Last Wednesday, March 3, an online Senior Management conference, 'Insurance Market Situation and Outlook in 2021', was organized.
The conference discussed the situation of the Spanish insurance market for the year 2021 in the most important lines of insurance in the market: Life, Health, Multi-risk, Automobile, Legal Defense and Travel Assistance. European regulations on sustainability and their effects on insurance companies were also discussed.
Other relevant issues were discussed at the conference, such as the 11% drop in Spain's GDP. However, the performance of the insurance sector was overall "very positive", especially in Non-Life insurance with a premium turnover of 36,652 million euros, an increase of 1.07% compared to 2019.
Health increased premium revenues by 5%.
The Health line was discussed and highlighted that 2020 has been "excellent", with a 5% increase in premium revenue, mainly due to the COVID-19 pandemic.
It was pointed out that for 2021, lower revenue growth, higher claims and the consolidation of telemedicine as a tool for the future are expected.
Low interest rates will mark Life and Risk Life
The situation and outlook for life insurance was discussed. He commented that the turnover of life insurance premiums fell slightly to 0.3%. As for Savings insurance and pension plans, the volume of resources managed reached 300 billion euros, a figure similar to that of previous years.
As key factors for 2021, he spoke of the maintenance of low interest rates, which will condition the growth of Savings insurance and the effects of the new mortality tables on Risk Life insurance. In his opinion, the growth of Life Insurance will come mainly from Life Risk Insurance and savings products.
Multirisk will depend on the recovery of normality and the elimination of restrictions.
He discussed the situation and outlook for multi-peril insurance. He commented that the growth of premiums in 2020 was 2.9%. He spoke of the effects of climate change with extreme weather events, increasingly frequent, affecting the loss ratio and also the changes resulting from the coronavirus pandemic, which have accelerated the digitization of processes.
the evolution of Multi-risk insurance will depend on the recovery of normality and the elimination of current restrictions by the COVID-19.Optimism was expressed about the future, which involves digitization, collaboration with insurtech and specialization.
Auto, Multi-risk, Cyber and Rentals
A long time was also devoted to discussing the situation and prospects of Legal Assistance and Travel Assistance insurance. Reference was made to the good situation of the Legal Assistance insurance and the strong impulse given to the branch by the Non-Payment of Rent insurance.
the future will be conditioned by the evolution of the Motor and Multi-risk branches, by the coverage of cyber risks and by the development of the rental market. Regarding Travel and Home Assistance insurance, he commented that a greater increase in claims is expected as mobility increases, stressing that the future lies in digitalization.
Fall in the number of automobile accidents
The situation and prospects of the Motor insurance business were discussed. He commented that the premiums for the branch in 2020 were €11.1 billion and that the loss ratio for the branch in 2020 was lower than in previous years as the confinement measures due to COVID-19 have reduced the mobility of vehicles. He referred to the effects of the increase in certain taxes, social changes due to the coronavirus, digitalization and lower mobility as possible risks for 2021.
Green" investments, top destination for European investments
SE explained the importance of sustainability for insurance companies, since it is a subject on which consumers and investors have placed their focus and which conditions their behavior. The financial and insurance sector must play an important role in this area. Green" investments will be the first destination for European investments since, as he pointed out, "sustainability currently presents many opportunities that insurance companies must take advantage of in order to grow".
The conference was coordinated by Isidre Martínez Ivars, member and Chairman of Training and Research of the ACC Board, and ended with answers to the interesting questions raised by the attendees on the subject.
News Source: Adn del Seguro 09/03/2021