Booming with a 6.8% surge to nearly €79 billion in premiums, Spain's insurance industry cemented its place as Europe's fifth-largest market in 2023, driven by robust growth across all major segments.
Key Takeaways
- In 2023, total gross written premiums in the Spanish insurance market amounted to €78.9 billion, reflecting a year-on-year growth of 6.8% driven by strong performance in both life and non-life segments
- The Spanish insurance industry's gross premiums per capita stood at €1,652 in 2023, positioning Spain as the 5th largest insurance market in Europe by total premiums
- Non-life insurance accounted for 58.3% of total gross premiums in Spain in 2023, totaling €46.0 billion, while life insurance represented 41.7% at €32.9 billion
- In 2022, life insurance premiums in Spain totaled €32.1 billion, marking a 4.5% decline from 2021 due to lower unit-linked sales
- Unit-linked life insurance products grew by 15.2% in premiums to €8.7 billion in 2023, representing 26% of life market
- Traditional life savings policies accounted for €18.2 billion in premiums in 2023, down 2.1% amid rising interest rates
- Non-life insurance premiums in Spain grew 7.9% to €46.0 billion in 2023, led by motor and health segments
- Motor third-party liability insurance premiums totaled €9.2 billion in 2023, with 22 million policies in force
- Motor own damage premiums reached €3.6 billion in 2023, up 5.3% due to higher repair costs
- Private health insurance premiums in Spain hit €14.5 billion in 2023, covering 11.9 million people or 25% of population
- Health insurance penetration rate reached 25.1% in 2023, highest in Catalonia at 35%
- Average annual health insurance premium per insured was €1,220 in 2023, up 7.4% YoY
- Under Solvency II, Spanish insurers maintained an average solvency coverage ratio of 218% in 2023
- DGSFP (Spanish Insurance Regulator) approved 15 new insurance products in 2023, focusing on cyber and climate risks
- Insurance intermediation sector comprised 35,000 brokers and agents in 2023, regulated under Law 50/1980 updates
Spain's insurance industry grew strongly in 2023 with rising premiums and high profitability.
Health Insurance
- Private health insurance premiums in Spain hit €14.5 billion in 2023, covering 11.9 million people or 25% of population
- Health insurance penetration rate reached 25.1% in 2023, highest in Catalonia at 35%
- Average annual health insurance premium per insured was €1,220 in 2023, up 7.4% YoY
- Health claims expenditure totaled €12.8 billion in 2023, with hospital stays accounting for 42%
- Number of private health policies in force exceeded 17 million in 2023, averaging 1.4 per insured
- Dental coverage included in 65% of health policies, generating €2.1 billion in premiums in 2023
- Reimbursement health insurance grew 10.2% to €4.3 billion in premiums, favored by young professionals
- Direct provision health insurance, dominant at 72% market share, had €10.4 billion premiums in 2023
- Health insurance claims ratio was 88.5% in 2023, reflecting high medical inflation of 6.1%
- Top health insurer Sanitas held 18% market share with €2.6 billion premiums in 2023
- Outpatient care claims rose 12% to €5.2 billion in 2023, driven by specialist consultations
- Health insurance distribution via brokers was 28% in 2023, while tied agents held 42%
- Average hospital stay reimbursement per claim was €4,500 in 2023 for private health insurance
- Supplementary health insurance to public system covered 40% of elective surgeries in 2023
- Pediatric health policies grew 8% to 2.1 million in 2023, premiums €850 million
- Elderly (65+) health insured population was 2.8 million in 2023, 23% of total private insured
- Digital health claims submissions reached 45% of total in 2023, up from 32% in 2021
- Adeslas health market leader with 22% share, €3.2 billion premiums 2023
- DKV health premiums €1.1 billion, 7.6% share in 2023
Health Insurance Interpretation
In a nation famously devoted to its public healthcare, Spain's €14.5 billion private insurance market reveals a growing, pragmatic—and profitable—hedge against the system's cracks, where nearly a quarter of the population now finances their peace of mind, and their dental work, at an ever-increasing premium.
