Download italian insurance in figures

ITALIAN INSURANCE
IN FIGURES
Year 2016
ITALIAN INSURANCE IN FIGURES
Year 2016
Via di San Nicola da Tolentino 72
00187 Roma
T +39 06 326 881
Attuariato, Statistiche e Analisi Banche Dati
[email protected] www.ania.it
The Italian insurance industry gives a significant
contribution to the economy and to the society, offering
a wide range of services aiming at risk protection:
from motor liability to property protection insurance for
damage to property (house, industrial activities) or
damage caused to third parties (general liability), from
welfare products to life insurance covers.
By doing this, the insurance industry helps individuals,
families and companies to manage risks and to recoup
financial losses in the event of damage. Overall the
industry employs about 300 thousand people.
INDEX
THE INSURANCE INDUSTRY WORLDWIDE
3
NON-LIFE INSURANCE
5
LIFE INSURANCE
10
BALANCE SHEET
14
THE RESULT OF THE INSURANCE FINANCIAL YEAR
16
THE ITALIAN INSURANCE COMPANIES
AND THE HUMAN RESOURCES
17
HOW CUSTOMERS PURCHASE AN INSURANCE COVER
19
The figures published have been collected using balance sheets of national companies
and branches of foreign companies with registered offices in the European Economic
Area; for the year 2015 data are estimates and thus shall be considered provisional.
Figures indicating I.d.b. refer to the Italian direct business.
2
THE INSURANCE INDUSTRY WORLDWIDE
Italy ranks fourth in Europe and seventh in the world for premium collection,
with 3.6% of market share as in 2015.
Distribution of world premiums collected per country, year 2015
%
World premium collection: 4,098 € bn
U.S.A.
28.9%
Other countries
32.3%
Japan
9.9%
Italy
3.6%
Germany
4.7%
France
5.1%
China
8.5%
Great Britain
7.0%
Source: Swiss Re, Sigma n° 3/2016 - 2015 data
In 2015, Italy registered a ratio of premiums (non-life and life) to gross
domestic product (GDP) equal to 9.0% in line with 2014 (8.9%).
Non-life and life premiums to Gross Domestic Product, year 2015
%
10.8
Japan
10.0
Great Britain
9.5
France
9.0
Italy
7.3
U.S.A.
6.4
Germany
3.6
China
Source: Insurance Europe and Eurostat - 2015 for France, Italy and Germany; Swiss Re, Sigma
n° 3/2016 - 2015 data for China, Japan, U.S.A. and Great Britain.
3
The average premium per inhabitant (non-life and life) in Italy was equal to
2,434 euros, lower than the one registered in the other main industrialized
countries but slightley higher than in Germany.
Premiums (non-life and life) per inhabitant, year 2015
€
4,420
Great Britain
3,686
U.S.A.
3,199
Japan
3,134
France
2,434
Italy
Source: Swiss Re, Sigma n° 3/2016 - 2015 data
2,353
Germany
253
China
The ratio of technical reserves to GDP placed Italy fourth among the main
European countries.
Life reserves to Gross Domestic Product, European comparison,
year 2015
%
93.7
Great Britain
71.1
France
45.1
The Netherlands
35.1
Italy
30.7
Germany
15.5
Spain
Source: Insurance Europe - 2015 data; 2014 data for the Netherlands and Germany, 2013 data for
Great Britain.
4
NON-LIFE INSURANCE
In 2015 non-life Italian direct business (I.d.b.) premiums were
equal to 32.0 billion (-2.4% compared to 2014):
direct
premiums
(€ bn)
Non-life classes
motor and marine liability
market
share
(%)
change
2015/2014**
(%)
14.2
44.4
accident and sickness
5.1
16.0
1.5
property*
5.0
15.7
-1.0
general T.P.L.
