European Insurance Overview 2024
Introduction
The Annual European Insurance Overview is published by EIOPA as an extension of its statistical services in order to provide an easy-to-use and accessible overview of the European (re)insurance sector. The report is based on annually reported Solvency II information. This ensures that the data has a high coverage in all countries and is reported in a consistent manner across the EEA.
The report is objective, factual and data driven and does not contain analysis or policy messages. All indicators used in the report are calculated from the reported data from undertakings. All distributions displayed are unweighted, treating all undertakings in all countries equally. While the topics and indicators covered is intended to be relatively stable over time, the report will be adapted to respond to changes in micro prudential and supervisory priorities. It will therefore support the supervisory community and industry with highly relevant and easily-accessible data at European level.
This report is based on Annual reporting for 2023 with year on year changes calculated between 2022 and 2023. The report is published with all data available for download in a separate excel file. Please note that some figures may represent only a subset of the full dataset to enhance clarity and readability.
Life Sector
- Life gross written premium increased in EEA between 2022 and 2023 by 1%, although trends varied across individual countries.
- The 10 biggest life premium writers in Germany account for less than 50% of the gross written premium, making it the least concentrated market by this metric.
- In the EEA, profit-participation business represents the largest segment of life gross written premiums, contributing to over one-third of the total life premiums.
Figure 1 Life concentration
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The concentration indicator is a measure of the market share of the national gross written premium (GWP) that the 3, 5 and 10 biggest life premium writers account for.
Figure 7 Location of underwriting per country
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The location of underwriting for any life business written by all undertaking and their EEA branches, including by freedom of establishment (FOE) and freedom to provide services (FPS), within the EEA.
Non-Life Sector
- Non-Life gross written premium increased in EEA between 2022 and 2023 by more than 6%, although trends varied across individual countries.
- In France, the top 10 premium writers account for less than 35% of the gross written premium, making it the least concentrated market by this metric.
- The two lines of business that contribute the largest share of gross written premiums in most countries are Fire and Other Damage to Property Insurance and Motor Vehicle Liability Insurance.
Figure 9 Non-life concentration
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The concentration indicator is a measure of the market share of the national gross written premium (GWP) that the 3, 5 and 10 biggest premium writers account for.
Figure 13 Combined ratio per country
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The Combined ratio is defined as the sum of claims and expenses divided by premiums earned. The chart shows interquartile range and median.
Figure 14 Claims ratio per country
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The Claims ratio is defined as the claims paid divided by premiums earned. The chart shows interquartile range and median.
Figure 15 Expense ratio per country
The expense ratio is defined as the expenses divided by premiums earned. The chart shows interquartile range and median.
Figure 17 Combined ratio per line of business
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The combined Ratio is defined as the sum of claims and expenses divided by premiums earned. The chart shows interquartile range and median.
Figure 19 Location of underwriting per country
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The location of underwriting for any non-life business written by all undertakings and their EEA branches, including freedom of establishment (FOE) and freedom to provide services (FPS), within the EEA.
Solvency and Capitalisation
- Eligible own funds to meet the Solvency Capital Requirement (SCR) consist of at least 80% Tier 1 – unrestricted capital in every country.
- The median Solvency Capital Requirement (SCR) ratio exceeds 150% in all countries.
- The median Minimum Capital Requirement (MCR) ratio is consistently above 300% in every country.
Figure 21 Solvency capital requirement (SCR) ratio, distribution by undertaking type
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This figure shows the solvency capital requirement (SCR) coverage ratios by company type. The charts shows interquartile range and median.
Figure 22 Solvency capital requirement (SCR) ratio, distribution per country
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This figure shows the solvency capital requirement (SCR) coverage ratios by country. The charts shows interquartile range and median.
Figure 23 Minimum capital requirement (MCR) ratio, distribution per country
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This figure shows the minimum capital requirement (MCR) coverage ratios by country. The charts shows interquartile range and median.
Figure 24 Basic solvency capital requirement (BSCR) composition - standard formula users
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The aggregated value of the solvency risk modules for standard formula undertakings by company type.
