Portugal Insurance Market Intelligence: 2011 Edition
The recession of the Portuguese economy in 2009 was the deepest of the last three decades due to rise in unemployment rate, contraction of external demand and greater restrictions in access to finance. The 2008-2009 crisis had a significant impact on the Portuguese insurance sector as both life and non-life insurance premiums declined significantly in 2009. The non-life business was affected on account of deterioration of premiums in its two largest segments namely worker’s compensation and motor. In addition, extraordinary weather conditions that struck mainland Portugal (in particular) at the end of December 2009 and the island of Madeira in February 2010 caused an unusually large number of claims.
Retirement Savings (PPR) business made a significant growth in 2009 as these products are seen as long-term saving options and premiums from this segment account for a major portion of life insurance sector. The Portuguese insurance market is highly concentrated with the top five insurers accounting for more than half of market share at the end of 2009. Fidelidade-Mundial which sells both life and non-life insurance policies is the market leader.
According to forecasts by the European Commission (EC), prospects for growth of the Portuguese economy are poorer than those estimated for the Euro area for coming years due to excessive fiscal deficits in 2009. The implementation of the Growth and Stability Pact (PEC) along with the additional measures might improve the situation in future years but at a slower pace. Rising demand for health insurance, retirement savings plans, motor insurance and workmen’s compensation (both compulsory) will be driving the Portuguese insurance market.
Retirement Savings (PPR) business made a significant growth in 2009 as these products are seen as long-term saving options and premiums from this segment account for a major portion of life insurance sector. The Portuguese insurance market is highly concentrated with the top five insurers accounting for more than half of market share at the end of 2009. Fidelidade-Mundial which sells both life and non-life insurance policies is the market leader.
According to forecasts by the European Commission (EC), prospects for growth of the Portuguese economy are poorer than those estimated for the Euro area for coming years due to excessive fiscal deficits in 2009. The implementation of the Growth and Stability Pact (PEC) along with the additional measures might improve the situation in future years but at a slower pace. Rising demand for health insurance, retirement savings plans, motor insurance and workmen’s compensation (both compulsory) will be driving the Portuguese insurance market.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Significant Presence of Foreign Players
1.1.3 Nationalization of Domestic Market, Concentration Process
1.1.4 Formation of Foreign Insurers Association and Public Insurers Association
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Decrease in overall premiums due to financial crisis and greater restriction to finance
1.2.1.2 Deterioration in worker’s compensation and motor insurance affected non-life insurance premiums
1.2.1.3 Rise in net assets of insurers in 2009 vs 2008
1.2.2 Market Segments
1.2.2.1 Life insurance dominates the industry
1.2.2.2 Growth of Retirement Savings (PPR) business was remarkable
1.2.2.3 Non-life insurance premiums are driven by demand for workers’ compensation and motor
1.2.2.4 Rising claims deteriorated combined ration in 2009 vs 2008
1.2.3 Market Density & Penetration
1.2.3.1 Decline in insurance density depicts growth opportunity in distribution channels
1.2.3.2 Much better insurance penetration than other European countries
1.2.4 Market Share
1.2.4.1 Highly concentrated nature of Portuguese insurance market
1.2.4.2 Fidelidade-Mundial, the market leader sells both life and non-life insurance policies
2. INDUSTRY ANALYSIS
2.1 Industry Developments
New Workmen’s Compensation Legislation
Environmental Liability Legislation
MAPFRE SA Acquired 50% Stake in Finibanco Vida
Banif Bought Global Seguros Insurer for Euro 117 Million
CNP Assurances Finalized Sale of Portuguese Businesses
Portuguese Insurers Produced Profit In 2009
