Non-life insurances - Papua New Guinea

The Non-life insurance market in Papua New Guinea is projected to reach a market size (gross written premium) of US$690.30m in 2024.
The average spending per capita in the Non-life insurance market is estimated to be US$65.64 in 2024.
It is expected that the gross written premium will experience an annual growth rate (CAGR 2024-2029) of 2.61%, leading to a market volume of US$785.30m by 2029.
In comparison to other countries worldwide, the United States is expected to generate the highest gross written premium of US$2.5tn in 2024.
Papua New Guinea's non-life insurance market is witnessing a surge in demand due to the country's growing economy and increasing awareness about insurance coverage.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

Live insurances
Other non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Non-life insurance market in Papua New Guinea is witnessing significant growth and development, driven by various factors influencing the insurance industry in the country.

Customer preferences: Customers in Papua New Guinea are increasingly recognizing the importance of non-life insurance products to safeguard their assets and mitigate risks. The rising awareness about the benefits of insurance coverage is leading to a growing demand for policies that protect against property damage, natural disasters, and other unforeseen events.

Trends in the market: One notable trend in the non-life insurance market in Papua New Guinea is the expansion of product offerings by insurance companies to cater to the evolving needs of customers. Insurers are introducing innovative policies and customized solutions to address specific risks faced by businesses and individuals in the country. Additionally, there is a growing trend towards digitalization in the insurance sector, with more companies leveraging technology to enhance customer experience and streamline operations.

Local special circumstances: Papua New Guinea's unique geographical and environmental characteristics, such as its exposure to natural disasters like earthquakes and tropical cyclones, play a significant role in shaping the non-life insurance market. Insurers in the country need to develop specialized products that provide adequate coverage for these specific risks, which differ from those in other regions.

Underlying macroeconomic factors: The economic stability and growth in Papua New Guinea are also contributing to the development of the non-life insurance market. As the country experiences economic expansion and increased investment activities, there is a corresponding need for insurance products to protect assets and investments. The growing middle class and urbanization further drive the demand for non-life insurance, as individuals and businesses seek to safeguard their wealth and properties.

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.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.