While managing an astounding €10.2 trillion in assets and providing a €2,990 safety net for every European citizen in 2022, the continent's insurance industry navigated a complex landscape of post-pandemic recovery and digital transformation.
Key Takeaways
- In 2022, the total gross written premiums in the European insurance market reached €1,298 billion, marking a 4.3% increase from 2021.
- The European life insurance sector accounted for 53% of total premiums in 2022 with €692 billion in gross written premiums.
- Non-life insurance premiums in Europe grew by 5.1% in 2022 to €606 billion.
- Life insurance segment grew 1.5% in real terms in 2022 after inflation adjustment.
- Motor insurance premiums in Europe rose 6.2% in 2022 to €160 billion.
- Property insurance premiums increased 4.8% to €110 billion in 2022.
- In 2022, total claims incurred in Europe were €750 billion.
- Life insurance claims payouts €500 billion in 2022.
- Non-life claims €250 billion, up 6% in 2022.
- In 2022, European insurers' return on equity (RoE) averaged 10.2%.
- Net profit for the industry €70 billion in 2022.
- Investment return 2.8% on €10 trillion assets in 2022.
- European insurance industry directly employs 970,000 people as of 2022.
- 80% of direct employees are full-time in the sector.
- Women represent 52% of the insurance workforce in Europe.
Europe's insurance market grew strongly in 2022, reaching over a trillion euros in premiums.
Claims and Expenses
- In 2022, total claims incurred in Europe were €750 billion.
- Life insurance claims payouts €500 billion in 2022.
- Non-life claims €250 billion, up 6% in 2022.
- Average combined ratio for non-life was 95.2% in 2022.
- Expense ratio in non-life insurance 28.5% in 2022.
- Loss ratio for non-life 66.7% in 2022.
- Motor claims €100 billion in 2022.
- Property claims €70 billion amid rising nat-cat losses.
- Nat-cat claims in Europe €25 billion in 2022.
- Health claims €90 billion in 2022.
- EU non-life gross incurred claims €380 billion in 2021.
- Average claims ratio for EU non-life 68% in 2021.
- Life gross claims €450 billion in EU 2021.
- Operating expenses €250 billion across Europe in 2022.
- Non-life operating expenses €170 billion in 2022.
- France non-life claims €60 billion in 2022.
- Germany motor claims €30 billion.
- UK property claims €40 billion post-floods.
- Italy nat-cat claims €10 billion in 2022.
- Expense ratio in motor class 32% in EU 2021.
- Combined ratio for property class 92% in 2021.
- Nat-cat losses up 20% YoY to €30 billion in 2023 prelim.
- Average payout per motor claim €3,500 in Europe 2022.
- Health claims ratio 82% in 2022.
- Life claims ratio 72% in 2022.
- Total reinsurance claims ceded €100 billion in 2022.
- CEE claims €35 billion in 2022.
- Nordic expense ratio 26% lowest in Europe.
- Iberian claims growth 7% to €45 billion.
Claims and Expenses Interpretation
While Europe's insurers handed out a staggering €750 billion in 2022, proving they are excellent at paying claims, their non-life business managed the neat trick of being both hotter (with claims up 6%) and more efficiently run (with a combined ratio of 95.2%), suggesting they're masters of the controlled burn.
Employment and Digital Trends
- European insurance industry directly employs 970,000 people as of 2022.
- 80% of direct employees are full-time in the sector.
- Women represent 52% of the insurance workforce in Europe.
- Average age of employees 44 years old.
- 25% of workforce aged under 35 in 2022.
- Sector contributes €300 billion to EU GDP annually.
- 65% of insurers investing in AI for claims processing.
- Digital channels account for 40% of new policy sales in 2023.
- Insurtech startups in Europe number over 1,500 as of 2023.
- 70% of customers expect instant claims via apps.
- France employs 250,000 in insurance.
- Germany 200,000 direct jobs.
- UK 250,000 employees.
