Insurances - Puerto Rico

Puerto Rico

The Insurances market in Puerto Rico is projected to reach a gross written premium of US$5.37bn in 2024.
Dominating the market, Life insurances are expected to have a market volume of US$2.89bn in the same year.
The average spending per capita in the Insurances market is estimated to be US$1.64k in 2024.
In comparison to other countries, the United States is expected to have the highest nominal value, reaching US$3,788.0bn in 2024.
Looking ahead, the gross written premium is anticipated to have an annual growth rate (CAGR 2024-2029) of 1.27%, resulting in a market volume of US$5.72bn by 2029.
Once again, the United States is projected to generate the highest gross written premium in 2024, with a value of US$3,788.0bn.
With its high vulnerability to natural disasters, Puerto Rico's insurance market is witnessing a surge in demand for property and casualty coverage.

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Analyst Opinion

The Insurances market in Puerto Rico has been experiencing notable growth and development in recent years. Customer preferences in the insurance market in Puerto Rico are shifting towards more comprehensive coverage options, including health, property, and life insurance. Customers are increasingly seeking customized insurance packages that provide a range of benefits to meet their specific needs and offer peace of mind in uncertain times. One of the key trends in the insurance market in Puerto Rico is the increasing adoption of digital technologies. Insurers are leveraging digital platforms to streamline processes, enhance customer experience, and offer innovative insurance products. This trend is driven by the growing demand for convenient and accessible insurance services in a rapidly evolving digital landscape. Local special circumstances in Puerto Rico, such as the vulnerability to natural disasters like hurricanes, have played a significant role in shaping the insurance market. Insurers are focusing on providing specialized coverage options for natural disasters to ensure that customers are adequately protected in the event of such calamities. This unique local circumstance has led to the development of specific insurance products tailored to the needs of Puerto Rican residents. Underlying macroeconomic factors, such as economic stability and regulatory environment, are also influencing the insurance market in Puerto Rico. A stable economic environment and supportive regulatory framework have encouraged insurers to expand their operations and offer a diverse range of insurance products to cater to the growing market demand. Additionally, increasing awareness about the importance of insurance coverage among the population has further fueled the growth of the insurance market in Puerto Rico.

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.