028) of -1.82%, resulting in a market volume of US$243.60m by 2028.
In comparison to other countries, the United States is projected to generate the highest gross written premium, amounting to US$1,338.0bn in 2024.
Panama's motor vehicle insurance market is experiencing a surge in demand due to the country's rapid urbanization and increasing number of vehicles on the road.

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Analyst Opinion

The Motor Vehicle Insurance market in Panama is experiencing significant growth and evolution. Customer preferences in Panama are shifting towards comprehensive motor vehicle insurance coverage due to an increasing awareness of the benefits of having extensive protection for their vehicles. Customers are looking for policies that not only cover damages from accidents but also provide additional services such as roadside assistance and coverage for theft. Trends in the market show a rise in the adoption of usage-based insurance in Panama, where premiums are based on the actual usage of the vehicle. This trend is driven by the growing popularity of telematics devices that track driving behavior, allowing insurance companies to offer more personalized and flexible pricing to customers based on their individual

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.