Papua New Guinea Life & Annuity Insurance Market Size (2024 - 2029)

The Papua New Guinea life and annuity insurance sector is poised for growth, driven by opportunities despite its current small scale compared to global standards. The market's potential expansion is supported by low penetration rates and favorable regulatory conditions that encourage international participation. The government's response to economic challenges and its commitment to financial sector reforms will be crucial in shaping the market's trajectory. While the sector is dynamic, with banks and local companies actively engaging and innovating, challenges such as intense competition and economic instability could impact profitability and growth.

Market Size of Papua New Guinea Life & Annuity Insurance Industry

Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 12.00 %

Major Players

Papua New Guinea Life & Annuity Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Papua New Guinea Life & Annuity Insurance Market Analysis

Papua New Guinea Life & Annuity Insurance Market is estimated to record a CAGR of approximately 12% during the forecast period.

The pandemic effectively shuttered PNG for several months and reduced global demand for the commodities that drive its export earnings. As a result, the country's real GDP contracted in 2020, although a return to growth is expected in 2021. In response to the pandemic, the government launched a PGK 5.7 billion (USD 1.7billion) stimulus package, with a focus on supporting the health and security sectors, and workers and businesses. The outcome of this initiative and the government's wider efforts to protect citizens and the economy from Covid-19 will play a significant role in determining the future of the country's insurance market. The sector's future will also be contingent on the government's ability to continue important financial sector reforms, as well as the level of demand for mega-project risk-mitigation services and insurers' ability to pay out on pandemic-related claims.

In Papua New Guinea insurance makes up a small part of the overall economy when compared to international levels. The penetration rate as a percentage of GDP is under 2%, while the global average is 7.5%, according to the UN Development Programme. Insurance in the country is also a sector of great opportunity. Access is straightforward given the regulations and low capital requirements, so international participation is high and newcomers are relatively free to enter. In addition, because penetration is low, the market is well placed to grow.

On the ground, the sector is dynamic and quickly evolving. Banks are showing an interest in getting involved in the business, new and innovative products are being introduced, micro-insurance is booming, and local companies are seeking to further expand outside of the country. However, concerns remain. Competition is severe and some companies may be undercutting the market, leading to a lack of margins in some lines. Slower overall growth has meant slower premium growth, and economic troubles have the potential to weigh on the safety and soundness of the sector.

According to the most recent BPNG data, total financial industry assets reached PGK 51 billion (USD 15 billion) in September 2018. Of this total, superannuation funds and life insurance assets represented 25.8%, or PGK 13.2 billion (USD 3.9 billion). According to rating agency AM Best, gross written premium in the life insurance sector amounted to USD 15 million in 2019. At the end of 2019, BPNG reported that life insurance assets reached PGK 233.5 million (USD 68.9 million), up from PGK 198.7 million (USD 58.6 million) the previous year, marking an increase of 17.5%.

Papua New Guinea Life & Annuity Insurance Industry Segmentation

A complete background analysis of the Papua New Guinea Life and Annuity Insurance Market, which includes an assessment of the parental market, emerging trends by segments, significant changes in market dynamics and market overview, is covered in the report. The market is segmented by Insurance Type.

By Insurance type
Individual Insurance
Annuity Insurance
Endowment Insurance
Juvenile Insurance
Whole Life Insurance
Medical Insurance
Others
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Papua New Guinea Life & Annuity Insurance Market Size Summary

The Papua New Guinea life and annuity insurance market is poised for significant growth, driven by a combination of low penetration rates and increasing awareness of insurance benefits. Despite the sector's small contribution to the overall economy, with a penetration rate below the global average, it presents substantial opportunities for expansion. The market is characterized by a dynamic environment where banks are entering the insurance space, innovative products are being introduced, and micro-insurance is experiencing rapid growth. However, challenges such as intense competition, economic fluctuations, and regulatory uncertainties pose risks to the sector's profitability and stability. The government's efforts to implement financial sector reforms and support economic recovery post-pandemic will be crucial in shaping the market's future.

The regulatory framework governing the life insurance sector in Papua New Guinea is overseen by the Bank of Papua New Guinea, which administers the Life Insurance Act and issues licenses to insurance companies and brokers. The sector is open to foreign investment, with no specific restrictions, although companies must be locally incorporated and obtain authorization to operate. The market features a mix of local and international players offering a range of life and medical policies. Recent product launches, such as BSP Life PNG's Wantok Delite, highlight the sector's innovation and responsiveness to market needs. Despite past challenges, such as the exit of micro-insurance firm BIMA, the sector's potential for growth remains strong, supported by new extractive projects and a maturing economy.

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Papua New Guinea Life & Annuity Insurance Market Size - Table of Contents

  1. 1. MARKET INSIGHTS & DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porters 5 Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 COVID-19 Impact on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Insurance type

      1. 2.1.1 Individual Insurance

      2. 2.1.2 Annuity Insurance

      3. 2.1.3 Endowment Insurance

      4. 2.1.4 Juvenile Insurance

      5. 2.1.5 Whole Life Insurance

      6. 2.1.6 Medical Insurance

      7. 2.1.7 Others

Papua New Guinea Life & Annuity Insurance Market Size FAQs

The Papua New Guinea Life & Annuity Insurance Market is projected to register a CAGR of 12% during the forecast period (2024-2029)

Capital Life Insurance, Pacific MMI, Aon Risk Services, Marsh PNG and Kanda International Brokers & Risk Consultants are the major companies operating in the Papua New Guinea Life & Annuity Insurance Market.

Papua New Guinea Life & Annuity Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)