According to Insurance Europe and Swiss Re's Sigma no. 3, European insurance markets made up 33% of 2018 global life premiums and 29% of global non-life premiums, showing a very dense insurance activity compared to other regions worldwide. At the end of December 2018, by combining life and non-life sectors together, Asia Pacific represented 32.4% of global premiums, Europe 31.6%, North America 30.8%, Latin America & Caribbean 3.1% and Middle East & Africa 2.1%.
The report shows that, in 2018, in Insurance Europe consolidated markets, life GWP totaled EUR 764 billion (+6.7% y-o-y), P&C GWP was EUR 407 billion (+5.7% y-o-y) while health GWP reached EUR 140 billion (+4.8% y-o-y). Most claims and benefits were paid for life business lines (EUR 705 billion), followed by P&C (EUR 253 billion) and health (EUR 111 billion).
The insurance penetration degree at European level, calculated as GWP percentage from GDP, was 7.46%, up by 0.21 pp. year-on-year, ranging from 0.5% in Liechtenstein to 14.3% in UK. The insurance density was EUR 2,170 per capita, up by 5.9% y-o-y, most of this sum being directed towards life insurance (EUR 1,264), then P&C (EUR 673, of which EUR 238 on motor and EUR 174 on property) and health insurance (EUR 232).
Here are a few facts of the European insurance industry at the end of 2018, according to Insurance Europe analysis (detailed information can be found here):
- Total GWP: EUR 764 billion (+6.7% compared to 2017);
- Total claims and benefits paid: EUR 705 billion (+2.6%);
- Life penetration degree, in GDP: 4.53% (+0.41 pp.) - ranging from 0.2% in Latvia to 9.6% in UK;
- Life density, per capita: EUR 1,264 (+6.3%) - ranging from EUR 22 in Romania to over EUR 3,000 in Finland, UK and Denmark;
- Traditional life business lines remained fairly stable year-on-year (+0.3%) and accounted for 75.2% of total life premiums volume;
- Unit-linked business lines shrunk by 5.2% y-o-y, decreasing in their share in life sector as well, to 24.8%;
- Premiums from individual contracts fell 1.5% and accounted for 80.4% of all life premiums;
- Premiums collected through group contracts registered a slight increase of 0.7% in 2017, and accounted for 19.6% of all life insurance premiums.
- Total GWP: EUR 407 billion (+5.7% compared to 2017), of which Motor business lines accounted for 35% of total GWP, Property 26%, General liability 10%, Accident 9% and the rest 20%;
- Total claims: EUR 253 billion (+5.6%), where Motor claims accounted for highest share, while Property claims jumped 9.7%;
- P&C penetration degree, in GDP: 2.32% (+0.06 pp.)
- P&C density, per capita: EUR 673 (+5.3%)
- Motor insurance was the largest P&C business line, both in terms of GWP and claims paid:
- Motor GWP: EUR 144 billion (+3.8%);
- Motor claims: EUR 100 billion (+3.3%);
- Motor density: EUR 238 per capita;
- Property insurance was the second largest P&C segment in 2018 at European level:
- Property GWP: EUR 105 billion (+4.8%);
- Property claims: EUR 65 billion (+9.7%);
- Property density: EUR 114 per capita;
Health insurance facts:
- Total GWP: EUR 140 billion (+4.8% compared to 2017);
- Total claims and benefits: EUR 111 billion (+4.0%), the average claim per capita increased from EUR 186 in 2017 to EUR 193;
- Health penetration degree, in GDP: 0.80% (+0.01 pp.), varying from EUR 1 in Hungary to over EUR 2,700 in Netherlands (the differences are strongly influenced by national practices regarding public and private health insurance);
- Health density, per capita: EUR 232 (+4.5%).