Figure 25 Basic solvency capital requirement (BSCR) composition by country
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The aggregated value of the solvency risk modules for standard formula undertakings by country.
Figure 26 Tiering of own funds - by undertaking type
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Shows the breakdown of eligible own funds (EOF) to meet the solvency capital requirement (SCR) into the tiers of own funds which it consists of. Aggregated by company type.
Figure 27 Tiering of own funds - by country
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Shows the breakdown of eligible own funds to meet the solvency capital requirement (SCR) into the tiers of own funds which it consists of. Aggregated by country.
Figure 28 Impact of loss absorbing capacity of deferred taxes, by undertaking type
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Loss absorbing capacity of deferred tax assets (LACDT) expressed as a percentage of the eligible own funds to meet the solvency capital requirement (SCR) by company type. The chart shows interquartile range and median.
Figure 29 Impact of loss absorbing capacity of deferred taxes (LACDT), by country
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Loss absorbing capacity of deferred tax assets (LACDT) expressed as a percentage of the eligible own funds to meet the solvency capital requirement (SCR) by country. The chart shows interquartile range and median.
Figure 32 Solvency capital requirement (SCR) ratio with & without transitionals, LTGs - all undertakings
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The solvency capital requirement (SCR) ratio calculated with & without the impact of transitionals and long term guarantees (LTG), respectively. Sample includes all undertakings irrespective of whether or not they use any of the measures.
Figure 33 Solvency capital requirement (SCR) ratio with & without transitionals, LTGs - undertakings using measures
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The solvency capital requirement (SCR) ratio calculated with & without the impact of transitionals and long term guarantee (LTG) measures, respectively. Sample includes undertakings who use at least one of the measures.
Figure 34 Impact of transitionals & LTG per country
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The impact of transitionals and impact of long term guarantee (LTG) measures are calculated as a percentage of the eligible own funds to meet the solvency capital requirement (SCR). Sample includes life undertakings who use at least one of the measures.
Investments
- Government bonds, corporate bonds, and collective investment undertakings (CIUs) together account for the majority of direct investments (excluding look-through).
- In recent years, France has consistently been the leading issuer country for investments in both government and corporate bonds.
- The United Sates are by far the most prominent non EEA exposure country for equity investments.
Figure 35 CIC category
Total portfolio
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Only direct investments without look-through approach are included. The complementary identification code (CIC) is a set of industry standard codes for identifying the specific type of financial instrument under Solvency II. For more detailed break down of the category “Other investments” please refer to the data-file.
Non unit linked portfolio
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Only direct investments without look-through approach are included. Data shows assets held neither in index- nor unit linked contracts. The complementary identification code (CIC) is a set of industry standard codes for identifying the specific type of financial instrument under Solvency II. For more detailed break down of the category “Other investments” please refer to the data-file.
Unit linked portfolio
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Only direct investments without look-through approach are included. Data shows assets held in index- and unit linked contracts. The complementary identification code (CIC) is a set of industry standard codes for identifying the specific type of financial instrument under Solvency II. For more detailed break down of the category “Other investments” please refer to the data-file.
Figure 36 Credit quality step
Total portfolio
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Credit quality step (CQS) reported for relevant assets (CIC: 1, 2, 5, 6). Allocation by country. standard formula users only. CQS is a standardised scale of credit quality with mappings to the credit ratings of the largest ratings agencies. CQS 0-3 correspond to investment grade assets with 4-6 being non-investment grade.
Non unit linked portfolio
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Credit quality step (CQS) reported for relevant assets (CIC: 1, 2, 5, 6). Data shows assets held neither in index- nor unit linked contracts. Allocation by country. standard formula users only. CQS is a standardised scale of credit quality with mappings to the credit ratings of the largest ratings agencies. CQS 0-3 correspond to investment grade assets with 4-6 being non-investment grade.
Unit linked portfolio
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Credit quality step (CQS) reported for relevant assets (CIC: 1, 2, 5, 6). Data shows assets held in index- and unit linked contracts. Allocation by country. standard formula users only. CQS is a standardised scale of credit quality with mappings to the credit ratings of the largest ratings agencies. CQS 0-3 correspond to investment grade assets with 4-6 being non-investment grade.
