Insurance in Europe 2010-2011
According to Swiss Re Sigma report, Europe is the leading contributor with 35.85% market share in 2011 worldwide insurance market. In 2011, the total gross written premiums in Europe is USD$1,647 billion,
an increase of USD$40 billion or 2.49% compares to USD$1,607 billion total gross written premiums in 2010.
On a per capita basis, an average of USD$1,873 was spent on insurance in Europe(insurance density). Of this amount, USD$1,082 was spent on life insurance and the remaining USD$791 on non-life insurance. Whereas insurance penetration(a commonly recognised indicator of insurance activity) in Europe is 6.99%(total gross written premiums as a percentage of GDP).
As per CEA, European insurers’ total investment portfolio is estimated to have increased 2.6% at constant exchange rates, from €7,507bn in 2010 to more than €7,740bn in 2011.
In 2011, total European gross written premiums decreased 3.2% (at constant exchange rates) to €1,072bn. This decline is due to a 6.9% fall in life premiums, which account for about 60% of all premiums. The non-life sector, on the other hand, experienced growth of 2.7%.
UK insurance is the leading contributor in European insurance industry with €206.019bn total gross written premiums(a slight decreased of €0.887bn or 0.43% of compares to €206.906bn in 2010; increased by 0.7% at constant exchange rates); followed by France assurance with €190.013bn(a decrease of €17.244bn or 8.32% of compares to €207.257bn in 2010).
Germany versicherung ranked third with €178.079bn(a decrease of €0.766bn or 0.43% of compares to €178.845bn in 2010). Italy assicurazioni is fourth and has decreased by €15.492bn or 12.32% with €110.228bn total gross written premiums in 2011, compares to €125.720bn in 2010. Netherlands verzekeringen and Spain seguros ranked fifth and sixth respectively
with €78.751bn(an increase of €0.873bn or 1.12% of compares to €77.878bn in 2010) and €59.568bn(an increase of €3.262bn or 5.79% of compares to €56.306bn in 2010) in total gross written premiums.
Life Insurance in Europe 2010-2011
Gross written premiums
European life premiums, which account for 60% of all insurance premiums, fell by 7% in 2011 to €633bn, following a rise of 2.7% in 2010. This level of premiums is even lower than that of 2008, when life insurers was affected by developments in financial markets and saw their premiums drop by 11%.
In 2011, UK life insurance is the leading contributor in Europe with €143.799bn total gross written premiums(a decrease of €1.92bn or 1.32% compares to €145.719bn in 2010; -0.2% at constant exchange rates), followed by France assurance vie with €124.476bn(a decrease of €19.361bn or 13.46% compares
to €143.837bn in 2010). Ranked third is Germany lebensversicherung with €86.798bn(a decrease of €3.557bn or 3.94% compares to €90.355bn in 2010). Italy life insurance has dropped by €16.245bn or 18.03% with €73.869bn total gross written premiums in 2011 compares to €90.114bn in 2010. In Europe,
the bulk of the life business is in the UK, France, Germany and Italy, which together account for almost 70% of European life premiums.
Spain comes in fifth with €29.749bn(an increase of €2.451bn or 8.98% compares to €27.298bn in 2010), followed by Switzerland with €24.795bn(an increase of €2.967bn or 13.59% compares to €21.828bn in 2010; 1.4% at constant exchange rates),
Sweden with €22.974bn(an increase of €0.768bn or 3.46% compares to €22.206bn in 2010; -2.0% at constant exchange rates) and Netherlands with €21.910bn(a decrease of €0.324bn or 1.50% compares to €21.586bn in 2010).
Life Insurance density and penetration
Average life insurance density in Europe was €1,072 in 2011. At constant exchange rates, this corresponds to a decrease of 7% (-€84) on the previous year.
The average amount European citizens spend on life insurance products each year differs greatly from country to country. In 2011 the amount spent on life insurance ranged from €3,150 in Switzerland to €16 in Bulgaria, Latvia and Turkey.
Life insurance density is high both in the large financial centres and in the Scandinavian countries, and is rather low in eastern Europe. Interestingly, life insurance density is even higher in Denmark, Finland and Sweden than in the UK. In these four countries, inhabitants spent on average between €2 300 and almost €2 870 in 2011. As a comparison, in Slovenia, which ranks first among central and eastern European countries, life density was €292.
In 2011, life insurance penetration in Europe fell from 5.0% in 2010 to 4.5% in 2011. Similarly to density, life insurance penetration shows large disparities between markets, with rates ranging from 0.2% in Iceland, Latvia and Turkey to 8.2% in the UK and more than 80% in Liechtenstein.
Investments
The investment holdings of life insurers account for more than 80% of the total €7,740bn investment in 2011. The top three investors among the European insurance markets are the UK, France and Germany, accounting for over 60% of the total portfolio. Their individual portfolios grew between 2010 and 2011 by around 4% for the UK and Germany and 1% for France. Italian insurers, with a share of 7%, are the fourth largest contributors to total portfolio value.
Non-Life Insurance in Europe 2010-2011
Non-life premiums grew 2.7% in 2011, reaching €439bn and enhancing the recovery seen in 2010. This overall increase is mainly driven by the motor and health sectors, which account for about 30% and 25% of the non-life market respectively.
