Spain Insurance Market Intelligence: 2011 Edition
The insurance industry of Spain can be classified into life and non-life business segments, with non-life dominating the market with the majority share. The life segment comprises life group and unit-linked businesses, while the non-life comprises motor, multi-risk, health, third-party liability, burial expenses, personal accidents, engineering, credit, transport, agricultural, pecuniary losses, assistance, legal expenses, fire, surety and theft insurance.
Despite challenging macro-economic environment, the performance of Spanish insurance industry has remained stable in the recent past, mainly as a result of the improved financial markets and cost saving measures. Few of the several factors driving the Spanish insurance industry include the growing national economy, and increasing sales of health insurance.
Growth prospects of the Spanish insurance sector appear significantly low for 2010, mainly because of weak economic recovery, strong market competition, and modest investment returns. The weak demand, price competition, and deterioration in the claims ratio are likely to continue and affect the non-life business, where the decline in prices is affecting motor insurance to other retail segments like home and health insurance.
The Spanish insurance companies are regulated and supervised by the government through the Direccion General de Seguros. Spain's insurance market comprises both the local and foreign insurers. The number of domestic firms in the industry has fallen down during the past few years, primarily because of the firms’ insolvencies, mergers, and acquisitions. MAPFRE leads the Spanish insurance industry at present, followed by Zurich.
Despite challenging macro-economic environment, the performance of Spanish insurance industry has remained stable in the recent past, mainly as a result of the improved financial markets and cost saving measures. Few of the several factors driving the Spanish insurance industry include the growing national economy, and increasing sales of health insurance.
Growth prospects of the Spanish insurance sector appear significantly low for 2010, mainly because of weak economic recovery, strong market competition, and modest investment returns. The weak demand, price competition, and deterioration in the claims ratio are likely to continue and affect the non-life business, where the decline in prices is affecting motor insurance to other retail segments like home and health insurance.
The Spanish insurance companies are regulated and supervised by the government through the Direccion General de Seguros. Spain's insurance market comprises both the local and foreign insurers. The number of domestic firms in the industry has fallen down during the past few years, primarily because of the firms’ insolvencies, mergers, and acquisitions. MAPFRE leads the Spanish insurance industry at present, followed by Zurich.
1. INDUSTRY SNAPSHOT
1.1. Industry Structure
1.1.1 Assigned regulatory body- Direccion General de Seguros
1.1.2 Trend of rising foreign insurance firms over last few years
1.1.3 Workers' compensation and property insurance are obtained through Government
1.2. Market Overview
1.2.1. Market Size & Growth
1.2.1.1 Slower growth in overall premiums in local currency in 2009 vs 2008
1.2.1.2 Improved financial markets and health insurance resulted in growth
1.2.2 Market Segments
1.2.2.1 Almost equal contribution of life and non-life insurance businesses in total premiums
1.2.2.2 High unemployment and declining savings affected non-life insurance premiums
1.2.2.3 Motor and health are two major segments of non-life
1.2.3 Market Density & Penetration
1.2.3.1 Low insurance penetration lead to introduction of new products
1.2.3.2 Higher Penetration Rate for Non-Life Segment
1.2.4 Market Share
1.2.4.1 Declining number of insurance companies suggest concentrated nature of industry
1.2.4.2 Mapre group- as market leader in overall insurance sector
1.2.4.3 Línea Directa Aseguradora-market leader in direct motor and home insurance
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Mapfre acquires 50% stake in Caixa Catalunya
Santander to Sell its Insurance Business
Development in Credit Insurance
2.2 Market Drivers
Growing Economy
Rising Population
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS IN 2009 VS 2008
4.1 Reduced Players Due to Competition and Increased Regulatory Scrutiny
4.2 Industrial Growth, Rising Income and Channel Improvement to Drive Insurance
4.3 Health and Pension Demand and Better Returns to Drive Life Segment
4.4 Introduced a scrappage scheme to bolster the motor industry
1.1. Industry Structure
1.1.1 Assigned regulatory body- Direccion General de Seguros
1.1.2 Trend of rising foreign insurance firms over last few years
1.1.3 Workers' compensation and property insurance are obtained through Government
1.2. Market Overview
1.2.1. Market Size & Growth
1.2.1.1 Slower growth in overall premiums in local currency in 2009 vs 2008
1.2.1.2 Improved financial markets and health insurance resulted in growth
1.2.2 Market Segments
1.2.2.1 Almost equal contribution of life and non-life insurance businesses in total premiums
1.2.2.2 High unemployment and declining savings affected non-life insurance premiums
1.2.2.3 Motor and health are two major segments of non-life
1.2.3 Market Density & Penetration
1.2.3.1 Low insurance penetration lead to introduction of new products
1.2.3.2 Higher Penetration Rate for Non-Life Segment
1.2.4 Market Share
1.2.4.1 Declining number of insurance companies suggest concentrated nature of industry
1.2.4.2 Mapre group- as market leader in overall insurance sector
1.2.4.3 Línea Directa Aseguradora-market leader in direct motor and home insurance
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Mapfre acquires 50% stake in Caixa Catalunya
Santander to Sell its Insurance Business
Development in Credit Insurance
2.2 Market Drivers
Growing Economy
Rising Population
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS IN 2009 VS 2008
4.1 Reduced Players Due to Competition and Increased Regulatory Scrutiny
4.2 Industrial Growth, Rising Income and Channel Improvement to Drive Insurance
4.3 Health and Pension Demand and Better Returns to Drive Life Segment
4.4 Introduced a scrappage scheme to bolster the motor industry
LIST OF CHARTS:
Annual Premiums – Spanish Insurance Industry: 2002-2009
Annual Premium – Spanish Insurance Industry: 1H10 Vs. 1H09
Spain Insurance Premium Share (%) by Segment – 2009
SpainInsurance Premium by Segment: 2002-2009
Non-Life Insurance Premium Share (%) by Segment – 2009
Spain: Insurance Density (US$): 2002 – 2009
Spain Insurance Penetration (%): 2002 – 2009
Spain: Major Insurers’ Market Share (%): 2009
Spain: Major Life Insurers’ Market Share (%): 2009
Spain: Major Non Life Insurers’ Market Share (%): 2009
GDP Growth of Spain: 2002 – 2009
Spain: Population Growth, 2002-2009
Forecast: Spanish Insurance Industry: 2009A - 2013F
Forecast: Spanish Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premiums – Spanish Insurance Industry: 2002-2009
Annual Premium – Spanish Insurance Industry: 1H10 Vs. 1H09
Spain Insurance Premium Share (%) by Segment – 2009
SpainInsurance Premium by Segment: 2002-2009
Non-Life Insurance Premium Share (%) by Segment – 2009
Spain: Insurance Density (US$): 2002 – 2009
Spain Insurance Penetration (%): 2002 – 2009
Spain: Major Insurers’ Market Share (%): 2009
Spain: Major Life Insurers’ Market Share (%): 2009
Spain: Major Non Life Insurers’ Market Share (%): 2009
GDP Growth of Spain: 2002 – 2009
Spain: Population Growth, 2002-2009
Forecast: Spanish Insurance Industry: 2009A - 2013F
Forecast: Spanish Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Spain: Net National Disposable Income (NNDI) & NNDI Per Inhabitant (2002 – 2009)
Key Macroeconomic Indicators: (2009A – 2014F)
Spain: Net National Disposable Income (NNDI) & NNDI Per Inhabitant (2002 – 2009)
Key Macroeconomic Indicators: (2009A – 2014F)