2.9
9.0
1.4
land vehicles
2.5
7.7
2.9
transport*
0.4
1.3
-4.1
credit and suretyship
0.4
1.3
-7.0
other non-life classes*
-6.5
1.5
4.6
8.3
32.0
100.0
-2.4
motor and marine liability
other non-life classes (excl. motor and marine liability)
0.8
3.9
16.2
83.8
-5.4
8.2
Total
4.7
100.0
5.8
TOTAL
EU branches***:
Italian non-life direct premiums per line of business, 2006-2015
€ bn
40
37.2
37.7
37.4
35
36.7
35.6
36.4
35.4
33.7
32.8
32.0
30
25
50%
48%
47%
46%
47%
49%
50%
48%
46%
44%
50%
52%
53%
54%
53%
51%
50%
52%
54%
56%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
20
15
10
5
0
motor and marine liability
other non-life classes (excluding motor ad marine liability)
I.d.b.
* Property includes fire and other property damage; transport includes railway rolling stock classes,
aircraft, ships and goods in transit; the other classes include financial loss, legal expenses and
assistance.
** Changes in percentage are calculated in homogeneous terms.
*** The figure refers only to branches of insurers with registered offices in the European Economic Area
that provide data to ANIA and that represent 95% of the total.
5
The ceded ratio in the non-life classes, defined as the incidence of
premiums ceded and retroceded in reinsurance on the total premiums
collected (direct and indirect), was equal to 8.3% in 2015, distributed as
follows:
Non-life ceded ratio (ceded and retroceded premiums/written
premiums), year 2015
%
13.3
8.3
2.1
other non-life classes
(excluding motor and marine liability)
motor and marine
liability
total
non-life classes
I.d.b.
In 2015, incurred claims cost, representing costs for settlements, were
equal to 20.0 billion, decreasing by 5.6% compared to 2014.
Non-life incurred claims cost, 2006-2015
€ bn
30
25
25.9
26.1
27.5
29.0
26.6
26.5
25.8
22.4
21.2
20
15
20.0
56%
56%
53%
52%
55%
56%
51%
52%
51%
52%
44%
44%
47%
48%
45%
44%
49%
48%
49%
48%
2006
2007
2008
2009
2010
2011
2012
2013
2014
motor and marine liability
other non-life classes (excluding motor ad marine liability)
2015
10
5
0
6
I.d.b.
Technical reserves (for claims and premiums), decreasing compared to
2014, were equal to 58.7 billion in 2015. About 27 billion were relative to the
motor and marine liability.
Non-life technical reserves*, 2006-2015
€ bn
75
65
63.6
65.0
65.1
65.2
62.6
63.3
63.6
53%
52%
49%
48%
48%
48%
47%
48%
51%
52%
52%
52%
2006
2007
61.4
60.1
58.7
47%
47%
47%
46%
53%
53%
53%
54%
2008
2009
2010
2011
2012
2013
2014
motor and marine liability
other non-life classes (excluding motor ad marine liability)
2015
55
45
35
25
15
5
I.d.b.
The combined ratio, an indicator that compares claims cost and operating
expenses to premiums, was equal to 89.4% in 2015 (90.1% in 2014); the
impact of the incurred claims cost on premiums (from 63.9% to 62.2%)
contributed to this result, whose advantages were partly nulled by the
increase of the impact of expenses on premiums (from 26.2% to 27.2%).
Non-life combined ratio (loss ratio + expense ratio), 2006-2015
%
103.7
94.0
94.7
98.7
23.3
24.4
24.5
24.7
70.7
70.3
74.2
2006
2007
2008
100.2
97.9
95.9
24.4
24.1
79.1
75.8
73.8
2009
2010
2011
loss ratio
90.1
90.1
89.4
24.0
25.0
26.2
27.2
71.9
65.0
63.9
62.2
2012
2013
2014
2015
expense ratio
* Technical reserves include both unearned premiums reserve and claims reserves.
I.d.b.