Gross written premiums
In 2011, the total European non-life gross written premiums amounting to €439.450bn, an increase of 12.526bn or 2.93% compares to €426.924bn in 2010(2.7% at constant exchange rates).
In 2011 the leading non-life insurance markets remain Germany, the UK, France, the Netherlands and Italy, which account for more than 70% of all European non-life premiums.
Germany is the leading contributor for non-life insurance in Europe with €91.282bn total gross written premiums, an increase of €2.792bn or 3.16% compares to €88.490bn in 2010; followed by France with
€65.537bn total gross written premiums, an increase of €2.117bn or 3.34% compares to €63.420bn in 2010. UK ranked third with €62.221bn total gross written premiums, an increase of €1.033bn or 1.69% compares to €61.188bn in 2010(2.9% at constant exchange rates).
Netherlands, Italy and Spain is ranked fourth, fifth and sixth with €56.841bn(an increase of €0.549bn or 0.98% compares to €56.292bn in 2010), €36.359bn(an increase of €0.753bn or 2.11% compares to €35.606bn in 2010) and €29.819bn(an increase of €0.811bn or 2.80% compares to €29.008bn in 2010) total gross written premiums respectively.
Motor insurance
Within the non-life sector, motor insurance continues to be the largest business line, accounting for 29% of overall non-life premiums.
In 2011, European motor insurers generated an estimated total gross written premiums of €129.368bn, an increase of €4.944bn or 3.97% compares to €124.424bn in 2010.
At constant exchange rates, this corresponds to a growth of 4.0%, compared with a 1.2% increase in the previous year.
Germany and Italy are the main markets, both with a 30% share of the European total. These two countries, together with France and the UK, account for 60% of all Europe’s motor premiums.
Germany kraftfahrzeug auto versicherungen is the leading contributor to the motor insurance with €20.887bn total gross written premiums in 2011(an increase of €0.729bn or 3.62% compares to €20.158bn in 2010); followed closely by
Italy assicurazioni auto with €20.685bn total gross written premiums(an increase of €0.822bn or 4.14% compares to €19.863bn in 2010).
France assurance auto ranked third with €18.957bn total gross written premiums(an increase of €0.646bn or 3.53% compares to €18.311bn in 2010). And UK motor insurance is
fourth with €17.860bn total gross written premiums(an increase of €2.025bn or 12.79% compares to €15.835bn in 2010; 14.1% at constant exchange rates).
Spain seguros de automóviles and Netherlands motorrijtuigverzekering is ranked fifth and sixth with €10.524bn(a decrease of €0.193bn or 1.80% compares to €10.717bn in 2010)
and €4.587bn(a decrease of €0.048bn or 1.04% compares to €4.635bn in 2010) total gross written premiums respectively.
Health insurance
With a market share of 25% in terms of premiums, health insurance remains the second largest non-life business line and is the most dynamic with constant growth over the last decade.
In 2011, European health insurance generated an estimated total gross written premiums of €112.083bn, an increase of €4.071bn or 3.77% compares to €108.012bn in 2010 at current exchange rates.
At constant exchange rates, this corresponds to a growth of 3.2%. As in previous years, this positive trend is explained by the continued rising demand fuelled by both ageing populations and increasing medical costs.
Netherlands zorgverzekering, which has become the largest health insurance market in Europe following the introduction of a new health regime in 2006, is the leading contributor to the health insurance with €40.465bn total gross written premiums in 2011(a decrease of €1.078bn or 2.74% compares to €39.387bn in 2010).
This is followed closely by Germany krankenversicherung with with €34.667bn total gross written premiums(an increase of €1.397bn or 4.20% compares to €33.270bn in 2010). This sector is led by the Netherlands and Germany, which accounted for respectively 36% and 31% of the European market in 2011.
France, Switzerland and Spain seguros de salud is ranked third, fourth and fifth with €9.566bn(a decrease of €0.021bn or 0.22% compares to €9.587bn in 2010), €7.496bn(an increase of €1.076bn or 16.76% compares to €6.420bn in 2010; 4.3% constant exchange rates)
and €6.540bn(an increase of €0.206bn or 3.25% compares to €6.334bn in 2010) total gross written premiums respectively.
On average, the amount spent on private health insurance in Europe in 2011 is €190 compared to €185 the year before. Not surprisingly, given the differences in Europe’s national health insurance markets, health insurance density across the EU shows great disparities, ranging in 2011 from €2 in Hungary to more than €2 400 in the Netherlands.
Average health insurance penetration in Europe remained stable at 0.8% in 2011.
Property insurance
Property insurance is the third largest non-life business line, accounting for 20% of non-life premiums. Total gross written premiums in 2011 growth 2.27% or €1.906bn at current exchange rates (2.1% constant exchange rates),
from €83.917bn in 2010 to €85.823bn in 2011. Nonetheless, property premiums remained largely stable in 2011 with 0.9% growth at constant exchange rates.
The leading markets are the UK, Germany and France with a market share of 18% each.
Germany sachversicherung is the leading property insurance contributor in Europe with €15.454bn total gross written premiums in 2011(an increase of €0.315bn or 2.08% compares to €15.139bn in 2010),
followed closely by UK home insurance with €15.382bn total gross written premiums(a decrease of €0.116bn or 0.75% compares to €15.498bn in 2010; 0.4% constant exchange rates).