- Italy 140,000 workforce.
- Spain 120,000 jobs in sector.
- 45% of insurers plan workforce reduction via automation by 2025.
- Embedded insurance via digital platforms grew 30% in 2022.
- 55% adoption of cloud computing among insurers.
- Cybersecurity incidents up 25% affecting 20% of firms.
- Telematics policies 15% of motor market in 2023.
- 30% of premiums to be distributed digitally by 2025.
- Netherlands 90% digital claims handling.
- CEE insurtech funding €2 billion 2022.
- 60% executives prioritize talent upskilling in tech.
- Female executives 35% in insurance boards.
Employment and Digital Trends Interpretation
While the 970,000-strong European insurance industry, a major economic pillar, is commendably mature, digitally savvy, and gender-balanced, its heart beats with the palpable tension of a workforce both racing to upskill for an AI-powered, app-driven future and nervously eyeing the automation axe that hangs over 45% of its plans.
Market Size and Growth
- In 2022, the total gross written premiums in the European insurance market reached €1,298 billion, marking a 4.3% increase from 2021.
- The European life insurance sector accounted for 53% of total premiums in 2022 with €692 billion in gross written premiums.
- Non-life insurance premiums in Europe grew by 5.1% in 2022 to €606 billion.
- The European insurance market's total assets under management stood at €10.2 trillion in 2022.
- Insurance penetration rate in Europe was 6.4% of GDP in 2022.
- Insurance density in Europe averaged €2,990 per capita in 2022.
- The UK held 21% market share of European insurance premiums in 2022 with €266 billion.
- France represented 15% of the European market with €193 billion in premiums in 2022.
- Germany's insurance market generated €177 billion in premiums, 14% of Europe total in 2022.
- Italy's share was 10% with €126 billion in gross written premiums in 2022.
- Europe's insurance industry employed 1 million people directly in 2022.
- The sector supported 2.5 million indirect jobs in Europe in 2022.
- Life insurance premiums in the EU grew by 2.8% in 2021 to €579 billion.
- Non-life premiums in the EU increased by 3.5% to €493 billion in 2021.
- Total EU insurance premiums reached €1,112 billion in 2021.
- The compound annual growth rate (CAGR) of European insurance premiums was 2.1% from 2017-2022.
- Europe's insurance market is projected to grow at 3.2% CAGR to €1,500 billion by 2027.
- In 2023, European insurance GWP reached €1,350 billion, up 4% YoY.
- The Big 5 countries (DE, FR, IT, ES, UK) accounted for 62% of European premiums in 2022.
- Spain's insurance premiums totaled €72 billion, 6% of Europe in 2022.
- Netherlands contributed €47 billion, 4% market share in 2022.
- Switzerland's premiums were €62 billion despite not being EU, influencing Europe in 2022.
- Europe's insurance market contracted by 1.2% in real terms in 2020 due to COVID.
- Post-COVID recovery saw 5.5% nominal growth in 2021.
- CEE region premiums grew 6.8% in 2022 to €58 billion.
- Nordic countries' combined premiums €85 billion in 2022.
- Iberian peninsula (ES+PT) €80 billion premiums in 2022.
- Benelux region €70 billion in 2022.
- Europe's market is the second largest globally after North America.
- Total premiums expected to hit €1.4 trillion by 2025.
Market Size and Growth Interpretation
Europe's insurance market, a €1.3 trillion juggernaut that employs a million souls and holds €10.2 trillion in assets, marches steadily forward, ensuring that for every €2,990 spent per citizen, there's a solid plan for when life, with its delightful unpredictability, inevitably happens.
Premiums by Segment
- Life insurance segment grew 1.5% in real terms in 2022 after inflation adjustment.
- Motor insurance premiums in Europe rose 6.2% in 2022 to €160 billion.
- Property insurance premiums increased 4.8% to €110 billion in 2022.
- Health insurance premiums totaled €140 billion, up 5.5% in 2022.