7
In 2015, the financial year’s loss ratio of the total non-life business improved
compared to 2014 (from 63.9% to 62.2%), even though in certain classes there
was an impairment of the indicator: in particular for motor and marine liability
(from 69.5% to 72.1%), for credit and suretyship (from 77.4% to 77.7%).
Loss ratio (claims cost/earned premiums) non-life classes
2014-2015
%
Average 2015: 62.2
Average 2014: 63.9
53.9
32.5
67.4
51.6
54.7
60.8
58.1
62.8
58.5
68.9
69.5 72.1
61.0
77.4 77.7
31.6
other
non-life
classes
accident
and
sickness
general
T.P.L.
property
land
vehicles
2014
2015
transport motor and credit and
marine
suretyship
liability
I.d.b.
The classes which recorded a lower expense ratio (operating
expenses/written premiums) were motor and marine liability (21.5%) and
transport (22.6%).
Expense ratio (operating expenses/written premiums) non-life
classes, 2014/2015
%
Average 2015: 27.2
Average 2014: 26.2
29.0 29.9
21.0 21.5
23.0 22.6
motor and
marine
liability
transport
land
vehicles
30.1 31.1
31.3 31.8
30.6 32.1
accident
and
sickness
general
T.P.L.
property
2014
8
2015
33.9 33.6
credit and
suretyship
37.4 37.8
other
non-life
classes
I.d.b.
The overall non-life technical result was positive for 3.6 billion; in
particular owing to the motor liability and marine liability class (1.4) and to
the accident and sickness class (0.8). The credit and suretyship results were
slightly negative (about -30 million).
Non-life insurance technical result breakdown, year 2015
€ bn
4.8
4.4
4.0
3.6
3.2
2.8
2.4
2.0
1.6
1.2
0.8
0.4
0.0
0.3
0.4
0.6
0.2
3.6
0.0
-0.0
0.8
1.4
motor and accident general
marine
and
T.P.L.
liability sickness
other
land
property* transport* credit and technical
non-life vehicles
suretyship result
classes*
I.d.b.
Considering both the technical and the non-technical results and also the taxes,
in 2015 the non-life industry registered a 1.9 billion profit (2.4 in 2014) which
determined a positive Return on Equity (ROE), equal to 7.9% (10.2 in 2014).
Non-life net results and ROE, 2006-2015
€ bn, %
14.6
11.6
2.4
2.8
-0.9
-0.2
2006
2007
2008
0.3
0.1
2009
10.2
3.1
0.6
2.1
2.4
2012
2013
2014
7.9
1.9
-1.0
-1.0
-4.6
-4.7
2010
2011
profit/loss (
9.7
bn)
2015
non-life ROE (%)
* Property includes fire and other property damage; transport includes railway rolling stock, aircraft,
marine and goods in transit; other classes include financial loss, legal expenses and assistance.
9
LIFE INSURANCE
In 2015, Italian life direct business (I.d.b.) premiums were equal to
114.9 billion (+4.0% compared to 2014):
direct
premiums
(€ bn)
Life classes
market
share
(%)
change
2015/2014**
(%)
class I - traditional
77.9
67.7
-5.7
class III - linked
31.8
27.7
45.8
class V - capitalization
3.5
3.1
-24.1
other life classes*
1.7
1.5
16.6
114.9
100.0
4.0
class III - linked
other life classes
3.3
0.5
88.0
12.0
25.8
4.7
Total
3.8
100.0
22.8
TOTAL
EU branches***:
The decrease in written premiums relative to Class I traditional policies (77.9
billion) was equal to -5.7% while Class III policies (linked) had a 45.8%
increase (for a business volume of 31.8 billion). Class V policies (capitalization)
collected 3.5 billion of premiums, decreasing by 24.1%.
Domestic direct life business premiums, 2006-2015
€ bn
120
110.5
100
90.1
81.1
80
12%
69.3
60
0
73.8
54.5
40%
69.7
28%
80%
79%
71%
34%
60%
52%
63%
86%
81%
81%
77%
2006
2007
2008
2009
2010
2011
2012
linked
2013
2014
2015
18%
20%
47%
traditional and capitalization
20%
85.1
17%
61.5
40
20
17%
114.9
other life classes*
I.d.b.
