The overall insurance coverage business in Spain is ready to develop at a CAGR of 5.3% from EUR45.7bn ($48.5bn) to EUR56.6bn ($60.4bn) in 2028, when it comes to GWP.
That is in line with GlobalData, which additionally predicts that common insurance coverage in Spain will develop by 5.6% in 2024 and 5.2% in 2025.
Development might be primarily backed by private accident and well being (PA&H), motor and property insurance coverage segments, which make up round 78.4% of complete common insurance coverage GWP in Spain.
Anurag Baliarsingh, insurance coverage analyst at GlobalData, defined: “The overall insurance coverage business in Spain continued its development pattern for the third consecutive yr and grew by 7% in 2023, its highest development over the past 5 years. The expansion was pushed by rising demand for personal medical insurance, prompted by insufficient public healthcare, a restoration in automobile gross sales, and growing investments in infrastructure.
“Nonetheless, with the Spanish financial system anticipated to develop at a slower tempo of 1.4% in 2024 and 1.6% in 2025, the overall insurance coverage business will witness slower development over the following two years.”
PA&H insurance coverage is the main line of enterprise within the Spanish common insurance coverage sector. It’s anticipated to have a 29.8% share of common insurance coverage GWP in 2024 and anticipated to develop by 5.3% in the identical yr. That is attributed to a rise in demand for personal medical insurance.
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By GlobalData
In accordance with the Spanish Union of Insurance coverage and Reinsurance Entities (UNESPA), round 2.3 million individuals opted for personal medical insurance in 2023.
In consequence, the proportion of the inhabitants choosing personal medical insurance elevated from 19.2% in 2022 to 30% in 2023. Elements akin to physician on demand and protection of psychological well being have performed a pivotal position within the demand of personal medical insurance. PA&H insurance coverage is anticipated to develop at a CAGR of 4.9% between 2024 and 2028.
Moreover, motor insurance coverage is the second largest line of enterprise, anticipated to account for 28.4% share of common insurance coverage GWP in 2024. Motor insurance coverage GWP is anticipated to develop by 5.2% in 2024, pushed by rising automobile gross sales.
In accordance with the Spanish Affiliation of Vehicle and Truck Producers (ANFAC), passenger automobile gross sales grew by 7.8% throughout January-April 2024 as in comparison with the identical interval over the earlier yr.
Baliarsingh added: “The overall insurance coverage business in Spain is anticipated to witness an upward development pattern from 2025 onwards, propelled by financial restoration and elevated demand of personal medical insurance. Rising prices on account of inflation will immediate insurers to reassess their danger publicity and enhance premium costs within the brief time period.”
