Insurances

The Insurances market in Southeast Asia is projected to reach a market size of US$159.40bn in 2024.
Life insurances dominate the market with a projected market volume of US$110.00bn in 2024.
In terms of average spending per capita, in Southeast Asia is expected to have an average spending of US$230.20 in 2024.
When compared globally, the United States is projected to have the highest nominal value in the Insurances market, reaching US$3.8tn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 3.62%, resulting in a market volume of US$190.50bn by 2029.
Once again, the United States is expected to generate the highest gross written premium in 2024, reaching US$3.8tn.
In Southeast Asia, the insurance market is experiencing rapid growth in countries like Singapore, with a surge in demand for health and life insurance products.

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 Southeast Asia is experiencing significant growth and development.

Customer preferences: Customers in Southeast Asia are increasingly seeking insurance products that offer comprehensive coverage at competitive prices. With rising disposable incomes and awareness about the importance of insurance, there is a growing demand for policies that cater to specific needs such as health, life, and property insurance.

Trends in the market: In Singapore, there is a trend towards digitalization in the insurance sector, with more customers opting to purchase policies online. This shift is driven by the convenience and ease of comparing different insurance products and prices. In Malaysia, there is a growing interest in takaful insurance, which adheres to Islamic principles. This trend is fueled by the country's large Muslim population seeking insurance options that comply with their faith.

Local special circumstances: Indonesia, with its large population and emerging middle class, presents a unique opportunity for insurance companies. The market in Indonesia is characterized by a high demand for micro-insurance products tailored to the needs of low-income individuals. This presents a significant growth potential for insurers willing to tap into this segment.

Underlying macroeconomic factors: The economic growth in Southeast Asia, coupled with increasing urbanization and infrastructure development, is driving the expansion of the insurance market in the region. As countries in Southeast Asia continue to develop, there is a greater awareness of the need for insurance to mitigate risks and protect assets. Additionally, regulatory reforms aimed at promoting transparency and consumer protection are also contributing to the growth of the insurance market in the region.

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.