* Other classes include class IV – LTC and permanent health insurance and class VI – pension funds.
** Changes in percentage are calculated in homogeneous terms.
*** The figure refers only to branches of insurers with registered offices in the European Economic Area
that provide data to ANIA and that represent 65% of the total.
10
In 2015, incurred claims cost, including the amounts paid and the
changes in the provisions for amounts to be paid, were equal to 71.2 billion,
increasing by about 10% compared to 2014.
Life incurred claims cost, 2006-2015
€ bn
80
74.3
70
57.8
60
50
39%
57.2
35%
44%
40
30
20
75.0
74.0
66.8
65.5
64.6
31%
28%
68%
71%
74%
2013
2014
2015
31%
32%
37%
71.2
66.8
24%
39%
56%
61%
64%
60%
62%
68%
68%
2006
2007
2008
2009
2010
2011
2012
10
0
traditional and capitalization
linked
other life classes*
I.d.b.
In 2015, the technical provisions were equal to 568 billion, increasing by
10.3% compared to 2014. In 2015, the cover ratio was equal to 4.9 (4.7 in
2014).
Life technical provisions and cover ratio, 2006-2015
568
515
500
400
371
360
338
379
411
414
423
7
6
453
5
4
300
3
200
2
100
0
cover ratio
technical provisions ( bn)
600
1
2006
2007
2008
2009
2010
technical provisions
2011
2012
2013
cover ratio
2014
2015
0
I.d.b.
11
The net cash flow, defined as the difference between premiums and
incurred claims (amounts paid and changes in the provisions for amounts to
be paid) was particularly positive in 2015 and equal to 43.8 billion (it was
positive and equal to 45.9 billion in 2014).
Life net cash flow, 2006-2015
€ bn
23.9
45.9
43.8
2014
2015
23.3
18.3
11.6
-0.1
-5.3
2006
-12.9
2007
-11.0
2008
2009
2010
2011
2012
2013
I.d.b.
The life expense ratio (the ratio between operating expenses and written
premiums) was equal to 3.5% in 2015, in slight increase compared to 3.4%
in 2014.
Life expense ratio (operating expenses/written premiums),
2006-2015
%
7.6
7.4
6.6
5.0
2006
12
2007
2008
2009
4.8
2010
5.2
2011
4.8
2012
4.2
2013
3.4
3.5
2014
2015
I.d.b.
Overall, in 2015 the life sector recorded a positive technical account
result equal to 2.6 billion. The positive result of the traditional and
capitalisation policies was the main factor contributing to this positive result.
Life technical result breakdown, year 2015
€ bn
6.0
5.0
4.0
0.1
2.6
other life classes*
technical result
0.5
3.0
2.0
2.0
1.0
0.0
traditional and
capitalization
linked
I.d.b.
Considering the technical and non-technical account results and also the taxes,
in 2015 the life sector recorded a 3.8 billion profit (3.5 in 2014) determining a
ROE equal to 10.9% (it was equal to 10.1% in 2014).
Life net profit and ROE, 2006-2015
€ bn, %
17.3
15.2
11.3
10.6
2.7
2.5
3.8
5.1
1.1
0.3
-1.8
2007
10.9
3.1
3.5
3.8
2013
2014
2015
-2.6
-7.8
2006
10.1
9.8
2008
-8.8
2009
2010
profit/loss (€ bn)
2011
2012
life ROE (%)
* Other classes include class IV – LTC and permanent health insurance and class VI – pension funds.
13
BALANCE SHEET
In 2015, the shareholders’ funds were equal to 66.1 billion and increased
by 2.7%. They amounted to 9% of the total liabilities.