The France assurance habitation ranked third with €15.320bn total gross written premiums in 2011(an increase of €0.771bn or 5.30% compares to €14.549bn in 2010).
Spain seguros de hogar, Italy and Netherlands opstalverzekering/woonhuisverzekering is ranked fourth, fifth and sixth with
with €7.089bn(an increase of 0.07bn or 1.00% compares to €7.019bn in 2010), €4.989bn(an increase of €0.027bn or 0.54% compares to €4.962bn in 2010) and €3.515bn(a decrease of €0.217bn or 5.81% compares to €3.732bn in 2010) total gross written premiums respectively.
Other non-life insurance
The remaining 26% non-life lines include general liability (7%), accident insurance (8%), marine, aviation & transport (MAT)(4%), legal expenses (2%) and other classes including notably travel and credit insurance.
Insurance in Europe 2009-2010
According to Swiss Re Sigma report, Europe is the leading contributor with 37.30% market share in 2010 worldwide insurance market. In 2010, the total gross written premiums in Europe is USD$1,613 billion,
a decrease of USD$1 billion or 0.06% compares to USD$1,614 billion total gross written premiums in 2009.
On a per capita basis, an average of USD$1,839 was spent on insurance in Europe(insurance density). Of this amount, USD$1,099 was spent on life insurance and the remaining USD$740 on non-life insurance. Whereas insurance penetration(a commonly recognised indicator of insurance activity) in Europe is 7.43%(total gross written premiums as a percentage of GDP).
As per CEA, European insurers’ total investment portfolio is estimated to have increased 4.8% at constant exchange rates, from €6,977bn in 2009 to more than €7,446bn in 2010. The changes in the total investment portfolio have been mainly driven by life business, since the investment holdings of the life insurance industry account for more than 80% of the total.
In 2010, total European gross written premiums grew 2.5% (at constant exchange rates) to €1,104bn. This growth is slightly lower than that experienced in 2009, which was 3.0% at constant exchange rates, but a significant improvement on 2008 when total premiums dropped by almost 6% (at constant exchange rates).
UK insurance is the leading contributor in European insurance industry with €206.906bn total gross written premiums(a slight increased of €3.028bn or 1.49% of compares to €203.878bn in 2009; -2.3% at constant exchange rates); followed closely by France assurance with €206.579bn(an increase of €6.939bn or 3.48% of compares to €199.640bn in 2009).
Germany versicherung ranked third with €178.854bn(an increase of €7.438bn or 4.34% of compares to €171.416bn in 2009). Italy assicurazioni is fourth and has a growth of €8.152bn or 6.92% with €125.954bn total gross written premiums in 2010, compares to €117.802bn in 2009. Netherlands verzekeringen and Spain seguros ranked fifth and sixth respectively with
€77.878bn(a slight increase of €0.195bn or 0.25% of compares to €77.683bn in 2009) and €57.230bn(a decrease of €3.964bn or 6.48% of compares to €61.194bn in 2009) in total gross written premiums.
Life Insurance in Europe 2009-2010
Gross written premiums
European life premiums, which account for 60% of all insurance premiums, amounted to €676bn in 2010, based on provisional figures. This corresponds to a 2.5% increase at constant exchange rates over 2009, when the year-on-year increase was +4.6%.
In 2010, UK life insurance is the leading contributor in Europe with €145.718bn total gross written premiums(a decrease of €3.488bn or 2.34% compares to €149.206bn in 2009; -6.0% at constant exchange rates),
followed closely by France assurance vie with €143.216bn(an increase of €5.293bn or 3.84% compares to €137.923bn in 2009). Ranked third is Germany lebensversicherung with €90.365bn(an increase of €5.117bn or 6.0% compares to €85.248bn in 2009).
Italy life insurance has a surge of €8.986bn or 11.08% with €90.102bn total gross written premiums in 2010 compares to €81.116bn in 2009. In Europe, the bulk of the life business is in the UK, France, Germany and Italy, which together account for almost 70% of European life premiums.
Spain comes in fifth with €27.337bn(a decrease of €1.794bn or 6.16% compares to €29.131bn in 2009), followed by Sweden with €22.203bn(an increase of €3.994bn or 21.93% compares to €18.209bn in 2009; 9.5% at constant exchange rates) and Netherlands with €21.586bn(a decrease of €2.815bn or 11.54% compares to €24.401bn in 2009).
Life Insurance density and penetration
Average life insurance density in Europe was €1,150 in 2010. At constant exchange rates, this corresponds to an increase of 2% (+€22) on the previous year.
The average amount European citizens spend on life insurance products each year differs greatly from country to country. Excluding Liechtenstein, in 2010 it ranged from €2,844 in Finland down to €15 in Bulgaria and Turkey.
Life insurance density is high both in the large financial centres and in the Scandinavian countries, and is rather low in eastern Europe. Similarly to total density, among eastern countries it is in Slovenia that life insurance density is the highest at €320 per capita.
In 2010, life insurance penetration in Europe remains stable at 5.0%. Similarly to density, life insurance penetration shows large disparities between markets, ranging from 0.2% in Iceland and Turkey to 8.6% in the UK and more than 160% in Liechtenstein.
