Insurances - Portugal | Statista Market Forecast

The Insurances market in Portugal is projected to reach a market size (gross written premium) of US$9.94bn in 2024.
Life insurances dominate the market with a projected market volume of US$5.21bn in 2024.
The average spending per capita in the Insurances market amounts to US$972.00 in 2024.
From a global comparison perspective, the highest nominal value is reached the United States, with a projected market size of US$3.8tn in 2024.
The gross written premium in Portugal is expected to show an annual growth rate (CAGR 2024-2029) of -0.14%, resulting in a market volume of US$9.87bn by 2029.
In global comparison, the United States is projected to generate the highest gross written premium, with a market size of US$3.8tn in 2024.
The insurance market in Portugal has seen a surge in demand for health insurance due to an aging population.

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 Portugal is experiencing a notable shift in consumer preferences, with an increasing demand for digital insurance solutions and personalized offerings tailored to individual needs.

Customer preferences: Portuguese consumers are showing a growing appetite for convenience and efficiency in their insurance purchases. This has led to a surge in the popularity of digital insurance platforms, allowing customers to compare policies, obtain quotes, and make purchases online with ease. Moreover, there is a rising interest in personalized insurance products that cater to specific lifestyle choices and risk profiles, reflecting a desire for more tailored coverage.

Trends in the market: One of the prominent trends in the Portuguese insurance market is the emphasis on innovation and technology. Insurers are leveraging data analytics and artificial intelligence to enhance underwriting processes, develop new products, and improve customer service. Additionally, there is a noticeable trend towards sustainability and green insurance products, aligning with global efforts to combat climate change. This shift towards eco-friendly offerings is resonating well with environmentally conscious consumers in Portugal.

Local special circumstances: Portugal's insurance market is also influenced by unique local circumstances, such as regulatory changes and market competition. The regulatory environment in the country plays a crucial role in shaping insurance trends, with insurers adapting their strategies to comply with evolving laws and guidelines. Furthermore, the competitive landscape in Portugal is driving insurers to differentiate themselves through innovative product offerings and customer-centric services, leading to a more dynamic market environment.

Underlying macroeconomic factors: The development of the insurance market in Portugal is closely tied to underlying macroeconomic factors, including economic growth, employment rates, and disposable income levels. As the economy continues to recover and expand, there is a growing opportunity for insurers to tap into a larger customer base with higher purchasing power. Moreover, the stability of the financial sector and regulatory framework in Portugal provides a solid foundation for the insurance industry to thrive and innovate in the long run.

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.