Summary

Key Highlights


Life and Non-Life insurance market in Spain are estimated to grow at a CAGR of approximately 3% during the forecast period. The Spanish insurance market has ranked among the world's top 15. The value of the premiums taken out in Spain in 2018 amounted to Euro 64.4 billion, an increase of 1.5% over the previous year. Despite the insurance penetration rate of 5.5% lower than in other developed economies, Spain offers significant growth opportunities. In 2018, total insurance assets amounted to EUR 329.277 million, life insurance to EUR 239.113 billion, non-life insurance to EUR 83.115 billion and reinsurers to EUR 7.049 bn. As for the level of operation, non-life insurance saw regrowth (increase in earned premiums by 5.42%), reflecting the rise of recent years. In the Life, after the extraordinary growth reported in 2016 (21.39%), the decline started in 2017 (-5.33 percent) and continues to decline, though less so in 2018 (-1.67 percent).




In 2018, the decline in life premiums in this area affected more traditional business (-1,99%) while in unit-linked business remained virtually unchanged (-0,16%). Non-life again stresses its sector weight in premiums (55.78 percent) for Life (44.225), which was slightly altered in 2016 by the weight gained from bouquet life (48.23%), according to the composition of previous years. The sector has experienced premium growth (2.16%), which is 5.46% of the insurance sector's weight in relation to GDP. In 2018, Spanish non-life premiums increased by 4% with positive contributions from most lines, The non-life sector also reflects positive trends in the Spanish insurance market more broadly, which is benefiting from healthy profits in both life and non-life sectors, robust capitalization, and sound reserving and investment practices.




The insurance industry in Spain saw a higher volume and value of the M&A deal in 2018 than in the recent past, mainly due to the reorganization of incompatible banking insurance partnerships arising from the consolidation of the banking industry. In addition, the few banks decided to look for a P&C insurance partner without bancassurance partnerships. To date, the Total fundraised by Spanish Insurtech is estimated at around EUR 357 million. More than 50% of Spanish Insurtech is specialized in the Health & Medical sector.




Key Market Trends

Increasing in fintech adoption in top European Countries:

Spain has 330 fintech companies to which more than 200 insurtech companies are added, the Spanish fintech ecosystem has grown tremendously in just three year. The insurance industry in the Spanish economy accounts for just over 5% of GDP, if we look at it from the point of view of its annual revenue. Insurance will continue to grow in Spain over the next few years, not only globally, but also through the most relevant insurance branches. In this context, the sector faces a transformation process as a result of new regulations and innovations in the field of technology, new legal regulations and changes in consumer investments. Chatbots are undoubtedly a step forward in the evolution of the Internet and especially in the user experience, and chatbots helps in Increase sales and improve customer service to streamline their efforts.

Insurance pentration is low in spain and it can be turned into an opportunity:

Spain offers significant opportunities for growth given the insurance penetration rate of just 5.5%, which is lower than in other economies. Insurance penetration in the Spanish market during 2018 (i.e. the ratio of premiums to the GDP) was 5.33%, representing a 0.10 pp drop, this is the second consecutive annual drop in this indicator (0.27 pp between 2016 and 2017), after having reached a historic maximum in 2016. Insurance companies can make benefit from low penetration in the industry, companies can make new business models, can expand their business to increase their existing market share. Local and international players have an opportunity to enter Spain insurance market with the adoption of insurtech and new business models.

Competitive Landscape

The report covers the major players operating in the Life and Non-Life insurance market in Spain. The Life and Non-life insurance market in Spain is fragmented, insurance penetration is low in the country, insurtech is adoption is increasing and many insurtech companies has raised funds, adoption of insurtech in health insurance is more in the country. The market is expected to grow in forecast period due to several factors.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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