INSURANCE IRELAND FACTFILE 2016 20 16
[Pages:31]FACT FILE
INSURANCE IRELAND FACTFILE 2016
INSURANCE IRELAND
Contents
3 About Us 4 About Factfile 5 Executive Summary 7 The Irish Insurance Market 11 Life Assurance and Pensions Market 18 Non-Life Insurance Market 27 International Market
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INSURANCE IRELAND
About Us
Insurance Ireland is the Voice of Insurance in Ireland and represents the Irish general insurance, health insurance, life assurance, reinsurance and captive management sectors. Insurance Ireland represents 130 companies providing insurance domestically in Ireland and internationally from Ireland. Total industry employment is approximately 28,000 people both directly and indirectly with one in four jobs in financial services being in insurance. Our members pay out more than 13 billion in claims and benefits to Irish customers annually and contribute over 1.6 billion in tax to the Irish exchequer each year. Insurance Ireland's mission is to represent and enable the development of the insurance sector for its customers, our members and the broader economy. Insurance Ireland's key functions include:
?? Enabling a healthy regulatory and competitive environment
?? Building our contribution to society and the economy ?? Enabling industry deliver best outcomes for customers ?? Representing members' interests to Government, state
agencies, regulatory bodies, public representatives, interest groups, the media and the general public ?? Representing the position of members at a European level, particularly via Insurance Europe, the European association for national representative bodies, and at a global level via the Global Federation of Insurance Associations (GFIA) ?? Developing Ireland as a hub for internationally traded insurance and reinsurance through promotional activity, advocacy, collaboration with state agencies and informing Government policy such as IFS2020
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INSURANCE IRELAND THE VOICE OF INSURANCE
INSURANCE IRELAND
About Factfile
Factfile 2016 is part of a series published by Insurance Ireland annually, providing the key facts and figures on the industry in Ireland. This is the twenty-fourth year of publication and the Insurance Ireland Factfile is now a well-established primary source of information on the domestic and international business of insurers based in Ireland. The data is collected from members of Insurance Ireland unless otherwise indicated. AXA is not included in the 2012 figures but is included in the 2013, 2014, 2015 and 2016 analysis.
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YEARS 24
IN PRODUCTION
INSURANCE IRELAND
Executive Summary
The Irish Insurance Market - A Comparative Overview
?? Gross insurance premium income for life and non-life insurance combined was 12,908.2m in 2016, compared to 13,439.1m in 2015 ? a decrease of 3.9%. Premium income as a percentage of GDP was 4.68%. Premiums per capita decreased from 2,922 in 2015 to 2,746 in 2016.
?? The capital values of assets in many investment areas increased in 2016. Assets comprising life policyholders' funds and non-life technical reserves stood at 115bn at the end of the year.
?? The insurance sector is a major employer in the Irish economy. Insurance Ireland life and non-life member companies employed over 15,000 people in Ireland as of the end of December 2016.
??
Life Assurance and Pensions Market
?? Insurance Ireland's life assurance members' aggregate domestic premium income was 9,656m for 2016, which is a decrease of 8.7% on the previous year (10,577m).
?? New annual premium (AP) business was 615m, up 13.3% from 543m in 2015.
?? A decrease of 13.5% was recorded for new single premium (SP) business in 2016 (6,535m).
?? New business Annual Premium Equivalent (AP sales + 10% of SP sales) fell 2.3% to 1,268m compared with 1,299m in 2015.
?? 8,745m in benefits and claims was paid by domestic life assurance companies during 2016, a decrease of 2.5% on 2015.
?? The total value of life assurance protection in force at the end of 2016 was estimated at 410bn, compared to 392bn at the end of 2015, which is an increase of 4.8%.
?? The aggregate value of policyholders' funds managed by Insurance Ireland's Life Members increased by 8.7% to 107,280m in 2016. The value of equity payments, which represented 56.5% of total policyholders' funds at the end of 2016, increased by 18% from 51,360m in 2015 to 60,599 in 2016.
?? The value of life insurance funds invested in gilts decreased by 3.7% to 26,877m. Gilts now represents 25.1% of life assurance investments, compared to 28.3% in 2015.
?? Cash holdings increased from 9.5% in 2015 to 9.7% in 2016, with a value of 10,413m.
?? Property assets increased from 4,401m in 2015 to 4,747m in 2016. This represents 4.4% of total life assurance investments.
??
Non-Life Insurance Market
?? Insurance Ireland's 18 domestic non-life members wrote gross premium of 3253m in 2016 (up 13.7% on 2015). Gross incurred claims costs were 2090m in 2016 (down 0.5% on 2015).
?? Motor insurance remains the largest class of non-life insurance with gross written premium of 1694m (52% of all non-life business). Property is the second largest class of non-life business (26%). Liability insurance accounts for 18% of non-life business and is the third largest class.
?? Net written premium (i.e., total premium after reinsurance costs have been deducted) was 2324m (up 25.1% on 2015). Net earned premium was 2169m in 2016 (up 18.6% on 2015).
?? The number of new claims notified to Insurance Ireland members was 357,409. 59% of new claims were motor claims while 17% were made on property insurance policies (household and commercial property).
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INSURANCE IRELAND
?? Net incurred claims costs amounted to 1642m (up 8.7% on 2015) leading to a net underwriting loss in 2016 of 94m compared with a net underwriting loss of 339m in 2015. After investment income is added, the market made a net operating profit of 16m in 2016 compared with a net operating loss of 216m in 2015.
