Non-life insurances - Puerto Rico

The Non-life insurance market in Puerto Rico is expected to witness significant growth in the coming years.
By 2024, the market size, in terms of gross written premium, is projected to reach US$2.48bn.
This indicates a substantial potential for expansion within the country's insurance sector.
Furthermore, the average spending per capita in the Non-life insurance market is anticipated to be US$759.10 in 2024.
This signifies a notable level of financial commitment from individuals towards insurance coverage.
Looking ahead, the market is expected to maintain a steady growth trajectory.
With an annual growth rate (CAGR 2024-2029) of 1.69%, the gross written premium is estimated to increase to US$2.70bn by 2029.
This demonstrates the resilience and long-term stability of the Non-life insurance market in Puerto Rico.
In a global context, it is worth noting that the United States is set to dominate the market in terms of gross written premium.
In 2024, the United States is projected to generate a staggering US$2.5tn in gross written premium.
This highlights the significant market share and economic influence of the United States in the global insurance industry.
Overall, the Non-life insurance market in Puerto Rico is poised for growth, driven by increasing awareness and demand for insurance coverage.
The projected market size and per capita spending reflect the potential for significant development within the country's insurance sector.
Despite the economic challenges faced by Puerto Rico, the demand for non-life insurance policies remains high due to the island's vulnerability to natural disasters.

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

Over the past few years, the Non-life insurances market in Puerto Rico has been experiencing significant growth and development. Customer preferences in the Non-life insurances market in Puerto Rico are shifting towards more comprehensive coverage options that provide protection against a wide range of risks. Customers are increasingly looking for tailored insurance solutions that meet their specific needs and offer peace of mind in an uncertain environment. Trends in the market show a growing demand for property and casualty insurance in Puerto Rico, driven by factors such as increasing property values and a higher frequency of natural disasters in the region. As a result, insurance companies are expanding their product offerings to include specialized policies that cover risks unique to Puerto Rico, such as hurricane and earthquake insurance. Local special circumstances, such as the susceptibility of Puerto Rico to natural disasters, play a significant role in shaping the Non-life insurances market in the region. Insurance companies are adapting their strategies to address the specific risks faced by Puerto Rican residents, leading to an increase in the availability of comprehensive insurance coverage options. Underlying macroeconomic factors, including economic stability and regulatory changes, are also influencing the development of the Non-life insurances market in Puerto Rico. As the economy continues to recover from past challenges, consumers are increasingly willing to invest in insurance products that offer financial protection and security. Overall, the Non-life insurances market in Puerto Rico is evolving to meet the changing needs of customers and adapt to the unique circumstances of the region. With a focus on comprehensive coverage, specialized products, and tailored solutions, insurance companies are well-positioned to capitalize on the growing demand for non-life insurance in Puerto Rico.

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.