Investments
The investment holdings of life insurers account for more than 80% of the total €7,446bn investment in 2010. The top three investors among the European insurance markets are France, the UK and Germany, accounting for 62% of the total portfolio. In 2010 they accounted for 23%, 21% and 18% of the market respectively. With a market share of 7%, Italian insurers are the fourth largest investors. Looking at the emerging markets of eastern and central Europe, Poland ranks first but its market share is less than 0.5%.
Non-Life Insurance in Europe 2009-2010
After two successive years of relatively stable premium income, there appears to be a recovery in the non-life sector in 2010, since the provisional figures show a growth of 2.7% at constant exchange rates to €428bn. This overall increase is mainly the result of improvements in the economy, with households and companies showing a renewed interest in insurance products. The three largest classes of non-life insurance — motor, health and property — saw their premiums growing by respectively 1.3%, 5.9% and 2.6% (at constant exchange rates), amounting to €125bn, €108bn and €84bn in 2010.
Gross written premiums
In 2010, the total European non-life gross written premiums amounting to €428.168bn, an increase of 16.748bn or 4.07% compares to €411.420bn in 2009(2.7% at constant exchange rates).
In 2010 the leading non-life insurance markets remain Germany, the UK, France and the Netherlands, which account for respectively 21%, 15%, 14% and 13% of overall European non-life business in terms of premiums.
Germany is the leading contributor for non-life insurance in Europe with €88.489bn total gross written premiums, an increase of €2.321bn or 2.69% compares to €86.168bn in 2009; followed by France with
€63.363bn total gross written premiums, an increase of €1.646bn or 2.67% compares to €61.717bn in 2009. UK ranked third with €61.187bn total gross written premiums, an increase of €6.516bn or 11.92% compares to €54.671bn in 2009(7.8% at constant exchange rates).
Netherlands, Italy and Spain is ranked fourth, fifth and sixth with €56.292bn(an increase of €3.01bn or 5.65% compares to €53.282bn in 2009), €35.852bn(a decrease of €0.834bn or 2.27% compares to €36.686bn in 2009) and €29.893bn(a decrease of €2.17bn or 6.77% compares to €32.063bn in 2009) total gross written premiums respectively.
Motor insurance
Within the non-life sector, motor insurance continues to be the largest business line, with almost 30% of the market.
In 2010, European motor insurers generated an estimated total gross written premiums of €124.583bn, an increase of €3.356bn or 2.77% compares to €121.227bn in 2009.
At constant exchange rates, this corresponds to a growth of 1.3%, compared with a 1.8% decrease the previous year. It seems that the continuing decline in new motor vehicle registrations observed in Europe since 2008 (-4% in 2010 after -6% in 2009 and -8% in 2008) had no real impact on motor insurance business in 2010.
In general, it is a rise in the price of motor insurance, following bad technical results, that drove the rise in premiums.
Germany and Italy are the main markets, both with a 30% share of the European total. These two countries, together with France and the UK, account for 60% of all Europe’s motor premiums.
Germany kraftfahrzeug auto versicherungen is the leading contributor to the motor insurance with €20.158bn total gross written premiums in 2010(a decrease of €0.101bn or 0.50% compares to €20.057bn in 2009); followed closely by
Italy assicurazioni auto with €19.958bn total gross written premiums(a decrease of €0.168bn or 0.83% compares to €20.126bn in 2009).
France assurance auto ranked third with €18.305bn total gross written premiums(an increase of €0.469bn or 2.63% compares to €17.836bn in 2009). And UK motor insurance is
fourth with €15.835bn total gross written premiums(an increase of €1.731bn or 12.27% compares to €14.104bn in 2009; 8.1% at constant exchange rates).
Spain seguros de automóviles and Netherlands motorrijtuigverzekering is ranked fifth and sixth with €10.736bn(a decrease of €0.694bn or 6.07% compares to €11.430bn in 2009)
and €4.635bn(an increase of €0.096bn or 2.09% compares to €4.539bn in 2009) total gross written premiums respectively.
Health insurance
With a market share of 25% in terms of premiums, health insurance remains the second largest non-life business line and is the most dynamic.
In 2010, European health insurance generated an estimated total gross written premiums of €107.918bn, an increase of €6.854bn or 6.78% compares to €101.064bn in 2009 at current exchange rates.
At constant exchange rates, this corresponds to a growth of 5.9%, showing its usual pattern of growth in 2010 after the slowdown observed in 2009. As in previous years, this positive trend is explained by the continued rising demand fuelled by both ageing populations and increasing medical costs.
Netherlands zorgverzekering, which has become the largest health insurance market in Europe following the introduction of a new health regime in 2006, is the leading contributor to the health insurance with €39.387bn total gross written premiums in 2010(an increase of €2.856bn or 7.82% compares to €36.531bn in 2009).
This is followed closely by Germany krankenversicherung with with €33.270bn total gross written premiums(an increase of €1.802bn or 5.73% compares to €31.468bn in 2009). This sector is led by the Netherlands and Germany, which accounted for respectively 36% and 31% of the European market in 2010.
France, Switzerland and Spain seguros de salud is ranked third, fourth and fifth with €9.548bn(an increase of €0.49bn or 5.41% compares to €9.058bn in 2009), €6.420bn(a decrease of €0.735bn or 12.93% compares to €5.685bn in 2009; 3.2% constant exchange rates)
and €6.374bn(an increase of €0.333bn or 5.51% compares to €6.041bn in 2009) total gross written premiums respectively.
