The Italian Insurance Market

(2015 figures + 3M16 overview)

  • In 2015, the Italian GWP rose by 2.5% to €147bn, representing 9% of the Italian GDP with a premium per capita of €2,423 (life: €1,895; non-Life €528);
  • The positive technical result in 2015 (€6,401m) which decreased by 0.4%, can be ascribed to non-life business for 63.3% (or €4.1bn) and life business for 36.7% (or €2.3bn);
  • 2015 non-life profitability is in linewith the previous year, despite a 2.4% decline in premiums; whilst life technical result declinedby 0.9% despite the matching increase in premiums of 4.0%, as it was offset by higher incurred claims (10.2%);
  • Insurance players continue to be highly dependent on bonds (89% of the total investment portfolio), though a switch to alternative investment funds is in course with the aim to improve investment results in the current low interest rate environment;
  • The adoption of Solvency II results in an overall estimated benefit for the whole insurance landscape;
  • The insurance sector is on the brink of a major disruption: 43% of industry players claim they have FinTechat the heart of their strategies, but only 28% have explored partnerships with FinTechcompanies and less than 14% have participated in ventures/incubator programs.

Total written premiums in 2015 rose by 2.5% to a total of €147bn (€143bn in 2014). Life premiums reached €115bn in 2015 (+4.0% from 2014). Italy is the third European life market by GWP, after UK and France. In the same period, non-life premiums fell by 2.4% to €32bn (€33bn in 2014). The Italian market remains dominated by traditional distribution channels, such as the bancassurancemodel in the life segment (70% of total GWP) and the agents network in non-life (81%).