Spain Life Insurance Sector to be Worth EUR 37.47 Billion in 2016, Expects Timetric13 Nov 2012 • by Natalie Aster
The Spanish life insurance segment is considered to be one of the largest life insurance segments in Europe and witnessed a healthy CAGR of 6.4% during the review period. Despite registering a decrease of 5.9% in 2010 as a result of the debt crisis which created financial difficulties for the life insurers, the segment bounced back in 2011 with a growth rate of 6.3%. Furthermore, the growing aging population in Spain is expected to lead to the growth of the market of post retirement savings, such as pension and general annuity. The presence of an aging population, deficits in pensions and shrinking workforce are expected to drive long term demand for life insurance and private pension. Overall, the segment is expected to grow at a CAGR of 4.7% over the forecast period.
Life insurance in Spain is predominantly distributed through bancassurance, which accounted for 80.3% of the segment’s total new premiums business in 2011. Despite the global financial crisis, the Spanish life insurance segment registered growth rates of 17.9% and 8.4% in 2008 and 2009. However, the debt crisis decreased consumer confidence in life insurance products in 2010 and the segment registered an annual growth rate of -5.9%. The growing aging population, recovery in Spanish economy and consumer interest in investing guaranteed products recovered the life insurance segment in 2011 which registered a growth rate of 6.3%. Furthermore, the segment is expected to grow further over the forecast period to reach a projected value of EUR37.47 billion (US$41.42 billion) in 2016.
Solvency II is the new European regulatory framework for insurers which will change the capital requirements of the insurance industry and introduce new risk management standards for insurers. The implementation of Solvency II aims to ensure a more accurate allocation of capital to risk. This new set of regulations is expected to come into effect in 2013. With the implementation of the EU’s Solvency II directive, small life insurers operating in Spain will be forced to merge with large multinational companies.
According to the report “Life Insurance in Spain, Key Trends and Opportunities to 2016” by Visiongain, the Spanish aging population is expected to contribute to the growth of the country’s life insurance segment over the forecast period. The older population tends to purchase more life insurance than the younger population in order to secure their post-retirement life. The life expectancy for women in Spain in 2010 was 85 years, whereas for men it was 79 years. In 2011, 17.1% of the Spanish population was above 65 years of age. Overall, the Spanish life insurance segment is expected to grow in written premium value from EUR29.75 billion (US$41.42 billion) in 2011 to EUR37.47 billion (US$52.18 billion) in 2016, at a CAGR of 4.7% over the forecast period.
Life Insurance in Spain, Key Trends and Opportunities to 2016
Published: October, 2012
Price: US$ 1.950,00
The Spanish life insurance segment is majorly dependent on the bancassurance distribution channel for the sale of life insurance policies. The channel accounted for 80.3% of the written premium new business market and is expected to increase its market share to 87.1% in 2016. The increasing demand for bancassurance influenced life insurers to make bancassurance agreements with banks in order to enhance their market share. This increase in market share indicates that the dependency of life insurers on banking industry will also increase over the forecast period.
- Non-Life Insurance in Spain, Key Trends and Opportunities to 2016
- Reinsurance in Spain, Key Trends and Opportunities to 2016
- Personal Accident and Health Insurance in Spain, Key Trends and Opportunities to 2016
More information can be found in the report “Life Insurance in Spain, Key Trends and Opportunities to 2016” by Timetric.
To order the report or ask for sample pages contact firstname.lastname@example.org