eg pan-European companies, monoliners, mutuals and SMEs. Insurance ..... European Motor Insurance Markets and its addend
European Motor Insurance Markets Addendum June 2016
Insurance Europe is the European insurance and reinsurance federation. Through its 34 member bodies — the national insurance associations — Insurance Europe represents all types of insurance and reinsurance undertakings, eg pan-European companies, monoliners, mutuals and SMEs. Insurance Europe, which is based in Brussels, represents undertakings that account for around 95% of total European premium income. Insurance makes a major contribution to Europe’s economic growth and development. European insurers generate premium income of almost €1 170bn, employ a little under one million people and invest nearly €9 600bn in the economy. www.insuranceeurope.eu
Introduction This is an addendum to “European Motor Insurance Markets”, which was published in November 2015 and contained data up to and including 2013. The addendum presents 2014 figures for a number of indicators, with a focus on total motor, motor third-party liability (MTPL) and damage premiums and claims expenditure. It should be read in conjunction with the main report. The 2014 data confirms what was clearly shown in the main report; there are substantial differences in motor claim costs and frequency between EU member states and resulting variations in premiums to reflect these differences in claims. Such regional variations are perceived by some as inconsistent with the ideal of a single EU market. However, this diversity reflects member states’ regulatory, risk and economic environments, which all have an impact on the cost of claims. Insurers must take these into account when calculating premiums to ensure they have the financial capacity to cover their risks.
Total motor (Charts 1–6) In 2014, motor insurance remained the most widely purchased non-life product in Europe, accounting for 27.3% of non-life business, although its share continues to diminish. Total motor premium income amounted to €124bn in 2014, against €123.5bn in 2013. The 0.4% increase follows a decrease of 0.8% in 2013. The leading markets — Germany, France, Italy, the UK and Spain — accounted for 67.2 % of all European motor premiums in 2014, virtually unchanged from 2013. Differing trends were nevertheless observed: while total premiums grew for the second consecutive year in Germany (5.8% in 2013 and 4.8% in 2014) and France (1.3% in 2013 and 1.8% in 2014), negative growth was recorded in Italy (-7.7% in 2013 and -5.4% in 2014), the UK (-5.2% in 2013 and -2.1% in 2014) and Spain (-3.8% in 2013 and -0.6% in 2014). Looking at the long-term European trend, motor premiums grew 5.1% between 2005 and 2014. This was driven by the almost 15% growth registered in optional damage premiums, as compulsory MTPL cover decreased by nearly 2%. In 2014, the number of claims decreased 2.3% compared to 2013, resulting in a 1.5% decrease in claims expenditure to €92.4bn. This confirms the trends established between 2009 and 2013, when the number of claims and claims expenditure fell by 8.6% and 2.3% respectively. The reduction in claims expenditure contributed to the combined ratio decreasing to 97.3% in 2014, compared to 98.7% in 2013, indicating growing underwriting profitability despite the difficult financial environment. After three years of negative results from 2009 to 2011, profitability returned in 2012 and 2013 and totalled €2.8bn in 2014.
Compulsory MTPL and optional damage cover (Charts 7–23) Compulsory MTPL premiums represented 57% of total motor premiums in 2014, compared to 57.9% in 2013, thus continuing the decline in the share of such premiums observed in previous years. In volume terms, MTPL premiums continued to decrease in 2014. After the reduction of 0.8% registered in 2013, premiums decreased by 0.9% in 2014 to €62.5bn. The sharpest decreases were recorded in one of the largest markets, Italy, but also in smaller ones such as Greece, Slovakia and Croatia.