Property insurance
Property insurance is the third largest non-life business line, accounting for 20% of non-life premiums. Total gross written premiums in 2010 growth 4.45% or €3.581bn at current exchange rates (2.6% constant exchange rates),
from €80.382bn in 2009 to €83.963bn in 2010.
The leading markets are the UK, Germany and France with a market share of between 17% and 18% each.
UK home insurance is the leading property insurance contributor in Europe with €15.497bn total gross written premiums in 2010(an increase of €1.313bn or 9.26% compares to €14.184bn in 2009; 5.2% constant exchange rates);
followed closely by Germany sachversicherung with €15.139bn total gross written premiums(an increase of €0.177bn or 1.18% compares to €14.962bn in 2009).
The France assurance habitation ranked third with €14.612bn total gross written premiums in 2010(a decrease of €0.516bn or 3.66% compares to €14.096bn in 2009).
Spain seguros de hogar, Italy and Netherlands opstalverzekering/woonhuisverzekering is ranked fourth, fifth and sixth with
with €7.019bn(a decrease of 0.295bn or 4.03% compares to €7.314bn in 2009), €4.970bn(an increase of €0.109bn or 2.15% compares to €5.079bn in 2009) and €3.732bn(an increase of €0.056bn or 1.52% compares to €3.676bn in 2009) total gross written premiums respectively.
Other non-life insurance
The other main non-life lines include general liability, accident, marine, aviation and transport (MAT), legal expenses, credit and travel insurance. Both general liability and accident premiums accounted for 7% of total non-life premiums in 2010. MAT and legal expenses represented only 4% and 2% respectively of non-life business.
Other non-life business lines total gross written premiums has increased from €108.748bn in 2009 to €111.703bn in 2010(a growth of €2.955bn or 2.72% at current exchange rates), ie a growth of 1.2% at constant exchange rates.
Non-life insurance density
On a per capita basis, an average of €729 was spent on non-life insurance in 2010.
The property and casualty (P&C) market includes motor, property and general liability insurance. In 2010 Europeans allocated an average of €545 of their revenue to P&C and accident insurance products, against €539 in 2009. This corresponds to a 1% increase.
P&C and accident insurance is the area where density shows the least variation between countries. Excluding Liechtenstein, it nevertheless ranges from €71 in Turkey up to almost €1 500 in Switzerland.
Slovenia is again the eastern European country in which policyholders spend the most on P&C and accident insurance products. Density here reaches €502, which is only 8% below the European average.
The most noticeable changes, compared to the previous year, are to be found in Spain (-10%) and in the UK (+8%). As a consequence, for 2010, Spain’s density is now just below the CEA average. It is also worth pointing out that out of the 32 CEA full member countries, nine markets witnessed a decline in 2010, although the changes are, apart from Spain, not significant.
Non-life insurance penetration
Non-life insurance penetration stood at 3.2% in 2010.
As in previous years, property & casualty (P&C) and accident insurance is the sector in which penetration rates are the most homogeneous across Europe. In 2010 the CEA average remained stable at 2.4%. In individual countries, and excluding Liechtenstein, the highest penetration is in the UK (3.3%), closely followed by Switzerland, Slovenia (mostly due to motor insurance) and the Netherlands, which each recorded a penetration ratio of 2.9%. With less than 1%, the lowest level is reported in Turkey.
P&C and accident insurance is not only the area with the smallest differences in penetration rates, it is also the one in which no significant changes were witnessed between 2009 and 2010. Notably, however, it is the only business line for which the UK saw an improvement, albeit small.
As far as health insurance is concerned, it is in the Netherlands that penetration is the highest, at 6.7% in 2010 against 6.4% in 2009. With the new health insurance regime it introduced in 2006, the Netherlands far exceeds the other European countries, since the second highest penetration ratio is more than 5 percentage points lower; Switzerland with 1.6%. As in 2009, in addition to the Netherlands and Switzerland only Germany and Slovenia recorded penetration ratios above the CEA average, which remained stable at 0.8%.
Between 2009 and 2010, with the exception of the Netherlands and Latvia, no change in health insurance penetration was observed. In the Netherlands, penetration grew by 0.3pp, while Latvia experienced a decline of 0.1pp.
In non-life insurance in general, Slovenia emerges as the only eastern European market with penetration ratios above the CEA average.
Insurance in Europe 2008-2009
According to Swiss Re Sigma report, Europe is the leading contributor with 39.44% market share in 2009 worldwide insurance market. In 2009, the total gross written premiums in Europe is USD$1,618 billion,
a decrease of USD$83 billion or 4.88% compares to USD$1,701 billion total gross written premiums in 2008.
On a per capita basis, an average of USD$1,860 was spent on insurance in Europe(insurance density). Whereas insurance penetration(a commonly recognised indicator of insurance activity) in Europe
is 7.59%(total gross written premiums as a percentage of GDP).
As per CEA, in 2008, there are over 5,100 companies carrying out insurance activities in Europe, employing over one million employees.
European insurers’ total investment portfolio is estimated to have recovered from €6,500bn in 2008 to more than €6,800bn in 2009. This corresponds to an increase of more than 8%, compared to a fall
of 7.5% in 2008 at constant exchange rates.