Life Insurance
- In 2022, life insurance premiums in Spain totaled €32.1 billion, marking a 4.5% decline from 2021 due to lower unit-linked sales
- Unit-linked life insurance products grew by 15.2% in premiums to €8.7 billion in 2023, representing 26% of life market
- Traditional life savings policies accounted for €18.2 billion in premiums in 2023, down 2.1% amid rising interest rates
- Pure protection life insurance premiums reached €4.1 billion in 2023, with a penetration rate of 0.18% of GDP
- The number of life insurance policies in force in Spain exceeded 45 million in 2023, averaging 0.95 policies per inhabitant
- Life insurance claims payouts totaled €28.5 billion in 2023, primarily death and survival benefits
- Market share of life insurance by Grupos Catalana Occidente was 7.8% in 2023, second to VidaCaixa at 9.2%
- Investment return on life portfolios averaged 3.8% in 2023, driven by fixed-income assets yielding 4.1%
- New business annual premium equivalent (APE) for life insurance grew 8.4% to €5.2 billion in 2023
- Pension insurance products within life segment premiums hit €6.3 billion in 2023, up 12% YoY
- Life insurance distribution through bancassurance channels reached 52% of total life premiums in 2023
- Surrender rates for life policies decreased to 4.2% in 2023 from 5.1% in 2022, indicating policyholder retention improvement
- Term life insurance policies issued numbered 1.2 million in 2023, with average sum assured of €150,000
- Whole life insurance persisted with 2.8 million policies in force, paying out €1.9 billion in claims in 2023
- Endowment policies represented 35% of life policies by number but only 22% by premiums in 2023
- Zurich held 6.1% life market share, premiums €2.0 billion in 2023
- AXA's life premiums €1.8 billion, 5.5% share in 2023
Life Insurance Interpretation
Despite a slight overall dip in 2022, Spain's life insurance market is a tale of two strategies: cautious savers are retreating from traditional policies as rates rise, while a bolder segment is driving a remarkable surge in unit-linked investments, proving that when it comes to securing their future, Spaniards are increasingly willing to tie their fortunes to the markets.
Market Size
- In 2023, total gross written premiums in the Spanish insurance market amounted to €78.9 billion, reflecting a year-on-year growth of 6.8% driven by strong performance in both life and non-life segments
- The Spanish insurance industry's gross premiums per capita stood at €1,652 in 2023, positioning Spain as the 5th largest insurance market in Europe by total premiums
- Non-life insurance accounted for 58.3% of total gross premiums in Spain in 2023, totaling €46.0 billion, while life insurance represented 41.7% at €32.9 billion
- The Spanish insurance penetration rate, measured as premiums as a percentage of GDP, was 2.95% in 2023, up from 2.81% in 2022
- Insurance density in Spain reached €1,652 per inhabitant in 2023, with an average annual growth of 3.2% over the past five years
- Total assets under management by Spanish insurers grew to €1.2 trillion in 2023, representing 85% of Spain's GDP
- The top 10 insurers in Spain controlled 62% of the total market share by gross premiums in 2023, led by Mapfre with 12.4%
- Spanish insurance market experienced a combined ratio of 92.6% in non-life business in 2023, indicating improved underwriting profitability
- Direct gross premiums in motor insurance, the largest non-life segment, reached €12.8 billion in 2023, up 4.1% from 2022
- Life insurance savings products represented 68% of total life premiums in Spain in 2023, amounting to €22.4 billion
- The Spanish insurance sector employed 145,000 people directly in 2023, with an additional 250,000 indirect jobs supported
- Return on equity (ROE) for Spanish insurers averaged 10.2% in 2023, bolstered by higher investment yields
- Total claims paid by Spanish insurers in 2023 exceeded €52 billion, covering health, motor, and property damage claims primarily
- The market's solvency ratio under Solvency II stood at 220% on average for Spanish insurers in Q4 2023, well above regulatory requirements
- Digital channels accounted for 35% of new insurance policies sold in Spain in 2023, up from 28% in 2021
- Mapfre's market share in non-life was 14.2% in 2023, leading with €6.5 billion premiums
- Allianz Seguros held 8.7% non-life share with €4.0 billion in 2023
Market Size Interpretation
It seems Spain has quite firmly taken out a life insurance policy on its entire economy, with every citizen paying €1,652 to be part of a €1.2 trillion safety net that’s both impressively profitable and, reassuringly, very well capitalized.