European Motor Insurance Markets Addendum 3
The reduction in premiums and an increase of 1.3% in the number of insured vehicles led to a decrease in the average MTPL premium per insured in 2014, continuing a trend that started in 2012. The average premium was €224, a decrease of 3% on 2013. MTPL claims expenditure increased by almost 2% to €51.8bn in 2014, after two years of decrease in 2012 and 2013. The increase in claims expenditure and the decrease in premiums meant the combined ratio rose for the first time since 2009. The MTPL combined ratio was 105.3% in 2014, compared to 102.7% in 2013. The number of MTPL claims remained stable, increasing just 0.6% compared to 2013. This was the first increase since 2010. In 2014, 1.76m claims involved bodily injuries in Europe, down 4.3% on 2013 and continuing a downward trend that started in 2008. As a result, the share of bodily injury claims in total MTPL claims decreased to 12.8%, compared to 14% in 2013. The average cost of an MTPL claim stabilised at the 2013 level, growing by only 0.3% in 2014 to €3 178. The average MTPL claims frequency also remained broadly stable, slightly decreasing from 6.0% in 2013 to 5.9% in 2014 due to the number of insured vehicles increasing faster than the number of claims notified. The claims frequency involving bodily injury (number of personal injury claims per insured) followed the same trend and dropped to 0.55% in 2014 from 0.6% in 2013, having fallen steadily over the previous six years. Looking at optional damage cover, both premiums and the number of insured vehicles remained stable compared to 2013. Claims expenditure, on the other hand, decreased to €32.2bn from €34.6bn in 2013. This trend is echoed in the number of claims notified (excluding nil claims), which decreased by 3.5% to 20.5m after a 1.3% increase in 2013. As a result of the decrease in claims expenditure, the combined ratio for optional cover reduced to 83.9% from 87.6% in 2013.
National differences (Charts 24–31) As stated in the introduction, the 2014 data confirms that there are substantial regional differences in motor claim costs. In 2014, MTPL claims in the EU ranged in average cost from €1 200 in Portugal to more than €5 000 in Finland and Italy. The average cost of claims involving bodily injury also differs widely between countries, due to differences in the costs of medical treatment and compensation practices. In 2014, bodily injury claims ranged in average cost from less than €4 000 in the Czech Republic to more than €20 000 in France and Greece. In order to fully understand the level of risk exposure in a region, both the cost and the frequency of claims must be considered. MTPL claims varied widely in frequency in the EU in 2014, from almost 2.5% in Finland to 8% in Austria. Similar differences can be found in the bodily injury component, with the average frequency ranging from 0.14% in the Czech Republic to 1.01% in Italy. As with the frequency, the volume of bodily injury claims likewise varied significantly, ranging from 3.9% of all MTPL claims in Turkey to 18.5% in Italy. Similarly, damage claims frequency varied from 9% in Sweden to more than 30% in Estonia and Turkey.
4 Insurance Europe
Motor charts •• •• ••
Charts 1–6 Total motor Charts 7–23 Compulsory MTPL and optional damage cover Charts 24–31 National differences
The data samples used in the graphs differ depending on the figures available. Sample sizes are consistent with those in the “European Motor Insurance Markets” report. In the very few cases where data for a particular country was not available for 2014, 2013 figures have been used. For non-eurozone countries, figures have been converted into euros using 2013 constant exchange rates. Chart 1: Direct motor premiums written in the domestic market — 2004–2014
