Europe’s insurers saw premiums and claims rise in 2020, says Insurance Europe

Europe’s insurers paid claims and benefits of €2.8bn per day in 2020, up from €2.7bn per day in 2019, according to Insurance Europe. Overall, P&C claims paid in Europe increased 5.4% in 2020 to €272bn, slightly higher than the average growth of 4.9% between 2016 and 2019. Total gross premiums written in the European countries in which Insurance Europe has members amounted to €1,264bn in 2020, a drop of 4% on 2019 due to a sharp decline in life insurance, where premiums fell 9.6% compared with the year before. P&C premiums increased 2.8% and health premiums 3.4%. The figures come from the latest edition of Insurance Europe’s European Insurance in Figures. It reveals that the European insurance industry’s assets under management increased from €10.4trn in 2019 to €10.6trn in 2020. The report notes that at the end of 2020, there were 4,333 insurance undertakings operating in the EU, of which 3,092 were domestic undertakings (including subsidiaries), 13 were third-country branches and 1,228 were EU/EEA branches, according to the European Insurance and Occupational Pensions Authority (EIOPA). In addition, there were 371 companies in the UK, 145 in Switzerland and 60 in Turkey, bringing the total number of companies in markets represented by Insurance Europe to 4,909. During the course of 2020, 37 new domestic undertakings and 12 EEA branches were licensed, according to EIOPA. Four new domestic undertakings were registered in each of Ireland, France, Germany, Luxembourg and Malta, along with three in Spain. Two new EEA branches were licensed in Ireland, Spain, Italy and the Netherlands The report says that in 2020, the European insurance sector employed more than 922,000 people directly, a slight increase (+0.6%) on 2019. The Insurance Europe report stresses that the effects of the pandemic will continue to be felt in the economy and the insurance sector for a number of years, and says current estimates put the global insurance industry’s eventual total Covid-related losses at anywhere between $30bn and $60bn (€36bn-€72bn). In Europe, motor claims fell 8.6%, mainly due to a decline in the frequency of accidents as a result of lockdown measures. In contrast, property claims rose 10.8%, partly due to significant natural catastrophe losses and partly to people spending more time at home because of the pandemic, says the report. It adds that general liability claims registered a 15% increase and other P&C lines rose 20.2%, as result of higher claims for legal expenses, marine, aviation and transport, and miscellaneous financial losses. As for P&C premium growth, this differed between countries in 2020, says the report. “The two largest markets – the UK and Germany, which account for over 40% of all premiums – contributed significantly to the overall increase, with rates of 6.5% and 2.3% respectively. Premiums remained broadly stable in France (+0.1%) and Spain (+0.6%). In contrast, Italy saw a decrease of 2.2%. There, the otherwise stable growth was mostly reversed by the performance of motor, which was down 4%,” it states.

Europe’s insurers saw premiums and claims rise in 2020, says Insurance Europe

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