Non-Life Insurance in Austria will Record CAGR of 2.24% over Next Five Years, Forecasts Timetric
20 Aug 2012 • by Natalie Aster
The Austrian non-life insurance segment accounted for 42.3% of the total Austrian insurance industry’s written premium value in 2011, making it the largest segment in the industry. The segment grew in written premium value at a compound annual growth rate (CAGR) of 2.2% during the review period (2007–2011).
This growth was mainly attributed to the country’s favorable regulatory environment for non-life insurers, including the implementation of compulsory third-party liability motor insurance and mandatory liability insurance for doctors, dentists, hospitals and convalescent homes. The segment also benefited from the rising property prices in Austria’s tier I and tier II cities, as this increased the value of property insurance products during the review period. These factors and Austria’s improving macroeconomic fundamentals are expected to enable the non-life insurance segment to record a CAGR of 2.24% over the forecast period (2012–2016).
The Austrian non-life insurance segment grew, despite the country’s poor economic environment during the review period. This growth was supported by the development of the motor insurance category. The number of motor insurance policies sold in Austria increased substantially during the review period due to the country’s implementation of compulsory third-party motor vehicle insurance. Austrian policymakers enforced several laws to supervise road traffic accidents and crimes. As part of these laws, third-party motor vehicle insurance was made compulsory and must be purchased when anyone applies for vehicle registration.
According to the report “Non-Life Insurance in Austria, Key Trends and Opportunities to 2016” by Timetric, Austrian policymakers also amended the provisions rehttps://marketpublishers.com/report/business_finance_insurance/banking_finance/creating_female_friendly_financial_services_strategies_opportunities_n_lessons.htmllated to liability insurance for doctors, dentists, hospitals and convalescent homes in 2010, and it is now compulsory for these practitioners to have liability insurance with a minimum sum insured of EUR2.0 million. The premium for this compulsory liability insurance is determined by the relevant profession. In addition, the Austrian government enacted the Austrian Federal Environmental Liability Act in June 2009 to prevent and remedy environmental damages to companies that are potentially exposed to liability risk for environmental damage. As a result of the act, Austrian insurers introduced an additional coverage for property losses caused by environmental damage, which falls under the general liability insurance category. Demand for environmental coverage is expected to grow over the forecast period, as companies with higher environmental exposure are purchasing this type of insurance to counter unforeseen damages claims.
Non-Life Insurance in Austria, Key Trends and Opportunities to 2016
Published: July, 2012
Price: US$ 1.950,00
The property insurance category accounted for approximately 46.2% of the Austrian non-life insurance written premium value in 2011, recording impressive growth during the review period. This growth was supported by the rising property prices in Austria’s tier I and tier II cities. In particular, Vienna registered a higher growth in property prices than other Austrian cities. The rise in property prices increased the value of property insurance and generated more written premium value for the property insurance category during the review period. It is also expected to remain buoyant over the forecast period.
More information can be found in the report “Non-Life Insurance in Austria, Key Trends and Opportunities to 2016” by Timetric.
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