Chart 2: Motor premiums as proportion of non-life market — 2004–2014
€m 130 000
33%
6%
120 000 110 000
31.8%
32%
4%
31.3% 31%
2%
100 000
29.8%
30%
0% 90 000
29.4%
29%
-2%
80 000
28.6% 28.1%
29.1% 28%
27.4% 28.0%
-4%
70 000
27%
60 000
27.4%
27.3%
-6% 2004
2005
2006
2007
2008
2009
2010
Motor premiums Growth Direct premiums written on Domestic market, (€)rate
2011
2012
2013
2014
26% 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Growth rate, (%)
Chart 3: Total motor claims expenditure — 2004–2014
Chart 4: Number of total motor claims and claims expenditure — 2004–2014
€m 100 000
6%
4%
90 000
2%
m
€m
56
100 000
55
98 000
54
80 000
96 000
53
94 000
0% 52
70 000
92 000
51
-2%
90 000
50
60 000
-4%
50 000
48
-6% 2004
2005
2006
2007
2008
2009
Claims expenditure Claims expenditure, €m
2010
2011
2012
2013
88 000
49
86 000 2004
2014
2005
2006
2007
2008
2009
Number of claims notified
Growth rate Growth rate, %
Number of claims notified
Chart 5: Average motor insurance combined ratio — 2004–2014
2010
2011
2012
2013
2014
Claims expenditure, (€)
Claims expenditure
Chart 6: Motor underwriting results — 2004–2014 €bn
108% 7
105.4%
106%
5
104% 101.8%
102% 99.9%
100% 98%
108% €4.9
105.1%
€4.0
€4.6 €2.6
3
99.5%
€0.5
1
98.7% 97.5% 97.3%
96% 95.1%
2005
2006
100%
96% -€1.8
- 3
92%
95.5%
- 5
92% 2004
104%
€0.1
- 1
96.3%
94%
€2.8 €1.3
2007
2008
2009
2010
2011
2012
2013
2014
-€5.3
-€5.0
2009
2010
88%
- 7 2004
2005
2006
2007
2008
Underwriting result
2011
2012
2013
2014
Combined ratio
European Motor Insurance Markets Addendum 5
Chart 7: Growth in total motor, MTPL and damage premiums — 2005–2014
Chart 8: MTPL premiums — 2004–2014 €m
5%
65 000
6%
60 000
4%
1%
55 000
2%
-1%
50 000
0%
-3%
45 000
-2%
40 000
-4%
3%
-5% 2005
2006
2007
2008
2009
2010
2012
2013
2014
-6%
35 000
Damage
MTPL
Total
2011
2004
2005
2006
2007
2008
2009
MTPL premiums MTPL premiums
Chart 9: Nominal change in MTPL premiums by country (at constant exchange rates) — 2013–2014
2010
2011
2012
2013
2014
Growth rate Growth rate
Chart 10: MTPL claims expenditure — 2004–2014 €m 6%
55 000
55% 45%
4%
50 000
35%
2% 45 000
25%
0%
15%
40 000
5%
-2%
-5%
35 000
-4%
-15% -25%
30 000
-6% 2004
2013
2005
2006
2007
2014
2008
2009
2010
MTPL claims expenditure
Chart 11: Number of MTPL claims and claims expenditure — 2004–2014 m
2011
2012
2013
2014
Growth rate
Chart 12: Average MTPL combined ratio — 2004–2014
€m 55 000
18.5
115% 112.3%
113%
18
54 000
111% 17.5
109.9%
109%
53 000 17
107.4%
106.5%
107%
107.1% 104.3%
105%
16.5
103%
51 000 16
104.9%
104.5% 102.7%
101% 50 000
15.5
99% 97%
49 000
15 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
105.3%
107.1%
52 000
2004
2014
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
MTPL claims expenditure
MTPL claims notified
Chart 13: MTPL combined ratio by country — 2012–2014
Chart 14: Motor damage premiums — 2004–2014 €m
160%
6%
50 000
140% 120%
4%
40 000
100%
2% 30 000
80%
0%
60%
20 000 40%
-2%
20%
10 000
-4%
0%
0
2012
6 Insurance Europe
2013
2014
2004
2005
2006
2007
2008
2009
Damage premiums Damage premiums, (€)
2010
2011
Growth rate Growth rate, (%)
2012
2013
2014
-6%
Chart 15: Motor damage claims expenditure — 2004–2014
Chart 16: Average motor damage combined ratio — 2004–2014
€m 35 000
10%
100%
30 000 6%
94.9%
95%
94.5%
25 000 90.4%
2%
20 000
90%
87.5%
87.1%
15 000
-2%
85%
10 000 -6%
-10% 2004
2005
2006
2007
2008
2009
2010
Damage claims expenditure Damage, claims expenditure, (€)
2011
2012
2013
80.6%
80.4%
2004
2005
87.6%
83.1% 83.9%
80%
5 000 0
84.0%
75%
2014
2006
2007
2008
2009
2010
2011
2012
2013
2014
Growth rate Growth rate, (%)
Chart 17: Number of claims involving bodily injury — 2008–2014
Chart 18: Number of bodily injury claims as a share of total MTPL claims — 2009, 2013 and 2014
