The Italian insurance market

2016 figures + 3M17 overview

Gross Written Premiums (GWP)


€134bn
-8.7%

Technical
reserves


€694bn
+7.1%

Underwriting
result


€6.9bn
+7.8%

General
expenses


€12.2bn
-1.6%

The Italian insurance market at a glance

Key messages

  • In 2016, the Italian insurance market GWP fell by 9% to €134bn, mainly driven by life business, which declined by 11% to €102bn (€115bn in 2015), albeit net inflows were positive (€39bn).
  • Underwriting results rose by 7.5% to €6.9bn led by the life business which represents 54% of underwriting result. This line improved in terms of investment profits (€16.7bn, +4.5% vs. 2015).
  • Investments (€741bn, +7.0% vs. 2015) generated net profits equal to €21.3bn with a 3.3% ROI (3.4% in 2015).
  • Although residual in terms of GWP, health insurance recorded a double digit growth (+10%) and can be considered the non-life rising star. The Italian market looks underpenetrated when compared to similar countries in Europe: in Italy private ‘out-of-pocket’ spend is 19% of medical treatment costs (vs. 9% in France).
  • The average Italian market Solvency II ratio was 221% (232% in 2015), of which life business was 210% and non-life 175%; Insurance companies of a bigger size (e.g. composite insurers) reported an average 230% ratio.
  • Over the next few years insurers will focus on the implementation of IFRS 17 that should guarantee comparability of statements across countries by 2021 (common reporting standards).

Contact us

Emanuele Grasso
Partner
Tel: +39 02 77 85 213
Email

Marco Falchero
Director
Tel: +39 02 77 85 951
Email

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