Life insurance - Europe

Europe

The Life insurance market market in Europe is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is set to reach an impressive €0.85tn in 2024.
This indicates a substantial increase in the demand for Life insurance market products and services across the region.
Furthermore, the average spending per capita in the Life insurance market market is estimated to be €1.00k in 2024.
This figure demonstrates the willingness of individuals in Europe to invest in Life insurance market coverage, highlighting the importance of financial protection and security.
Looking ahead, the Life insurance market market is anticipated to experience a steady annual growth rate of -0.24% between 2024 and 2029.
This sustained growth is expected to result in a market volume of €0.84tn by 2029.
Such a substantial market volume reflects the strong market potential and promising opportunities that lie ahead for the Life insurance market industry in Europe.
In comparison to other countries globally, the United States is projected to generate the highest gross written premium in 2024, reaching a staggering €1,195.0bn.
This highlights the significant market dominance of the United States in the global Life insurance market industry.
With these remarkable numbers and projections, it is evident that the Life insurance market market in Europe is poised for substantial growth and presents a lucrative opportunity for insurers and industry players.
In Germany, the life insurance market is experiencing a shift towards more flexible and customizable policies to meet the diverse needs of consumers.

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Analyst Opinion

In Europe, the Life insurance market is experiencing significant growth and development, driven by various factors influencing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the European Life insurance market are shifting towards more personalized and flexible insurance products. Customers are increasingly seeking tailored solutions that meet their specific needs and offer additional benefits such as investment options or savings components. This trend is driven by a growing awareness of the importance of financial planning and security, as well as a desire for more control over their insurance coverage. Trends in the European Life insurance market are also shaped by regulatory changes and advancements in technology. Insurers are leveraging digital platforms to enhance customer experience, streamline processes, and offer innovative products. Additionally, there is a growing trend towards sustainable and socially responsible investing, leading to the development of ESG (Environmental, Social, and Governance) integrated insurance products. Local special circumstances in European countries further influence the Life insurance market dynamics. For instance, in countries with aging populations such as Germany and Italy, there is a higher demand for retirement planning and long-term care insurance. On the other hand, in emerging markets in Eastern Europe, there is a growing middle class seeking protection and investment opportunities through Life insurance products. Underlying macroeconomic factors play a crucial role in shaping the European Life insurance market. Economic stability, interest rates, and regulatory environment impact the growth and profitability of insurers. Low-interest rates in the Eurozone have led insurers to adjust their product offerings and investment strategies to maintain profitability. Economic growth, inflation rates, and demographic trends also influence the demand for Life insurance products across different European countries. Overall, the Life insurance market in Europe is evolving to meet the changing needs and preferences of customers, driven by technological advancements, regulatory developments, and macroeconomic conditions. Insurers are adapting their strategies to remain competitive in a dynamic and fast-paced market environment.

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.