m 24%
6%
2.5
4%
20%
2.0 2% 1.5
16%
0%
12% -2%
1.0
8% -4% 0.5
4%
-6% 0.0
-8% 2008
2009
2010
2011
2012
Claims bodily injury Number of involving personal injured claims
2013
0%
2014
IT
FI
DE
FR
NL
NO
2009
Growth rate Growth rate, (%)
Chart 19: Bodily injury claims frequency — 2008–2013
PT
2013
HU
CZ
EE
GR
TR
2014
Chart 20: Average MTPL premiums — 2004–2014 €
0.85% 0.80%
0.78%
0.80%
0.77%
0.75%
0.72%
300
15%
250
10%
200
5%
150
0%
100
-5%
50
-10%
0.70% 0.64%
0.65%
0.60%
0.60% 0.55% 0.55% 0.50% 2008
2009
2010
2011
2012
2013
-15%
0
2014
2004
2005
2006
2007
2008
2009
Average MTPL premiums
Chart 21: Average MTPL claims costs — 2005–2014
2010
2011
2012
2013
2014
Growth rate
Chart 22: Number of MTPL claims — 2004–2014
€
6%
3 200
4% 3 000 2%
m 6%
18 17
4%
16 2%
15
2 800 0% 2 600
-2%
0%
14 13
-2%
12 2 400
-4%
2 200
-6% 2005
2006
2007
2008
2009
Average MTPL claims costs
2010
2011
Growth rate
2012
2013
2014
-4%
11 10
-6% 2004
2005
2006
2007
2008
MTPL claims
2009
2010
2011
2012
2013
2014
Growth rate
European Motor Insurance Markets Addendum 7
Chart 23: MTPL claims frequency — 2004–2014
Chart 24: Average MTPL premiums by country — 2012–2014 €
8.5%
480
8.0%
7.7%
420
403
388
7.4%
7.5% 7.6%
360
7.0%
7.0%
308
6.9%
300
7.2%
245
6.9%
6.5%
240
229
221
6.2%
185
5.9%
6.5%
184
160
180
143
6.0%
136 131
113
120
6.0%
105
101
94 67
5.5%
62
60
5.0% 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
2014
IT
CH
BE
DE
GR
NL
ES
Claims frequency
FR
FI
2012
Chart 25: Average MTPL premiums by country (PPP-adjusted) — 2012–2014
SI
HR
2013
PT
PL
TR
CZ
EE
HU
LV
2014
Chart 26: Average motor damage premiums by country — 2012–2014
€
€
450
594
600
551
400
500
350
442 371
400
300 250
370
338
324
310
324
296
300
261
200
243
233
216
211
200
150
191
129
100
100 50
0 EE
0 IT
BE
GR
CH
DE
HR
TR
ES
2012
NL
PL
2013
PT
FR
CZ
FI
HU
EE
LV
CH
AT
SK
FR
LV
CZ
TR
2012
NL
SE
2013
HU
PL
FI
DE
SI
HR
PT
2014
2014
Chart 28: Bodily injury claims frequency by country — 2009, 2013 and 2014
Chart 27: MTPL claims frequency by country — 2012–2014 10%
1.8% 1.6%
8%
1.4% 1.2%
6%
1.0% 0.8%
4%
0.6% 0.4%
2% 0.2% 0.0%
0% AT
PT
TR
GR
BE
DE
IT
PL
2012
EE
FR
2013
NL
NO
SK
SI
HR
SE
HU
CZ
IT
FI
Chart 29: Average MTPL claims costs by country — 2012–2014 €
SI
DE
SE
PT
FR
2009
2014
EE
2013
NL
FI
€ 6 000
5 000
5 000
4 000
4 000
3 000
3 000
2 000
2 000
1 000
1 000
0
2012
8 Insurance Europe
2013
2014
TR
Chart 30: Average MTPL claims costs by country (PPP-adjusted) — 2012–2014
6 000
0
NO
2014
2012
2013
2014
GR
HU
CZ
Chart 31: MTPL net risk premium by country — 2009, 2013 and 2014 € 350 300 250 200 150 100 50 0
2009
2013
2014
European Motor Insurance Markets Addendum 9
European Motor Insurance Markets and its addendum are available on the Insurance Europe website: www.insuranceeurope.eu.
© Insurance Europe aisbl Brussels, June 2016 For further information:
[email protected] All rights reserved Design: Insurance Europe
Insurance Europe’s “European Motor Insurance Markets Addendum, June 2016” is subject to copyright with all rights reserved. Reproduction in part is permitted if the source reference “European Motor Insurance Markets Addendum, Insurance Europe, June 2016” is indicated. Courtesy copies are appreciated. Reproduction, distribution, transmission or sale of this publication as a whole is prohibited without the prior authorisation of Insurance Europe. Although all the information used in this publication was taken carefully from reliable sources, Insurance Europe does not accept any responsibility for the accuracy or the comprehensiveness of the information given. The information provided is for information purposes only and in no event shall Insurance Europe be liable for any loss or damage arising from the use of this information.
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