The overall technical provisions (direct and indirect, domestic and
foreign business) were equal to 647 billion, increasing by 9.4% compared to
2014; life provisions, accounting for 76.8% of total liabilities, increased by
10.9%, while non-life provisions (claims reserves and unearned premiums
reserves), accounting for 8.1%, decreased by about 3%.
The investments in the insurance sector were equal to 693 billion and
account for 90% of total assets.
% investment breakdown, year 2015
total investments (non-life and life): 693 € bn
%
other bonds
19.2
government bonds
44.0
investments
of linked and
pension funds
18.5
loans and
deposits
9.1
land and
buildings
1.0
shares
8.2
The main investment of the insurance sector is made up of government
bonds (over 300 billion, about 45%); over 90% of these (about 280 billion)
are Italian government bonds.
14
The investments in the life sector, in the last three years, were seven times as
many as the investments in the non-life sector.
Non-life and life investments, 2006-2015
€ bn
608.4
549.9
398.7
78.8
388.5
77.9
2006
410.8
437.3
451.3
483.9
358.2
78.7
76.5
2007
442.6
2008
74.4
2009
75.6
74.0
2010
2011
non-life
2012
84.3
79.7
79.0
2013
2014
2015
life
At the end of 2015, the insurance companies had a solvency margin
(Solvency I) of 47.5 billion; the margin owned compared to the minimum to
be owned (the so-called coverage ratio) was equal to 1.5 in the life sector and
2.8 in the non-life sector (2.7 in non-life and 1.6 in life in 2014). Overall, the
coverage ratio of the Italian insurance sector was equal to 1.8. Vice versa, if
we consider the new Solvency II regulatory regime, this ratio would turn out
to be slightly higher and equal to 2.3: 1.6 for non-life companies, 2.6 for life
companies and 2.3 for composite companies.
Solvency – coverage ratio, 2006-2015
%
3.3
2.9
2.7
2.0
2006
2.9
1.9
2007
2.0
1.7
2008
2009
2.8
2.7
2.6
1.9
2010
non-life
1.7
2011
life
2.0
2012
2.8
2.7
2.6
1.7
1.6
2013
2014
1.5
2015
15
THE RESULT OF THE INSURANCE
FINANCIAL YEAR
In 2015 the insurance sector recorded an overall profit (life and non-life)
equal to 5.7 billion (6 billion in 2014).
Breakdown of the result for the financial year of the insurance
sector, year 2015
€ bn
14.0
12.0
10.0
1.0
9.2
8.0
-2.1
5.7
6.0
-2.4
4.0
2.0
intermediate
operating result*
extraordinary
income
other income
taxes
result for the
financial year
Such result generated a ROE equal to 9.6% in 2015 (it was equal to 10.1%
in 2014).
Result for the financial year and ROE, 2006-2015
€ bn, %
11.4
12.5
11.5
9.7
10.1
9.6
5.8
5.2
6.0
5.7
2012
2013
2014
2015
8.5
5.2
5.3
3.9
-0.7
-1.4
-2.0
-3.7
-4.7
2006
2007
2008
2009
2010
profit/loss (
bn)
-7.1
2011
ROE (%)
* The intermediate operating result includes the technical result of the insurance business and the net
income from investments not related to the technical part of the balance.
16
THE ITALIAN INSURANCE COMPANIES
AND THE HUMAN RESOURCES
At the end of 2015, 220 insurance companies were operating in Italy, of
which 114 had registered offices in Italy and 106 were legal representations
of foreign companies (103 from EU member States). 67 companies operated
in the life sector (23 of which were representations) and 121 companies
operated in the non-life sector (63 of which were representations); 25
companies operated in both life and non-life sectors and 7 operated only in
reinsurance. At the end of 2015, 160 companies were ANIA members.
There were about 1,000 companies operating in Italy in freedom of
services, with registered offices in a EU member State.