Figure 37 Issuer country of government bonds
Total portfolio
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The location of investment for all government bonds (i.e. CIC main category is equal to 1). Those figures don’t show government bonds held via other investment vehicles, i.e. no look-through. The category ‘Other’ includes non EEA countries not explicitly listed, as well as issuers such as supranational organizations and European Union institutions.
Non unit linked portfolio
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The location of investment for all government bonds (i.e. CIC main category is equal to 1) held neither in index- nor unit linked contracts. Those figures don’t show government bonds held via other investment vehicles, i.e. no look-through. The category ‘Other’ includes non EEA countries not explicitly listed, as well as issuers such as supranational organizations and European Union institutions.
Unit linked portfolio
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The location of investment for all government bonds (i.e. CIC main category is equal to 1) held in index- and unit linked contracts. Those figures don’t show government bonds held via other investment vehicles, i.e. no look-through. The category ‘Other’ includes non EEA countries not explicitly listed, as well as issuers such as supranational organizations and European Union institutions.
Figure 38 Issuer country of corporate bonds
Total portfolio
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The location of investment for all corporate bonds (i.e. CIC main category is equal to 2). Those figures don’t show corporate bonds held via other investment vehicles, i.e. no look-through. The category ‘Other’ includes non EEA countries not explicitly listed, as well as issuers such as supranational organizations and European Union institutions.
Non unit linked portfolio
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The location of investment for all corporate bonds (i.e. CIC main category is equal to 2) held neither in index- nor unit linked contracts. Those figures don’t show corporate bonds held via other investment vehicles, i.e. no look-through. The category ‘Other’ includes non EEA countries not explicitly listed, as well as issuers such as supranational organizations and European Union institutions.
Unit linked portfolio
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The location of investment for all corporate bonds (i.e. CIC main category is equal to 2) held in index- and unit linked contracts. Those figures don’t show corporate bonds held via other investment vehicles, i.e. no look-through. The category ‘Other’ includes non EEA countries not explicitly listed, as well as issuers such as supranational organizations and European Union institutions.
Figure 39 Issuer country of equity
Total portfolio
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The location of investment for all equity (i.e. CIC main category is equal to 3). Those figures don’t show equity held via other investment vehicles, i.e. no look-through. The category ‘Other’ includes non EEA countries not explicitly listed, as well as issuers such as supranational organizations and European Union institutions.
Non unit linked portfolio
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The location of investment for all equity (i.e. CIC main category is equal to 3) held neither in index- nor unit linked contracts. Those figures don’t show equity held via other investment vehicles, i.e. no look-through. The category ‘Other’ includes non EEA countries not explicitly listed, as well as issuers such as supranational organizations and European Union institutions.
Unit linked portfolio
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The location of investment for all equity (i.e. CIC main category is equal to 3) held in index- and unit linked contracts. Those figures don’t show equity held via other investment vehicles, i.e. no look-through. The category ‘Other’ includes non EEA countries not explicitly listed, as well as issuers such as supranational organizations and European Union institutions.
Figure 40 Use of derivatives
Total portfolio
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Derivative positions split by use of derivative. Notional amounts expressed as a percentage of total shown. Blank rows indicate no derivative positions reported.
Non unit linked portfolio
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Derivative positions split by use of derivative held neither in index- nor unit linked contracts. Notional amounts expressed as a percentage of total shown. Blank rows indicate no derivative positions reported.
Unit linked portfolio
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Derivative positions split by use of derivative held in index- and unit linked contracts. Notional amounts expressed as a percentage of total shown. Blank rows indicate no derivative positions reported.
Figure 41 Classification of investments into economic sectors per country (NACE sector)
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NACE codes are the standard European nomenclature of productive economic activities. For a detailed list of all NACE codes please refer to link. Percentages shown per country, i.e. all NACE-codes for one country sum up to 100%. Darker shades represent higher percentage values.
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Description of the NACE codes
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