- Life savings & protection premiums €650 billion in 2022.
- Unit-linked life premiums grew 8% to €120 billion in 2022.
- With-profits life premiums stable at €200 billion in 2022.
- Non-life accident & health premiums €95 billion in 2022.
- Fire & other damage to property premiums €95 billion, up 4%.
- General liability premiums €55 billion in 2022.
- Credit & suretyship premiums €20 billion, growth 3% in 2022.
- Marine, aviation, transport premiums €25 billion in 2022.
- Miscellaneous non-life premiums €60 billion in 2022.
- In France, life premiums were €170 billion in 2022.
- Germany's non-life premiums €85 billion in 2022.
- Italy motor premiums €38 billion, largest segment.
- UK life premiums €150 billion in 2022.
- Spain health premiums €25 billion in 2022.
- Netherlands unit-linked €30 billion in 2022.
- EU life premiums per capita €1,300 in 2021.
- Motor class premiums 27% of non-life in EU 2021.
- Property class 20% share in non-life EU 2021.
- Health direct business €120 billion in EU 2021.
- Projected motor premiums growth 2.5% annually to 2025.
- Health insurance premiums to grow at 4.1% CAGR 2023-2028.
- Life insurance GWP forecast €750 billion by 2027.
- Non-life expected €700 billion by 2027.
- CEE life premiums €25 billion in 2022.
- Nordic motor premiums €20 billion combined.
Premiums by Segment Interpretation
In 2022, Europe's insurers presented a sobering portrait of cautious life planning, with life premiums inching up a mere 1.5%, while the vibrant chaos of the real world—from fender benders to property claims—drove non-life premiums briskly higher, proving once again that we are far more motivated to insure our cars and homes against immediate peril than we are to bet on our own long-term futures.
Profitability and Investments
- In 2022, European insurers' return on equity (RoE) averaged 10.2%.
- Net profit for the industry €70 billion in 2022.
- Investment return 2.8% on €10 trillion assets in 2022.
- Solvency II coverage ratio averaged 200% in 2022.
- Life segment RoE 11.5% in 2022.
- Non-life RoE 8.9% amid inflation pressures.
- Bonds comprised 65% of insurer investment portfolio in 2022.
- Equities 15% of portfolio, yielding 5.2% return.
- Property investments 5% of assets, €500 billion.
- EU insurers' eligible own funds €1.2 trillion in 2021.
- SCR coverage 218% average in EU Q4 2021.
- Investment income €280 billion in 2022.
- Pre-tax profit €90 billion in 2022.
- France insurers RoE 12% highest in Europe.
- Germany investment return 3.1%.
- UK solvency ratio 180% average.
- Italy net profit €8 billion.
- Spain SCR coverage 210%.
- Cash and deposits 10% of portfolio €1 trillion.
- Derivatives used by 40% of insurers for hedging.
- RoE projected to average 9% through 2025.
- Illiquid assets 20% of portfolio post low rates.
- Dividend payouts €40 billion in 2022.
- Loans to policyholders €150 billion outstanding.
- CEE RoE 7.5% improving.
- Nordic investment yield 3.5% highest.
- Iberian solvency 195% average.
- Benelux equities exposure 18%.
Profitability and Investments Interpretation
Europe's insurers are quietly thriving, navigating inflation's rapids with impressive solvency and decent returns, all while keeping the bulk of their colossal wealth cautiously parked in the bonds of a familiar harbor.
Sources & References
- Reference 1INSURANCEEUROPEinsuranceeurope.euVisit source
- Reference 2EIOPAeiopa.europa.euVisit source
- Reference 3STATISTAstatista.comVisit source
- Reference 4MCKINSEYmckinsey.comVisit source
- Reference 5SWISSREswissre.comVisit source
- Reference 6DELOITTEdeloitte.comVisit source
- Reference 7EYey.comVisit source
- Reference 8PWCpwc.comVisit source