Non-life insurances - Paraguay

Paraguay

The Non-life insurance market in Paraguay is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is anticipated to reach US$591.90m in 2024.
This indicates a positive trend in the demand for non-life insurance products among Paraguayans.
In terms of per capita spending, the average amount allocated to non-life insurance is estimated to be US$85.20 in 2024.
This indicates the willingness of individuals in Paraguay to invest in insurance coverage to protect their assets and mitigate risks.
Furthermore, the gross written premium is expected to exhibit an annual growth rate of 1.83% from 2024 to 2029, resulting in a market volume of US$648.00m by the end of the forecast period.
This growth trajectory highlights the increasing reliance on non-life insurance products in Paraguay.
In a global context, it is worth noting that the United States is projected to generate the highest gross written premium in 2024, amounting to US$2,500.0bn.
This showcases the dominance of the US market in terms of non-life insurance revenue.
Overall, the non-life insurance market in Paraguay is poised for expansion, driven by factors such as increasing awareness of insurance benefits and the growing need for financial protection.
The projected growth in market size and per capita spending demonstrates the potential for further development in the sector.
Paraguay's non-life insurance market is experiencing significant growth due to the country's stable economy and increasing awareness of insurance products.

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Analyst Opinion

Over the past few years, the Non-life insurances market in Paraguay has been experiencing significant growth and development. Customer preferences in Paraguay are shifting towards Non-life insurances due to the increasing awareness of the importance of protecting assets and properties. Customers are becoming more inclined to purchase insurance policies to safeguard themselves against unforeseen events such as natural disasters and accidents. One of the key trends in the Non-life insurances market in Paraguay is the introduction of innovative insurance products tailored to meet the specific needs of the local population. Insurers are offering customizable policies that cater to the unique risks faced by individuals and businesses in Paraguay, thereby increasing the demand for Non-life insurances. Local special circumstances, such as the country's vulnerability to natural disasters like floods and droughts, have also contributed to the growth of the Non-life insurances market in Paraguay. As individuals and businesses seek financial protection against these risks, the demand for insurance coverage has been on the rise. Underlying macroeconomic factors, such as the overall economic stability and increasing disposable income levels in Paraguay, have further fueled the growth of the Non-life insurances market. As the economy continues to expand, more people are willing to invest in insurance products to secure their assets and mitigate potential financial losses.

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.