In 2009, total European gross written premiums grew 2.9% (at constant exchange rates) to €1,057bn, mainly driven by the life sector, which accounts for more than 60% of all premiums. A year earlier, in comparison, total premiums dropped by more than 6% at constant exchange rates.
UK insurance is the leading contributor in European insurance industry with €203.809bn total gross written premiums(a significant dropped of €43.213bn or 17.48% of compares to €247.022bn in 2008; 7.7% at constant exchange rates);
followed closely by France assurance with €200.057bn(an increase of €16.863bn or 9.2% of compares to €183.194bn in 2008). Germany versicherung ranked third with €171.330bn(an increase of €6.807bn or 4.14% of compares to €164.523bn in 2008).
Italy assicurazioni is fourth and has a significant growth of €25.847bn or 28.09% with €117.866bn total gross written premiums in 2009, compares to €92.019bn in 2008. Netherlands verzekeringen and Spain seguros ranked fifth and sixth respectively with €76.395bn(a slight decrease of
€0.164bn or 0.21% of compares to €76.559bn in 2008) and €60.374bn(a slight increase of €0.288bn or 0.48% of compares to €60.086bn in 2008) in total gross written premiums.
Life Insurance in Europe 2008-2009
Gross written premiums
After a sharp decrease in 2008 as a result of the financial crisis, European life premiums are expected to recover to €625bn in 2009(as per CEA), which corresponds, at constant exchange rates, to a 4.6% increase on the previous year. The clear trend among households to increase their savings in 2009 benefited the guaranteed-return products offered by life insurers in some countries.
In 2009, UK life insurance is the leading contributor in Europe with €149.194bn total gross written premiums(a sharp decrease of €36.54bn or 19.67% compares to €185.734bn in 2008; -10.12% at constant exchange rates),
followed closely by France assurance vie with €138.278bn(an increase of €15.91bn or 13% compares to €122.368bn in 2008). Ranked third is Germany lebensversicherung with €81.371bn(an increase of €5.065bn or 6.64% compares to €76.306bn in 2008). Italy
life insurance has a significant surge of €26.555bn or 48.67% with €81.120bn total gross written premiums in 2009 compares to €54.565bn in 2008. In Europe, the bulk of the life business is in the UK, France, Germany and Italy, which together account for 70% to 75% of European life premiums.
Spain comes in fifth with €29.074bn(an increase of €1.828bn or 6.71% compares to €27.246bn in 2008), followed by Netherlands with €24.277bn(an increase of €2.11bn or 8% compares to €26.387bn in 2008).
In terms of the split between individual and group contracts, individual contracts predominate in most countries and on average accounted for 70% of life premiums in 2009. In the UK, the split is fairly even while in Slovenia, Sweden, Switzerland and especially Norway and Denmark, group contracts account for the lion’s share.
Life Insurance density and penetration
On average European policyholders spent €1,086 on life insurance products in 2009 versus €1,084 in 2008 and €1,309 in 2007. There were significant differences between countries, ranging from €2,602 in Denmark down to €12 in Latvia and Turkey.
Generally, life insurance density is very high in the large financial centres as well as in the Scandinavian countries.
Following the economic downturn, life insurance penetration dropped from 5.6% in 2007 to 4.6% in 2008 and then recovered to 4.9% in 2009. Similarly to density, life insurance penetration shows large disparities between markets, varying in 2009 from 0.2% in Latvia to 9.5% in the UK.
Number of contracts and population coverage
CEA estimates indicate that more than 520 million life insurance contracts were in force in Europe at the end of 2009, which corresponds to a decrease of around 1% decrease compared to 2008. This means that more than 90% of the European population is covered by a life insurance policy.
At country level, however, this coverage ratio ranges from less than 10% in Latvia to more than 400% in Sweden Försäkringar. In terms of the split between individual and group contracts, CEA figures indicate that, on average, 70% to 80% of life insurance policies in Europe relate to individual contracts.
Benefits & provisions
After seven successive years of increase, life benefits paid by European insurers remained stable at around €600bn in 2008 (+5-6% at constant exchange rates) and then dropped to slightly more than €500bn (-9% at constant exchange rates) in 2009. The UK accounts for more than one third of this total amount with €171.121bn.
A 15% fall was recorded there in 2009, mainly driven by ordinary life insurance products, with a reduction in payouts on maturity and on surrender. France, the second largest market in terms of benefits paid (18% market share), registered a 7% decline with €87.716bn. Germany has €70.781bn in benefits paid, followed by
Italy with €57.198bn, Spain with €24.966bn and Netherlands with with €21.201bn
Investments
As insurance companies are among the largest institutional investors, the fall in stock markets that followed the financial crisis and the rise in spreads put insurers’ investment portfolios under pressure in 2008. Since the life insurance industry accounts for more than 80% of European insurers’ total investment portfolio,
life insurers were particularly affected. Their investment portfolio, estimated at market value, is estimated to have declined from over €5,900bn in 2007 to around €5,200bn in 2008. This was the first time in the last decade that the year-on-year growth rate was negative.
With the capital markets rebound observed from mid-March 2009, the investment portfolio of European life insurers is expected to recover to more than €5,500bn in 2009. This corresponds to an increase of more than 8% at constant exchange rates, compared to a similar drop the previous year.
The largest European insurance investors are in the UK, France and Germany, accounting for almost two thirds of life insurers’ total portfolio.
