Austria’s insurance groups are active in 28 countries, in Western, Central, Eastern and South Eastern Europe, through almost 100 foreign participations. Around half of the total premium volume of Austrian insurance groups, more precisely EUR 9.19 billion or 46.98%, is generated abroad. These figures are part of the findings of the analysis report published today by the FMA about the foreign business of Austrian insurance groups, based on figures supplied by the respective insurance undertakings as of the end of 2015.
Of the total premium volume of EUR 9.19 billion generated abroad, some EUR 4.74 billion was generated in Central Europe[i], EUR 2.49 billion in Western Europe[ii], EUR 1.59 billion in South Eastern Europe[iii] and EUR 0.37 billion in Eastern Europe[iv].
With regard to the individual insurance classes, in comparison with the preceding year, there has been a marginal increase both in the life assurance (+1.5%) and the non-life assurance (+1.6%) classes. The life assurance sector grew in Western (+1.8%), South Eastern (+8.3%) and Eastern Europe (+1.0%) while volume only decreased in Central Europe (-5.2%). This decrease was primarily attributable to the developments in Poland (-3.9%) and the Czech Republic (-10.0%). In the case of non-life assurance business, growth occurred in Western (+2.3%), Central (+5.3%) and South Eastern Europe (+5.2%). The large decrease in premium volume, of -6.4% in Eastern Europe, could be predominantly be traced back to the market development in Russia (-12.8%).
Austrian insurance groups hold particularly high market shares in some countries. Particularly significant market positions have been established in Central Europe, in particular in the Czech Republic, with a market share of 37.20 %, and Slovakia, with a market share of 46.64 %, both in the life assurance class as well as in the non-life assurance class. Austrian insurance groups in Eastern and South Eastern Europe are predominantly strongly positioned in the life assurance sector.
With regard to the state of development of the insurance markets, as measured by the indicators of insurance density (premiums per inhabitant) and insurance penetration (premium expressed as a percentage of GDP), there are wide ranges between geographical segments and insurance classes. The insurance markets in the segment Western Europe are significantly further developed (e.g. Italy with an insurance density of EUR 2.487.26 and an insurance penetration of 8.90%) than the markets in Central Europe (e.g. Czech Republic with an insurance density of EUR 538.52 and an insurance penetration of 3.33%; or Poland with an insurance density of EUR 334.89 and an insurance penetration of 2.94%).
The domestic markets in South Eastern Europe show a very different picture with a broad range of results (e.g. Slovenia with an insurance density of EUR 954.28 and an insurance penetration of 5.04% or Albania with an insurance density of EUR 35.38 and an insurance penetration of 0.96%). The domestic markets in Eastern Europe in turn are even further below this level (e.g. Ukraine with an insurance density of EUR 26.51 and an insurance penetration of 1.36%).
The full report can be found on the FMA website (download available in German only) at https://www.fma.gv.at/en/insurance/.
Journalists may address further enquiries to:
Mr. Tiemon Kiesenhofer, MBA
+43/(0)1/24959-6010
+43/(0)676/882 49 610
[i] Central Europe: Czech Republic, Hungary, Poland, Slovakia, Estonia, Latvia, Lithuania
[ii] Western Europe: Germany, Italy, Liechtenstein, Switzerland
[iii] South Eastern Europe: Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Cyprus, Kosovo, Macedonia, Montenegro, Romania, Serbia and Slovenia
[iv] Eastern Europe: Belarus, Georgia, Moldova, Russia, Turkey, Ukraine