Non-life insurances - Nicaragua

Nicaragua

The Non-life insurance market in Nicaragua is expected to reach a projected market size (gross written premium) of US$302.40m in 2024.
The average spending per capita in the Non-life insurance market is estimated to be US$42.33 in 2024.
Over the period of 2024-2029, the gross written premium is anticipated to exhibit an annual growth rate of 1.24%, resulting in a market volume of US$321.60m by 2029.
In comparison to other countries, the United States is projected to generate the highest gross written premium of US$2,500.0bn in 2024.
Nicaragua's non-life insurance market is experiencing steady growth due to increased awareness and demand for coverage among its growing population.

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Analyst Opinion

Over the past few years, the Non-life insurances market in Nicaragua has shown a steady growth trajectory, driven by various factors influencing the insurance landscape in the country. Customer preferences in Nicaragua are shifting towards a greater awareness of the importance of non-life insurance coverage, such as property and casualty insurance, as individuals and businesses seek to protect their assets from unforeseen events. This growing awareness is leading to an increase in demand for non-life insurance products in the market. Trends in the market indicate a rise in the adoption of technology and digital platforms by insurance companies to improve customer experience and streamline operations. This trend is in line with global advancements in Insurtech, where digitalization is playing a crucial role in enhancing efficiency and reaching a wider customer base. Local special circumstances in Nicaragua, such as the vulnerability to natural disasters like hurricanes and earthquakes, are driving the need for comprehensive non-life insurance coverage. As a result, insurance companies are developing specialized products to cater to the specific risks faced by individuals and businesses in the region. Underlying macroeconomic factors, including economic stability and regulatory reforms in the insurance sector, are creating a conducive environment for the growth of the non-life insurance market in Nicaragua. The government's efforts to strengthen the regulatory framework and promote financial inclusion are also contributing to the development of the insurance industry in the country.

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.