New life business
Following the financial crisis, the number of new life contracts in Europe declined substantially in 2008. As a result, premiums for new business decreased from around €280bn in 2007 to almost €230bn in 2008, the drop being mainly driven by the UK. In 2009, new business premiums recovered slightly (+4% at constant exchange rates),
largely due to an almost 60% increase in new single premiums in Italy. In France and Germany, new life business premium income grew 33% and 13% respectively, whereas the UK reported a 26% drop.
Similarly to the business in force, individual policies account for the lion’s share, with more than 80% of European new life premiums. Among these individual contract premiums, savings contracts predominate, with an average of more than 70%, whereas annuities and protection contracts account for slightly less than 25% and 2% respectively.
Non-Life Insurance in Europe 2008-2009
With 30% of non-life premiums, motor insurance is the largest European non-life business line, followed by health (excluding accident) and property, with market shares of 25% and 20% respectively. This breakdown was broadly the same as the previous year, although health insurance was the only non-life business line
that saw a slight increase in market share. The remaining 25% of premiums were divided between general liability (8%), accident (7%), marine, aviation and transport (MAT) (4%), legal expenses (2%) and other non-life insurance business lines, including travel and credit insurance.
Gross written premiums
In 2009, the total European non-life gross written premiums amounting to €409.465bn, a decrease of 8.008bn or 1.92% compares to €417.473bn in 2008. It is the first time after a decade of year-on-year growth at current exchange rates that the growth is negative. This predictable development is to a large extent recession-related,
with households and companies prepared to forego insurance or to reduce their cover to keep costs down.
The top four non-life insurance markets in Europe are, in order of size, Germany, the UK, France and the Netherlands, which together account for more than 60% of European non-life premiums.
Germany is the leading contributor for non-life insurance in Europe with €86.080bn total gross written premiums, an increase of €1.143bn or 1.35% compares to €84.937bn in 2008; followed by France with
€61.779bn total gross written premiums, an increase of €0.953bn or 1.57% compares to €60.826bn in 2008. UK ranked third with €53.960bn total gross written premiums, a decrease of €7.329bn or 11.96% compares to €61.289bn in 2008(-1.5% at constant exchange rates).
Netherlands, Italy and Spain is ranked fourth, fifth and sixth with €52.118bn(an increase of €2.005bn or 4% compares to €50.113bn in 2008), €36.746bn(a decrease of €0.708bn or 1.89% compares to €37.454bn in 2008) and €31.836bn(a decrease of €0.761bn or 2.33% compares to €32.597bn in 2008) total gross written premiums respectively.
Motor insurance
Motor insurance is the largest European non-life business line, accounting for almost 30% of total non-life premiums.
In 2009, European motor insurers generated an estimated total gross written premiums of €121.384bn, a decrease of €5.355bn or 4.23% compares to €126.739bn in 2008.
2009 was thus the second consecutive year in the last decade(€129.833bn total gross written premiums in 2007) in which there was an overall nominal decrease at current exchange rates.
At constant exchange rates, this corresponds to a decline of 1.7%. This trend reflects both the competitiveness of the market and the impact of the economic slowdown. According to
the European Automobile Manufacturers’ Association, new motor vehicle registrations decreased by 6% in 2009, after an 8% decline in 2008 and growth of 2% in 2007.
Italy assicurazioni auto is the leading contributor to the motor insurance with €20.147bn total gross written premiums in 2009(a decrease of €0.698bn or 3.35% compares to €20.845bn in 2008);
followed closely by Germany kraftfahrzeug auto versicherungen with €20.100bn total gross written premiums(a decrease of €0.272bn or 1.34% compares to €20.372bn in 2008).
France assurance auto ranked third with €17.838bn total gross written premiums(a decrease of €0.04bn or 0.22% compares to €17.878bn in 2008). And UK motor insurance is
fourth with €14.266bn total gross written premiums(a decrease of €1.859bn or 11.53% compares to €16.125bn in 2008; -1% at constant exchange rates). The motor insurance market is dominated by Italy, Germany, France and the UK, which together account for around 60% of all European motor premiums.
Spain seguros de automóviles and Netherlands motorrijtuigverzekering is ranked fifth and sixth with €11.451bn(a decrease of €0.687bn or 5.66% compares to €12.138bn in 2008)
and €4.550bn(a decrease of €0.08bn or 1.733% compares to €4.630bn in 2008) total gross written premiums respectively.
Health insurance
Health insurance is the second largest non-life-business line, accounting for 25% of European non-life premiums.
In 2009, European health insurance generated an estimated total gross written premiums of €101.185bn, an increase of €2.748bn or 2.79% compares to €98.437bn in 2008 at current exchange rates.
At constant exchange rates, this corresponds to a growth of 3.3%, a declined compares to 6.4% growth in 2007-08.
Interestingly, health insurance was the only business line in the non-life sector in which total premiums grew in 2009, confirming that health continues to be one of the most dynamic non-life business lines,
mainly because of rising demand due to ageing populations and increasing medical costs.
Netherlands zorgverzekering, which has become the largest health insurance market in Europe following the introduction of a new health regime in 2006, is the leading contributor to the health insurance with €36.814bn total gross written premiums in 2009(an increase of €1.95bn or 5.59% compares to €34.864bn in 2008).
