Market Insights Financial Insurances Non-life insurances

Legal Insurance - Europe

Europe

Europe is projected to witness a significant growth in the Legal Insurance market market.
By 2024, the market size, measured by gross written premium, is estimated to reach US$16.31bn.
This indicates a promising future for the Legal Insurance market sector in Europe.
Furthermore, the average spending per capita in this market is projected to be US$19.32 in 2024, reflecting a strong demand for Legal Insurance market services among individuals in Europe.
The Legal Insurance market market is expected to experience a steady annual growth rate of (CAGR 2024-2028).
This growth is anticipated to result in a market volume of US$17.30bn by 2028.
This upward trend further emphasizes the potential of the Legal Insurance market market in Europe.
When comparing the Legal Insurance market market globally, it is noteworthy that the United States is expected to generate the highest gross written premium.
In 2024, the United States is projected to reach a gross written premium of US$31,120.0m.
This demonstrates the dominance of the United States in the Legal Insurance market market on a global scale.
Overall, Europe's Legal Insurance market market is poised for significant growth, with a projected increase in market size and spending per capita.
As in Europe continues to strengthen its position in the Legal Insurance market industry, it is expected to become a key player in the global market.
In Europe, the legal insurance market in Germany is experiencing significant growth due to increased awareness of legal risks among individuals and businesses.

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Analyst Opinion

The legal insurance market plays a unique role in providing coverage for legal expenses and services. In this distinct sector, specific trends are reshaping the landscape of legal insurance, while underlying indicators offer insights into its performance and stability.

Trends on the market:

Access to Legal Tech: Legal insurers are embracing technology to provide policyholders with access to legal services and resources, making legal advice and assistance more convenient.
Cybersecurity Legal Coverage: Legal insurance policies are evolving to cover legal expenses related to data breaches and cybersecurity incidents, reflecting the growing importance of digital security.
Personalized Legal Plans: The legal insurance market is moving toward personalized legal plans, tailored to individual legal needs. Policyholders can access coverage for specific legal situations.
Employment Dispute Coverage: Legal insurers are expanding their offerings to include coverage for employment-related legal disputes, reflecting the growing number of workplace issues.
Environmental and Regulatory Legal Protection: With increased environmental regulations, legal insurance is adapting to offer coverage for legal expenses related to environmental compliance and disputes.

Underlying Indicators:

Claims Frequency and Severity: Monitoring the frequency and severity of legal claims is essential for assessing the financial health of legal insurers. Changes in these indicators may signal emerging legal risks.
Regulatory Compliance: Staying compliant with evolving legal and regulatory standards is vital for legal insurers to operate within legal boundaries and adapt to changing legal landscape
Legal Tech Integration: The adoption of legal tech platforms and the quality of legal services provided to policyholders influence customer satisfaction and retention rates in the legal insurance market.

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.