International Life Assurance Market ?? The vast majority of international premium income is new
single premium income. In 2016, the figure for Insurance Ireland's International life members was 18,793m which is a decrease of 8.7% on last year's figure of 20,583m. ?? Annual premium income for 2016 was 1,994.9m. This is a 573% increase on the figure for 2015 of 296.4m. ?? Over the five-year period from 2012-2016, single premium business has grown from 6,657m in 2012 to 18,792.6m in 2016. Annual premium income also increased from 102m to 1,994.9m over the same period. ?? The top two countries for single premium business were Italy and the United Kingdom. ?? 98% of international single premium income is represented by unit linked single premium business (Class III). ?? Health Insurance Market ?? Insurance Ireland's four health insurance members write approximately 100% of health insurance in the Irish domestic market. Combined, Insurance Ireland members wrote gross premiums of 2,441m in 2016. Gross incurred claims in 2016 amounted to 2,090m while the number of new claims notified to Insurance Ireland health insurance members in 2016 was 2,103,900.
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INSURANCE IRELAND
The Irish Insurance Market
This chapter provides an overview of trends in the Irish insurance market, both from a recent historical perspective (2012-2016) and in an international context. In addition, data is provided which sets the insurance sector in the context of the wider economy in terms of Gross Domestic Product
(GDP), premiums per head of population and employment. The insurance data presented in this chapter is provided by Insurance Ireland domestic insurance members and does not represent international or health insurance members.
THE INSURANCE MARKET IN THE ECONOMY 2016 Premium Income - Life and Non-Life
Year
Life
Gross Premium Income (m)
9655.5
Premium Income: GDP (%)
3.50
Premiums per capita ()
2054
Investments* (m)
107280
* Policyholders' funds (life assurance) and Technical Reserves (non-life) at 31st December 2016
Non-Non Non Life 3252.7 1.18 692 7262
Total 12908.2
4.68 2746 114542
Gross insurance premium income for life and non-life insurance combined was 12,908.2m, compared to 13,439.1m in 2015 ? a decrease of 4%. Premium income as a percentage of GDP was 4.7%. Premiums per capita decreased from 2,922 in 2015 to 2,746 in 2016.
The capital values of assets in many investment areas increased in 2016. Assets comprising life policyholders' funds and non-life technical reserves was 114.5bn at the end of the year.
II Members' Gross Premium Income 2012-2016
Year 2012 2013 2014 2015 2016
Life m 8150.2 8739 8988.6 10577.1 9655.5
Non-Non Non Life m 2433.8 2573.6 2656.4 2862.0 3252.7
Total m 10584.0 11312.6 11645.0 13439.1 12908.2
Life gross premium income decreased from 8,150.2m in 2012 to 10,577.1m in 2015 and then decreased to 9,655.5m in 2016. Non-life gross written premium increased
from 2,433.8m in 2012 to 3,252.7m in 2016.
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INSURANCE IRELAND
Gross Premium Income and Domestic Product 2012-2016*
Year 2012 2013 2014 2015 2016
Gross Insurance Premium Income m 10584.0 11312.6 11645.0 13439.1 12908.2
GDP * m 175561 180298 194537 262037 275567
Premium Income:GDP % 6.0% 6.3% 6.0% 5.1% 4.7%
*Revised numbers referenced to 2015
Market combined life and non-life premium income Increased from 2012 to 2015 but has since decreased from 13,439m in 2015 to 12,908.2m in 2016. Premium income
as a percentage of GDP decreased to 4.7% in 2016.
Life & Non-Life premiums as a Percentage of GDP for Ireland 2012-2016
Year 2012 2013 2014 2015 2016
Life Premium as % of GDP 4.6 4.8 4.6 4.0 3.5
Non-Life Premium as % of GDP 1.4 1.4 1.4 1.1 1.2
Total w/out Intl % 6.0 6.3 6.0 5.1 4.7
Life premiums as a percentage of GDP Increased from 4.6% in 2012 to 4.8% in 2013 before falling to 3.5% in 2016. Nonlife premiums as a percentage of GDP fell from 1.4% in 2012
to 1.1% in 2015 before Increasing to 1.2% of GDP in 2016.
Year-End Value of Investments
2012 bn
Life
79.208
Non-life Total
5.696 84.904
2013 bn 82.309 6.462 88.771
2014 bn 89.217 6.343 95.560
2015 bn 98.712 5.911
104.623
2016 bn 107.280 7.262 114.542
% Change p.a. 7.9 6.3 7.8
The value of life policyholders' funds increased from 71.2bn in 2012 to 107.2bn in 2016, an average growth rate of 7.9% over the period. Non-life technical reserves Increased from 5.6bn in 2012 to 7.2bn in 2016, with an
average percentage change of 6.3% over the years.
The total value of life and non-life assets was 114.5bn in 2016.
Life Assurance Benefits and Claims Paid 2012-2016
Year 2012 2013 2014 2015 2016
Amount m 8996 8923 8292 8969 8745
8,745m was paid out by life assurance companies in benefits and claims in 2016. These payments and benefits cover a wide range of areas, including:
?? Income and payouts on investment policies for policyholders. ?? Payment of death benefits which protect family income. ?? Payment of annuity income to pension policy holders. ?? Repayment of mortgages in the event of death of a
policyholder. ?? Lump sum payouts to policyholders with serious illness
cover.
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