Insurances

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$3.8tn in 2024.
Looking ahead, the gross written premium is anticipated to have an annual growth rate (CAGR 2024-2029) of 1.25%, 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$3.8tn.
With its high vulnerability to natural disasters, Puerto Rico's insurance market is witnessing a surge in demand for property and casualty coverage.

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 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.

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.