This is followed closely by Germany krankenversicherung with with €31.480bn total gross written premiums(an increase of €1.149bn or 3.79% compares to €30.331bn in 2008). This sector is led by the Dutch and German markets, which together account for about two thirds of European health premiums.
France, Spain seguros de salud and Switzerland is ranked third, fourth and fifth with €8.991bn(an increase of 0.571bn or 6.78% compares to €8.420bn in 2008), €5.855bn(a decrease of €0.275bn or 4.93% compares to €5.580bn in 2008)
and €5.770bn(a decrease of €0.298bn or 5.45% compares to €5.472bn in 2008; 0.3% constant exchange rates) total gross written premiums respectively.
Property insurance
Property insurance accounts for almost 20% of all European non-life business. As in the motor market, competition is fairly strong and business was affected by the recession in 2009, which saw total gross written premiums decline for the first time in a decade at current exchange rates (-1.93% or -€1.576bn),
from €81.545bn in 2008 to €79.969bn in 2009. Nonetheless, property premiums remained largely stable in 2009 with 0.9% growth at constant exchange rates.
The property insurance market is dominated by Germany, France, the UK and Spain, which together account for around 63% of all European property premiums. The relative stability in property premiums is the result of small increases in most European countries in 2009, albeit offset by a 4% drop in the UK.
This fall seems to be mainly in household premiums and due to the recession. It appears that buildings insurance rates rose throughout 2009. Therefore, it is likely that policyholders chose to reduce their cover to cut costs.
Germany sachversicherung is the leading property insurance contributor in Europe with €14.900bn total gross written premiums in 2009(a decrease of €0.317bn or 2.17% compares to €14.583bn in 2008);
followed closely by France assurance habitation with €14.101bn total gross written premiums(a decrease of €0.295bn or 2.14% compares to €13.806bn in 2008). The UK home insurance ranked third with €13.604bn total gross written premiums in 2009(a decrease of €2.232bn or 14.09% compares to €15.836bn in 2008, -3.9% at constant exchange rate).
Spain seguros de hogar, Italy and Netherlands opstalverzekering/woonhuisverzekering is ranked fourth, fifth and sixth with
with €7.735bn(an increase of 0.045bn or 0.59% compares to €7.690bn in 2008), €5.080bn(a decrease of €0.002bn or 0.04% compares to €5.078bn in 2008) and €3.876bn(a decrease of €0.141bn or 3.78% compares to €3.735bn in 2008) total gross written premiums respectively.
It is expected that prices will rise in 2010 following the bad weather conditions experienced in Europe in 2009, particularly the January storm Klaus that caused widespread property damage across France and northern Spain.
Other non-life insurance
The other non-life insurance include general liability, accident, marine, aviation and transport (MAT), legal expenses, credit and travel insurance.
general liability premiums accounted for around 8% of total non-life premiums in 2008, closely followed by accident insurance (7%). MAT and legal expenses accounted for respectively only 4% and 2% of non-life business.
Other non-life business lines have been affected by the crisis, as premiums in these lines decreased from €110.752bn in 2008 to €106.927bn in 2009(a decline of €3.825bn or 3.45% at current exchange rates), ie a decline of 0.8% at constant exchange rates.
Non-life insurance density
On a per capita basis, an average of €694 was spent on non-life insurance in 2009.
The property and casualty (P&C) insurance market includes motor, property and general liability insurance. In 2009 Europeans spent an average of €523 on P&C and accident insurance products, against €529 in 2008.
P&C and accident insurance is the only insurance business line in which density is expected to decrease in 2009. It is also the market in which density varies the least. Excluding Liechtenstein, insurance density
for this business line ranges from €58 in Turkey to more than €1 200 in Luxembourg and Switzerland.
Not surprisingly, given the heterogeneity of European health insurance markets, health insurance density varies widely, ranging in 2009 from €9 in Turkey to more than €2 000 in the Netherlands. On average, the amount spent on health insurance was €171 in 2009, compared to €167 in 2008.
As previously mentioned, the very high level of insurance density reported in the Netherlands stems from the new private health regime introduced in 2006. The Netherlands is followed by Switzerland and Germany, where density is estimated to reach respectively €749 and €383.
When comparing 2008 and 2009, it is clear that changes in density to a large extent reflect the growth in health premiums. The most significant change was in Sweden, where density more than halved in 2009
Non-life insurance penetration
Non-life insurance penetration increased from 3.04% to 3.16%.
Property & casualty (P&C) and accident insurance have the most homogeneous penetration rate across Europe (excluding Liechtenstein). In 2009, P&C and accident penetration ranged from 1% in Turkey to 3.2% in the UK, with a CEA average of 2.5%. In 2008, the CEA average penetration rate was 2.3%.
Notable among emerging eastern markets are Slovenia’s non-life insurance (P&C and health) penetration ratios, which are both above the CEA average.
In health insurance, average penetration in Europe increased from 0.7% in 2008 to 0.8% in 2009. Not surprisingly, health insurance penetration is highest in the Netherlands, at 6.4% in 2009 compared to 5.9% in 2008. The second highest penetration rate is in Switzerland at 1.6%. In addition to the Netherlands and
Switzerland, only Germany and Slovenia have penetration rates that exceed the CEA average.
Year on year, there were only three markets in which penetration decreased: Sweden, Latvia and Lithuania, which also reported significant decreases in health insurance premiums in 2009.
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