Number of insurance companies operating in Italy, 2013-2015
233
222
220
102
100
106
131
122
114
2013
2014
2015
national companies
branches of foreign companies
As at 31 December 2015, there were 46,754 employees in the
insurance sector. This figure is the sum of:
- 41,536 units of administrative staff (including about 4,000
employees of bodies controlled by insurance companies which apply the
national insurance collective agreement, 2,323 units of call center staff
and 1,243 executives);
- 5,218 canvassers.
17
However, overall, the insurance sector employs approximately 300,000
people, including the sales network and product distribution staff.
In particular, according to the data coming from the Single Register of
Intermediaries, as at 31 December 2015, 252,602 units were enrolled in
the following sections:
Single Register of Intermediaries, 2013-2015
section
legal nature
2013
2014
2015
A (agents)
Natural person
Legal Person
26,331
9,611
25,533
9,515
25,011
9,405
B (broker)
Natural person
Legal Person
3,822
1,463
4,015
1,558
4,136
1,616
C (direct canvassers)
Natural person
8,563
7,252
6,121
653
642
611
D (banks, financial intermediaries, stock
brokerage companies and Poste Italiane
spa – Divisione servizi di bancoposta)
Legal Person
E (staff involved in mediation outside the
premises of the intermediary registered
in section A, B or D, for which they
conduct business, including their
employees and/or collaborators
Natural person
Legal Person
Attached list: (intermediaries having
residence of registered office in another
EEA member state)
Subject
TOTALE
Source: Ivass
180,706 183,488 185,582
12,350 12,232 12,206
8,022
251,521
7,833
7,914
252,068 252,602
At the end of 2015 the number of Italian intermediaries enrolled was 244,688
(244,235 at the end of 2014). The Single Register of Intermediaries also
includes a list concerning information on intermediaries – natural or legal
persons – having residence or registered office in other EU member States or
belonging to the European Economic Area allowed to take up insurance and
reinsurance mediation activity in Italy in freedom of services or freedom of
establishment. At the end of 2015, 7,914 EU intermediaries were enrolled in
this section of the Register (7,833 in 2014).
18
HOW CUSTOMERS PURCHASE
AN INSURANCE COVER
In 2015, 78.6% of non-life policies were sold by agents; however, ANIA
estimates that a considerable share, equal to 24.9% of premiums collected by
agents, is originated by brokers. Therefore, the agents’ market share would
drop to about 53.7%, while brokers would reach 33.3%. Bank branches are
growing (4.7%), stable internet sale (3.2%).
Non-life distribution channels, year 2015
%
agents
78.6
financial
advisers
0.2
brokers
8.4
bank branches
4.7
I.d.b.
direct sales
8.1
Breakdown of non-life collection per sales channel, year 2015
%
100
50
0
agents
brokers
motor and marine liability
direct
sales
financial
advisers
bank
branches
other non-life classes (excluding motor ad marine liability)
I.d.b.
19
In 2015, banks were still the main distribution channel for the life sector,
recording a further increase in their market share (from 62.4% in 2014 to
63.4% in 2015). The second sales channel was represented by financial
advisers who originated over 16% of the premiums written by the sector.
Agents ranked third with a stable market share equal to 12.8%; direct sales
(7.3%) and brokers (0.5%) were less used as distribution channels.
Life distribution channels, year 2015
%
bank branches
63.4
agents
12.8
financial
advisers
15.9
I.d.b.
brokers
0.5
direct sales
7.3
Breakdown of life collection per sales channel, year 2015
%
100
50
0
agents
brokers
traditional and capitalization
direct
sales
financial
advisers
linked
bank
branches
other life classes*
I.d.b.
* Other classes include class IV – LTC and permanent health insurance and class VI – pension funds.
20
ITALIAN INSURANCE
IN FIGURES
Year 2016
ITALIAN INSURANCE IN FIGURES
Year 2016
Via di San Nicola da Tolentino 72
00187 Roma
T +39 06 326 881
Attuariato, Statistiche e Analisi Banche Dati
[email protected] www.ania.it