Germany Insurance Market Intelligence: 2011 Edition
Despite the financial and economic crisis, premium income in the German insurance industry recorded a robust growth of 4.19% in 2009 as compared to 2008. The German insurance industry is dominated by the life insurance segment accounting for approximately 50% of the total market share. The remaining 50% is divided into non-life and health insurance segment.
Pension products dominate the life insurance segment. Life segment has been witnessing growth mainly on account of the demand for annuity and other pension products. These life insurance products function as saving instruments and are used for financial protection. The non-life insurance segment is dominated by motor insurance which accounts for approximately 36.7% of the total non-life premiums.
Improving savings rate, increasing disposable income, decreasing unemployment rate, and strong economy are some of the main factors which are driving the growth of all the industries in Germany including insurance industry. In addition to the above factors, increasing aging population, rising life expectancy rate, chronic health conditions are some other important factors that would be important factors of growth of German insurance industry in the next few years.
With the growth of the economy in the first two quarters of 2010, the decline in the unemployment rate in the beginning of 2010 coupled with low insurance penetration rate compared to other developed countries, the German insurance industry offers growth opportunities for the insurance players.
Allianz Leben dominates the German insurance market followed by Aachener Munchener Leben and R+V Lebensversicherung. Allianz is the market leader in life and non-life insurance, while Debeka leads in health insurance and Munich Re leads in reinsurance.
Pension products dominate the life insurance segment. Life segment has been witnessing growth mainly on account of the demand for annuity and other pension products. These life insurance products function as saving instruments and are used for financial protection. The non-life insurance segment is dominated by motor insurance which accounts for approximately 36.7% of the total non-life premiums.
Improving savings rate, increasing disposable income, decreasing unemployment rate, and strong economy are some of the main factors which are driving the growth of all the industries in Germany including insurance industry. In addition to the above factors, increasing aging population, rising life expectancy rate, chronic health conditions are some other important factors that would be important factors of growth of German insurance industry in the next few years.
With the growth of the economy in the first two quarters of 2010, the decline in the unemployment rate in the beginning of 2010 coupled with low insurance penetration rate compared to other developed countries, the German insurance industry offers growth opportunities for the insurance players.
Allianz Leben dominates the German insurance market followed by Aachener Munchener Leben and R+V Lebensversicherung. Allianz is the market leader in life and non-life insurance, while Debeka leads in health insurance and Munich Re leads in reinsurance.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Supervised by BaFin or by the supervisory authorities of the federal states
1.1.2 Deregulation led to rise in number of competitors
1.1.3 Categorised into 3 segment: life, non-life and health
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Overall insurance premiums registered gain in 2009
1.2.1.2 P&C segment more saturated than its life insurance segment
1.2.2 Market Segments
1.2.2.1 Private health insurance as smallest segment registered growth in 2009
1.2.2.2 Trend toward single premiums by the increasing flexibility of products
1.2.2.3 Motor & general liability are largest segments of non-life insurance segment
1.2.3 Market Density & Penetration
1.2.3.1 Germany’s insurance penetration continued to be merely average
1.2.3.2 Insurance density much higher than UK, Netherlands and switzerland
1.2.4 Market Share
1.2.4.1Highly fragment nature of insurance industry in Germany
1.2.4.2 Allianz Leben & Aachener Munchener Leben are major life insurers
1.2.4.3 Insurers engaged into expanding their distribution channels
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Fixed Health Insurance Fees to be introduced
German Mutuals Geared up for Solvency II Directive
Commission Approves German Short-Term Export-Credit Insurance Scheme
2.2 Market Drivers
Expanding GDP
Growing Statutory Pension Insurance Market
Increasing Savings, Savings Rate & Disposable Income
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Expected rise in demand for life & investment linked products
4.2 Elderly Population and Increasing Chronic Diseases to Drive Health Segment
1.1 Industry Structure
1.1.1 Supervised by BaFin or by the supervisory authorities of the federal states
1.1.2 Deregulation led to rise in number of competitors
1.1.3 Categorised into 3 segment: life, non-life and health
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Overall insurance premiums registered gain in 2009
1.2.1.2 P&C segment more saturated than its life insurance segment
1.2.2 Market Segments
1.2.2.1 Private health insurance as smallest segment registered growth in 2009
1.2.2.2 Trend toward single premiums by the increasing flexibility of products
1.2.2.3 Motor & general liability are largest segments of non-life insurance segment
1.2.3 Market Density & Penetration
1.2.3.1 Germany’s insurance penetration continued to be merely average
1.2.3.2 Insurance density much higher than UK, Netherlands and switzerland
1.2.4 Market Share
1.2.4.1Highly fragment nature of insurance industry in Germany
1.2.4.2 Allianz Leben & Aachener Munchener Leben are major life insurers
1.2.4.3 Insurers engaged into expanding their distribution channels
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Fixed Health Insurance Fees to be introduced
German Mutuals Geared up for Solvency II Directive
Commission Approves German Short-Term Export-Credit Insurance Scheme
2.2 Market Drivers
Expanding GDP
Growing Statutory Pension Insurance Market
Increasing Savings, Savings Rate & Disposable Income
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Expected rise in demand for life & investment linked products
4.2 Elderly Population and Increasing Chronic Diseases to Drive Health Segment
LIST OF CHARTS:
Annual Premium – Germany Insurance Industry: 2002-2009
Germany Insurance Premium Share (%) by Segment – 2008
Germany Insurance Premium by Segment (2002-2009)
Germany Non-Life Insurance Premium Share by Segment (%) – 2009
Germany Insurance Density: 2002 – 2009
Germany Insurance Penetration (%): 2002 – 2009
Germany Market Share of Life Insurers (%): 2008
German Insurance Distribution Channel (Premium by Channel): 2009
Germany: Combined Ratio Comparison (%) (2007-2009)
GDP Growth of Germany: 2002-2009
Number of Insured Persons (2004-2008)
Germany Disposable Income (2002-2009)
Savings & Savings Rate of Germany (2002-2009)
Forecast: Germany Insurance Industry: 2009A - 2013F
Forecast: Germany Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium – Germany Insurance Industry: 2002-2009
Germany Insurance Premium Share (%) by Segment – 2008
Germany Insurance Premium by Segment (2002-2009)
Germany Non-Life Insurance Premium Share by Segment (%) – 2009
Germany Insurance Density: 2002 – 2009
Germany Insurance Penetration (%): 2002 – 2009
Germany Market Share of Life Insurers (%): 2008
German Insurance Distribution Channel (Premium by Channel): 2009
Germany: Combined Ratio Comparison (%) (2007-2009)
GDP Growth of Germany: 2002-2009
Number of Insured Persons (2004-2008)
Germany Disposable Income (2002-2009)
Savings & Savings Rate of Germany (2002-2009)
Forecast: Germany Insurance Industry: 2009A - 2013F
Forecast: Germany Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Germany - Key Macroeconomic Indicators: 2009A – 2013F
Germany - Key Macroeconomic Indicators: 2009A – 2013F
