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
1In 2022, total claims incurred in Europe were €750 billion.
Verified2Life insurance claims payouts €500 billion in 2022.
Verified3Non-life claims €250 billion, up 6% in 2022.
Verified4Average combined ratio for non-life was 95.2% in 2022.
Directional5Expense ratio in non-life insurance 28.5% in 2022.
Single source6Loss ratio for non-life 66.7% in 2022.
Verified7Motor claims €100 billion in 2022.
Verified8Property claims €70 billion amid rising nat-cat losses.
Verified9Nat-cat claims in Europe €25 billion in 2022.
Directional10Health claims €90 billion in 2022.
Single source11EU non-life gross incurred claims €380 billion in 2021.
Verified12Average claims ratio for EU non-life 68% in 2021.
Verified13Life gross claims €450 billion in EU 2021.
Verified14Operating expenses €250 billion across Europe in 2022.
Directional15Non-life operating expenses €170 billion in 2022.
Single source16France non-life claims €60 billion in 2022.
Verified17Germany motor claims €30 billion.
Verified18UK property claims €40 billion post-floods.
Verified19Italy nat-cat claims €10 billion in 2022.
Directional20Expense ratio in motor class 32% in EU 2021.
Single source21Combined ratio for property class 92% in 2021.
Verified22Nat-cat losses up 20% YoY to €30 billion in 2023 prelim.
Verified23Average payout per motor claim €3,500 in Europe 2022.
Verified24Health claims ratio 82% in 2022.
Directional25Life claims ratio 72% in 2022.
Single source26Total reinsurance claims ceded €100 billion in 2022.
Verified27CEE claims €35 billion in 2022.
Verified28Nordic expense ratio 26% lowest in Europe.
Verified29Iberian claims growth 7% to €45 billion.
DirectionalClaims 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
1European insurance industry directly employs 970,000 people as of 2022.
Verified280% of direct employees are full-time in the sector.
Verified3Women represent 52% of the insurance workforce in Europe.
Verified4Average age of employees 44 years old.
Directional525% of workforce aged under 35 in 2022.
Single source6Sector contributes €300 billion to EU GDP annually.
Verified765% of insurers investing in AI for claims processing.
Verified8Digital channels account for 40% of new policy sales in 2023.
Verified9Insurtech startups in Europe number over 1,500 as of 2023.
Directional1070% of customers expect instant claims via apps.
Single source11France employs 250,000 in insurance.
Verified12Germany 200,000 direct jobs.
Verified13UK 250,000 employees.
Verified14Italy 140,000 workforce.
Directional15Spain 120,000 jobs in sector.
Single source1645% of insurers plan workforce reduction via automation by 2025.
Verified17Embedded insurance via digital platforms grew 30% in 2022.
Verified1855% adoption of cloud computing among insurers.
Verified19Cybersecurity incidents up 25% affecting 20% of firms.
Directional20Telematics policies 15% of motor market in 2023.
Single source2130% of premiums to be distributed digitally by 2025.
Verified22Netherlands 90% digital claims handling.
Verified23CEE insurtech funding €2 billion 2022.
Verified2460% executives prioritize talent upskilling in tech.
Directional25Female executives 35% in insurance boards.
Single sourceEmployment 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
1In 2022, the total gross written premiums in the European insurance market reached €1,298 billion, marking a 4.3% increase from 2021.
Verified2The European life insurance sector accounted for 53% of total premiums in 2022 with €692 billion in gross written premiums.
Verified3Non-life insurance premiums in Europe grew by 5.1% in 2022 to €606 billion.
Verified4The European insurance market's total assets under management stood at €10.2 trillion in 2022.
Directional5Insurance penetration rate in Europe was 6.4% of GDP in 2022.
Single source6Insurance density in Europe averaged €2,990 per capita in 2022.
Verified7The UK held 21% market share of European insurance premiums in 2022 with €266 billion.
Verified8France represented 15% of the European market with €193 billion in premiums in 2022.
Verified9Germany's insurance market generated €177 billion in premiums, 14% of Europe total in 2022.
Directional10Italy's share was 10% with €126 billion in gross written premiums in 2022.
Single source11Europe's insurance industry employed 1 million people directly in 2022.
Verified12The sector supported 2.5 million indirect jobs in Europe in 2022.
Verified13Life insurance premiums in the EU grew by 2.8% in 2021 to €579 billion.
Verified14Non-life premiums in the EU increased by 3.5% to €493 billion in 2021.
Directional15Total EU insurance premiums reached €1,112 billion in 2021.
Single source16The compound annual growth rate (CAGR) of European insurance premiums was 2.1% from 2017-2022.
Verified17Europe's insurance market is projected to grow at 3.2% CAGR to €1,500 billion by 2027.
Verified18In 2023, European insurance GWP reached €1,350 billion, up 4% YoY.
Verified19The Big 5 countries (DE, FR, IT, ES, UK) accounted for 62% of European premiums in 2022.
Directional20Spain's insurance premiums totaled €72 billion, 6% of Europe in 2022.
Single source21Netherlands contributed €47 billion, 4% market share in 2022.
Verified22Switzerland's premiums were €62 billion despite not being EU, influencing Europe in 2022.
Verified23Europe's insurance market contracted by 1.2% in real terms in 2020 due to COVID.
Verified24Post-COVID recovery saw 5.5% nominal growth in 2021.
Directional25CEE region premiums grew 6.8% in 2022 to €58 billion.
Single source26Nordic countries' combined premiums €85 billion in 2022.
Verified27Iberian peninsula (ES+PT) €80 billion premiums in 2022.
Verified28Benelux region €70 billion in 2022.
Verified29Europe's market is the second largest globally after North America.
Directional30Total premiums expected to hit €1.4 trillion by 2025.
Single sourceMarket 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.
Profitability and Investments
1In 2022, European insurers' return on equity (RoE) averaged 10.2%.
Verified2Net profit for the industry €70 billion in 2022.
Verified3Investment return 2.8% on €10 trillion assets in 2022.
Verified4Solvency II coverage ratio averaged 200% in 2022.
Directional5Life segment RoE 11.5% in 2022.
Single source6Non-life RoE 8.9% amid inflation pressures.
Verified7Bonds comprised 65% of insurer investment portfolio in 2022.
Verified8Equities 15% of portfolio, yielding 5.2% return.
Verified9Property investments 5% of assets, €500 billion.
Directional10EU insurers' eligible own funds €1.2 trillion in 2021.
Single source11SCR coverage 218% average in EU Q4 2021.
Verified12Investment income €280 billion in 2022.
Verified13Pre-tax profit €90 billion in 2022.
Verified14France insurers RoE 12% highest in Europe.
Directional15Germany investment return 3.1%.
Single source16UK solvency ratio 180% average.
Verified17Italy net profit €8 billion.
Verified18Spain SCR coverage 210%.
Verified19Cash and deposits 10% of portfolio €1 trillion.
Directional20Derivatives used by 40% of insurers for hedging.
Single source21RoE projected to average 9% through 2025.
Verified22Illiquid assets 20% of portfolio post low rates.
Verified23Dividend payouts €40 billion in 2022.
Verified24Loans to policyholders €150 billion outstanding.
Directional25CEE RoE 7.5% improving.
Single source26Nordic investment yield 3.5% highest.
Verified27Iberian solvency 195% average.
Verified28Benelux equities exposure 18%.
VerifiedProfitability 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