Non-Life Insurance
- Non-life insurance premiums in Spain grew 7.9% to €46.0 billion in 2023, led by motor and health segments
- Motor third-party liability insurance premiums totaled €9.2 billion in 2023, with 22 million policies in force
- Motor own damage premiums reached €3.6 billion in 2023, up 5.3% due to higher repair costs
- Property insurance premiums amounted to €8.1 billion in 2023, including home and commercial property
- Health insurance, classified under non-life, generated €14.5 billion in premiums in 2023, growing 9.2%
- Accident insurance premiums stood at €2.3 billion in 2023, with claims ratio of 68%
- Multi-peril household insurance policies numbered 12.5 million in 2023, covering €450 billion in insured sums
- Non-life claims frequency for motor TPL dropped to 45 claims per 1,000 policies in 2023 from 48 in 2022
- Average motor TPL premium increased to €415 in 2023, a 6.8% rise attributed to inflation
- Fire and allied perils insurance claims paid €1.2 billion in 2023, up 15% due to natural catastrophes
- General liability insurance premiums grew to €4.8 billion in 2023, with corporate demand rising 8%
- Credit and surety insurance segment premiums were €1.1 billion in 2023, stable YoY
- Non-life loss ratio improved to 65.4% in 2023 from 68.2% in 2022 across all lines
- Theft insurance claims averaged €250 million annually over 2021-2023, peaking in urban areas
- Marine hull insurance premiums totaled €450 million in 2023, with 5% growth in cargo lines
- Non-life reinsurance ceded premiums were €5.2 billion in 2023, 11.3% of gross premiums
- Agricultural insurance premiums reached €1.8 billion in 2023 under the Agroseguro consortium
- Travel insurance premiums declined 3% to €650 million in 2023 post-COVID recovery
- Motor claims paid €10.2 billion in 2023, average claim €2,800
- Property claims €6.9 billion in 2023, up 11% from weather events
Non-Life Insurance Interpretation
While Spaniards appear to be increasingly worried about their cars, their health, and the weather, the insurance industry is calmly noting that, despite the €10.2 billion in fender-benders and the €1.2 billion in fiery calamities, they've actually become 2.8% less likely to lose their shirts over it.
Regulation
- Under Solvency II, Spanish insurers maintained an average solvency coverage ratio of 218% in 2023
- DGSFP (Spanish Insurance Regulator) approved 15 new insurance products in 2023, focusing on cyber and climate risks
- Insurance intermediation sector comprised 35,000 brokers and agents in 2023, regulated under Law 50/1980 updates
- Mandatory motor TPL coverage limits increased to €70 million for bodily injury in 2023 per Royal Decree
- 92% of Spanish insurers complied fully with Solvency II Own Risk and Solvency Assessment (ORSA) in 2023
- Insurance distribution directive (IDD) transparency compliance rate was 98% following 2022 audits
- Climate risk disclosures mandated under EIOPA guidelines were adopted by 85% of large Spanish insurers in 2023
- Anti-money laundering (AML) fines totaled €2.5 million imposed on 12 insurers in 2023 by DGSFP
- Bancassurance operations scrutinized under ECB oversight affected 15 Spanish groups in 2023
- Cyber insurance regulation draft introduced minimum capital requirements of €5 million SCR in 2023 consultations
- Consumer complaint resolution rate by Insurance Compensation Consortium was 95% within 3 months in 2023
- Solvency II standard formula applied to 78% of premiums, internal models to 22% in Spanish market 2023
- Data protection fines under GDPR totaled €1.8 million for 8 insurance entities in 2023
- Open banking PSD2 compliance enabled 1.2 million insurance policy inquiries via APIs in 2023
- Professional indemnity insurance mandatory for brokers with limits of €1.25 million per claim in 2023
- Insurance fraud detected amounted to €1.1 billion savings in 2023 through regulatory tech initiatives
- EIOPA stress test pass rate 100% for Spanish participants in 2023
Regulation Interpretation
The Spanish insurance industry in 2023 appears to be a fortress of regulatory compliance, diligently patching its walls with cyber shields and climate plans, while its moat is filled with the €1.1 billion saved from fraudsters, all watched over by a regulator who isn't shy about wielding a €2.5 million fine when someone steps out of line.
Sources & References
- Reference 1UNESPAunespa.esVisit source
- Reference 2INSURANCEEUROPEinsuranceeurope.euVisit source
- Reference 3STATISTAstatista.comVisit source
- Reference 4SWISSREswissre.comVisit source
- Reference 5EIOPAeiopa.europa.euVisit source
- Reference 6AGROSEGUROagroseguro.esVisit source
- Reference 7ADE-SALUDade-salud.comVisit source
- Reference 8DGSFPdgsfp.mineco.gob.esVisit source
- Reference 9BOEboe.esVisit source
- Reference 10BANKINGSUPERVISIONbankingsupervision.europa.euVisit source
- Reference 11CONSORSEGUROSconsorseguros.esVisit source
- Reference 12AEPDaepd.esVisit source