Property Insurance - Iceland | Statista Market Forecast

The Property Insurance market market in Iceland is expected to reach a projected market size (gross written premium) of US$125.50m in 2024.
The average spending per capita in the Property Insurance market market is estimated to amount to US$332.20 in 2024.
Furthermore, the gross written premium is projected to show an annual growth rate (CAGR 2024-2029) of -2.73%.
This growth is expected to result in a market volume of US$109.30m by 2029.
In a global comparison, the United States is anticipated to generate the highest gross written premium, amounting to US$240.4bn in 2024.
The property insurance market in Iceland is experiencing a surge in demand due to the country's high risk of natural disasters such as volcanic eruptions and earthquakes.

Definition:

The property insurance market encompasses insurance products that protect individuals and businesses from financial losses related to damage or loss of property, such as homes, commercial buildings, or personal belongings. Policyholders pay regular premiums to insurance providers, and in return, these insurers offer coverage for events like fire, theft, natural disasters, and other property-related risks. Property insurance is crucial for safeguarding assets and providing financial assistance to repair or replace property damaged or lost due to covered incidents.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Insurance for all damage or loss of property caused by fire and natural forces
Insurance for all damage or loss of property caused by crime

All other insurance types, such as life insurance and health insurance
Reinsurance

The Property Insurance market in Iceland has been witnessing notable developments in recent years. Customer preferences in Iceland's Property Insurance market are shifting towards more comprehensive coverage options that not only protect against traditional risks like fire and theft, but also increasingly cover natural disasters such as volcanic eruptions and avalanches. This trend is driven by the country's unique geographical location and high exposure to natural catastrophes. Trends in the market indicate a growing demand for innovative insurance products that offer tailored solutions for Icelandic homeowners. Insurers are adapting their offerings to provide specialized coverage for properties located in high-risk areas prone to geological and weather-related events. Additionally, there is a rising interest in sustainable and eco-friendly insurance options that promote resilience against climate change impacts. Local special circumstances, such as Iceland's susceptibility to seismic activity and volcanic eruptions, play a significant role in shaping the Property Insurance market. Insurers in Iceland need to factor in these specific risks when designing insurance products and pricing policies. The country's small population size and concentrated urban areas also contribute to the unique dynamics of the market, with insurers focusing on localized strategies to cater to the needs of Icelandic homeowners. Underlying macroeconomic factors, including Iceland's economic stability and growth prospects, influence the overall development of the Property Insurance market. As the economy continues to expand, there is a parallel increase in property values and construction activities, driving the demand for insurance coverage. Moreover, regulatory reforms and government initiatives aimed at enhancing disaster resilience further contribute to the market's evolution. In conclusion, the Property Insurance market in Iceland is undergoing significant transformations driven by changing customer preferences, market trends, local special circumstances, and macroeconomic factors. Insurers in Iceland are proactively responding to these developments by innovating their product offerings and risk management strategies to better serve the evolving needs of homeowners in the country.

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.

Berkshire Hathaway, State Farm, and Progressive Corp are just some of the biggest property and casualty insurance companies in the world - all of which hail from the United States. Property and casualty insurance is a type of insurance which covers risks related to loss or damage of property. This type of insurance has two major areas: protection of physical objects and protection against legal liability. In total, the value of gross premiums written by the U.S. property and casualty insurance sector exceeded 850 billion U.S. dollars in 2022. In the same year, 35 percent of the U.S. P&C premiums were written by private passenger auto insurance companies.