Insurances

The Insurances market in Panama is projected to reach a market size (gross written premium) of US$1.03bn in 2024.
Within this market, Non-Life Insurances dominate with a projected market volume of US$913.70m in 2024.
The average spending per capita in the Insurances market is expected to be US$228.40 in 2024.
Comparing globally, the United States is forecasted to have the highest nominal value of US$3.8tn in 2024.
The gross written premium is expected to grow annually at a rate of 2.11% (CAGR 2024-2029), resulting in a market volume of US$1.15bn by 2029.
In terms of gross written premium, the United States is projected to generate the highest amount globally, reaching US$3.8tn in 2024.
Panama's insurance market is experiencing a surge in demand for property insurance due to the country's vulnerability to natural disasters.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. 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, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

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

The Insurances market in Panama is experiencing a significant growth trajectory driven by various factors.

Customer preferences: Panamanian customers are increasingly seeking insurance products that offer comprehensive coverage and financial security, reflecting a growing awareness of the importance of risk management. They are also showing a preference for digital insurance platforms that provide convenience and accessibility in purchasing and managing their policies.

Trends in the market: One notable trend in the Panamanian insurance market is the rise of microinsurance products tailored to the needs of low-income individuals and small businesses. This trend is fueled by the government's initiatives to promote financial inclusion and the emergence of Insurtech companies offering innovative solutions to reach underserved segments of the population. Additionally, there is a growing demand for health and life insurance products due to an aging population and increasing healthcare costs.

Local special circumstances: Panama's strategic geographic location as a key transportation and logistics hub in Latin America has contributed to the development of specialized insurance products for maritime and transportation industries. The country's stable economy and favorable regulatory environment have also attracted foreign insurers to establish a presence in the market, leading to increased competition and product innovation.

Underlying macroeconomic factors: The steady economic growth in Panama, driven by investments in infrastructure projects and the expansion of the Panama Canal, has resulted in a growing middle class with higher disposable income levels. This has translated into increased demand for insurance products across various sectors such as property, automotive, and personal accident. Furthermore, the government's efforts to strengthen the regulatory framework and enhance consumer protection have instilled confidence in the insurance market, encouraging more individuals and businesses to purchase insurance policies.

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.