Caixa Geral De Acquired Stake in Brazilian Brokerage Unit
Portuguese Government Announced Raft of Pro-Privatisation
2.2 Market Drivers
Rising Health Insurance Premiums
Demand for Retirement Savings plans (PPR)
Demand for Agricultural Insurance
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 Poorer prospects of growth in economy and contraction of external demand will affect the industry
4.2 Implementation of the Growth and Stability Pact (PEC) to improve economy conditions
1.1 Industry Structure
1.1.1 Significant Presence of Foreign Players
1.1.3 Nationalization of Domestic Market, Concentration Process
1.1.4 Formation of Foreign Insurers Association and Public Insurers Association
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Decrease in overall premiums due to financial crisis and greater restriction to finance
1.2.1.2 Deterioration in worker’s compensation and motor insurance affected non-life insurance premiums
1.2.1.3 Rise in net assets of insurers in 2009 vs 2008
1.2.2 Market Segments
1.2.2.1 Life insurance dominates the industry
1.2.2.2 Growth of Retirement Savings (PPR) business was remarkable
1.2.2.3 Non-life insurance premiums are driven by demand for workers’ compensation and motor
1.2.2.4 Rising claims deteriorated combined ration in 2009 vs 2008
1.2.3 Market Density & Penetration
1.2.3.1 Decline in insurance density depicts growth opportunity in distribution channels
1.2.3.2 Much better insurance penetration than other European countries
1.2.4 Market Share
1.2.4.1 Highly concentrated nature of Portuguese insurance market
1.2.4.2 Fidelidade-Mundial, the market leader sells both life and non-life insurance policies
2. INDUSTRY ANALYSIS
2.1 Industry Developments
New Workmen’s Compensation Legislation
Environmental Liability Legislation
MAPFRE SA Acquired 50% Stake in Finibanco Vida
Banif Bought Global Seguros Insurer for Euro 117 Million
CNP Assurances Finalized Sale of Portuguese Businesses
Portuguese Insurers Produced Profit In 2009
Caixa Geral De Acquired Stake in Brazilian Brokerage Unit
Portuguese Government Announced Raft of Pro-Privatisation
2.2 Market Drivers
Rising Health Insurance Premiums
Demand for Retirement Savings plans (PPR)
Demand for Agricultural Insurance
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 Poorer prospects of growth in economy and contraction of external demand will affect the industry
4.2 Implementation of the Growth and Stability Pact (PEC) to improve economy conditions
LIST OF CHARTS:
Annual Premium – Portugal Insurance Industry: 2002-2009
Portugal: Gross Direct Premium Q210 Vs. Q209
Portugal Insurance Premium Share (%) by Segment – 2009
Portugal Combined Ratio of Non-Life Insurance Industry (2007–2009)
Portugal Insurance premium by Segment – 2002-2009
Portugal Life Insurance Premium Share (%) by Segment – 2009
Portugal Non-Life Insurance Premium Share (%) by Segment – 2009
Portugal Insurance Density (US$): 2004 – 2009
Portugal Insurance Penetration: 2004 – 2009
Portugal: Top Ten Insurer’s Market Shares: (2009)
Portugal Health Insurance Premiums (2004-2009)
Insured Persons under Retirement Savings plans (PPR) 2002-2009
Annual Contribution towards Retirement Savings plans (PPR) 2002-2009
Portugal Agricultural Insurance premiums (2002-2009)
Forecast: Insurance Industry: 2009A - 2013F
Forecast: Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium – Portugal Insurance Industry: 2002-2009
Portugal: Gross Direct Premium Q210 Vs. Q209
Portugal Insurance Premium Share (%) by Segment – 2009
Portugal Combined Ratio of Non-Life Insurance Industry (2007–2009)
Portugal Insurance premium by Segment – 2002-2009
Portugal Life Insurance Premium Share (%) by Segment – 2009
Portugal Non-Life Insurance Premium Share (%) by Segment – 2009
Portugal Insurance Density (US$): 2004 – 2009
Portugal Insurance Penetration: 2004 – 2009
Portugal: Top Ten Insurer’s Market Shares: (2009)
Portugal Health Insurance Premiums (2004-2009)
Insured Persons under Retirement Savings plans (PPR) 2002-2009
Annual Contribution towards Retirement Savings plans (PPR) 2002-2009
Portugal Agricultural Insurance premiums (2002-2009)
Forecast: Insurance Industry: 2009A - 2013F
Forecast: Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Key Macroeconomic Indicators: (2009 – 2014F)
Key Macroeconomic Indicators: (2009 – 2014F)
