Insurances

The Insurances market in Uruguay is projected to reach a market size (gross written premium) of US$2.01bn in 2024.
Life insurances dominates this market segment with a projected market volume of US$1.11bn in the same year.
The average spending per capita in the Insurances market amounts to US$586.00 in 2024.
When compared to other countries globally, the United States is expected to have the highest nominal value in 2024, reaching US$3.8tn.
Furthermore, the gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 4.28%, resulting in a market volume of US$2.47bn by 2029.
Once again, it is worth noting that the United States is projected to generate the most gross written premium in 2024, reaching US$3.8tn.
Uruguay's insurance market is experiencing a surge in demand for health insurance due to an aging population and increasing healthcare costs.

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

Uruguay, a country known for its stable economy and strong social welfare system, has seen significant developments in its insurance market in recent years. Customer preferences in Uruguay are shifting towards more comprehensive insurance coverage, including health, life, and property insurance. This trend mirrors global patterns, where individuals are increasingly recognizing the importance of financial protection against unforeseen events. Additionally, there is a growing demand for personalized insurance products that cater to specific needs and lifestyles. Trends in the market indicate a rise in digitalization and technology adoption by insurance companies in Uruguay. Insurers are leveraging data analytics and artificial intelligence to streamline processes, assess risks more accurately, and enhance customer experience. This technological advancement aligns with broader regional trends in Latin America, where the insurance sector is embracing innovation to stay competitive. Local special circumstances, such as Uruguay's small population and high literacy rates, have contributed to the growth of the insurance market. The country's well-educated workforce has enabled insurance companies to develop sophisticated products and services tailored to the needs of the population. Moreover, the stable political environment and sound regulatory framework have fostered trust in the insurance industry, encouraging more individuals to invest in insurance policies. Underlying macroeconomic factors, including steady economic growth and low inflation rates, have created a favorable environment for the insurance market in Uruguay. As disposable incomes rise and the middle class expands, more people are willing to allocate a portion of their earnings towards insurance premiums. Furthermore, the government's efforts to promote financial literacy and risk management have increased awareness about the benefits of insurance among the population. Overall, the insurance market in Uruguay is evolving in response to changing customer preferences, technological advancements, local circumstances, and macroeconomic factors. These developments indicate a positive trajectory for the sector, with opportunities for further growth and innovation in the future.

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.